EMPLOYER LIABILITY FOR UNREPORTED HARASSMENT: WHAT YOU NEED TO KNOW
Even if harassment isn’t reported directly, New Jersey employers can still face liability under the NJ Law Against Discrimination (NJLAD) if they “knew or should have known” about the behavior and failed to act.
Employers may be liable when supervisors overlook misconduct, fail to investigate rumors, or ignore behavior visible in the workplace. The New Jersey Supreme Court’s decision in Aguas v. State of New Jersey clarified that prevention efforts and effective complaint procedures are key to avoiding vicarious liability.
"IGNORING WARNING SIGNS CAN CREATELIABILITY EVEN WITHOUT A FORMAL COMPLAINT."
To reduce risk, employers should:
1. Document investigations and corrective actions promptly.
2. Maintain a clear and accessible anti-harassment policy.
3. Train managers to recognize and report issues proactively.
4. Encourage open communication and protect employees against retaliation.
A culture of accountability and early response demonstrates reasonable care and can protect
employers from major legal and reputational harm.
