Beth Ann Faragher worked as an ocean lifeguard for the City of Boca Raton from 1985 to 1990. Her immediate supervisors, Bill Terry (the Marine Safety Section's chief) and David Silverman (a lieutenant), exercised daily supervisory authority over the lifeguards, including scheduling, work assignments, and discipline recommendations. Over a period of years, Terry and Silverman subjected Faragher and other female lifeguards to pervasive sexual harassment, including unwanted touching (grabbing and groping), sexually explicit comments, and crude, gender-based remarks. Although the City had adopted a general anti-harassment policy, it was not effectively disseminated to beach employees: there was no regular training, no postings at the lifeguard stations, and no accessible reporting avenue that would allow complaints to bypass the very supervisors alleged to be harassing employees. Faragher informally complained to another superior but did not utilize any formal complaint procedure. No tangible employment action (such as firing, demotion, or pay cut) was taken against her. After she left employment, Faragher sued under Title VII. The district court found the conduct sufficiently severe or pervasive to create a hostile work environment and held the City liable. Sitting en banc, the Eleventh Circuit reversed, reasoning the City lacked actual or constructive notice. The Supreme Court granted certiorari.
Under Title VII, when and how is an employer vicariously liable for a hostile work environment created by a supervisor, and what defenses, if any, are available when no tangible employment action has occurred?
An employer is vicariously liable under Title VII for a supervisor's creation of a hostile work environment. If the supervisor's harassment results in a tangible employment action (e.g., hiring, firing, demotion, failure to promote, significant reassignment, or a significant change in benefits), the employer is strictly liable with no affirmative defense. If no tangible employment action occurred, the employer may raise an affirmative defense by proving both: (1) it exercised reasonable care to prevent and promptly correct harassing behavior (typically through an effectively disseminated anti-harassment policy, training, accessible reporting channels, and prompt remediation), and (2) the employee unreasonably failed to take advantage of preventive or corrective opportunities or otherwise to avoid harm. By contrast, for coworker harassment, employer liability turns on negligence—whether the employer knew or should have known and failed to act. The framework relies on common-law agency principles, particularly that a supervisor's authority may aid the harassment (Restatement (Second) of Agency § 219(2)(d)).
The City of Boca Raton is vicariously liable for the hostile work environment created by Faragher's supervisors. Although no tangible employment action occurred, the City failed to establish the affirmative defense because it did not exercise reasonable care to prevent and correct the harassment and could not show that Faragher acted unreasonably in failing to use corrective opportunities she did not effectively have. The Supreme Court reversed the Eleventh Circuit and effectively reinstated the district court's judgment for Faragher.
The Court grounded its analysis in agency law and Title VII's objectives. A supervisor's authority endows workplace directives with coercive potential; harassment by a supervisor is often "aided by the agency relation," justifying vicarious liability rather than a mere negligence standard. At the same time, strict liability in every supervisor case could be overbroad and discourage preventive efforts. To balance deterrence with fairness, the Court crafted a two-part affirmative defense in cases without tangible employment action: employers must show both reasonable preventive/corrective measures and that the employee acted unreasonably in failing to use them. Applying this framework, the Court found no tangible employment action occurred. The City nonetheless failed the first prong because its anti-harassment policy was not effectively disseminated to the lifeguard unit: there was no training, no postings at the beach, no monitoring of supervisors, and no accessible complaint pathway that allowed bypassing the alleged harassers. On the second prong, Faragher's failure to file a formal complaint was not unreasonable because she was unaware of a meaningful procedure and reasonably reluctant where her only on-site points of contact were the offending supervisors. The City's reliance on lack of notice could not defeat liability in a supervisor case under the newly articulated rule. The Court emphasized that this framework furthers Title VII's purposes by encouraging robust employer compliance programs and early reporting while ensuring redress where authority-enabled harassment occurs.
Faragher, paired with Ellerth, supplies the modern governing test for employer liability in supervisor harassment cases. It instructs courts to distinguish supervisor from coworker harassment, clarifies what constitutes a tangible employment action, and defines the Faragher/Ellerth affirmative defense. For practitioners and employers, it set the compliance blueprint: implement and disseminate clear anti-harassment policies, provide training, ensure multiple reporting channels (including options that bypass the chain of command), and act promptly on complaints. For law students, Faragher is a foundational case on vicarious liability, agency principles in statutory interpretation, and the interaction between remedial goals and doctrinal limits in employment discrimination law.
Faragher v. City of Boca Raton crystallized the law of employer liability for supervisor harassment under Title VII. By coupling agency principles with Title VII's deterrent aims, the Court imposed vicarious liability for supervisor-created hostile environments and crafted a balanced affirmative defense in the absence of a tangible employment action. This approach both encourages employers to build robust compliance infrastructures and ensures meaningful remedies for employees subjected to authority-enabled abuse.