Suing for Sexual Harassment When Your Tennessee Employer Has Fewer Than 15 Employees

When sexual harassment occurs at a massive corporation, the path to legal justice is relatively clear. But what happens if you are harassed while working at a small, family-owned diner, a local boutique, or a tiny startup? Small business employees in Tennessee often mistakenly believe they have no legal rights because they read online that federal laws do not apply to small companies. While it is true that federal protections have strict size requirements, Tennessee state law provides essential safety nets for workers at smaller operations.

Because pursuing a claim against a small business requires utilizing specific state statutes and common law torts, having a knowledgeable legal advocate is vital. We strongly recommend browsing our directory to find an experienced local employment lawyer in Tennessee who can navigate these distinct jurisdictional rules and help you secure the compensation you deserve.

Understanding Employee Thresholds in Tennessee

In the realm of employment law, the size of your employer dictates which laws protect you and which government agencies have the authority to investigate your claims.

Federal Title VII and the 15-Employee Rule

Under 42 U.S.C. § 2000e, you can only file a federal sexual harassment lawsuit if your employer has 15 or more employees who worked for at least twenty calendar weeks in the current or preceding year. If a small accounting firm in Chattanooga has only 10 employees, the Equal Employment Opportunity Commission, Nashville literally does not have the jurisdiction to accept your formal charge of discrimination.

The 8-Employee Threshold Under the THRA

Tennessee lawmakers recognized that the federal standard left too many workers unprotected. Under state law, specifically Tenn. Code Ann. § 4-21-401, the Tennessee Human Rights Act (THRA) lowers the threshold significantly. An employer is covered by the THRA if they employ 8 or more persons within the state. This means if your employer has between 8 and 14 employees, your federal rights are barred, but your attorney can file a state-level lawsuit directly in a court like the Hamilton County Chancery Court, Chattanooga.

What Counts as an 'Employee' in TN?

Small business owners often try to dodge liability by claiming they do not have 8 employees because some are 'part-time' or 'independent contractors.' Tennessee courts look at the actual working relationship, not just what the employer calls the worker. Generally, part-time employees are counted toward the 8-person threshold if they are on the payroll for the requisite number of weeks. However, true independent contractors (1099 workers) usually do not count toward the total.

Options for Businesses with Under 8 Employees

If your workplace is a tiny operation-such as a dental clinic with one dentist, two hygienists, and a receptionist (4 employees)-you are locked out of both Title VII and the THRA. However, you are not out of legal options. You can bypass employment discrimination statutes entirely and file common law tort claims in a civil court like the Davidson County Circuit Court, Nashville.

Filing Common Law Tort Claims

If a manager or owner physically touched you inappropriately, your attorney can file a lawsuit for Civil Assault and Battery. If the verbal harassment was incredibly severe and predatory, you can sue for the Intentional Infliction of Emotional Distress (IIED). Furthermore, if an owner knew a manager was harassing you but did nothing to stop it, the company can be sued for Negligent Retention. Precedents in Tennessee show that these civil torts do not have minimum employee thresholds-they apply to every citizen and business in the state.

Piercing the Corporate Veil in Family Businesses

Small businesses often have limited assets, and owners may try to hide behind an LLC to avoid paying a sexual harassment judgment. In cases involving extreme harassment by the owner of a very small business, an aggressive attorney may attempt to 'pierce the corporate veil.' This means arguing to the judge that the owner and the business are indistinguishable, allowing the court to seize the owner's personal assets (like their home or private bank accounts) to pay your settlement.

Costs and Legal Fees

Filing a lawsuit against a small business involves several financial metrics:

• Damages Caps: While THRA limits non-economic damages based on company size (capped at $25,000 for employers with 8-14 employees), common law torts like assault do not always face the exact same statutory caps.
• Court Filing Fees: Filing a civil complaint in Tennessee typically costs between $250 and $400.
• Attorney Fees: Lawyers generally represent harassment victims on a contingency fee, taking 33% to 40% of the final award. Because small businesses might lack employment practices liability insurance (EPLI), your lawyer will carefully investigate if the business has the actual cash to pay a judgment before taking the case.

How Long Does the Process Take?

Litigation timelines depend on the route taken. If you qualify for the THRA and file a claim with the Tennessee Attorney General's Office, Civil Rights Enforcement Division, Nashville, the administrative investigation can take 6 to 12 months. If you bypass the commission to file a direct common law tort or THRA lawsuit in state court, gathering evidence, conducting depositions of the small business owner, and reaching a trial or settlement usually takes 12 to 18 months.

Frequently Asked Questions (FAQ)