Recent headlines surrounding New York State prosecutors’ decision to reopen a criminal investigation into fraternity sexual assault allegations at Cornell University serve as a stark warning to institutions and businesses alike. In 2024, a then-student reported to the university that she had been sexually assaulted at a fraternity house after ingesting alcohol and drugs. While Cornell has stated that it previously investigated the allegations and took appropriate remedial action in response to the complaint, the story has recently returned to the news, including allegations that Cornell mishandled the university’s internal investigation and failed to properly discipline the alleged assailants. Although university Title IX proceedings such as these involve students rather than corporate employees, the public fallout demonstrates the importance of properly investigating and handling all allegations of harassment, including allegations of sexual harassment and abuse. Not surprisingly, such allegations can resurface years later – particularly when accompanied by claims that the initial investigation was incomplete or poorly handled – potentially causing severe legal, financial, and reputational fallout. As detailed in last month’s article, The Complaint Isn't Always the Problem: How Employers Can Avoid Creating Liability after an Employee Complains, how leadership responds to an initial grievance often dictates the organization’s ultimate legal exposure.
This reality was recently on display in the employment context by Beran v. VSL North Platte Court LLC, where a federal court upheld a $3 million verdict against an employer after supervisors dismissed an employee’s harassment reports as “workplace stress” instead of conducting a meaningful investigation. To actively prevent and defend against liability, employers should (1) recognize and respond to complaints including informal or verbal complaints, (2) conduct prompt, thorough, and neutral investigations, and (3) enforce appropriate corrective measures that genuinely remedy verified misconduct. Involving labor and employment counsel at the beginning of such process ensures that the investigative process remains objective, compliant, and defensible from day one.
