Court Revives Worker’s Sexual Harassment Case Against Employer After Disputed Transfer

If an employer fails to protect its workers from sexual harassment, especially by someone in the same workplace it may be held accountable under New Jersey law. That is the takeaway from a recent appellate decision that reinstated a certified alcohol and drug counselor’s lawsuit against her employer, Center for Family Services (CFS), after she alleged months of harassment by a male caseworker who worked in the same office.

bigstock-Sexual-Harassment-At-Workplace-365528596Although the counselor, Kristine Bodnar, worked inside a state agency’s office, the Appellate Division held that her actual employer, a nonprofit social services provider contracted to work with the state’s Division of Child Protection and Permanency (DCPP), still could be liable for failing to protect her.

What Happened in the Case?

Kristine Bodnar was employed by CFS and assigned to work on-site at DCPP’s Burlington east office. Ms. Bodnar alleges that Ian Palumbo, a DCPP employee who worked in the same shared workspace, repeatedly harassed her over the course of several months, sending her inappropriate text messages and making unwelcome sexual comments and advances. She also alleges that Mr. Palumbo touched her hair and back, stood too close to her, and made comments and jokes about her supposedly having a sexual relationship with one of her coworkers.

Eventually, Ms. Bodnar reported Mr. Palumbo’s harassment to both DCPP and her supervisors at CFS. DCPP substantiated her claims and suspended Mr. Palumbo for three days. But, rather than protect Ms. Bodnar or prevent further harm, the day after she reported the harassment to CFS, it transferred her to another location. Worse yet, CFS never gave Ms. Bodnar training for her new assignment. Ultimately, Ms. Bodnar left her job due to stress and anxiety.

The Trial Court Initially Dismissed the Case, but the Appellate Court Reinstated It

Ms. Bodnar sued both DCPP and CFS under the New Jersey Law Against Discrimination (NJLAD), alleging sexual harassment, retaliation, and constructive discharge. The trial court initially allowed the case to proceed. However, on reconsideration, it granted summary judgment in favor of both defendants, dismissing the claims.

In Stouch v. Department of Child Protection and Permanency, The Appellate Division affirmed the dismissal as to DCPP, agreeing it was not Ms. Bodnar’s employer and could not be treated as a “joint employer” under the NJLAD. However, the court reversed the dismissal of the claims against her employer, CFS, concluding that a jury should decide whether it violated its duty to prevent and respond to harassment and retaliation.

Why This Decision Matters

This ruling sends a clear message: employers should not be allowed to avoid responsibility for workplace harassment by pointing the finger at others.

Even though the alleged harasser was not a CFS employee, the appellate court emphasized that CFS had a duty to protect its worker from a hostile work environment, particularly in a shared workplace. A jury could find that CFS failed in that duty since it responded to Ms. Bodnar’s complaints by transferring her rather than seeking a solution such as working with DCPP to remove the harasser from her environment.

The court also said a jury should decide whether CFS retaliated against Ms. Bodnar for reporting the harassment, especially given the circumstances surrounding her transfer.

Key Takeaways for New Jersey Employees

If you are harassed at work, even by someone outside of your employer’s organization, your employer may still be liable if it fails to act. Additionally, your employer cannot retaliate against you for reporting sexual harassment. Involuntary transfer, demotion, or other sudden change in working conditions could support a retaliation claim.

Remember, you do not have to tolerate harassment just because you work at someone else’s job site or under a government contract. Your rights under the NJLAD still apply.

Speak with a New Jersey Workplace Harassment Lawyer

If you believe your employer failed to protect you from workplace harassment or retaliated against you for speaking up, call Rabner Baumgart Ben-Asher & Nirenberg, P.C. at (201) 777-2250. We can help you understand your rights under New Jersey law and fight to hold the responsible parties accountable.

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