Sexual Harassment
Understand third-party sexual harassment employer liability and how employers must act to protect staff. This guide explains customer harassment at work, vendor harassment workplace scenarios, client sexual harassment policy, manager playbooks for action within 48 hours, investigation templates, and enforcement options — practical steps to prevent or address third-party harassment creating a hostile work environment.
Estimated reading time: 19 minutes
Key Takeaways
Employers can be liable for third-party sexual harassment when they knew or should have known about the conduct and failed to take reasonable steps to stop it.
Liability turns on accessible reporting channels, prompt investigations, appropriate corrective action, and whether the conduct created a hostile work environment.
Customers, clients, vendors, and contractors can all commit unlawful harassment that triggers employer duties to protect employees.
Clear policies, vendor contract clauses, thorough documentation, and recurring training reduce legal risk and protect workers from harm.
Front-line managers must act within 24–48 hours: ensure safety, preserve evidence, escalate to HR, and implement interim protections.
Employees should document incidents, report promptly, and understand internal and external enforcement options, including charges with state agencies or the EEOC.
Table of Contents
Introduction
Quick Definitions and Glossary
When Third-Party Sexual Harassment Creates Employer Liability
Key Trigger Points for Liability
What Courts and Regulators Look At
Realistic Example Scenarios and Playbooks
Customer Harassment at Work
Vendor Harassment Workplace
Client Sexual Harassment Policy Relevance
Employer Duty to Respond to Third-Party Misconduct
Immediate Steps Within 24–48 Hours
Investigation Timeline Guidelines
Remedies Employers Can Take
Investigation Protocol
Assign a Neutral Investigator
Intake Form Fields
Evidence Preservation Checklist
Interview Guides
Investigative Standards
Report Structure
Confidentiality and Retaliation Protections
Documentation Templates and Retention
Third-Party Harassment Incident Report Template
Evidence Log Template
Retention Guidance
Creating and Implementing a Client Sexual Harassment Policy
Required Policy Elements
Sample Vendor and Contract Language
Implementation Plan
Training and Prevention Program
Training Audiences and Frequency
Core Modules and Learning Objectives
Training Formats and Resources
Metrics to Monitor Effectiveness
Recognizing Third-Party Harassment That Creates a Hostile Work Environment
Indicators of a Hostile Work Environment
How to Document and Prove HWE
How Documentation Ties to Legal Standards
Pursuing Claims and Remedies
Internal Reporting Flow for Employees
External Enforcement Options
Employer Remedies and Risk Mitigation
Practical Tools for Managers and Employees
Manager 10-Point Checklist
Employee Quick-Guide
Notice to Vendor or Client Template
Conclusion
FAQ
When is my employer liable for third-party harassment?
Should I report harassment by a customer if a manager says it is part of the job?
Can employers terminate vendor contracts for harassment?
How long do investigations usually take and what should I expect?
What should be in a client sexual harassment policy?
Introduction
Third-party sexual harassment employer liability arises when employees are harassed by people who are not company employees—such as customers, clients, vendors, contractors or delivery personnel—and the employer is held legally responsible for failing to prevent or promptly correct the conduct. This topic matters because it affects employee safety, productivity, and an employer’s legal and reputational risk.
Under federal and state laws, employers may face exposure if they knew or should have known about third-party misconduct and did not respond reasonably. Overviews explain how a business can be held responsible for harassment by outsiders and outline best-practice steps to prevent and correct it, including Swartz Legal’s summary of third-party harassment and Gibson Employment Law’s guide to employer responsibility.
This article breaks down definitions, legal standards, employer duties, policy drafting, documentation and investigation steps, and prevention strategies. We also provide playbooks for customer harassment at work, vendor harassment in the workplace, and client scenarios where power dynamics intensify risk. If you need a broader primer on sexual harassment protections, see our workplace sexual harassment guide.
Quick Definitions and Glossary
Third-party sexual harassment: Unwelcome sexual conduct (verbal, physical, visual or online) directed at an employee by any non-employee (customers, clients, vendors, contractors, delivery persons, visitors) that adversely affects the employee’s work environment or ability to perform duties. See explanations from HHJ Trial Attorneys and Employee Justice.
