"Love Contracts" Gain Acceptance at Many Workplaces

Aug 2008

(Livingston, NJ) Employment lawyers are warning employers to take some precautions when workplace romance blooms.  Aside from prohibiting office affairs altogether, some companies are considering "love contracts," which help to protect them from a sexual harassment suit if two employees are dating and it ends badly.

So-called love contracts, also referred to as relationship contracts, confirm that a relationship is consensual, state the ground rules for office behavior and reiterate sexual harassment policies, said John Sarno, president of the Employers Association of New Jersey.

Even genuinely consensual romances can pose problems. Others in the company might perceive that an employee is receiving preferential treatment because of a romantic involvement with a superior, these experts said. The Equal Employment Opportunity Commission regulations allow discrimination claims by workers who believe they were denied employment opportunities or benefits that went to a co-worker as a result of sexual favoritism.

A separate set of problems can arise when workplace romances sour. For example, an employee who ends a relationship might complain that a supervisor who is a former paramour has retaliated by withholding a promotion or a raise, Sarno said.

Employment and insurance experts generally agree that human attraction cannot be squelched.

"Love in the workplace happens," Sarno acknowledges, but he notes that at least one study notes that 24 percent of the responding employers reported that a workplace romance had led to a claim of sexual harassment. 

Sarno says there are certain key elements that should be included in love contracts. For example, when employees are on the same reporting level, the contract should contain a statement "that the employees will not seek or accept a position where one reports to the other."

If one of the employees already supervises the other and it is not possible to transfer one of them to another department or worksite, Sarno recommends requiring that the supervisor agree "to be permanently removed from any decision-making authority over the subordinate."

In addition, Sarno says the contract should state that:

• Any dispute arising from the relationship or contract will be resolved through mediation.
• Employees may want to consult an attorney before signing the contract.
• Dating employees are expected to follow certain guidelines, such as refraining from displays of affection at work or work- related events.
• Either employee "can end the relationship without fear of work-related retaliation."
• Dating employees agree to waive their rights to pursue a claim of sexual harassment for any event prior to the signing of the contract.

He stresses that these "love contracts" can be used to supplement a company's dating or fraternization policies, not in place of a well-implemented policy against sexual harassment.

Sarno also emphasizes the importance of creating a mature workplace climate. Having conducted training at hundreds of firms, he observes, "the organizational culture gives cues" about what constitutes acceptable behavior. If peer communication, fairness and trust are the norm, then people tend to regulate their own conduct, he said. In such a setting, "no one has to feel like a victim."