How to Write a Sexual Harassment Policy for Your Employee Handbook

A sexual harassment policy is one of the most important sections of any employee handbook. Beyond the moral imperative, a well-drafted policy is a legal necessity. It helps establish an affirmative defense in harassment lawsuits, satisfies state-mandated policy requirements, and creates a clear framework for employees to report concerns. Here is how to write one that works. ## Why Every Employer Needs a Written Policy Under federal law, Title VII of the Civil Rights Act of 1964 prohibits sexual harassment as a form of sex discrimination. The Supreme Court's decisions in Faragher v. City of Boca Raton and Burlington Industries v. Ellerth established that employers can raise an affirmative defense to vicarious liability for supervisor harassment if they had a reasonable anti-harassment policy, the employer took reasonable steps to prevent and correct harassment, and the employee unreasonably failed to use the complaint procedures. Without a written policy, this defense is essentially unavailable. Beyond federal law, many states require employers to adopt written sexual harassment policies. States with explicit policy mandates include California, Connecticut, Delaware, Illinois, Maine, Massachusetts, New York, Vermont, and Washington, among others. Several cities, including New York City and Chicago, have additional requirements. ## Define Sexual Harassment Clearly Your policy should define sexual harassment in terms employees can understand. Include both legal categories: ### Quid Pro Quo Harassment This occurs when a supervisor or someone in authority conditions employment benefits — hiring, promotion, continued employment — on the employee's submission to unwelcome sexual conduct. A single incident can constitute quid pro quo harassment. ### Hostile Work Environment This occurs when unwelcome sexual conduct is severe or pervasive enough to create an intimidating, hostile, or abusive work environment. Examples include unwelcome sexual jokes, comments, or innuendo, displaying sexually explicit images or materials, unwanted physical contact or touching, sexual propositions or advances, sharing sexually explicit messages or images electronically, and leering or staring in a sexually suggestive manner. Note that some states, including Colorado under the POWR Act and California, have adopted standards that are lower than the federal "severe or pervasive" threshold. If you operate in those states, your policy should reflect the applicable standard. ## Cover All Relationships and Locations Your policy should make clear that it applies to all employees, managers, supervisors, and executives, to conduct that occurs in the workplace, at work-related events, during business travel, and through electronic communications email, messaging, social media, to harassment by third parties such as clients, vendors, and customers when the employer has the ability to address it, and to same-sex harassment, which is covered under Title VII and most state laws. ## Establish a Clear Reporting Process The reporting process is the backbone of your policy. It must be accessible, provide alternatives, and protect reporters from retaliation. ### Multiple Reporting Channels Employees must have options for reporting, especially if the harasser is their direct supervisor. Provide at least two reporting channels: direct supervisor for situations not involving the supervisor, HR department or designated HR representative, a senior leader or company officer, and an anonymous reporting hotline or online portal if available. ### No Requirement for Written Complaints Do not require employees to submit formal written complaints as the sole method of reporting. Verbal reports to any designated person should trigger an investigation. ### Encourage Reporting State clearly that the company encourages employees to report harassment as early as possible, that all reports will be taken seriously, and that prompt reporting helps the company address issues before they escalate. ## Anti-Retaliation Provision Your policy must include a strong anti-retaliation provision. Title VII and virtually all state anti-harassment laws prohibit retaliation against employees who report harassment, file complaints, or participate in investigations. Your policy should define what constitutes retaliation termination, demotion, reduced hours, reassignment to less favorable duties, exclusion from meetings or opportunities, state that retaliation will result in disciplinary action up to and including termination, and explain how employees can report retaliation if it occurs. ## Investigation Procedures Your policy should outline how the company will investigate complaints: 1. Prompt response — Investigations will begin promptly after a report is received. 2. Impartiality — The investigator will be someone who is not involved in the allegations and has no conflict of interest. 3. Confidentiality — The company will maintain confidentiality to the extent possible, but cannot guarantee complete confidentiality because the investigation may require disclosure to relevant parties. 4. Thorough fact-finding — The investigator will interview the complainant, the accused, and any witnesses, and review relevant documents or communications. 5. Documentation — All steps of the investigation will be documented and maintained in a confidential file. 6. Resolution — The company will take appropriate corrective action based on the findings, which may range from counseling to termination. 7. Follow-up — The company will follow up with the complainant to ensure the harassment has stopped and no retaliation has occurred. ## Consequences for Violations State clearly that employees who engage in sexual harassment or retaliation will face disciplinary action, up to and including termination. Avoid specifying a fixed progression of discipline verbal warning, written warning, etc. because the appropriate response depends on the severity of the conduct. ## Training Requirements Several states require sexual harassment prevention training for employees and supervisors. Even where not legally required, training is strongly recommended. Your policy should reference your training program, including who must participate all employees, supervisors, new hires, how often training occurs annually in many states, and whether the training is live, online, or a combination. States with specific training mandates include California all employers with 5+ employees, 1 hour for non-supervisors and 2 hours for supervisors every 2 years, New York all employers, annual training, Connecticut all employers with 3+ employees, 2 hours for supervisors, Illinois all employers, annual training, and Delaware employers with 50+ employees, interactive training every 2 years. ## State-Specific Considerations Beyond training mandates, state laws may impose additional requirements. New York requires employers to provide a copy of the policy at hire and annually. California requires policies to address harassment based on all protected categories, not just sex. Illinois requires a supplemental policy addressing harassment by nonemployees. Chicago requires a written policy addressing sexual harassment and bystander intervention training. Review your state's specific requirements and incorporate them into your policy. ## Frequently Asked Questions Can a single incident constitute sexual harassment? Yes. A single incident can constitute sexual harassment if it is sufficiently severe, such as a sexual assault or a quid pro quo demand by a supervisor. Does the policy need to cover harassment by customers or vendors? Yes. Employers have an obligation to address third-party harassment when they are aware of it and have the ability to take corrective action. Should we include a consensual relationship policy? Many companies do, particularly regarding relationships between supervisors and subordinates. A consensual relationship policy helps address conflicts of interest and reduces the risk of quid pro quo claims. ## Build a Policy That Protects Everyone A strong sexual harassment policy protects employees and protects your company. Rulewize generates sexual harassment policies tailored to your state's specific requirements — including mandatory training, reporting obligations, and notice provisions — so your handbook is compliant from day one.