- M. Lee Smith Publishers

<p><b>Q:</b> Should an employer try to keep personal relationships out of the workplace, and if so, how should it be done?</p>

<p><b>A:</b> I have often been asked to provide guidance regarding problems stemming from personal relationships in the workplace. It isn't unusual for a failed office romance to lead to a sexual harassment claim or for a discrimination claim to arise as a result of a personnel decision being made in favor of an employee engaged in a personal relationship with the decisionmaker. While a number of different questions have been posed, most employers want to know whether they can, or should, limit such relationships. The short answer to those questions is yes, but this is a sensitive issue that you need to carefully analyze.</p>

<p>This situation can arise in both large and small companies, and the manner in which it's addressed depends on the given situation. For instance, a small family business may need to handle the situation differently than a company with hundreds of employees. In general, your company should adopt a policy regarding personal relationships and fraternization. The policy should address the potential issue of favoritism that special relationships may imply. It should state that you're committed to maintaining a positive work environment for your employees and that while you don't want to intrude into their private lives, you recognize that there's a risk that a personal, romantic, or sexual relationship may disrupt the employee work environment and negatively affect other employees.</p>

<p>The best way to avoid potential problems or liability from personal relationships in the workplace is to prohibit such relationships. Your company can adopt nonfraternization or nepotism policies to prohibit dating between employees or to prohibit more than one family member from working for the company. Those policies, however, are sometimes harsh and, depending on the circumstances, may not be plausible.</p>

<p>If you don't want to completely prohibit such relationships, you should consider including in your policy language that they're "discouraged." The policy should state that if a personal relationship between two employees exists or develops, they should immediately report the relationship to the appropriate person in HR. The policy should further state that if the employees fail to report the relationship, they may be subject to discipline up to and including immediate discharge.</p>

<p>If you do permit such relationships, your policy should address the potential conflict of favoritism. You should specifically require that no employee initiate or participate in, either directly or indirectly, decisions involving a direct benefit (such s work assignments, performance appraisals, job classifications, hiring, or discipline) to members of the employee's immediate family, a domestic partner, a romantic or sexual partner, or a member of the same household.</p>

<p>After you're informed of a special relationship between employees, you should complete a thorough analysis of the situation and discuss it with them. Any actions you take should be consistent with the policies and procedures adopted by your company. You should determine whether reassignment is appropriate or if you should consider termination. Of course, you must take due care to avoid any implication of discrimination, and your actions should be based on the totality of the circumstances.</p>

<p>In summary, personal relationships in the employment context can create liability for an employer in a number of different ways. It's therefore important for your company to adopt a personal relationship and fraternization policy requiring employees to inform the company of such relationships. By doing so, you can hopefully minimize your potential liability.</p>

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<p>Copyright © 2006 M. Lee Smith Publishers LLC. This article is an excerpt from <a href="http://www.hrhero.com/scemp.shtml?HLh">SOUTH CAROLINA EMPLOYMENT LAW LETTER</a>. South Carolina Employment Law Letter is not intended to provide legal advice, which can be given only after consideration of the facts of a specific situation.</p>

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