Let’s say that you have a zero-tolerance harassment code of conduct in place at your business. You have defined what the behavior is and educated the employees. It goes well beyond the obvious inappropriate behavior (touching, unwanted romantic overtures, sharing NSFW photos, graphic commentary on an individual’s appearance) to include just plain verbal harassment, quid pro quo sexual propositions for promotions, or behavior that creates a hostile work environment. You have made a point of educating the staff (both male and female members), but unfortunately these rules allegedly went out the window.
There are both state laws in Texas and federal laws that make the employer possibly liable for the behavior of a supervisor. These laws also apply to non-supervisors or even customers if the employers knew or should have known it was happening.
There are several steps the employer/owner should take immediately: