When is an employer liable for employee harassment?

• A. If the harasser is a supervisor and there is no demotion or termination
• B. If the employee unreasonably failed to complain
• C. If the employer knew or should have known but did nothing or took inappropriate corrective action
• D. If a tangible employment action took place

Answer: (C)

Main idea: Employers are liable for harassment when they knew about it (or should have known) and failed to act or handled it inappropriately. This duty to respond arises because workplaces must be safe, and once management is aware of harassment, they’re expected to investigate promptly and take effective corrective action to stop the conduct and prevent a recurrence.

Why this answer fits best: If the employer actually knows about the harassment and does nothing, or responds with an inappropriate remedy, they’ve allowed the problem to persist and can be held responsible for the misconduct. The focus here is on the employer’s failure to act after becoming aware, which creates liability not just in some cases but as a general standard for maintaining a safe work environment. This captures the accountability organizations have to respond to harassment.

Why the other ideas don’t fit as the best explanation: Harassment can lead to liability even without a formal demotion or termination if management knew and did not address it; the mere absence of a complaint from the employee isn’t what creates liability, and a tangible employment action by a supervisor is a separate scenario that triggers liability on different grounds. The core idea is the employer’s knowledge and inadequate response, which this option emphasizes.