If a supervisor’s harassment includes the taking of a “tangible employment action” against the victim, the employer will have no defense to charges of unlawful harassment whatsoever. Ben is engaging in inappropriate behavior and he’s putting the organization at extreme risk for liability. In a case with similar facts, a court held the employer strictly liable for the harassment because tangible job actions were taken against the victim. In deciding whether a tangible job action has occurred, don’t only focus on obvious actions—such as a termination or demotion. Although direct economic harm is an important indicator of a tangible adverse employment action, if a supervisor’s conduct substantially decreases an employee’s earning potential and causes significant disruption in his or her working conditions, a tangible adverse employment action may be found.

Tangible employment action. The US Supreme Court has stated that a tangible employment action occurs when there is:

• a significant change in employment status—such as hiring, firing, failing to promote, or reassigning with significantly different responsibilities; or
• a decision causing a significant change in benefits—such as a significant reduction in pay or loss of health benefits.

A direct monetary loss is not necessary in order for conduct to constitute a tangible job action. Rather, the loss of significant job benefits or characteristics—such as the loss of resources necessary for an employee to do his or her job—may constitute a tangible job action.

Source: CCH HR How-to Harassment Prevention.