Act now! Anonymous reporting hotline can strengthen legal defenses and mitigate risk

Workplace misconduct—whether sexual harassment, wage violations, or immigration-related risks—can expose employers to costly litigation and reputational harm. But one tool is increasingly proving to be a powerful shield: the anonymous employee hotline.

Hotlines don’t just help companies identify problems early—they can also play a critical role in establishing legal defenses. From preventing harassment claims under federal law to identifying potential immigration compliance concerns, a well-managed hotline is both a practical resource and a strategic asset.

Hotlines and the Faragher-Ellerth defense

Under federal antidiscrimination law, employers may be vicariously liable for harassment by supervisors. However, the U.S. Supreme Court created a pathway for employers to avoid liability in certain cases through what’s known as the Faragher-Ellerth defense.

To successfully assert this defense, the employer must show that:

• It exercised reasonable care to prevent and promptly correct any sexually harassing behavior; and
• The employee unreasonably failed to take advantage of preventive or corrective opportunities provided by the employer.

Why a hotline helps