Dark Mode Light Mode

Legal expert explains why companies need ‘love contracts’ after viral CEO-HR romance scandal

Romantic relationships can easily develop in the workplace, but regardless of who is involved, they can be considered “thorny” from a legal liability standpoint. 

That’s according to Misty Marris, a trial attorney and legal analyst. 

In particular, when these relationships go wrong, it can lead to significant risk in the workplace, Marris said. 

Advertisement

The conversation about appropriate office romances has gained steam in recent weeks after a video of former Astronomer CEO Andy Byron and the company’s former chief people officer, Kristin Cabot, cuddling at a Coldplay concert went viral on social media. Byron and Cabot both recently resigned from the company. 

Footage of Cabot and Byron at a Coldplay show in Foxborough, Massachusetts, last week, which captured the attention of the internet, showed the duo wrapped in each other’s arms before attempting to hide from the concert’s “Kiss Cam.” 

WHO IS ANDREW CABOT? THE HUSBAND OF ASTRONOMER’S HR CHIEF AND HEAD OF PRIVATEER RUM

“There are inherent issues when you have a subordinate in a relationship with a manager, or any high-level employee at a company, for instance, someone in the C-suite,” Marris said, noting that the issue is the dichotomy of power. 

The same concerns apply to someone in human resources, as they are the ones responsible for handling, investigating and making decisions about employment-related complaints or issues. 

Mita Mallick, a workplace strategist, echoed this sentiment, telling FOX Business that if the issue arises when an individual has any influence over the employee’s compensation, performance evaluation and performance ratings, promotion opportunities would be considered a conflict of interest. 

Not only does this compromise their ability to act impartially, according to Marris, but “if there is a perception that HR is not acting objectively and neutrally, because of a personal relationship, then there is a real problem for the company.” 

UNCOMFORTABLE COUPLE CAUGHT ON COLDPLAY CONCERT CAMERA SENDS INTERNET INTO INVESTIGATIVE FRENZY

Marris said the best way for employers to combat issues that arise from an office romance is to have clear policies in place about disclosure of these relationships. This is sometimes referred to as a love contract, according to Marris. 

In the event that a relationship is disclosed, human resources, in conjunction with general counsel or outside counsel, would assess risks associated with the relationship and make changes where necessary, according to Marris. There are several scenarios that could play out. For instance, someone could move to a different manager or oversight of the employees could change. These things would depend on the employees’ respective positions in the company. 

For instance, Marris said that the human resources representative may be removed from handling or conducting investigations involving certain employees if there is a conflict of interest. Additionally, outside counsel may be retained to investigate a complaint or employment-related issue if there is a question about neutrality, she added. 

This isn’t a blanket approach, however. Mariss explained that while this structure works for larger companies, it “can be more challenging for smaller or more middle market businesses that may not have the staff or resources to tap someone else in when there is a potential issue.” 

GET FOX BUSINESS ON THE GO BY CLICKING HERE

The best way for employers and employees to avoid a catastrophe is to ensure there are “policies in place that require disclosure and for the employee to be transparent and abide by those policies,” Marris said. 

“While banning office romances might sound like the best bet, those policies are not practical for the real world, so best to just manage the risk,” Marris continued. 

Add a comment Add a comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Previous Post

Trump admin scrutinizes whether health providers disclose transgender treatment risks

Next Post

Russia says it’s ‘taken note’ of Trump’s new deadline for Ukraine deal

Advertisement