Employer liability: Legal responsibility of an employer where the employer knew or should have known of the harassment and failed to take adequate corrective action. Discussion appears in Sheppard Mullin’s analysis of EEOC standards and Swartz Legal’s overview.
Hostile work environment: A work environment made intimidating, hostile, or abusive by severe or pervasive conduct that unreasonably interferes with an employee’s job performance. See the severe-or-pervasive test summarized by Sheppard Mullin. For more on elements and examples, explore what counts as a hostile work environment.
When Third-Party Sexual Harassment Creates Employer Liability
In general, an employer may be liable for misconduct by non-employees if: (1) the employer knew or should have known about the harassment, and (2) failed to take reasonable steps to prevent or promptly correct it. Courts and the EEOC apply standards similar to co-worker harassment. See Sheppard Mullin’s discussion of Title VII and EEOC guidance and Gibson Employment Law’s summary.
“Knew or should have known” includes actual complaints, repeated reports that put management on notice, and constructive knowledge where incidents are obvious to supervisors. The duty to act is triggered even if the harasser is not on the payroll.
Reasonable care means employers must create accessible reporting channels, investigate promptly and fairly, and take corrective action proportionate to the misconduct. This is echoed across employer guidance and decisions interpreting Title VII. See Sheppard Mullin and Gibson Employment Law.
Third-party conduct can create a hostile work environment when it is severe or pervasive enough to alter working conditions. Frequency, severity, whether there were physical threats, and the degree of interference with job performance all matter. The severe-or-pervasive test is discussed in Sheppard Mullin’s analysis. For employees assessing next steps, see our guide on reporting a hostile work environment.
State laws vary and may impose additional protections or obligations, so employers should check local requirements and tailor policies accordingly. Overview articles emphasize jurisdictional differences and the importance of local counsel, including Steven Rubin Law’s third-party harassment summary and Gibson Employment Law.
Key Trigger Points for Liability
Manager awareness of misconduct, whether by direct report or frontline supervisors.
Multiple reports from the same department, shift, or location that are not escalated or addressed.
Obvious incidents witnessed by managers or captured on CCTV but left uncorrected.
Ongoing customer behavior known to staff and leadership that continues without intervention.
Inadequate reporting mechanisms or failure to inform employees how to report safely.
What Courts and Regulators Look At
Severity and frequency of the conduct, including any physical threats or touching.
Interference with job performance, absenteeism, or forced shift transfers.
Whether the employer had clear reporting channels and anti-retaliation protections.
Speed, thoroughness, and neutrality of the investigation.
Effectiveness of corrective action (e.g., did the behavior stop?).
Realistic Example Scenarios and Playbooks
Customer Harassment at Work
Scenario: A diner repeatedly makes sexually explicit comments to a server across multiple shifts. The server reports it to shift managers; management allows the diner to remain.
Employer risk: Liability is likely if management knew about the misconduct and failed to act. Restaurant and retail settings are common sites for this pattern, as explained in Swartz Legal’s overview and HHJ Trial Attorneys’ guidance.
Playbook:
Ensure the employee’s safety. Remove the server from contact with the harasser; offer an alternative assignment or break.
Document the complaint using the incident report template below.
Take immediate corrective action—ban the customer, refuse service, or escort them off premises; record exactly what was done and when.
Investigate promptly, communicate protections, and follow up on remedial measures. If the behavior recurs, escalate to stronger remedies.
For legal context and response strategies in customer-facing industries, see Gibson Employment Law’s analysis. Employees facing similar situations can explore how to sue for sexual harassment if internal processes fail.
Vendor Harassment Workplace
Scenario: A vendor’s technician makes sexual jokes to a receptionist and tries to touch her arm. The receptionist mentions it to a line manager but minimizes the situation.
Employer actions:
Immediately remove the vendor worker from contact pending investigation; ensure the employee feels safe.
Notify the vendor company and request a replacement technician and corrective discipline.
