Why Office Romance Is Risky Business
Romantic relationships at work are not per se unlawful. But they can create a minefield of legal, ethical, and cultural issues—particularly when one party holds power over the other. For executives, the stakes are even higher. A consensual relationship can quickly become a liability if it leads to claims of favoritism, harassment, or retaliation.
Even if a workplace relationship ends amicably, the perception of impropriety may linger. And if it ends badly, it can trigger lawsuits, internal investigations, and public scrutiny. In the age of social media and shareholder activism, the reputational damage alone can be career-ending.
Arizona and Federal Law: What Employers Should Know
Arizona is an “at-will” employment state, meaning employers can terminate employees for any reason that isn’t specifically prohibited by law. But that doesn’t shield companies from liability if a workplace romance leads to claims under federal or state anti-discrimination laws.
Key laws to consider include:
- Title VII of the Civil Rights Act of 1964: Prohibits workplace discrimination based on a variety of protected characteristics including sex, which also includes sexual harassment. A relationship between a supervisor and subordinate may be construed as harassment if it creates a hostile work environment or if others perceive favoritism.
- Arizona Civil Rights Act: Mirrors Title VII and is enforced by the Arizona Attorney General’s Office. Arizona courts have recognized claims of sexual harassment and retaliation stemming from workplace relationships.
- Retaliation Protections: Both federal and Arizona law prohibit retaliation against employees who report or oppose workplace misconduct. If an employee complains about a colleague’s romantic relationship with a supervisor and is later disciplined or terminated, that may trigger a retaliation claim.
Executive Relationships: A Higher Standard
Executives are held to a higher standard—not just legally, but culturally. Their behavior sets the tone for the organization. A CEO dating a subordinate can undermine morale, erode trust, and expose the company to claims of unequal treatment.
Moreover, the board of directors may have fiduciary concerns. If an executive’s personal relationship compromises their judgment or creates a conflict of interest, it could be grounds for termination “for cause.”
What Employers Can Do: Policies That Protect
To mitigate these risks, employers should consider implementing clear, enforceable policies on workplace relationships. Here are a few best practices:
- Disclosure Requirements: Require employees—especially those in supervisory roles—to disclose romantic relationships with coworkers. This allows HR to assess potential conflicts and take steps to prevent favoritism or coercion.
- Non-Fraternization Policies: Some companies prohibit relationships between supervisors and subordinates altogether. While controversial, these policies can be effective in reducing risk.
- Conflict Management Plans: If a relationship is disclosed, consider reassigning reporting lines or responsibilities to eliminate power imbalances.
- Training and Communication: Regularly train managers and employees on discrimination, harassment, and retaliation, including the company’s relationship policies. Make sure everyone understands the company’s expectations and requirements.
- Consistent Enforcement: Apply policies uniformly, regardless of the employee’s position or rank. Turning a blind eye to executive misconduct both sends the wrong message and increases liability.
Final Thoughts
Workplace romances aren’t going away. But with thoughtful policies and proactive leadership, companies can reduce the legal and reputational risks. For executives, the message is clear: your personal choices can have professional and legal consequences. When in doubt, disclose—and don’t let love blind you to your responsibilities. And when thorny issues arise, consider contacting experienced legal counsel.