Board of Governors of the Federal Reserve System

Effective Date: March 27, 2026

Policy Statement

The Board's policy is to (1) provide all employees with a work environment that is free from discriminatory harassment, (2) thoroughly and promptly investigate all complaints of discriminatory harassment, and (3) undertake immediate and appropriate corrective action when harassment is found to have occurred. Sexual harassment is one form of discriminatory harassment and is addressed more specifically later in this policy.

The policy and the procedures contained herein apply equally to any conduct that constitutes discriminatory harassment, whether sexual harassment or some other form of discriminatory harassment.

Definitions

Protected activities. Any activity taken by an individual to assert equal employment opportunity (EEO) rights, including reporting discriminatory harassment, discrimination or retaliation for engaging in protected activities; filing a claim of discriminatory harassment; providing evidence in any EEO investigation; or intervening to protect others who may have suffered discriminatory harassment, discrimination, or retaliation for engaging in protected activities.

Zero-Tolerance Policy

Discriminatory harassment will not be tolerated. The Board's policy is to prevent any discriminatory harassment even if the behavior does not violate the law—that is, it is not objectively severe or pervasive. Because the Board wishes to prevent all discriminatory harassment and to encourage reporting of discriminatory harassment before it becomes severe or pervasive, the Board has established this policy both to encourage the reporting of discriminatory harassment and to clarify that any employee who engages in discriminatory harassment may face disciplinary action, up to and including separation from Board employment. The Board is committed to investigating any possible discriminatory harassment of which it learns, even if the harassed individual does not file an EEO complaint.

Discriminatory Harassment

Discriminatory harassment. Discriminatory harassment is verbal or physical conduct that demeans or shows hostility or aversion toward an individual because of their race; color; religion; sex¹; national origin; age; disability; genetic information; or pregnancy, childbirth, or related medical conditions (also commonly called an employee's protected class or status) or because of retaliation for engaging in protected activity. Discriminatory harassment is against the law (that is, it violates title VII of the Civil Rights Act of 1964, section 501 of the Rehabilitation Act of 1973, the Age Discrimination in Employment Act of 1967, or the Genetic Information Nondiscrimination Act of 2008) when it has the purpose or effect of unreasonably interfering with an individual's work performance or of creating an intimidating, hostile, or offensive working environment; to be unlawful under the federal anti-discrimination statutes, the discriminatory conduct must be sufficiently severe or pervasive that it alters the conditions of employment and creates an environment that a reasonable person would find to be hostile or abusive. In addition, to constitute illegal harassment, there must be a basis for imputing liability to the Board.

The Board's Discriminatory Workplace Harassment policy prohibits all discriminatory harassment, even if it would not be actionable under federal law. Thus, a finding that discriminatory harassment occurred that violates this policy does not mean that illegal discriminatory harassment has necessarily occurred.

Below are some examples of conduct that might constitute discriminatory harassment in violation of this policy. The list is not all-inclusive; in addition, each situation must be considered in light of the specific facts and circumstances to determine if discriminatory harassment occurred. For example, an occasional remark that would not widely be considered offensive is unlikely to be considered discriminatory harassment under this policy; a pattern of such remarks, particularly after an individual has objected to them, would more likely be considered to be discriminatory harassment. By contrast, even a single use of an epithet or slur that would be widely considered offensive would be likely to be considered discriminatory harassment under this policy.

Examples of Discriminatory Harassment

• Oral or written use of offensive epithets, slurs, or comments aimed at an individual or group because of their protected class or status.
• Use of offensive gestures or display of graphic pictures or drawings which demean or show hostility or aversion toward an individual or group because of their protected class or status.
• Taunting on the basis of an individual's association with people of a particular protected class or status.
• Intimidation through violence or threats of force or violence against an individual because of their protected class or status.
• Unfavorable treatment of an individual or group because of their protected class or status.
• Ridiculing or mocking a person because of their protected class or status.
• Making comments to an individual, or in an individual's hearing, that reflect stereotypes about that individual's protected class or status.
• Sending unwelcome mail, voicemail(s), text messages, or email(s) containing derogatory jokes or comments about an individual's or group's protected class or status.²
• Treating people differently based on their protected characteristics can also be discriminatory harassment. For example, a supervisor who complains about their older employees' tardiness but allows workers under age 40 to arrive at work late without comment may be engaging in discriminatory harassment based on age.