Use contract remedies: suspend vendor access, require remedial training or removal of the individual, and enforce policy compliance.
If the vendor refuses corrective action, escalate to termination of the vendor contract.
Vendor-focused remedies and best practices are discussed by HHJ Trial Attorneys and Steven Rubin Law. For broader legal options after harassment, see our overview of workplace harassment legal options.
Client Sexual Harassment Policy Relevance
Scenario: A major client repeatedly requests solo meetings with a junior consultant and makes sexual advances. The consultant fears complaining because of the account’s revenue importance.
Employer actions:
Enforce zero tolerance regardless of client value: reassign staff, require two-person meetings, and set written expectations with the client.
Document the conduct, the company’s responses, and any client communications about expectations.
If the client persists, terminate the engagement and record the decision rationale.
Client-related liability and prevention steps are detailed by Gibson Employment Law and Sheppard Mullin. If employee harm rises to a hostile environment, connect with a hostile work environment lawyer for guidance.
Employer Duty to Respond to Third-Party Misconduct
Employers have a legal and ethical duty to provide complaint channels, investigate promptly and impartially, and take corrective action proportionate to the harm. These duties are discussed in Swartz Legal’s overview and Sheppard Mullin’s analysis.
Reasonable care includes clear policies, manager training, interim protections, and monitoring to ensure the behavior stops. For practical comparisons across jurisdictions and process steps, see Gibson Employment Law and Steven Rubin Law.
Immediate Steps Within 24–48 Hours
Ensure safety and remove the employee from immediate harm; consider no-contact arrangements.
Ask for a written statement and record the incident using the incident report template.
Preserve evidence: surveillance footage, texts, emails, access logs.
Notify HR and escalate to a designated investigator.
Implement interim measures: escorts, shift changes, or reassignments without penalty.
Investigation Timeline Guidelines
Intake and preliminary fact-gathering within 24–48 hours.
Interviews and evidence review within 5–10 business days, absent complexity or criminal investigations.
Communicate interim and final outcomes to the complainant and relevant parties while respecting confidentiality.
Remedies Employers Can Take
Administrative: ban a customer, issue a no-trespass order, or restrict access.
Contractual: require vendor discipline, remove offending personnel, or terminate the contract.
Workplace: reassign or protect the employee, adjust schedules, and increase security presence.
Organizational: retrain staff, revise policies, and discipline supervisors who failed to act.
For a deeper dive on investigation rights and expectations, review employee rights during a workplace investigation.
Investigation Protocol
A consistent protocol protects employees and reduces legal risk. Many elements—from neutral investigators to evidence preservation—appear in EEOC-aligned best practices. See Sheppard Mullin’s EEOC guidance summary and Swartz Legal.
Assign a Neutral Investigator
Use trained HR investigators; for high-risk cases, consider outside counsel or a neutral senior leader.
Screen for conflicts of interest and ensure independence.
Intake Form Fields
Complainant name, position, and preferred contact method.
Date, time, and location of incident(s).
Names of alleged perpetrator(s) and whether they are a client/customer/vendor/contractor.
Detailed description of conduct (include verbatim quotes when possible).
Witness names and contact information.
Immediate safety concerns and requested remedies.
Evidence Preservation Checklist
Request CCTV footage immediately; note retention windows.
Collect screenshots of texts, emails, and chat messages.
Gather visitor logs, access badges, delivery tickets, and shift rosters.
Retain vendor contracts, service orders, and client communications.
File security incident reports and link them to the investigation file.
Interview Guides
Complainant: “Describe the incident in your words. When did it happen? Who witnessed it? How did it affect you at work?”
Witnesses: “What did you see or hear? Where were you? Did you report it? Have you observed prior incidents?”
Alleged third party: “Describe your version of events,” when feasible and safe to contact.
Investigative Standards
Keep interviews private, take careful notes, and offer note review for accuracy.
Avoid leading questions; maintain a neutral tone and consistent script.
Document each interview with a dated summary and attach exhibits to the file.
Report Structure
Executive summary and scope.
