When Your Workplace Becomes a Battleground: How Customer and Client Sexual Harassment Tests Your Employer’s Duty to Protect

Sexual harassment in the workplace doesn’t always come from coworkers or supervisors. In restaurants, retail stores, healthcare facilities, and countless other businesses, employees face unwanted sexual advances, inappropriate comments, and hostile behavior from customers and clients. When this happens, a critical question emerges: Is your employer legally responsible for protecting you from third-party harassment?

The answer is increasingly clear—yes, employers can be held liable when they fail to take appropriate action to protect their workers from sexual harassment by customers or clients.

The Legal Framework: When Employers Must Act

Courts have established that an employer may be found liable for the harassing conduct of its customers when the employer knows or should have known of the conduct and fails to take immediate and appropriate corrective action. This principle is reinforced by federal regulations, which state that an employer may be responsible for the acts of non-employees, with respect to sexual harassment of employees in the workplace, where the employer (or its agents or supervisory employees) knows or should have known of the conduct and fails to take immediate and appropriate corrective action.

Third-party sexual harassment is sexual harassment committed by someone other than an employee or supervisor at the company. While the conduct is not coworker harassment, employers still have a legal duty to prevent it. Common perpetrators include vendors, customers, clients, independent contractors, or another company outsider.

Real-World Examples and Recent Trends

The scope of this issue is significant and growing. For the 2023 fiscal year, the EEOC received 7,700 cases of sexual harassment, the highest number of sexual harassment cases in 12 years. Recent data shows that Acas received 803 calls from employees about sexual harassment in Q3 2024, representing a 59% rise compared to Q2 2024, while employer-side helpline calls about sexual harassment rose by 164% in the most recent quarter.

Consider the landmark case involving a Pizza Hut restaurant, where the federal appellate court affirmed the restaurant’s liability for sexual harassment when Ms. Lockard’s supervisor ordered her to continue serving sexually-aggressive customers, putting her in “an abusive and potentially dangerous situation, although he clearly had both the means and the authority to avoid doing so”.

For workers in customer-facing roles, this type of harassment is unfortunately common. In many cases, employees may feel pressure to let the harassment happen for fear of losing a sale, tips, or commissions. Employers must be wary of a “customer is always right” attitude and make it clear that they will not tolerate inappropriate or harassing behavior at their workplace.

What Constitutes Appropriate Employer Response?

Employers have a legal duty to take immediate and appropriate action to investigate the harassment allegations and prevent further harassment. If they fail in either regard, they can be held liable for sexual harassment. The specific measures required depend on the situation, but may include:

• Giving the victim the choice to change their assignment so they do not have to deal with a certain client
• Moving the victim’s workstation so they are not the one to receive deliveries
• Adding other personnel to a project to help support the victim
• Telling the problem customer or client to stop harassing the victim in accordance with the company’s anti-harassment policy
• Asking customers to stop the offensive behavior or leave your place of business

Employers must investigate the incident or incidents, document their findings, and take action to eliminate discrimination or harassment. If it is determined that your employer did not take appropriate action to stop the problem in light of the circumstances, they can be held liable for what occurred.

Your Rights as an Employee

Your employer has a duty to create a safe and secure workplace. Specifically, both state and federal laws require your employer to protect you from any form of workplace discrimination and harassment, including sexual harassment. According to Title VII of the Civil Rights Act of 1964, employers must maintain a harassment-free workplace. This includes protecting employees from harassment by non-employees. Employers are legally obligated to take action if a non-employee violates discrimination laws.

If you experience harassment from customers or clients, it’s crucial to report it formally. You need to report the incident per your employer’s policies and procedures for reporting workplace harassment. Ensure that the harassment is formally documented in the incident report. The only way your employer can be held responsible for protecting you from discriminatory behavior of a client or customer is if they know about it. Your employer is required to listen to your complaint and take it seriously. Despite the instinct to protect the relationship with the client or customer, your employer must determine if there is a problem and take action to stop the problem.

When to Seek Legal Help

If your employer fails to respond appropriately to reports of customer or client harassment, you may need professional legal assistance. If they do not address the allegation satisfactorily, you need to take the matter up with EEOC within 180 days from the date of the harassment.

For workers in Manhattan and throughout New York, experienced legal representation is essential when dealing with complex third-party harassment cases. If you’re facing sexual harassment from customers or clients and your employer has failed to protect you, consulting with a qualified sexual harrassment lawyer Manhattan, NY can help you understand your rights and options for seeking justice and compensation.

The Bottom Line

Employers cannot hide behind the excuse that they don’t control their customers’ behavior. If you know an employee is being harassed by a client or customer and you don’t take reasonable actions to protect your employee, you can be held liable for creating a hostile work environment. Workers deserve protection from harassment regardless of its source, and the law increasingly recognizes this fundamental right.

Sexual harassment at work can be demoralizing. If the harassment is perpetrated by a client, you need not keep quiet about it. Your safety and dignity at work matter, and legal remedies are available when employers fail in their duty to protect their workers from third-party harassment.