Employer Liability in Wisconsin When Clients, Vendors, or Contractors Commit Sexual Harassment

Protecting Staff from Third-Party Harassment

A common misconception in the corporate world is that Human Resources can only police the behavior of internal employees. If a bartender in Madison is groped by a regular patron, or a receptionist in Milwaukee is subjected to crude sexual remarks by a FedEx driver, employers often shrug and say, 'They don't work for us, we can't do anything.' This is legally false. Under the Wisconsin Fair Employment Act (Wis. Stat. § 111.36(1)(b)) and federal EEOC guidelines (29 C.F.R. § 1604.11(e)), employers have an absolute duty to provide a workplace free from sexual harassment, regardless of who the harasser is.

Employers cannot choose corporate profits or VIP relationships over the safety and dignity of their staff. The Seventh Circuit Court of Appeals, which covers Wisconsin, reinforced this in cases like Erickson v. Wisconsin Department of Corrections, 469 F.3d 600 (US Court of Appeals for the Seventh Circuit 2006), highlighting an employer's duty to protect employees from foreseeable third-party harm. If your boss is forcing you to endure abuse from an outsider, you should utilize our directory to find a skilled employment lawyer to hold the company accountable.

The 'Knew or Should Have Known' Legal Standard

For an employer to be held liable for the actions of a non-employee, you must prove the legal standard of negligence. You must show that the company 'knew or should have known' about the harassment and failed to take immediate and appropriate corrective action. The source of the harassment dictates how the company must respond.

Harassment by Wealthy or VIP Clients

In industries like finance, real estate, and high-end hospitality, certain clients are considered 'untouchable' because of the revenue they bring in. If a VIP client repeatedly makes sexual advances or inappropriate comments during meetings, and you report it to your manager, the company must act. Corrective action might include assigning a different account manager, requiring a supervisor to be present at all meetings, or, in severe cases, firing the client. Telling you to 'just smile and deal with it because they pay the bills' is a direct violation of Wisconsin law.

Abuse by Delivery Drivers and Supply Chain Vendors

Warehouse workers and office administrators frequently interact with the same third-party delivery drivers or vendors daily. If a vendor creates a hostile environment through sexual jokes or unwanted physical contact, your employer has a duty to intervene. They are expected to contact the vendor's employer (e.g., the trucking company) and demand that a different driver be assigned to the route, or ban the individual from the premises entirely.

Third-Party Consultants and Auditing Teams

When businesses in cities like Waukesha or Kenosha bring in outside accounting firms or management consultants, these temporary teams often work closely with internal staff. Because consultants hold perceived power, victims are often afraid to speak up. If an external auditor sexually harasses you, your employer must investigate the claim with the same rigor as they would if an internal executive committed the offense.

Outsourced IT Staff and Maintenance Workers

Many companies outsource their late-night cleaning crews or IT infrastructure teams. If an outsourced maintenance worker stalks you or subjects you to sexual harassment after hours, your employer cannot hide behind the excuse that the worker belongs to a different agency. They control the premises and must revoke the abuser's access badges immediately upon a credible report.

Steps to Hold Your Employer Accountable

To win a third-party harassment case, documentation is critical. You must put your employer on formal notice. Send an email to HR or your direct supervisor detailing exactly what the non-employee did, when it happened, and state clearly that you feel sexually harassed. If the company takes no action and the abuse continues, you can file a Form ERD-4206, Wisconsin, Department of Workforce Development, Fair Employment Law Complaint with the Wisconsin Department of Workforce Development, Equal Rights Division, Milwaukee.

Potential Costs and Filing Details in Wisconsin

Taking legal action against your employer for third-party harassment is financially accessible.

• Filing the initial administrative complaint with the state ERD is completely free.
• Attorneys who handle workplace discrimination and harassment almost universally work on a contingency fee basis. You pay no out-of-pocket hourly rates; they take a percentage of your final settlement.
• If your case proceeds to civil court and you win, Wisconsin judges can order the employer to pay your attorney's fees on top of your damages.

How Long Does an ERD Investigation Take?

You have exactly 300 days from the last date the third party harassed you to file your complaint with the state. Once filed, an ERD investigator is assigned to review the facts, which typically takes 6 to 10 months. The investigator will demand to know what steps, if any, your employer took after you reported the client or vendor. If the state determines the employer acted negligently, it issues an Initial Determination of Probable Cause, which opens the door for your lawyer to negotiate a substantial financial settlement.

Frequently Asked Questions (FAQ)