About

Appeals court limits employer strict liability for harassment by supervisors of other staff (Doe v. Wells Fargo)

Published
Score
11

Why it matters

On October 5, 2026, the Second Appellate District, Division Four, ruled in Doe v. Wells Fargo Bank, N.A. (No. B344642) that California's Fair Employment and Housing Act does not impose strict liability on an employer for harassment by a manager who supervises other workers but not the plaintiff. The plaintiff, Jane Doe, a former wealth advisor, alleged that a senior investment strategist harassed and assaulted her during a business trip. He had no authority to hire, fire, discipline, or evaluate her, and Doe argued that Wells Fargo should still be strictly liable because he supervised others. The court disagreed. The panel found the statute's word "supervisor" ambiguous and adopted the narrower reading tied to authority over the victim, relying on Government Code section 12940(j) and reading it against the 2003 California Supreme Court decision in State Department of Health Services v. Superior Court. The trial court had granted Wells Fargo summary judgment, and this appeal addressed only the strict liability question.

The negligence question remains unresolved on appeal. The trial court also found that the bank could not face negligence liability because it responded promptly to Doe's complaint, but the appeal did not reach that issue, and it remains part of the lower court proceedings. The court did not fully define the supervisor rule either. It left open that a harasser need not be the plaintiff's immediate supervisor to trigger liability, so the outer boundary of "supervisory authority" is still unsettled. Commentators also note the ruling does not eliminate liability where someone with supervisory authority over the plaintiff in practice is involved. Because this is an appellate decision, it binds California trial courts but does not settle the question statewide if other districts reach a different result.

For employment counsel, the immediate task is to map who actually had authority over the plaintiff, not just who held a supervisory title or supervised others. Where the alleged harasser's power over the employee is informal or contested, expect the immediate-supervisor question to be litigated. Watch for appellate decisions from other districts on the same point and for the lower court's ruling on negligence in Doe. Defense teams should not treat this ruling as a complete shield, since prompt-response and negligence theories remain live and the authority analysis is still developing.

Sources

mail Subscribe to Employment Law email updates

Primary sources. No fluff. Straight to your inbox.

Also on LawSnap