A recent Seventh Circuit (IL, IN, WI) decision serves as a reminder about the importance of conducting prompt investigations in response to employee complaints of harassment.
Sanchez v. El Milagro, Inc. dba El Milagro, No. 24-3250 (7th Cir. May 27, 2026) involved a female factory employee’s sexual harassment claims. The employee alleged that her male co-worker subjected her to inappropriate touching on three different occasions. While there was a dispute as to whether she reported the first two incidents to her supervisor, when Human Resources was made aware of the alleged conduct after she reported the third incident to her supervisor, it immediately initiated an investigation.
As part of their investigation, Human Resources spoke to the employee as well as the accused co-worker. They did not speak with anyone else as the employee did not identify witnesses. While Human Resources’ investigation did not substantiate the employee’s allegations, they had told the accused co-worker to immediately change his behavior towards the employee, and the employee admitted that no further harassment took place since then.
The Seventh Circuit ultimately concluded that even though the alleged three incidents of touching could constitute a hostile work environment under Title VII, the Company could not be liable because it was not negligent in fulfilling its responsibilities in responding to the situation. The employee was found to have failed to provide sufficient notice of the harassment after the first two incidents and, when she reported the third, the Company immediately investigated and took prompt action.
According to the court “a prompt investigation is the hallmark of a reasonable corrective action.” The Company’s investigation demonstrated that it “took the harassment seriously and took appropriate steps to bring the harassment to an end.”
Note that this case involved alleged co-worker harassment. A different standard applies if the alleged harasser is a supervisor.
This case serves as a reminder about the importance of having an effective anti-harassment policy in place to ensure there is an appropriate mechanism for escalating harassment concerns so that a prompt investigation is initiated and remedial action is taken.