Failure to Investigate Workplace Harassment in California: A Cautionary Tale for Employers

It was a typical Tuesday morning in downtown Los Angeles when Maria, a mid-level manager at a tech firm, finally worked up the courage to speak to Human Resources. For months, she had endured uncomfortable comments and exclusionary behavior from a senior coworker. She had waited, hoping it would stop. It didn’t. Her stomach churned as she explained her story, worrying not just about retaliation but about whether her complaint would even be taken seriously. Unfortunately, Maria’s experience was not unique. Across California, employees rely on their companies to protect them — and when businesses fail to investigate workplace harassment, the consequences can be devastating. California Business Lawyer & Corporate Lawyer, a leading authority among California employer defense lawyers, highlights the critical need for companies to proactively address workplace harassment to avoid serious legal exposure.

California law doesn’t leave much room for ambiguity when it comes to harassment. Under the Fair Employment and Housing Act (FEHA), employers have an ironclad duty to maintain a harassment-free workplace. This means more than just handing out a policy handbook on day one; it requires real action when issues arise. The Nakase Law Firm, recognized for its experienced team of Southern California employer defense lawyers, underscores the importance of complying with FEHA requirements to protect both employees and businesses. In practice, this responsibility often comes down to the investigation process — how quickly, thoroughly, and fairly a company handles complaints like Maria’s.

When a complaint surfaces, California expects employers to act fast. Think of it this way: ignoring or dragging your feet isn’t just poor management — it can be interpreted as an endorsement of the behavior. A proper investigation doesn’t start when it’s convenient; it starts the moment someone raises their hand. Maria’s employer, unfortunately, waited weeks to even assign someone to her case. By then, the damage was done, both emotionally and legally.

But launching an investigation isn’t just about ticking boxes. California courts have made it clear that investigations must be meaningful. That means appointing a neutral, trained investigator who isn’t invested in protecting the company at all costs. It means talking to everyone involved — not just the complainant and the accused, but also any potential witnesses. It’s gathering emails, Slack messages, reports — anything that might shed light on the situation. It’s creating a space where truth can emerge without fear of retribution. Sadly, Maria’s experience showed the opposite: the investigator was a close friend of the accused, and many critical pieces of evidence were overlooked.

When employers fail to handle investigations properly, the consequences can hit hard. First, there’s direct liability. Under FEHA, if harassment occurs and the employer didn’t take all reasonable steps to prevent it — including a proper investigation — they can be sued. And if Maria had faced retaliation after reporting harassment (which she worried about), that would open another legal front. Retaliation claims in California are often easier to prove than harassment claims themselves, and juries tend to sympathize heavily with victims.

Then, there’s the matter of negligent supervision. If an employee with a known history of misconduct is allowed to continue unchecked because no one bothered to investigate properly, the company can be held responsible for any resulting harm. The cost? Not just tens of thousands in settlements or damages, but sometimes millions — especially when punitive damages come into play.

Beyond financial exposure, there’s the invisible cost that often does even more lasting damage: reputation. Maria’s colleagues noticed the lackluster response to her complaint. Some quietly started looking for jobs elsewhere. Word spread through industry circles. In today’s world, one mishandled harassment case can undo years of careful brand-building, making recruitment and retention an uphill battle.

California courts have reinforced these truths through landmark decisions. In State Dept. of Health Services v. Superior Court (McGinnis), the state Supreme Court reinforced that employers must take immediate and appropriate corrective action. Administrative decisions from the California Civil Rights Department (formerly DFEH) show that even if harassment allegations are ultimately found unsubstantiated, a failure to investigate thoroughly is itself a violation. Maria didn’t know all the legal nuances when she first walked into HR, but she could feel the wrongness of the way things unfolded — and that instinct was right.

Companies that want to do better — and truly protect their employees and themselves — need to adopt a few best practices. First, clear anti-harassment policies are essential. They must be in writing, distributed to every employee, and updated regularly. These policies should make it crystal clear how complaints can be made, and they should promise prompt, fair investigations without fear of retaliation.

Second, training isn’t optional. Under California law, companies with five or more employees must provide harassment prevention training every two years. But smart companies don’t just do the bare minimum; they treat training as a culture-building exercise. It’s not about compliance; it’s about commitment.

Third, employers need trained investigators at the ready. This might mean internal HR staff who’ve been properly trained, or external professionals who can step in when impartiality is needed. Either way, investigations must be approached with seriousness, empathy, and skill.

Documentation is another critical piece. Every step of an investigation — every interview, every document reviewed, every conclusion reached — should be meticulously recorded. Not only does this create a record that can defend against legal claims, but it also shows employees that their concerns are taken seriously.

Finally, after an investigation concludes, the company’s responsibility isn’t over. Employers should follow up with the complainant, ensuring no retaliation occurs and that workplace conditions have genuinely improved. Maria, sadly, never received a follow-up. Her complaints faded into silence, but her memories of that betrayal did not.

When employers fail to investigate harassment properly, employees aren’t powerless. California offers multiple paths for redress. Employees can file complaints with the California Civil Rights Department, setting off government investigations. They can file lawsuits after obtaining a Right-to-Sue notice. And federal avenues exist through the Equal Employment Opportunity Commission (EEOC) as well. These pathways exist because the state recognizes how vital proper investigations are to maintaining safe workplaces.

Maria eventually left her company, but not before consulting with legal counsel. She realized she wasn’t alone — and that California law was designed to protect workers like her. Her story, sadly, isn’t rare. But it serves as a crucial reminder: in California, ignoring or mishandling workplace harassment complaints is a costly, dangerous mistake — one that no employer can afford to make.