{"id":4731,"date":"2016-04-04T10:47:41","date_gmt":"2016-04-04T15:47:41","guid":{"rendered":"https:\/\/ability-fl-prod.internetbrands.com\/ability-law\/smallbusiness\/employment-law-and-human-resources\/how-to-handle-harassment-and-discrimination-complaints.html"},"modified":"2026-08-25T09:53:10","modified_gmt":"2026-08-25T14:53:10","slug":"how-to-handle-harassment-and-discrimination-complaints","status":"publish","type":"page","link":"https:\/\/www.findlaw.com\/smallbusiness\/employment-law-and-human-resources\/how-to-handle-harassment-and-discrimination-complaints.html","title":{"rendered":"A Small Business Owner&#8217;s Guide To Handling Workplace Discrimination and Harassment Claims"},"content":{"rendered":"\n<div class=\"fl-sectionWithSidebar fl-container fl-flex fl-flex-wrap fl-gap30  wp-container-core-columns-is-layout-9d6595d7 fl-sectionWithSidebar fl-container fl-flex fl-flex-wrap fl-gap30\">\n<div class=\"fl-section-main fl-page-articles fl-section-main fl-section-main-full-width\"><h1 class=\"fl-no-margin-top\">A Small Business Owner&#039;s Guide To Handling Workplace Discrimination and Harassment Claims<\/h1>\n\n<section class=\"fl-gutenberg-byline\">\n    <div class=\"fl-gutenberg-byline-content\">\n                    By <a href=\"https:\/\/www.findlaw.com\/company\/our-team\/catherine-hodder-esq\/\">Catherine Hodder, Esq.<\/a> | Legally reviewed by <a\n                href=\"https:\/\/www.findlaw.com\/company\/our-team\/laura-temme-esq\/\">Laura Temme, Esq.<\/a>\n                | Last updated\n        <time>\n                            August 25, 2026\n                    <\/time>\n    <\/div>\n\n            <div class=\"fl-gutenberg-byline-editorial-note fl-text-sm\">\n            <p>Editorial Note: We earn a commission from affiliate partner links on FindLaw. Commissions do not affect the editorial integrity of our legal content.<\/p>\n\n        <\/div>\n    \n    <details class=\"fl-gutenberg-byline-toggle fl-gutenberg-byline-legally-reviewed\">\n        <summary>\n            <i class=\"fl-gutenberg-byline-icon\" aria-hidden=\"true\"><\/i>\n            Legally Reviewed\n        <\/summary>\n\n        <div class=\"fl-gutenberg-byline-toggle-content\">\n            <p><em>This article has been written and reviewed for legal accuracy, clarity, and style by <a href=\"https:\/\/www.findlaw.com\/company\/our-team.html\">FindLaw\u2019s team of legal writers and attorneys<\/a> and in accordance with <a href=\"https:\/\/www.findlaw.com\/company\/company-history\/editorial-policy.html\">our editorial standards<\/a>.<\/em><\/p>\n\n        <\/div>\n    <\/details>\n\n    <details class=\"fl-gutenberg-byline-toggle fl-gutenberg-byline-fast-checked\">\n        <summary>\n            <i class=\"fl-gutenberg-byline-icon\" aria-hidden=\"true\"><\/i>\n            Fact-Checked\n        <\/summary>\n\n        <div class=\"fl-gutenberg-byline-toggle-content\">\n            <p><em>The last updated date refers to the last time this article was reviewed by FindLaw or one of our <a href=\"https:\/\/www.findlaw.com\/company\/our-team\/contributing-authors.html\">contributing authors<\/a>. We make every effort to keep our articles updated. For information regarding a specific legal issue affecting you, please <a href=\"https:\/\/lawyers.findlaw.com\/?fli=bylinelink\" target=\"_blank\" rel=\"noopener\">contact an attorney in your area<\/a>.<\/em><\/p>\n\n        <\/div>\n    <\/details>\n<\/section>\n\n\n<div class=\"fl-key-takeaways fl-mb30\" data-testid=\"fl-key-takeaways\">\n    <div class=\"fl-card-content\">\n        <div class=\"fl-card-body fl-card-bg-teal fl-flex fl-flex-column\">\n                            <h2 class=\"fl-card-title fl-h2 fl-no-margin\">Key Takeaways<\/h2>\n                        <p>When an employee reports workplace discrimination or harassment, an employer has a legal duty to act immediately. Failing to properly investigate can lead to serious legal consequences, lower employee morale, and costly lawsuits.