Workplace romances are nothing new — in fact, terms like “work spouse” have been around for decades. And while many of those relationships are more about platonic connections rather than anything untoward, surveys suggest that nearly 40% of employees have been involved in a workplace romance at some point in their careers.
While these relationships can seem harmless, they come with significant legal risks. This is particularly true in California, where employment laws relating to sexual harassment are among the strictest in the country.
For law firms and other professional workplaces, these risks are even more pronounced. Power imbalances, confidentiality concerns, and reputational risks all add layers of complexity to workplace romances.
While the law generally doesn’t prohibit romantic workplace relationships, employers have to understand the legal implications in order to minimize risk. In this post, we’ll explore the top legal risks of workplace relationships and how businesses — including law firms — can navigate them.
Risk 1: Sexual harassment claims
Perhaps the most significant legal risk of workplace relationships is sexual harassment liability. Even when a relationship starts out as entirely consensual, things can take a legal turn if one party later claims they were coerced — or if the relationship sours, leaving one party to feel dejected.
California’s Fair Employment and Housing Act (FEHA) has a broad definition of sexual harassment, making it relatively easy for employees within the state to bring claims. FEHA covers two key types of sexual harassment:
Quid pro quo harassment
This occurs when a supervisor conditions employment benefits — such as promotions, raises, or job security — on romantic or sexual favors. Again, even if the relationship was initially consensual, if an employee later claims they felt pressured to participate, it could result in liability.
Hostile work environment
A workplace can become legally hostile if a romance leads to favoritism, gossip, or creates discomfort for other employees. This type of harassment does not require direct involvement — third parties can bring claims if they feel the relationship created a toxic work culture.
For example, in Miller v. Department of Corrections, multiple employees sued after discovering that their supervisor had engaged in romantic relationships with subordinates and provided them with preferential treatment.
The California Supreme Court ruled that such favoritism can constitute sexual harassment, even if no one in the lawsuit is directly involved in the relationships.
Risk 2: Conflicts of interest
When workplace relationships involve a hierarchical dynamic, conflicts of interest are often unavoidable. For example, if a supervisor or senior attorney is dating a subordinate, questions about unfair treatment and biased decision-making can arise.
For law firms, this concern is heightened due to the nature of case assignments and promotions. If an associate is dating a senior partner, it may lead to things like:
- Perceived favoritism in case selection.
- Unequal access to career-building opportunities.
- Resentment among colleagues.
Can workplace policies help?
While work romances are not illegal per se, California law does allow employers to prohibit relationships between employees in a direct reporting structure. As an adjunct to these policies, many companies implement relationship disclosure requirements or “love contracts” to mitigate liability risks (fans of the TV Sitcom The Office may recall when Michael Scott framed the “love contract” memorializing his relationship with his supervisor, Jan Levinson).
Generally, these contracts seek to absolve the company from liability if a consensual (and disclosed) workplace relationship later ends on bad terms. That said, in states like California, policies surrounding such relationships must be carefully crafted to avoid violating employee privacy rights.
Risk 3: Vicarious liability for the employer
While we’re on the topic of workplace relationships between supervisors and their subordinates, let’s discuss one of the most significant legal risks for employers — vicarious liability. Vicarious liability is the legal doctrine that holds employers responsible for the wrongful actions of their employees under certain circumstances.
In workplace relationships, once a supervisor is accused of sexually harassing a subordinate — regardless of whether the relationship was once consensual or never welcome — the employer may be held liable for the supervisor’s conduct even if upper management was unaware of the situation.
To make matters more compelling for employers, an employer may be strictly liable for a supervisor’s sexual harassment if the harassment occurred in the course and scope of employment and/or the employer failed to take appropriate corrective action once aware of the issue.
By way of example, in State Department of Health Services v. Superior Court (McGinnis), a female employee alleged that her supervisor engaged in repeated unwanted sexual advances and that her employer failed to address the complaints. The California Supreme Court held that under FEHA, an employer is strictly liable for a supervisor’s harassing behavior, regardless of whether upper management was aware of the misconduct.
