Why Employers Settle Sexual Harassment Claims

November 11th, 2011 by JBWK

With sexual harassment again revealing itself to be a hot political issue, CBS News explains why employers often settle sexual harassment claims, even those deemed meritless. The three biggies:

  1. Reputation damage to the company
  2. Legal costs of defending the case
  3. Indirect damage to the business’ bottom line (firing the harasser CEO)

The (correct) bottom line:

The truth is, the existence of a settlement does not tell you anything about what happened.  It just tells you that it was in the company’s best interest to settle


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