To a large extent, companies try to give employees privacy and stay out of their personal lives. But what should employers do when personal conflicts spill over into the workplace?

That question was addressed in a recent court case. Here’s what happened:

Two co-workers dated for a year and half, until the female employee ended the relationship.

Upset, the man began taunting and arguing with her at work. He called her several derogatory names and told her she was “fat and needed to go to the gym.” She complained to their manager, who warned the man to “behave as a professional” or “circumstances will take place.”

After more name-calling, the boss warned him again, this time in writing. He was told if the conduct continued, he’d be fired immediately. A final incident occurred, and he was terminated.

The woman sued, claiming the company didn’t do enough to stop his harassment.

Personal conflict or unlawful harassment?

Can companies be liable for what co-workers do after a bad breakup? Yes, according to the court — harassment “motivated by a romantic relationship gone sour” is still unlawful sexual harassment.

But in this particular case, the court ruled, the company did enough to address the woman’s complaints. The male employee was progressively disciplined and eventually fired. The judge threw the case out.

HR can help avoid liability

What’s the best way to keep employees’ personal relationships from leading to serious liability for the company? One road some employers take: Have dating co-workers sign so-called “love contracts” to acknowledge it’s a consensual relationship and agree not to engage in any inappropriate behavior at work.

That can be a good way to remind employees that they still have to follow your harassment policy. However, some employees and managers find the practice invasive. Also, a contract likely won’t protect the company in court if harassment occurs anyway and isn’t handled properly.

Instead, some companies have a limited policy — for example, one that says managers can’t date subordinates. The main key, though, is having a strong anti-harassment policy in general, and making sure managers handle complaints the right way.

As the case above shows, even if there’s a personal relationship involved, managers are still obligated to step in if harassment occurs.

Cite: Forrest v. Brinker International Payroll Co., LP

Tags: complaints, dating co-workers, office romance