November 2019
The recent firing of McDonald’s Corporation CEO, Steve Easterbrook, demonstrates how even consensual relationships in the workplace can become a big problem when not addressed appropriately. Since announcing the leadership change earlier this month, McDonald’s Corporation has declined to comment about Mr. Easterbrook’s consensual relationship with an employee, including the employee’s position in the company, how the board found out about the relationship and how long it had lasted. The only explanation cited by the corporation is that Easterbrook violated company policy. McDonald’s Corp.—like many businesses—has a published “Standards of Business Conduct,” which prohibits employees with “a direct or indirect reporting relationship” from “dating or having a sexual relationship.” (See McDonald’s Standards of Business Conduct here.)
In the wake of the #MeToo era, many companies are taking a stricter approach to workplace relationships. The policies surrounding “nonfraternization” can vary, but tend to be less tolerant of higher-up infractions due to the influence those positions hold. For example, companies will often permit midlevel managers to have relationships with employees as long as they report the relationship. Often, companies will require that both parties engaged in the relationship come forward and go on the record about the consensual nature of the relationship. Executives engaged in relationships, however, tend to fall under greater scrutiny.
Generally, workplace romance disclosure policies provide a framework for the corporation to effectively manage any issues that may arise as a result of the relationship. These issues may include conflicts of interest, as well as the potential for harassment and retaliation if the relationship ends badly. By requiring that both parties come forward about the consensual nature of the relationship, the policy helps to head-off any claims about unwanted attention or harassment from the onset. The disclosure also gives neutral members of the company an opportunity to audit workflow processes and make any necessary adjustments to ensure there are no conflicts of interest in daily operations. Such conflicts could include peer reviews, expense approval, fringe benefit spending and management decisions concerning promotions or raises in compensation. The disclosure policy also helps to mitigate any risk of claims implicating the company for failing to have clear rules about workplace conduct.
Further, many policies require end-of-relationship disclosures. This means that as soon as one party no longer wishes to be in the relationship, they are obligated to report this to their supervisor or human resources manager to avoid any misconduct that could ensue if the other party attempts to abuse their position in the workplace or initiate future unwanted advances. Ultimately, this policy protects the corporation from being blindsided by any unknown misconduct because it prioritizes transparency.
For assistance in drafting your workplace fraternization policy, or to learn more about risk management surrounding workplace relationships, please reach out to Kerry Lavelle at klavelle@lavellelaw.com or 847-705-7555 to schedule an appointment.
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