Most Companies Don't Tolerate GCs Who Sexually Harass, Experts Say
Alphabet Inc. CLO David Drummond may have saved his career after a consensual sexual relationship with a female subordinate when he was general counsel, but other GCs have found similar situations a "career-ending move."
October 29, 2018 at 06:36 PM
4 minute read
Alphabet Inc. CLO David Drummond may have saved his job after a consensual sexual relationship with a female subordinate when he was general counsel, but not all GCs are as fortunate.
Drummond was part of the revelations in last week's report from The New York Times that alleged that several high-ranking men at the company faced little or no consequences for inappropriate sexual relationships with women in their departments, some of which were consensual. Some of the men left Google with multimillion-dollar severance packages.
John Gilmore, co-founder of legal recruiter BarkerGilmore, said some other general counsel have not fared as well. “I know of one person let go because of an inappropriate relationship inside the company who was having trouble getting a new job,” Gilmore said. The problem didn't surprise Gilmore. “If a general counsel crosses that line, it's almost a career-ending move,” he said. “Good judgment is a big deal to companies.”
General counsel have resigned, either involuntarily or voluntarily.
In July, Wayne Levin, the former general counsel of California-based Lionsgate Entertainment Corp., was accused by a former in-house counsel of sexual harassment and misconduct in The Wall Street Journal report. Levin resigned last November amid the allegations, with a nine-page severance agreement, but he did not comment about the allegations in the media.
In another sign of the times, Gilmore said his recruiting firm is seeing a slight uptick in the number of companies seeking to hire a labor and employment in-house counsel with experience in implementing strong sexual harassment policies.
But weak policies and procedures are only part of the problem, according to some experts who also blame inequality in the workplace.
“It really doesn't matter if it's someone in the C-suite or someone in the maintenance department,” Minneapolis sexual harassment consultant Susan Strauss said. “You should be consistent in how you handle the issue.”
Different companies treat consensual in-house romances differently, she said. “But most companies I deal with say someone in a position of power should not be in a romantic relationship with someone of less power. You risk the possibility of a sexual harassment claim.”
And anyone in the C-suite, Strauss said, should not date anyone else in the company “because they [C-suite] have the power, no matter what.”
Law professor Rachel Arnow-Richman, of the University of Denver Sturm College of Law, said there are larger problems in the labor market and employment law regime that go beyond sexual harassment. She specifically cited the $90 million severance package paid to one of the Google executives.
Arnow-Richman, who teaches labor and employment law and is director of the school's Workplace Law Program, explained, “The country is focused right now on sexual impropriety, but there's a more fundamental problem in the workplaces and in a labor market where executives have multimillion-dollar severance packages and we have a [federal] $7.25 minimum wage at the other end.”
The baseline problem, she said, is that workers are vulnerable to harassment because they can be demoted or transferred or fired at will, while executives are protected by contracts with huge severance packages.
She said some solutions, short of changing the U.S. labor system, might include limits on executive pay, and especially on severance pay.
Another would be to write contracts that encourage better behavior, she said, with clear authority to terminate an executive for sexual harassment or misconduct.
This content has been archived. It is available through our partners, LexisNexis® and Bloomberg Law.
To view this content, please continue to their sites.
Not a Lexis Subscriber?
Subscribe Now
Not a Bloomberg Law Subscriber?
Subscribe Now
NOT FOR REPRINT
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
You Might Like
View AllEmployers Race to File NLRB Petitions to Gain Upper Hand in Union Organizing
5 minute readTractor Supply Co.'s Stock Takes Hit After Activists Bash Its Embrace of DEI
6 minute readCorporate Boards May Be Underestimating the Talent Challenges Ahead
Trending Stories
Who Got The Work
Michael G. Bongiorno, Andrew Scott Dulberg and Elizabeth E. Driscoll from Wilmer Cutler Pickering Hale and Dorr have stepped in to represent Symbotic Inc., an A.I.-enabled technology platform that focuses on increasing supply chain efficiency, and other defendants in a pending shareholder derivative lawsuit. The case, filed Oct. 2 in Massachusetts District Court by the Brown Law Firm on behalf of Stephen Austen, accuses certain officers and directors of misleading investors in regard to Symbotic's potential for margin growth by failing to disclose that the company was not equipped to timely deploy its systems or manage expenses through project delays. The case, assigned to U.S. District Judge Nathaniel M. Gorton, is 1:24-cv-12522, Austen v. Cohen et al.
Who Got The Work
Edmund Polubinski and Marie Killmond of Davis Polk & Wardwell have entered appearances for data platform software development company MongoDB and other defendants in a pending shareholder derivative lawsuit. The action, filed Oct. 7 in New York Southern District Court by the Brown Law Firm, accuses the company's directors and/or officers of falsely expressing confidence in the company’s restructuring of its sales incentive plan and downplaying the severity of decreases in its upfront commitments. The case is 1:24-cv-07594, Roy v. Ittycheria et al.
Who Got The Work
Amy O. Bruchs and Kurt F. Ellison of Michael Best & Friedrich have entered appearances for Epic Systems Corp. in a pending employment discrimination lawsuit. The suit was filed Sept. 7 in Wisconsin Western District Court by Levine Eisberner LLC and Siri & Glimstad on behalf of a project manager who claims that he was wrongfully terminated after applying for a religious exemption to the defendant's COVID-19 vaccine mandate. The case, assigned to U.S. Magistrate Judge Anita Marie Boor, is 3:24-cv-00630, Secker, Nathan v. Epic Systems Corporation.
Who Got The Work
David X. Sullivan, Thomas J. Finn and Gregory A. Hall from McCarter & English have entered appearances for Sunrun Installation Services in a pending civil rights lawsuit. The complaint was filed Sept. 4 in Connecticut District Court by attorney Robert M. Berke on behalf of former employee George Edward Steins, who was arrested and charged with employing an unregistered home improvement salesperson. The complaint alleges that had Sunrun informed the Connecticut Department of Consumer Protection that the plaintiff's employment had ended in 2017 and that he no longer held Sunrun's home improvement contractor license, he would not have been hit with charges, which were dismissed in May 2024. The case, assigned to U.S. District Judge Jeffrey A. Meyer, is 3:24-cv-01423, Steins v. Sunrun, Inc. et al.
Who Got The Work
Greenberg Traurig shareholder Joshua L. Raskin has entered an appearance for boohoo.com UK Ltd. in a pending patent infringement lawsuit. The suit, filed Sept. 3 in Texas Eastern District Court by Rozier Hardt McDonough on behalf of Alto Dynamics, asserts five patents related to an online shopping platform. The case, assigned to U.S. District Judge Rodney Gilstrap, is 2:24-cv-00719, Alto Dynamics, LLC v. boohoo.com UK Limited.
Featured Firms
Law Offices of Gary Martin Hays & Associates, P.C.
(470) 294-1674
Law Offices of Mark E. Salomone
(857) 444-6468
Smith & Hassler
(713) 739-1250