Frehoo, Inc. v. Bureau of Lab. and Indus. of Oregon

To show a hostile workplace, an employee who is subjected to verbal or physical conduct of a sexual nature which was unwelcome and resulted in severe or pervasive conditions which alter their employment create an abusive work environment. The court looks at the totality of circumstances.

Frehoo Inc. operated a strip club where a 15-year-old victim of sex trafficking was a dancer. The victim was sexually harassed multiple times by intoxicated customers. The Bureau of Labor and Industry (BOLI) entered an order holding Frehoo and three of its owners liable for victim’s sexual harassment because Frehoo created a hostile work environment and should have known victim was a minor. Respondent’s claimed BOLI erred by finding them liable for sexual harassment, aiding and abetting, and rewarding $1 million in damages finding them jointly and severally liable. To show a hostile workplace, an employee who is subjected to verbal or physical conduct of a sexual nature which was unwelcome and resulted in severe or pervasive conditions which alter their employment create an abusive work environment. The court looks at the totality of circumstances. Exotic dancers do not lack protecting against sexual harassment in the workplace. Frehoo was liable because as a condition of employment, victim was required to dance nude in front of supervisors, employees, and customers which made her uncomfortable. It was not reasonable to expect a 15-year-old girl to fail to complain when Respondent’s failed to exercise reasonable care when hiring. However, BOLI failed to apply the correct meaning to the terms “help, assist, and facilitate” when acting as a judicial body, the case must be remanded on joint and several liability. AFFIRMED for ruling on Frehoo, REVERSED and REMANDED on joint and several liability.