Sixth Circuit Affirms Employer’s Affirmative Defense to Sexual Harassment Liability

Last month, the U.S. Court of Appeals for the Sixth Circuit affirmed that AutoZone was not vicariously liable for a store manager’s sexual harassment of his co-workers. The Sixth Circuit also held that AutoZone established an affirmative defense to the claim.

In EEOC v. AutoZone, Inc., it was alleged that AutoZone subjected female employees to sexual harassment because a male store manager made sexual advances toward Ms. Smith, a female employee. Pursuant to the handbook, employees who experienced harassment were directed to report it to management, human resources, or a toll-free phone line. Ms. Smith instead complained to a co-worker from another store and waited two and a half months before telling the district manager. The following day, the HR manager visited the store and the store manager was later fired.

The lower court held that AutoZone was not vicariously liable because the store manager was not a supervisor. The store manager could not fire, demote, or transfer any employees. The Sixth Circuit affirmed that AutoZone was not vicariously liable since it did not empower the store manager to take any tangible employment action against his victim.

The Sixth Circuit further held that, even if the store manager was a supervisor, AutoZone established an affirmative defense by meeting a two-prong test. First, the “employer exercised reasonable care to prevent and correct promptly any sexually harassing behavior” because AutoZone enforced a sexual harassment policy and fired the store manager once it learned of his behavior. Second, Ms. Smith “unreasonably failed to take advantage of any preventative or corrective opportunities provided by the employer” given her two and a half month delay in properly reporting the misconduct.

All employers should have a sexual harassment policy that includes reasonable reporting procedures. If you have questions, feel free to contact any FHKAD attorney at (614) 221-1216.