NATIONAL RESORT MANAGEMENT CORP. v. Cortez

The Dispute
Employees at National Resort Management Corporation filed claims against their employer for sexual harassment and hostile work environment. The case initially went to arbitration (a private dispute resolution process), where the arbitrator ruled in favor of the employees and awarded them compensation.

The Court's Decision
The court overturned the arbitration decision and ruled in favor of the employer instead. The court found that the arbitrator made legal errors in how they evaluated the case. Specifically, the court determined that the employees had unreasonably failed to use the company's established procedures for reporting harassment. The court also found that the employer had proper policies in place to prevent and address harassment, which can serve as a legal defense when employees don't follow those procedures.

What This Means for Workers
This case highlights the importance of following your employer's harassment reporting procedures, even if they seem inadequate or you're worried about retaliation. Courts expect employees to use available company channels before seeking legal remedies. If your workplace has an anti-harassment policy with reporting procedures, document any harassment incidents and report them through the proper channels. Failing to do so could weaken your legal position later, even if harassment actually occurred.