Sexual Harassment

Sexual harassment is a specific type of discriminatory harassment. Sexual harassment is defined as unsolicited and unwelcome sexual advances, requests for sexual favors, or other verbal or physical conduct of a sexual nature directed to any person of the same or opposite sex when (1) submission to such conduct is made either explicitly or implicitly a term or condition of an individual's employment, (2) submission to or rejection of such conduct by an individual is used as the basis for employment decisions affecting such individual, or (3) such conduct has the purpose or effect of unreasonably interfering with an individual's work performance or creating an intimidating, hostile, or offensive work environment. The courts and the Equal Employment Opportunity Commission (EEOC) have defined two types of illegal sexual harassment: (1) quid pro quo (a Latin phrase meaning giving or providing something in return for something else) and (2) hostile work environment.

Quid Pro Quo Sexual Harassment
Quid pro quo sexual harassment is the easiest to recognize. It occurs when one person seeks sexual favors from another person in return for something of value. The "something of value" might consist of almost any form of favorable treatment, such as receiving a good performance evaluation or being selected for promotion.

Quid pro quo sexual harassment does not require that the harasser clearly state what specific favors are expected for what specific return. Rather, as both the courts and the EEOC have recognized, quid pro quo sexual harassment can be implied from the overall pattern of a person's actions—particularly if they occupy a position of authority or power over the other person.

Below are some examples of conduct that might constitute quid pro quo sexual harassment. The list is not all-inclusive; in addition, each situation must be considered in light of the specific facts and circumstances to determine whether sexual harassment occurred. A finding that sexual harassment occurred that violates this policy does not mean that illegal sexual harassment necessarily occurred.

Examples of Quid Pro Quo Sexual Harassment

• When an employee tells their supervisor that some people really don't like to have their necks and shoulders rubbed, the supervisor responds by saying, "Those who want to get ahead do."
• A manager pressures a subordinate employee to join them for dinner and dancing. When the employee declines, the manager tells the employee that they can't expect the manager to mentor them on the job if the employee is unwilling to spend time together after hours.
• After an employee resists their team leader's repeated suggestion that they travel together so that they "can get to know each other better," the team leader turns in a project evaluation rating the employee's work as "substandard."

Hostile Work Environment Sexual Harassment
Hostile work environment sexual harassment is often harder to recognize. It is usually found where a general pattern of workplace behavior exists that is sexually oriented and severe or pervasive. Those descriptive terms have been defined in actual workplace situations as follows:

Sexually oriented behavior has been found to include

• letters, telephone calls, magazines, pictures, and objects of a sexual nature or content;
• the deliberate touching, brushing, cornering, or pinching of or leaning over a person;
• suggestive looks, comments, gestures, or whistles; or
• sexual jokes, teasing, remarks, and questions.

Pervasive behavior is behavior that is widespread, common, or repeated. Behavior of a sexual nature is considered severe when it would be objectionable to a "reasonable person" within the circumstances.

Below are some examples of conduct that might constitute hostile work environment sexual harassment. The list is not all-inclusive; in addition, each situation must be considered in light of the specific facts and circumstances to determine whether sexual harassment occurred. A finding that sexual harassment occurred that violates this policy does not mean that illegal sexual harassment necessarily occurred.

Examples of Hostile Work Environment Sexual Harassment

• When an employee complains about the vulgar language and jokes that routinely fill the break room, the employee's supervisor tells them to "lighten up and get used to it because that's how boys behave."
• After learning that an employee has separated from their spouse and may be getting a divorce soon, a coworker has begun asking them out. After being repeatedly turned down, the coworker has begun calling the employee at home to ask if they would like the coworker to "come over and help cure their loneliness."
• A manager calls and sends instant messages to an employee in another division repeatedly asking the employee to go out with the manager, even after the employee tells the manager that they are not interested.

