Quick Hits

• A tech CEO’s potential public display of affection with an HR executive has sparked concerns over the implications of workplace romantic relationships at the executive level.
• Such relationships can create conflicts of interest, lead to harassment claims, negatively affect employee morale and perceptions of fairness, and result in a significant financial impact on the company.
• Employers may want to implement clear policies and training to address and manage the potential risks associated with workplace romantic relationships, and have an established plan in place to immediately respond to investigate any issues that may arise like this in the workplace.

Andy Byron, the CEO of data infrastructure start-up Astronomer Inc., was caught on the “kiss cam” at a concert with the British rock band Coldplay, hugging a woman from behind as both smiled, at least until they saw their video simulcast on the stadium jumbotron. Reports have alleged the woman in the clip is Astronomer’s chief people officer, Kristin Cabot.

Coldplay lead singer Chris Martin can be heard saying into the microphone, “Oh look at these two. Alright, you’re OK,” as Byron ducked out of view of the camera and the woman turned away. “Either they are having an affair, or they’re just very shy,” Martin said to the audience.

The viral clip has garnered millions of views on social media, with many speculating that the two are in a romantic relationship. In a statement, Astronomer said its “leaders are expected to set the standard in both conduct and accountability” and that its Board of Directors has “initiated a formal investigation” into the matter.

While the exact nature of their relationship is unclear, the controversy raises concerns for employers with workplace romances. Such relationships are not uncommon, nor are they explicitly illegal, but they can bring a host of legal risks and potential liability, the stakes of which are even higher when they involve C-Suite executives.

What Are the Practical and Legal Risks?

Conflict of Interest and Fiduciary Duties

A romantic relationship between a CEO and the head of HR can create a conflict of interest, as executives are required and expected to act in the company’s best interests. A romantic relationship between a CEO and the head of HR could be viewed as a breach of their fiduciary duties to uphold the highest levels of integrity in the organization. Those perceptions could lead to liability from investors, shareholders, and other stakeholders and can jeopardize future fundraising, not to mention the significant threat to careers and families.

Employment Discrimination and Harassment Claims

Office relationships are not illegal per se, and there are many stories of successful long-term relationships having started between coworkers. However, office relationships, particularly involving a supervisor and subordinate, are fraught with the potential for harassment or sexual misconduct, questions of consent, and other legal risks for the employer. Even consensual relationships can lead to allegations of sexual harassment, particularly if the relationship ends poorly.

More significantly, when the relationship involves an ultimate supervisor, in this case the CEO, claims often result from the assertion from the employee in the subordinate position that the relationship was coerced, or even worse, the employee agreed but only because he/she felt the threat to their job if they refused.

Impact on Employee Perceptions and Morale

Office romances, especially at the executive level, can affect employee morale and perceptions of fairness. Other employees may perceive favoritism or feel pressured to tolerate inappropriate behavior. Those perceptions can detrimentally impact employee morale and potentially contribute to an unlawful hostile work environment. Moreover, employees may feel more reluctant to report harassment or discrimination transgressions because of the fear that HR is simply a puppet to leadership.

Additionally, a transparent romantic relationship between high-level executives or managers may give the misimpression that workplace romantic relationships are tolerated or encouraged by the company, which could lead to more such relationships and increased potential for legal risks for the employer.

What Can Employers Do?

Policy Development and Enforcement

Employers may want to develop clear policies that strongly discourage or expressly prohibit romantic relationships between coworkers, particularly between supervisors and subordinates or between employees and executives who could pose a conflict of interest. Such policies may outline the expectations for disclosure, the process for managing conflicts of interest, and the potential consequences for failing to comply.

In cases where employers decide to tolerate workplace relationships, they may still want to consider specifying procedures requiring employees to notify the company or HR of the relationship and reminding the employees of rules for professional conduct in the workplace. Some employers require employees to sign agreements known as “love contracts” that formally disclose the relationship to the employer and acknowledge that it is consensual. Employers may further want to ensure that the polices are enforced consistently and fairly.

Antiharassment Training and Communication

Employers may want to ensure that their anti-harassment policies, including how to report allegations of misconduct, are clearly communicated to all employees and executives. Many employers provide periodic or annual employee training sessions on sexual harassment in the workplace. In some states, including California, Connecticut, Illinois, and New York, such training sessions are legally required. 

Succession Planning and Contingency Measures

Employers may want to address the potential for controversies that could raise questions of executive fiduciary duties or their decision-making by having clear succession plans and contingency measures in place. Such plans can ensure that the company can operate smoothly and maintain stability, even if leadership changes are necessary. Plans can also include clear steps to immediately investigate allegations when issues arise and the ability to take quick action in response to the results of such investigations.

Key Takeaways

Workplace romantic relationships commonly occur but can create practical and legal risks for employers. In particular, office romances between C-Suite executives, such as a CEO and the head of HR, present even greater risks and existential challenges. Employers may want to consider proactive steps and policies to address the likelihood of workplace romantic relationships and the attendant legal risks.