<\/p>\n\n        <\/div>\n    <\/div>\n<\/div>\n\n<div class=\"fl-rich-text\">\n<div><p>This guide provides a step-by-step process for <span data-term-id=\"28895594\">small <\/span><span data-term-id=\"28895608\">business<\/span><span data-term-id=\"28895608\"> owners<\/span> to handle claims correctly, protect their business, and ensure a fair process for everyone involved. If you\u2019re currently dealing with a discrimination or <span data-term-id=\"28895610\">harassment claim<\/span>, consult with a <a href=\"https:\/\/lawyers.findlaw.com\/employment-law-employer\/?fli=dcta\" target=\"_blank\" rel=\"noopener\"><u>local employment law attorney<\/u><\/a> to learn more about your options. The <span data-term-id=\"28895634\">federal <\/span><a href=\"https:\/\/www.eeoc.gov\/employers\/small-business\" target=\"_blank\" rel=\"noopener\"><u><span data-term-id=\"28895596\">Equal Employment Opportunity Commission<\/span><\/u><\/a> (<span data-term-id=\"28895585\">EEOC<\/span>), the <span data-term-id=\"28895632\">government agency<\/span> that enforces <span data-term-id=\"28895646\">anti-discrimination laws<\/span>, also provides online resources for <span data-term-id=\"28895594\">small <\/span><span data-term-id=\"28895608\">business<\/span><span data-term-id=\"28895608\"> owners<\/span>.<\/p>\n<h2>How To Recognize Harassment and Discrimination<\/h2>\n<p>Harassment and discrimination often come up in the same conversations, but they\u2019re not the same thing. <span data-term-id=\"28895608\">Business owners<\/span> must understand the difference between these two related but distinct types of illegal conduct.<\/p>\n<p><a href=\"https:\/\/www.findlaw.com\/employment\/employment-discrimination\/overview-of-employment-and-anti-discrimination-laws.html\"><span data-term-id=\"28895612\">Employment discrimination<\/span><\/a> occurs when an employer makes an adverse <span data-term-id=\"28895642\">employment decision<\/span> (such as in hiring, firing, pay, or promotions) based on an employee&#8217;s protected characteristic. These characteristics include:<\/p>\n<ul>\n<li>Race\/ethnicity<\/li>\n<li>Gender or <span data-term-id=\"28895638\">sexual orientation<\/span><\/li>\n<li>Religion<\/li>\n<li><span data-term-id=\"28895604\">National origin<\/span><\/li>\n<li>Disability<\/li>\n<li>Age (40 and over)<\/li>\n<\/ul>\n<p><a href=\"https:\/\/www.findlaw.com\/employment\/employment-discrimination\/understanding-different-types-of-harassment.html\"><u>Harassment<\/u><\/a> is unwelcome conduct based on a protected characteristic that is so severe or pervasive it creates a <span data-term-id=\"28895630\">hostile <\/span><span data-term-id=\"28895600\">work environment<\/span>. Harassing behavior can include, but is not limited to:<\/p>\n<ul>\n<li>Teasing, taunting, or improper joking<\/li>\n<li>Offensive graffiti, pictures, or cartoons<\/li>\n<li>Racial or ethnic slurs<\/li>\n<li>Unwanted physical contact<\/li>\n<li><span data-term-id=\"28895592\">Sexual harassment<\/span>, such as demands for <span data-term-id=\"28895648\">sexual favors<\/span>, including <a href=\"https:\/\/dictionary.findlaw.com\/definition\/quid-pro-quo.html\" target=\"_blank\" rel=\"noopener\"><u>quid pro quo<\/u><\/a> propositions (e.g., demanding sex for a promotion)<\/li>\n<\/ul>\n<p>Employers must take any claims of harassment and\/or discrimination seriously.