Responsibility of All Employees with Regard to Discriminatory Harassment, Including Sexual Harassment

It is the responsibility of all employees to refrain from engaging in, condoning, or tolerating discriminatory harassment. Employees are encouraged to promptly report discriminatory harassment to any of the officials listed under "Procedures for Reporting and Responding to Discriminatory Harassment, Including Sexual Harassment." Further, employees are required to fully cooperate with any investigation or inquiry into allegations of discriminatory harassment.³

Responsibility of All Supervisors and Managers with Regard to Discriminatory Harassment, Including Sexual Harassment

A supervisor or manager who witnesses or receives a report of actions that they believe may constitute discriminatory harassment under this policy must report the incident to the discriminatory harassment coordinator in the Board's Office of EEO Programs and OMWI (OEO) even if the employee raising the request seeks confidentiality or anonymity.⁴ This is true whether or not the manager or supervisor is in the direct reporting chain of the employee who raises a complaint of discriminatory harassment. 

Procedures for Reporting and Responding to Discriminatory Harassment, Including Sexual Harassment

Any employee who believes that they have been subjected to discriminatory harassment, or who witnessed discriminatory harassment, is encouraged to promptly report the conduct and not remain silent. Employees are also encouraged (but not required) to inform the offending person orally or in writing that such conduct is unwelcome and offensive and must stop. If employees do not wish to communicate directly with the offending person, or if such communication has been ineffective, employees are encouraged to report the discriminatory harassment to any of the following individuals: (1) the discriminatory harassment coordinator in OEO; (2) the offending individual's supervisor or the harassed employee's supervisor; (3) the offending individual's division director or the harassed employee's division director; (4) an Employee Relations (ER) staff member in People, Strategy and Operations (PSO); (5) the chief human capital officer in PSO; or (6) for employees in PSO, the assistant general counsel for Internal Administrative Law in the Legal Division (assistant GC). When reporting a concern, employees should describe in detail the actions that are perceived to be discriminatory harassment. An employee who reports discriminatory harassment to any of these individuals will be advised of this policy and an initial review of the allegation will be opened by the discriminatory harassment coordinator as set forth in this policy.

Employees who allege discriminatory harassment or who cooperate in an investigation shall not be subjected to reprisal, recrimination, retaliation, or the threat of such action. Prompt reporting and employees' continued assistance is critical to allow rapid response by management and resolution of the objectionable behavior.

An employee who believes they have been subjected to discriminatory harassment always has the option to initiate the EEO complaint process by contacting an EEO counselor in the OEO within 45 days of the action perceived to be harassing. More detail regarding this process can be found in the "EEO Administrative Complaint Process" section of this policy; in addition, employees may wish to consult the Board's Rules Regarding Equal Opportunity at 12 C.F.R. § 268, and the Board's Equal Employment Opportunity policy.⁵ If an employee initiates the EEO complaint process and reports that they have been subjected to discriminatory harassment, the EEO counselor will process the employee's EEO complaint and will also refer the allegation of discriminatory harassment to the Board's discriminatory harassment coordinator, who will open a fact-finding inquiry/investigation into the matter as set forth in this policy. The Board will investigate all allegations of discriminatory harassment, even those where the individual does not initiate the EEO complaint process.

Procedures for Investigating Discriminatory Harassment, Including Sexual Harassment

Any individual, including an employee of the OEO, who receives an allegation that they believe may constitute discriminatory harassment under this policy must report the allegation to the discriminatory harassment coordinator in the OEO. Upon receipt of any such allegation, the discriminatory harassment coordinator must follow the procedures described below:

1. Initial Review of an Allegation of Harassment
   1. The discriminatory harassment coordinator must document the details of the allegation received, including the date upon which it was received, from whom it was received, the name of the employee and the alleged harasser, and the date of the incident(s), and immediately notify the assistant GC and ER of this information.
   2. Based on the initial facts reported, the discriminatory harassment coordinator shall determine whether the allegation(s) could constitute discriminatory harassment.
   3. If the discriminatory harassment coordinator determines that the allegation(s), assuming they are true, would not constitute discriminatory harassment, the discriminatory harassment coordinator shall notify the employee of that determination and inform the Legal Division and ER of the matter for appropriate action.
   4. If the discriminatory harassment coordinator determines the allegation(s) could constitute discriminatory harassment, they must:

• initiate a fact-finding inquiry/investigation as explained in section 2, "Fact-Finding Inquiry/Investigation into an Allegation of Discriminatory" (even if an EEO complaint regarding the same reported conduct is pending or being processed by the OEO);
• inform the employee who believes they were subjected to discriminatory harassment, in writing, that the allegation will be investigated and that they may also, if they so choose, initiate the EEO complaint process by contacting an EEO counselor in OEO within 45 days of the action perceived to be harassing; and
• in consultation with the Legal Division, determine whether there are any immediate measures that should be taken to stop any harassing conduct and prevent further harassment, including taking interim remedial measures to ensure that potentially harassing or retaliatory conduct does not occur while the inquiry into the allegations is conducted. Examples of such interim remedial measures may include making scheduling changes so as to avoid contact between the parties, transferring the alleged harasser, or placing the alleged harasser on administrative leave with pay pending the conclusion of the investigation.

2. Fact-Finding Inquiry/Investigation into an Allegation of Discriminatory Harassment
   1. The inquiry/investigation into the allegation of discriminatory harassment shall begin within 10 calendar days of the notice of the harassment allegations and will be conducted in a prompt, thorough, and impartial manner, such that a determination as to whether any corrective action is needed can be made, and such action effectuated as quickly as possible.
   2. In some cases, the Board may determine the fact-finding inquiry/investigation should be conducted by a third-party fact finder (e.g. a contract investigator), such as when there are inadequate internal resources to conduct a prompt fact-finding inquiry/investigation or a conflict of interest (or the appearance of a conflict). For example, in no case shall the individual being accused of discriminatory harassment have supervisory authority over the individual who investigates the harassment or over the investigation.
   3. The fact finder conducting the inquiry/investigation must:

• inform the management and the alleged harasser, in writing, that an administrative harassment inquiry/investigation will occur;
• contact relevant witnesses to schedule an interview, including the employee who believes they were subjected to discriminatory harassment, alleged harasser, and other third-party witnesses to develop facts relevant to the investigation (such as whether the alleged conduct occurred and, if so, whether it is related to a protected class or status). During the interview, the investigator will provide all witnesses a notice issued by the OEO director prohibiting retaliation against any individual participating in the administrative harassment inquiry;
• obtain any supporting documents or other information from persons interviewed that the assigned investigator determines are relevant to the allegations; and
• prepare a fact-finding report promptly after completion of the fact-finding inquiry/investigation.

3. Actions to be Taken Upon Completion of Fact-Finding Inquiry/Investigation
   1. At the conclusion of the fact-finding inquiry/investigation, the discriminatory harassment coordinator must send the completed fact-finding report to the assistant GC and ER within two (2) business days after the discriminatory harassment coordinator receives the fact-finding report or after the fact-finding report is completed. The fact-finding report must contain a conclusion as to whether the facts presented constitute discriminatory harassment.
   2. Where an investigation has established that an employee engaged in discriminatory harassment, the Legal Division and ER will determine the appropriate recommended response, including any proposed action(s) recommended to be taken against the employee who engaged in discriminatory harassment. An employee who violated the Board's Discriminatory Workplace Harassment policy may be subject to discipline or other appropriate management action, such as a letter of reprimand, last chance warning, suspension without pay, or separation from Board employment, in accordance with the Board's Adverse Action policy or its Disciplinary Actions policy. Furthermore, the employee may also be required to attend training designed to address their harassing conduct.
   3. Where the investigation determines that there has been no violation of policy, but where the investigation determined there might be issues related to non-discriminatory misconduct, performance, or general management, appropriate action may be recommended by the Legal Division and ER to the alleged harasser's division management.
   4. Where an investigation has established that a supervisor or manager condoned discriminatorily harassing conduct, ignored complaints of such conduct, or otherwise failed to properly carry out the responsibilities provided under this policy, they may be subject to disciplinary action and/or be required to attend training to assist the supervisor or manager in identifying and preventing discriminatory harassment in the future.
   5. To conclude the process, the discriminatory harassment coordinator will provide a closeout letter to the employee who reported being subject to discriminatory harassment informing them whether a violation of the Board's Discriminatory Workplace Harassment policy was found.
   6. In cases where corrective action is necessary, the discriminatory harassment coordinator will follow up with the employee who reported the harassment to determine whether management's response has effectively addressed (ended) the discriminatory harassment.
   7. If the employee reports that discriminatory harassment has continued, the discriminatory harassment coordinator will conduct any necessary follow-up fact-finding inquiry/investigation necessary for the Legal Division and ER to identify additional management responses that may more effectively stop the harassing activity (e.g., taking more stringent action against the employee who engaged in discriminatory harassment).

