Company Policy

Newcorp employed Sam as a supervisor of electrical manufacturing for auto under-dash wiring harnesses. Sam’s department employed about 100 men and women to create the wiring, coat it with various insulators, and then connect it to different types of universal couplings so car speedometers, oil gauges, and other instruments would work. The final product, an under-dash wiring harness, was sent to the final assembly plant for installation in cars.

Sam developed a relationship with one of his female employees, Paula. They began dating and it turned into a torrid affair that included frequent trysts at the workplace. Paula later met and began dating a man who did not work for Newcorp, and thereafter ended the affair with Sam. Sam did not give up easily and continued touching Paula and exhibiting a variety of other unwelcome behaviors, even after Paula clearly told him to stop. Sam suggested that Paula’s work might be suffering from a “lack of interest” on her part, and since she stopped dating him, she seemed to lack interest in work quality.

Paula decided to get away from Sam, and applied for a transfer to the wire-coating section, which would not be directly under Sam’s control. Sam blocked the transfer, citing company policy that there was evidence that the chemicals used in wire coatings could harm an early-state fetus being carried by a newly-pregnant woman. Because Paula was a young woman who could become pregnant, Sam argued, Newcorp could not take the chance for Paula to work in wire coating due to the possibility of Newcorp liability for a resulting birth defect. Paula believed this was probably Sam’s way of keeping her under his thumb, and that even if it was not, it was discrimination based on sex and therefore illegal.

What liability, if any, does Newcorp have in this situation? What can and cannot Newcorp do? In your answer, identify what legal principles (statutory or case law) support your belief. Remember to limit your answer to 350 words following APA format.