Particle.news

Download on the App Store

Sixth Circuit Sets Intent Standard for Employer Liability Over Customer Harassment

The court replaced a negligence approach with a requirement to prove employer intent for customer‑harassment claims.

Image
Image

Overview

  • The ruling, issued August 8, is binding in Kentucky, Michigan, Ohio, and Tennessee and departs from EEOC guidance and most other circuits that apply a negligence standard.
  • Relying on the Supreme Court’s Loper Bright decision, the court treated EEOC interpretations of Title VII as non‑controlling in assessing liability for nonemployee conduct.
  • In the underlying case, the employer reassigned the customer account after the complaint, then later eliminated the salesperson’s role in a revenue‑based reduction in force.
  • The Sixth Circuit affirmed dismissal of retaliation claims, noting the termination decision‑maker had no knowledge of the employee’s prior complaint.
  • Employers face a higher liability threshold in the circuit, and commentators urge maintaining strong policies, training, and contractual safeguards, with possible petitions for rehearing or Supreme Court review noted.