Chronology of events and contacts.
Evidence list with chain-of-custody notes.
Findings (sustained/not sustained/inconclusive) with rationale.
Recommended corrective actions and timeline.
Confidentiality and Retaliation Protections
Secure records; limit access to those with a need to know.
Explain anti-retaliation protections to all participants and provide instructions to report any retaliation.
Monitor for retaliation post-resolution and intervene immediately if it arises.
If your complaint is ignored or poorly handled, see how to report sexual harassment at work and protect your rights.
Documentation Templates and Retention
Thorough documentation anchors credibility and defenses. Courts and agencies often scrutinize whether an employer kept timely, detailed records of complaints, investigations, and corrective action. See HHJ Trial Attorneys’ discussion of documentation and Sheppard Mullin’s guidance.
Third-Party Harassment Incident Report Template
Header: “Third-Party Harassment Incident Report”
Date/Time Reported: [MM/DD/YYYY, HH:MM]
Employee Affected: [Name, Job Title]
Role/Location: [Department, Site, Shift]
Third-Party Identity: [Client/Customer/Vendor/Contractor + Company or Description]
Detailed Description (250–500 words): [What happened, exact words, gestures, physical contact, frequency, impact on work]
Witness List: [Names, roles, contact info]
Immediate Action Taken: [Safety measures, separation, security called, customer banned]
Evidence Attached: [CCTV request, screenshots, emails, logs]
Investigator Assigned: [Name, title]
Follow-Up Actions Scheduled: [Interviews, vendor notice, client meeting, training]
Example snippet: “On 05/02 at ~7:15 pm, a male customer at Table 12 repeatedly commented on my body and asked for my number. When I declined, he stated ‘I’ll be back next shift.’ Manager Smith was notified at 7:35 pm. I requested to switch sections due to fear of contact. Camera coverage includes the main dining aisle; security log notes the customer left at 7:50 pm.”
Evidence Log Template
Item: [CCTV segment / Text screenshot / Email thread / Security log]
Date Collected: [MM/DD/YYYY]
Collector: [Name/Title]
Storage Location: [Secure server path or evidence locker]
Chain-of-Custody Note: [Transfers, access dates, purpose]
Retention Guidance
Retain the complete investigation file for a meaningful period (often at least seven years) or as directed by counsel and policy. Jurisdiction-specific rules may affect retention windows; consult employment counsel for state requirements. Documentation is central to proving or defending a third-party harassment hostile work environment claim and to showing reasonable employer responses.
Creating and Implementing a Client Sexual Harassment Policy
Purpose statement (sample): “This policy prohibits sexual harassment by non-employees (clients, customers, vendors, contractors, visitors) and describes reporting, investigation, and corrective steps the company will take to protect employees.”
Policy drafting and best practices emphasize explicit coverage of non-employees, clear reporting channels, and real consequences for third parties. See Gibson Employment Law’s policy guidance and HHJ Trial Attorneys’ recommendations, as well as Sheppard Mullin’s EEOC-aligned standards.
Required Policy Elements
Scope: Explicitly covers clients, customers, vendors, contractors, and visitors.
Examples of prohibited conduct: Sexual comments, gestures, unwanted touching, requests for sexual favors, sexual images.
Reporting channels: Direct supervisor, HR, anonymous hotline, monitored email; include escalation to legal counsel for third-party matters.
Investigation and timelines: Intake within 48 hours, investigation milestones, communication of outcomes.
Interim measures: Safety escorts, schedule changes, remote work, temporary reassignment without penalty.
Remedies for third parties: Banning, access restriction, contract termination, and law enforcement referrals when warranted.
Anti-retaliation and confidentiality: Clear protections and avenues to report retaliation.
Vendor/contractor compliance clause: Alignment with policy and prompt removal of offenders.
Sample Vendor and Contract Language
“Vendor and its employees shall comply with Company’s anti‑harassment policies while on Company premises or interacting with Company employees. Vendor shall remove any worker alleged to have engaged in harassment pending Vendor’s investigation and shall notify Company of remedial actions. Material failure to comply may result in termination of the Agreement.”