<\/p>\n<p>Having a clear, written\u00a0<a href=\"https:\/\/www.findlaw.com\/smallbusiness\/employment-law-and-human-resources\/sample-anti-discrimination-and-harassment-policies.html\"><span data-term-id=\"28895652\">complaint process<\/span>\u00a0in your <span data-term-id=\"28895620\">employee handbook<\/span><\/a> is your first line of defense. Beyond setting clear expectations and protecting employee morale, a proper investigation process can also provide a strong legal defense if a claim escalates to a lawsuit. An employer&#8217;s prompt and effective response is a key factor courts consider.<\/p>\n<h2>How To Respond to a Complaint: A Step-By-Step Guide<\/h2>\n<p>Employees must be able to <span data-term-id=\"28895662\">report harassment<\/span> and discrimination without fear of retaliation. Federal and <span data-term-id=\"28895624\">state laws<\/span> protect workers who file good-faith complaints. When you receive a complaint, follow these steps:<\/p>\n<h3>Step 1: Take Every Complaint Seriously<\/h3>\n<p>Treat every report with the seriousness it deserves, whether it&#8217;s a formal written complaint or an informal comment. Don\u2019t dismiss or ignore any <span data-term-id=\"28895628\">harassment complaints<\/span>. Make it clear to the employee that you appreciate them bringing the matter to your attention and that you will conduct a thorough investigation.<\/p>\n<h3>Step 2: Implement Interim Measures<\/h3>\n<p>As soon as you receive a complaint, take immediate steps to separate the involved parties and ensure no further potential harm can occur while the investigation is pending. These measures must be non-punitive. For example:<\/p>\n<ul>\n<li>A temporary schedule change<\/li>\n<li>A temporary transfer to another department<\/li>\n<li>Placing an employee on <a href=\"https:\/\/www.findlaw.com\/employment\/wages-and-benefits\/administrative-leave-pending-investigation.html\">paid administrative leave<\/a><\/li>\n<\/ul>\n<p>This step protects the <span data-term-id=\"28895640\">complainant<\/span> and the integrity of your investigation.<\/p>\n<h3>Step 3: Begin the Investigation Promptly<\/h3>\n<p>A timely investigation is critical. Designate a neutral, impartial investigator, such as someone from <span data-term-id=\"28895598\">Human Resources<\/span> or an outside party. The investigation should include:<\/p>\n<ul>\n<li><strong>Interviewing the <span data-term-id=\"28895640\">complainant<\/span><\/strong>: Get the facts about what happened, when and where it occurred, who was involved, and if there were any witnesses. This shouldn\u2019t be conducted like an interrogation. Make sure the victim feels as safe and comfortable as possible.<\/li>\n<li><strong>Interviewing the accused<\/strong>: Inform the accused person of the allegations without revealing confidential information. Give them a full opportunity to respond to the specifics of the claim.<\/li>\n<li><strong>Interviewing witnesses<\/strong>: Speak with anyone who may have seen or heard the alleged conduct. Ask open-ended questions to gather facts, not opinions.<\/li>\n<\/ul>\n<p>Do your best to ensure the investigation is conducted fairly and evenly.<\/p>\n<h3>Step 4: Review Evidence and Make a Determination<\/h3>\n<p>After conducting interviews, review all the gathered evidence. This should include notes, emails, text messages, security footage, and other relevant documents. Based on the available evidence, determine what you believe most likely occurred.<\/p>\n<h3>Step 5: Take Appropriate Corrective Action<\/h3>\n<p>Your response will depend on the outcome of your investigation.