When Harassment Complaints Go to Trial: Lessons From a Recent Federal Court Ruling

A recent decision from the U.S. 10th Circuit Court of Appeals serves as a powerful reminder to employers: How you respond to harassment complaints can have long-lasting consequences, even if a jury initially rules in your favor.

What Happened?

Two female restaurant servers sued their former employer, Remington of Montrose Golf Club, claiming they were sexually harassed by an assistant manager. They also said they were retaliated against after speaking up.

Initially, the company did take some action. It suspended and demoted the manager after the complaints. However, once the manager was allowed to return to work, he continued to harass the two servers by cutting one’s hours until she quit and shoving the other and refusing to help her during shifts that he shared with her.

Only one of the waitresses’ cases made it to trial. There, the jury did something odd—it said the employer did not harass or retaliate against her but then awarded her $125,000 in damages anyway.

That contradiction was a legal problem. Under the law, damages can only be awarded if the jury finds the employer did something wrong. So, the judge threw out the damages, and the case seemed to be over.

But on appeal, the 10th Circuit stepped in and said, essentially, this doesn’t make sense, and it awarded her a new trial.

Why It Matters

Here’s why this is important for employers and managers, especially in industries such as hospitality where team members often work long hours in close quarters and the lines between professional and personal can get blurry.

The appeals court made the following points clear:

• Employers must take complaints seriously.
• If you act, make sure it’s enough and consistent.
• Poor handling of complaints can come back to bite you later, even if you “win” in court.

In this case, the company did take action (imposing a five-day suspension), but the employees felt the punishment didn’t fit the seriousness of the situation. That perception matters, not just for morale, but for legal risk.

What Should Employers Do Differently?

Don’t stop at the bare minimum. If you find one of your employees has harassed a coworker, a short suspension may not be enough, especially if it forces the victim to keep working with them afterward. Ask yourself: Are we protecting our team, or just checking a box?

Document everything clearly. When you respond to a complaint, keep detailed records of what was said, what actions you took, and why. If a case goes to court, those records become your first line of defense.

Train your managers. This includes training on how to spot harassment, how to handle complaints, and how to avoid retaliation—whether direct or indirect.

Understand retaliation can be subtle. Cutting hours, ignoring concerns, or forcing someone to work with a harasser can all be seen as punishment—even if that wasn’t the intent.

Use legal resources early. Had the employer or court caught the jury’s confusing verdict earlier, the case might have been resolved without a retrial. Knowing what rights judges have (like sending a jury back to reconsider) can make a difference.

Bottom Line

This case shows that when it comes to harassment complaints, the way you respond matters just as much—if not more—than what actually happened. Courts are looking closely at whether employers are acting reasonably and fairly. Even a win at trial can be overturned if something seems off.

Being proactive, transparent, and thorough in your policies and practices is the best way to protect your team and your business.

Jacob M. Monty is a partner at Monty & Ramirez, LLP, in Houston, Texas, and can be reached at jmonty@montyramirezlaw.com.