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Originally Posted by Scootermuze
I wonder if it is appropriate for employees to be surfing the net on company time
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That's a moot point at this stage. She knows it's a sex-related shirt now, and if he continues to wear it she could try and pull something.
The law is that an employer must take appropriate action on all sexual harassment claims or they can be held liable. If he is allowed to continue wearing these shirts then his boss not very smart.