The New, #MeToo World: How to Protect Your Company, and Your Officers and Directors, Against Losses Arising From Claims of Sexual Misconduct and Other Workplace Harassment

King & Spalding
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With the viral #MeToo movement spreading across the country in the last several months, new, high-profile claims of sexual harassment and other workplace sexual misconduct seem to be reported on almost a daily basis. Stories like the bombshell allegations against CBS executive Leslie Moonves, Hollywood mogul Harvey Weinstein, and television personality Matt Lauer have garnered the most attention. But all employers—no matter the size or industry—have potential exposure to claims by employees and other third parties arising out of sexual misconduct allegations. Indeed, according to a 2016 report by the U.S. Equal Employment Opportunity Commission (“2016 Report”), “anywhere from 25% to 85% of women report having experienced sexual harassment in the workplace.” The 2016 Report also suggests that official reports of sexual harassment may be stymied and not representative of the true issue, as approximately 75% of individuals who reported harassment face retaliation of some kind.

In many instances, claims alleging sexual harassment may allege wrongful conduct that has occurred for years. Thus, an increasing number of states are abolishing or lengthening the statutes of limitations applicable to sexual misconduct claims. As a result, with the rise of the #MeToo movement and increased awareness of the pervasiveness and differing forms of sexual harassment, companies may increasingly face claims alleging sexual harassment that occurred long ago.

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DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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