Recent Trends and Cases Shaping the Sexual Harassment Landscape

Recent lawsuits and settlements serve as a powerful reminder that sexual harassment prevention should remain at the top of every employer’s compliance agenda. The risks are no longer limited to overt misconduct as enforcement agencies are scrutinizing workplace culture, reporting systems, and managerial accountability more closely than ever.

Below is an overview of some current enforcement trends and cases illustrating where employers are facing the greatest exposure and what HR professionals and business owners should be doing now.

Quid Pro Quo Harassment

This enforcement action involved a Manhattan restaurant where a manager allegedly conditioned favorable work shifts and job treatment on a female employee’s “cooperation” with sexual advances. (U.S. Equal Employment Opportunity Commission (EEOC) v. KTG Hospitality, LLC (d/b/a “Wall Street Grill”, NYC)). The employer ultimately settled the case for $45,000 and agreed to policy revisions, staff training, and external HR oversight.

Quid pro quo harassment, when job benefits are tied to sexual conduct, is among the clearest forms of unlawful harassment under both federal and New York State law. In New York, an employer is often “strictly liable” for quid pro quo harassment committed by a Supervisor.

Employers should ensure that scheduling, promotion, and assignment decisions are based on legitimate business factors. Managers should be trained to be aware that any form of favoritism tied to personal relationships can constitute harassment.

Hostile Work Environment

A Long Island car dealership (Garden City Jeep Chrysler Dodge, LLC & VIP Auto Group of Long Island, Inc.) was recently sued by the EEOC after multiple female employees claimed that a Manager repeatedly touched them and made explicit comments. The EEOC alleges that Management and Human Resources were aware of the harassment but failed to stop it, which led to the creation of a hostile work environment.

When Supervisors know (or reasonably should know) about harassment and fail to act, the employer itself becomes liable. The employer can avoid liability only if it can prove that: 1) it reasonably tried to prevent and promptly correct the harassing behavior; and 2) the employee unreasonably failed to take advantage of any preventive or corrective opportunities provided by the employer. To reduce exposure to liability, be sure to train all supervisory personnel to report and address harassment immediately. A single ignored complaint can turn into a federal enforcement action or state investigation.

Race, Sex, and Disability-Based Harassment

A fast-food franchisee (R & G Endeavors, Inc., a Culver's franchisee in Cottage Grove, Minnesota) was accused of workplace misconduct, including race, sex, sexual orientation, and disability discrimination, and harassment of teenage employees and a worker with an intellectual disability. Despite multiple internal complaints, the employer failed to investigate or take appropriate corrective action. The employer ultimately agreed to pay $261,000 to resolve two federal lawsuits.

Harassment based on  race, color, religion, sex (including sexual orientation, transgender status, or pregnancy), national origin, older age (beginning at age 40), disability, or genetic information (including family medical history), and other factors, violates Title VII of the Civil Rights Act of 1964, the Age Discrimination in Employment Act of 1967, (ADEA), and/or the Americans with Disabilities Act of 1990, (ADA). The settlements highlight the serious legal risks associated with ignoring or inadequately addressing workplace harassment, particularly when it affects vulnerable workers such as teens, LGBTQ+ individuals, and people with disabilities.

Employers should review all harassment and discrimination policies to ensure reporting systems are accessible, investigations are timely, and Manager training addresses harassment, respectful communication, and appropriate handling of complaints.

Culture and Oversight Failures

In March 2025, the New York Attorney General reached a $750,000 settlement with Consolidated Edison, Inc. (“Con Ed”) following allegations of a pervasive pattern of workplace discrimination and harassment against women employees and employees of color. The company agreed to sweeping reforms, including independent monitoring, expanded training, and revamped reporting mechanisms.

The settlement highlights that large employers are being held accountable for workplace culture — not just individual incidents. Regulators now expect companies to demonstrate proactive oversight and measurable progress.

Assess whether your organization’s culture and reporting systems work equally well across all job sites, departments, and levels. Field environments and traditionally male-dominated industries warrant special attention.

Longer Filing Deadlines in New York

Effective February 15, 2024, New York State allows employees to file workplace discrimination and harassment claims with the Division of Human Rights up to three years after an incident, tripling the previous one-year limit. This three-year limit applies to all claims of unlawful discrimination, including employment, housing, and public accommodations claims.

The expanded statute of limitations significantly increases employers’ exposure window. To limit liability, employers should be sure to retain complaint, investigation, and training records for at least three years and review document retention policies to ensure consistency with this longer timeframe.

Key Takeaways for Employers

• Update policies – Ensure they clearly define harassment, include all protected categories, and prohibit retaliation.

• Train regularly – Provide interactive training for all staff and specialized sessions for Supervisors and document completion.

• Promote clear reporting – Offer multiple reporting options, including anonymous or third-party channels.

• Investigate promptly – Use impartial investigators, document findings, and communicate outcomes appropriately.

• Monitor for patterns – Watch for repeat complaints involving the same individuals or departments.

• Lead from the top – Leadership commitment and accountability set the tone for compliance.

Recent enforcement actions underscore that sexual harassment liability often arises not from a single incident but from inaction. Employers who fail to respond decisively when concerns are raised face significant financial, legal, and reputational consequences.

As chair of the Underberg & Kessler’s Labor & Employment practice group and partner in the Litigation and Municipal Law practice groups, Paul F. Keneally represents a wide variety of organizations, businesses, and individuals. He provides advice regarding labor law compliance, wage & hour matters, non-compete/non-solicit agreements, sexual harassment, all categories of discrimination and retaliation, family and medical leave, paid family leave, and more. He can be reached at pkeneally@underbergkessler.com or (585) 258-2882.

Reprinted with permission from The Daily Record and available as a PDF file here.