Implementation Plan
Publish the policy in the employee handbook and vendor onboarding materials.
Require vendor and contractor sign-off during onboarding and renewals.
Post visible customer-facing signage summarizing zero tolerance for harassment.
Train all staff and managers on the policy and reporting procedures.
For employees seeking advocacy or representation, read our overview of workplace harassment legal representation.
Training and Prevention Program
Training makes prevention real by teaching staff how to recognize and respond to third-party harassment. EEOC-informed approaches emphasize practical scripts, clear reporting, and manager obligations. See Sheppard Mullin and Employee Justice.
Training Audiences and Frequency
All employees: Annual 30–60 minute refresher focused on recognizing customer harassment at work and reporting steps.
Managers/supervisors: 60–90 minutes every 6–12 months on recognition, documentation, interim measures, and escalation timelines.
Front-line staff (retail/hospitality/healthcare): Scenario-based modules during onboarding and quarterly refreshers.
Core Modules and Learning Objectives
Recognizing third-party harassment and red flags.
Responding in the moment: safe scripts to defuse situations; when to call security.
Reporting procedures, anonymous options, and anti-retaliation protections.
Manager responsibilities: documenting, preserving evidence, interim protections, and required timelines.
Vendor/client modules for account managers and procurement: contractual expectations and escalation protocols.
Training Formats and Resources
Role-plays, short videos, quick-reference cards for front-line staff.
Manager checklists, including 24–48 hour response steps.
Scenario quizzes to reinforce policy and de-escalation skills.
Metrics to Monitor Effectiveness
Completion rates and quiz scores.
Anonymous climate survey results.
Number of third-party complaints, time to resolution, and recurrence rates.
To better understand protections and remedies if prevention fails, see our guide on legal options for workplace harassment.
Recognizing Third-Party Harassment That Creates a Hostile Work Environment
Third-party conduct can create a hostile work environment when it is severe or pervasive enough to alter working conditions. Courts look at repetition, severity, whether there were threats or touching, and impacts on work performance. This framework is outlined in Sheppard Mullin and mirrored in employer-focused guides like Gibson Employment Law.
Indicators of a Hostile Work Environment
Repeated sexual comments, gestures, or propositions over time.
Severe single incidents involving threats or unwanted physical contact.
Work disruption: missed shifts, requested transfers, or reduced performance linked to harassment.
Physiological effects such as anxiety or fear affecting attendance or focus.
How to Document and Prove HWE
Use the incident report and evidence log templates to capture details and preserve proof.
Encourage contemporaneous notes describing impact on job duties, including specific dates.
Obtain witness statements and collect surveillance or communication evidence.
How Documentation Ties to Legal Standards
Pattern and severity evidence supports the severe-or-pervasive test.
Timely reports and manager knowledge establish “knew or should have known.”
Employer response records show whether reasonable corrective action was taken.
For a step-by-step legal roadmap, employees can also consult how to report a hostile work environment and pursue remedies.
Pursuing Claims and Remedies
Employees should know both internal and external routes to address third-party harassment. The law assesses employer response and whether remedies effectively stop the conduct. See HHJ Trial Attorneys’ explanation, Steven Rubin Law, and Ochoa Calderon.
Internal Reporting Flow for Employees
Report to a supervisor or HR, or use the anonymous hotline; submit an incident report.
HR acknowledges receipt in writing within 48 hours and outlines next steps.
Investigation begins per protocol; the complainant receives updates on interim protections and timelines.
Final report and resolution communicated, including remedies and a right to appeal where applicable.
External Enforcement Options
File a charge with a state fair employment agency or the EEOC. Deadlines vary by jurisdiction; confirm time limits and dual-filing options.
File criminal complaints for sexual assault or threats where applicable.
Pursue civil claims against third parties and/or the employer where legal standards for liability are met.
Guidance on claim processes and employer duties appears in Sheppard Mullin’s overview and HHJ Trial Attorneys’ resource. For litigation preparation, see our guide to filing a sexual harassment claim.
