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They are not just on the playground anymore. You have probably seen one in action at one time or another. Yet, their behavior is not against the law. Or...is it?
Generally, no...from an employment discrimination law standpoint, especially if their victim (aka target) is NOT in a Title VII protected class. But, the "target" may have cause for other actions - defamation of character, intentional infliction of emotional distress and invasion of privacy to name a few. Then, if the employee feels so driven that they need to quit, YOU may be facing a constructive discharge case. Or, if they have been bullied so badly they have become ill - workers' compensation exposure.
Just because bullying is not against the law, does not mean that your company policies do not apply. Consider your harassment policy which should include things like respect for coworkers and treating others with dignity. You may also have a Violence in the Workplace policy that refers to inferred or real threats of violence. You are not without options. You have ways to fight the bully! There is no reason to tolerate their behavior any longer!
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