Action Insulation Co.’s owner and CEO subjected a female office manager to sexual harassment that escalated to physical assault, forcing her to resign, federal regulators alleged in a lawsuit filed this month.
The U.S. Equal Employment Opportunity Commission claims the Port Wentworth, Georgia insulation contractor violated Title VII of the Civil Rights Act of 1964 by allowing the company’s highest-ranking official to create a hostile work environment.
The CEO made unwanted sexual comments and jokes, showed the office manager lewd photographs, slapped her buttocks, pulled her hair and touched her inappropriately, according to the EEOC complaint filed in federal court.
Company failed to act on complaints
The office manager resisted the owner’s advances and complained twice to her supervisor about the harassment, but the company took no action to stop the conduct, the lawsuit alleges.
The harassment escalated to physical assault, leaving the employee with no choice but to resign from her position, according to the EEOC. The agency filed the lawsuit in U.S. District Court for the Southern District of Georgia after conciliation efforts failed.
“Federal law prohibits sexual harassment in the workplace,” said Marcus G. Keegan, regional attorney for the EEOC’s Atlanta District Office. “The EEOC will take action when a company allows its highest-ranking officials to continuously harass a female employee.”
CEO liability raises stakes
The case highlights particular challenges when sexual harassment involves company ownership or top executives. Courts have held that companies cannot escape liability when the harassing conduct comes from the highest levels of management.
Action Insulation specializes in insulation installation and asbestos abatement work. The company’s location in the construction industry, where women remain underrepresented, adds context to the EEOC’s enforcement action.
“Ensuring workplaces are free from sex discrimination and sexual harassment remains a top priority for the EEOC,” said Darrell Graham, district director of the EEOC’s Atlanta District Office. “Our agency will hold employers accountable if they allow this type of inexcusable conduct to occur.”
Constructive discharge claims
The lawsuit appears to involve constructive discharge, where working conditions become so intolerable that a reasonable person would feel compelled to resign. Courts treat constructive discharge the same as termination for legal purposes.
Employers face significant liability when harassment complaints go unaddressed, particularly involving physical contact and escalating behavior patterns. The failure to investigate or respond to complaints can result in punitive damages beyond compensatory awards.