<\/p>\n<ul>\n<li><strong>If the complaint appears to be valid<\/strong>: Your <span data-term-id=\"28895660\">disciplinary action<\/span> must be prompt and proportional to the severity of the offense. For minor, first-time issues, this might mean mandatory training or a formal warning. For severe or repeated behavior, it could mean suspension or termination of employment.<\/li>\n<li><strong>If the complaint is not substantiated (inconclusive)<\/strong>: It may not be possible to definitively prove or disprove the allegation. If this is the case, document your findings, reissue your anti-<span data-term-id=\"28895616\">harassment policy<\/span>\u00a0to the involved parties, and consider\u00a0broader workplace training.<\/li>\n<li><strong>If the complaint appears to be groundless or malicious<\/strong>: In rare cases where an investigation reveals a complaint was knowingly fabricated, you may take <span data-term-id=\"28895660\">disciplinary action<\/span> against the person who filed the false report. Proceed with caution and only with clear evidence.<\/li>\n<\/ul>\n<p>If you don\u2019t have in-house counsel, meeting with an <a href=\"https:\/\/lawyers.findlaw.com\/employment-law-employer?fli=dcta\" target=\"_blank\" rel=\"noopener\">employment law attorney<\/a> to confirm your decision and subsequent actions are legal is an excellent idea.<\/p>\n<h3>Step 6: Document Everything<\/h3>\n<p>Thorough documentation is your best defense. Keep detailed records of every step in the process: the initial complaint; your investigation plan; interview notes; evidence collected; your final determination; and the actions you took. Keep these records in a confidential, secure investigation file.<\/p>\n<h3>Step 7: Follow Up and Prevent Retaliation<\/h3>\n<p>After the investigation is complete, inform the <span data-term-id=\"28895640\">complainant<\/span> that you have concluded the investigation and taken appropriate action. You are not required to share the specific disciplinary details.<\/p>\n<p>Protect the <span data-term-id=\"28895640\">complainant<\/span> and all witnesses from <a href=\"https:\/\/www.findlaw.com\/smallbusiness\/employment-law-and-human-resources\/workplace-retaliation.html\"><u>retaliatory acts<\/u><\/a>. Monitor the <span data-term-id=\"28895600\">work environment<\/span> to ensure that no one is being punished or ostracized for participating in the investigation.<\/p>\n<h2>Get Legal Help To Handle a Harassment or Discrimination Claim<\/h2>\n<p>Harassment and <span data-term-id=\"28895602\">discrimination complaints<\/span> can upend your business. If you&#8217;re unsure how to manage a complaint, discuss your situation with an <a href=\"https:\/\/lawyers.findlaw.com\/employment-law-employer?fli=dcta\" target=\"_blank\" rel=\"noopener\"><u>employment law attorney<\/u><\/a>. They can provide personalized legal advice on how best to proceed and help ensure your investigation is compliant with the law.<\/p><\/div>\n<\/div>\n\n<div class=\"was-this-helpful\">\n    <div\n            class=\"was-this-helpful__question-container\"\n            aria-labelledby=\"was-this-helpful__question\"\n            role=\"group\"\n    >\n        <span\n                id=\"was-this-helpful__question\"\n                class=\"was-this-helpful__question fl-text-lg-bold\"\n        >Was this helpful?<\/span>\n        <button\n                class=\"was-this-helpful__button fl-text-sm\"\n                aria-label=\"Yes\"\n                value=\"yes\"\n        >\n            <span class=\"was-this-helpful__button-text fl-text-bold\">Yes<\/span>\n            <i class=\"was-this-helpful__button-icon\">\n                <svg width=\"22\" height=\"22\" viewBox=\"0 0 22 22\" fill=\"none\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\">\n                    <g id=\"thumbs-up\" 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