Sexual harassment is a top concern for many employers and has sparked new trainings and updated handbooks. But only a fraction of companies have implemented new tools to address complaints, and a quarter of employers have made no changes in the wake of the #MeToo movement, according to an annual Littler Mendelson workplace survey.

The 2018 Littler Annual Employer Survey, with responses from more than 1,000 in-house counsel, human resources and C-suite executives, said company leaders are paying attention to the headline-grabbing sexual harassment allegations and associated employee firings and corporate apologies.

The survey also found employers are concerned about pay equity issues, whistleblowing and data protection. Companies are also closely watching how the Trump administration moves on the regulatory front, but more immediate compliance issues are coming from the growing web of state and local laws.

The majority of the respondents, 66 percent, ranked sexual harassment as a top issue on their radar. More than half, 55 percent, said they added training for supervisors and employees, and 38 percent have updated human resource policies or handbooks. Yet, only 13 percent have implemented new tools or investigation procedures to manage employee complaints and 24 percent have made no changes, the survey found.

“Sexual harassment in the workplace is not new,” said Helene Wasserman, co-chair of Littler's litigation and trials practice group. “What's interesting is that employers are worried because it's becoming so high-profile, especially with the media reports. They don't want to be the next headline.”


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Wasserman said 13 percent was a low percentage for companies to have implemented new techniques for investigating complaints. Many high-profile scandals centered around policies that critics claimed enabled powerful men to continue to sexually harass women. Wasserman said she has been recommending that her clients hire third-party investigators to look into cases before moving forward.

Gender pay equity was also a top concern, also sparked by headlines about pervasive gaps in wages and promotion practices across industries. The survey found that 41 percent ranked the issue as high concern.

Companies reported taking action: Nearly 60 percent said they conducted audits of current pay practices and salary data and 34 percent said they revised hiring practices and no longer ask about previous salaries during the application process. Only 14 percent have modified compensation policies or taken steps to facilitate advancement of female and minority employees.

Pay and promotion practices at major companies have been targeted in class actions, which have gained traction. Class actions have been certified to move forward against Google Inc. and Goldman Sachs this year, which both targeted practices that courts found could exacerbate the pay gap between women and men.

Companies are paying closer attention to state and local employment regulations more than what's happening at the federal level, according to the survey. About 75 percent of the respondents said they faced challenges with local laws, thanks to “policy vacuums at the federal level.”

“Companies want certainty more than anything,” said Michael Lotito, co-chair of Littler's Workplace Policy Institute. “The vast majority of employers want to comply with the law and the continuous reversals of federal workplace policy, as well as the increasingly fragmented and sometimes contradictory rules at the state and local level, is an enormous distraction for them.”

Regulatory uncertainty, Lotito said, “means inability to plan, budget and anticipate, and it requires constantly retraining employees and reformulating employment policies.”

Lotito said 195 new state laws were enacted last year, and compliance can vary with the state, particularly in progressive cities such as New York, Los Angeles and San Francisco. These changes leave companies constantly updating their handbook policies, he said, and lobbyists vying for state and local change, given federal standstill.

A majority of respondents, 64 percent, agree or strongly agree that “the shifting sands of workplace policies and regulations strain their businesses.”

Survey respondents said uncertainty poses challenges for making fundamental decisions. “It is difficult to set long-standing, well-thought-out policies when the rules change quickly,” one respondent said.