Law firms are especially vulnerable to these types of claims simply due to the nature of the workplace. Things like flagrant power imbalances, long hours, and frequent travel create a perfect storm for workplace romances to begin — and for the firm to take on liability if those romances later fizzle.
Risk 4: Retaliation claims
Breakups happen — but when they occur between coworkers, the workplace can become a legal minefield. If one party holds supervisory power, any negative action they later take against their ex can be perceived as retaliation.
California’s Labor Code § 1102.5 protects employees from retaliation if they report misconduct, including sexual harassment related to workplace relationships.
Retaliation lawsuits can arise when:
- One party receives poor performance reviews after a breakup.
- An ex is demoted to an undesirable role.
- The ex is suddenly excluded from important meetings or workplace events.
Retaliation claims are particularly tricky because, of course, some employees underperform in ways completely unrelated to their workplace romance — and may need to be disciplined for those deficiencies. In those cases, employers should carefully document all disciplinary actions in case they later need to prove the actions were disconnected from interoffice personal relationships.
Risk 5: Wrongful termination claims
Of course, the most serious form of retaliation is wrongful termination. This is true even in at-will employment states like California, where there are key exceptions to the general rule that an employer can fire an employee for any reason.
For example, if an employee in a workplace relationship is fired shortly after a breakup, they may argue the termination was pretextual, meaning the employer fabricated a reason to justify the firing when the real reason was personal or discriminatory.
Similarly, if an employer terminates one party in a workplace romance but not the other (without a clear justification), it can create liability for, among other possibilities, gender or marital status discrimination under California’s Fair Employment and Housing Act (FEHA).
Risk 6: Ethical concerns
Up to this point, this post has focused on work romances between co-workers. But those aren’t the only relationships that create problems, are they? In the legal industry, problematic relationships may arise in other contexts, such as between attorneys and clients or attorneys and opposing counsel — both of which raise serious ethical concerns.
California Rule of Professional Conduct 1.8.10, for example, explicitly prohibits sexual relationships between attorneys and clients unless the relationship predates the attorney-client relationship. Violating this rule can result in disciplinary action, reputational damage, or even disbarment.
Of course, the rule makes sense. Attorneys dating clients can lead to the same sorts of conflicts of interest and power imbalances that exist in relationships between coworkers. And the fallout can be just as devastating.
Similarly, relationships between opposing counsel can create all sorts of chaos. Once discovered, the participants could be accused of compromising confidentiality or fostering unfairness in legal proceedings. Moreover, both parties are likely to lose their clients — and possibly their jobs.
Risk 7: Reputational damage
Even if a workplace romance doesn’t result in legal action, it can still cause significant reputational harm — especially within law firms where credibility and trust are paramount.
Reputational fallout can include:
- Client trust issues: If an attorney is romantically involved with a client, it can raise ethical concerns and erode confidence in the firm’s integrity. Likewise, a romantic relationship between two attorneys on the same case may make the firm (and the attorneys) look unprofessional in the eyes of clients, colleagues, and opponents.
- Public scandal: High-profile workplace relationships, especially those involving power imbalances, can attract unwanted media attention and damage an employer’s brand.
- Internal workplace morale: If employees perceive favoritism or unfair treatment due to a workplace relationship, it can lead to lower morale and higher turnover.
The point is that even in the absence of legal consequences, workplace relationships can be extremely damaging. This is just one more reason why employers should set clear expectations to prevent situations that could impact public perception and workplace culture.
Conclusion
Work relationships aren’t illegal, but they create a labyrinth of legal risks. Whether it’s sexual harassment claims, retaliation lawsuits, conflicts of interest, ethical concerns, or risks of reputational damage, employers — especially law firms — must take proactive steps to minimize exposure.
By understanding the legal implications, employers and employees alike can make more informed decisions — and avoid turning a workplace romance into a legal nightmare.
