Affairs in small companies

[taxcurious]

What is the name of your state?Colorado

My husband works in a small privately owned company. One of the vice-presidents is having an affair with a woman who reports directly to this particular vice-president. We are concerned that somewhere down the road the affair could turn sour and the woman could sue this vice-president as well as the company for sexual harrassment. We are concerned that a lawsuit against the company would in turn affect the value of my husband's stock options as well as the viability of the company.

My husband wants to protect his investment somehow. He wants to point out to the president and owner of the company that the company is exposed to a lawsuit here. Which particular laws are in jeopardy of being violated here? Also, if the affair does not turn sour and other co-workers make the environment unpleasant for the woman because they perceive she is getting a better deal with the company because of the affair, then is the company again exposed to a lawsuit? If so, which particular laws would be violated in this scenario? In both instances, who could bring the suit, the woman herself or a state or federal agency? What are possible damages?

Please advise.

 

[Beth3]

My husband wants to protect his investment somehow. He wants to point out to the president and owner of the company that the company is exposed to a lawsuit here. Which particular laws are in jeopardy of being violated here? None. If the two of them are in a consensual sexual relationship, that's perfectly legal. If the thing goes sour (as they often do) and she decides to make a claim for sexual harassment, she can CLAIM a violation of Title VII. Whether she would prevail is anyone's guess.

Also, if the affair does not turn sour and other co-workers make the environment unpleasant for the woman because they perceive she is getting a better deal with the company because of the affair, then is the company again exposed to a lawsuit? No. Favoritisim is not against the law. It's bad for employee morale and retention though. If this woman wants to get ahead at the expense of others by boinking the VP, she's free to do so.

What your husband should do if he thinks this is appropriate is to talk to the CEO, explain that this affair has the potential to cause significant legal jeopardy to the organization, and suggest the CEO speak to an employment law attorney to explore the potential worst case scenarios if things get ugly and strategize about how what they may want to do in the short-term to minimize the risk. Want I can tell you is that a manager having an affair with a subordinate is ALWAYS extremely risky.

 

[BelizeBreeze]

If this woman wants to get ahead at the expense of others by boinking the VP, she's free to do so.

Hey Beth, I hear a new position is open for the FA Chairperson....and I have a clean desk

 

[Beth3]

Yeah, I knew saying "boinking" would get a response from some of you guys.

Just let me know what the Chairmanship pays.

 

[BelizeBreeze]

The pay is not much, but the fringe benefits are wonderful. A lifetime supply of 'Blue Boys' and free use of the Corporate Mail boy

P.S. Where would you like your mail delivered

 

[Beth3]

You are a naughty man.

 

[BelizeBreeze]

You are a naughty man.

awwwww shucks (toe in sand)