Wild after-hours Halloween party leads to sexual harassment lawsuit

Like Title VII of the Civil Rights Act of 1964, the Tennessee Human Rights Act (THRA) forbids workplace harassment and other forms of discrimination on the basis of sex. Recently, the Tennessee Court of Appeals considered a unique issue: May an employee file suit under the THRA if the sexual harassment technically didn’t occur at work and didn’t happen during work hours?

Reversing the trial court, the court of appeals found the answer is “yes.” The court’s decision serves as an important warning to employers about potential liability for incidents occurring during after-work events.

Facts

Kelly Phelps worked as a server for a restaurant operated by the state of Tennessee at Paris Landing State Park. In 2017, the restaurant hosted a Halloween party open to the public in which alcoholic drinks were served in abundance (including Jell-O shots), and park employees were encouraged to wear costumes.

Once the party ended, a park employee invited Phelps and several other coworkers to an after-party at his residence on park property. Phelps claimed that during the party, assistant park manager John Walsh was intoxicated and acted inappropriately, including pressing himself up against her. According to Phelps, he continued to do so after she told him to stop.