The big picture: An employer's appeal of a $1 million punitive award for mishandling a harassment complaint backfired, resulting in the Third Circuit Court of Appeals doubling the penalty to $2 million. The company had assigned the accused supervisor to counsel the employee who complained about him.

Why it matters: This case underscores the critical importance of proper HR protocol and unbiased investigation in harassment claims, highlighting severe financial and reputational risks for employers.

Between the lines:

• The employer had an anti-harassment policy and trained managers.
• Despite this, the accused supervisor was tasked with counseling the complainant.
• The initial punitive award was $1 million, increased to $2 million on appeal.

Staffing & HR impact: Inadequate HR compliance and investigation practices can lead to massive legal liabilities, impacting company margins and increasing demand for expert HR talent. Staffing firms must ensure clients understand the risks of internal mishandling.

The bottom line: A clear warning that appeals can escalate, not mitigate, the cost of egregious HR failures.