Confidentiality and Anonymity

Management will protect the confidentiality of all harassment allegations to the fullest extent possible. However, anonymity of an employee alleging discriminatory harassment generally cannot be provided or guaranteed because information about the allegation will likely need to be shared with the alleged harasser in order for the Board to investigate the allegation of harassment. Of course, the Board will ensure that information is only shared with those who have a need to know and to enable the Board to comply with this policy and its legal obligation to prevent and correct harassment, or hostile or abusive behavior.

Administrative EEO Complaint Process

An employee subjected to discriminatory harassment may also choose to initiate the administrative EEO process with the Board's OEO by contacting an EEO counselor or contact OEO at [email protected] within 45 days of the action perceived to be harassing. If an employee has reported an incident to the Board's discriminatory harassment coordinator in a timely manner and the investigation has not been completed before the 45-day period for filing an EEO complaint, the employee may request in writing that the OEO director stay, for a specific period of time, the time for filing a complaint. The OEO director will consider requests for a stay within the filing deadline for the time it takes to resolve any internal investigation or inquiry and will inform the employee in writing whether the stay has been granted and, if so, for how long.

An employee's right to initiate the EEO process does not diminish in any way management's responsibility to ensure that discriminatory harassment does not occur. Even if an employee chooses not to use the procedures in this policy to report harassing conduct and instead initiates the EEO process, the EEO counselor will also refer the matter to the discriminatory harassment coordinator so that the claim can be investigated, as explained above. An investigation by the discriminatory harassment coordinator does not supplant or limit in any way an employee's right to participate in the EEO process; rather, it ensures that the Board is able to obtain the information it needs to respond appropriately to all allegations of discriminatory harassment. For this same reason, if at any point during the EEO process an EEO counselor learns any facts or information relevant to an allegation of discriminatory harassment, the EEO counselor will promptly notify the discriminatory harassment coordinator.

The Board forbids retaliation against any employee who reports harassment to an EEO counselor or management official, files an EEO complaint, or otherwise participates in a discriminatory harassment investigation/inquiry.

Relationship of Discriminatory Harassment Procedures to the Administrative EEO Complaint Process

The procedures in this policy are separate and apart from the Board's EEO administrative complaint process, although both reflect the Board's commitment to address allegations of discriminatory harassment. The Discriminatory Workplace Harassment policy seeks to eliminate discriminatory harassment before such conduct rises to a level that would violate the law. In contrast, the EEO administrative complaint process is designed to conduct investigations into allegations of unlawful discrimination for the purpose of determining whether the law was violated. Specifically, because the Board wishes to prevent discriminatory harassment before it violates the law, that is, before it becomes severe or pervasive, the Board has established the Discriminatory Workplace Harassment policy to encourage the reporting of discriminatory harassment so that it can be stopped, in general, but in all cases before it becomes severe or pervasive.

Misconduct or inappropriate behavior that is not based on an individual's protected status or protected activities is not covered by this policy but should be referred to PSO in the Division of Management and Financial Services.

Protection Against Retaliation

Employees who allege discriminatory harassment, cooperate in an investigation, assist an individual in reporting discriminatory harassment, or protect others who may have been affected by discriminatorily harassing conduct, shall not be subjected to reprisal, recrimination, retaliation, or the threat of such action. Prompt reporting and employees' continued assistance is critical to allow rapid response by management and resolution of the objectionable behavior.

An employee (including a manager or supervisor) who engages in retaliation in violation of this policy may be subject to disciplinary action, up to and including separation from Board employment.

Appeals Process

An employee subject to disciplinary action for conduct that violates this policy may appeal such disciplinary action if authorized under the procedures set out in the Board's Disciplinary Actions policy or the Adverse Action policy.

Responsibility

The OEO is responsible for the administration and interpretation of this policy. Division directors will consult with the OEO as necessary in carrying out their responsibilities under this policy. This policy will be reviewed and updated as necessary.

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