Employer Remedies and Risk Mitigation
Administrative: ban or restrict access; issue no-contact directives; adjust workflows to protect employees.
Contractual: require vendor discipline, training, or personnel changes; terminate noncompliant contracts.
Disciplinary: address supervisors who ignore reports; reinforce expectations through performance measures.
Systemic: conduct refresher training, audit policies, implement signage, and improve security and reporting tools.
Insurance and counsel: notify carriers when exposure is material and engage outside counsel for high-risk cases.
Practical Tools for Managers and Employees
Manager 10-Point Checklist
Safety first: separate the employee from the third party and address immediate risk.
Document: create the incident report and note all actions taken.
Preserve evidence: request CCTV and save communications.
Notify HR within 24 hours and escalate to the designated investigator.
Assign a neutral investigator for interviews and fact-finding.
Protect the complainant with interim measures and anti-retaliation reminders.
Interview witnesses promptly and obtain written statements.
Notify the vendor/client representative when third parties are involved; request corrective action.
Implement and track interim remedies and final corrective measures.
Follow up within 10 business days to confirm the behavior has stopped and the employee is safe.
Employee Quick-Guide
Safe script to use in the moment: “Please stop. Your comments are inappropriate. I’m asking you to leave me alone.”
Report and document: Submit an incident report, list witnesses, and save messages or receipts.
Ask for protections: Request schedule changes, no-contact directives, or escorts as needed.
Know your rights: You are protected from retaliation for reporting in good faith.
For broader harassment definitions and examples, you can also review our sexual harassment rights guide.
Notice to Vendor or Client Template
Subject: Immediate Action Required: Report of Harassment Involving Your Personnel
“We received a report that an employee of [Vendor/Client] engaged in conduct that violates our anti-harassment policies while interacting with our staff on [date]. Pending investigation, we require immediate removal of the identified individual from our premises and from contact with our employees. Please provide written confirmation of removal and any remedial steps within 48 hours. Continued access is contingent on compliance with our policy and corrective requirements, up to and including termination of our agreement for material noncompliance.”
Conclusion
Third-party sexual harassment employer liability hinges on notice and reasonable corrective action. Employers who treat customer, client, and vendor misconduct with the same seriousness as employee-on-employee harassment—and who invest in clear policies, training, documentation, and enforcement—significantly reduce risk and protect their workforce. Audit your policies and vendor contracts, tune your investigation protocols, train managers on 24–48 hour response steps, and consult counsel to align practices with state law. A safer workplace and stronger compliance posture go hand in hand.
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FAQ
When is my employer liable for third-party harassment?
Liability generally arises when the employer knew or should have known about the harassment and failed to take reasonable steps to prevent or correct it. This mirrors co-worker standards under Title VII and EEOC guidance. See Sheppard Mullin’s summary and Gibson Employment Law’s overview.
Should I report harassment by a customer if a manager says it is part of the job?
Yes. Harassment is never “part of the job.” Document what happened and report it through the company’s channels. Employers have a duty to act on third-party misconduct. See Swartz Legal and HHJ Trial Attorneys. If internal steps fail, learn how to sue for sexual harassment.
Can employers terminate vendor contracts for harassment?
Yes. Contracts should require vendor compliance with anti-harassment policies and allow removal of offending personnel or termination for noncompliance. See Gibson Employment Law and HHJ Trial Attorneys. Our sample clause above reflects common terms.
How long do investigations usually take and what should I expect?
Intake should occur within 24–48 hours, with interviews and evidence review generally within 5–10 business days absent complexity. Expect private interviews, evidence collection, interim protections, and a written outcome. See the timeline section above and learn more about rights during a workplace investigation.
What should be in a client sexual harassment policy?
Key elements include explicit coverage of clients/customers/vendors/contractors, examples of prohibited conduct, reporting channels, investigation timelines, interim protections, remedies such as banning or termination, anti-retaliation, and vendor compliance clauses. See Sheppard Mullin and Gibson Employment Law. For broader harassment context, see our sexual harassment guide.
