Even though the vendor is not your employee, your business can be found liable for harassment if you do not take action to address the situation. It can be difficult to investigate a claim of harassment when the claim is about someone who is not your own employee. However, even if a full investigation is not feasible, you can meet with the employee who raised the complaint, and any other employees who were witnesses, and try to come up with a solution that addresses the complaint. Perhaps the employee does not need to have direct contact with this vendor; or perhaps the vendor can send a new representative to your company. Explore possibilities to resolve the complaint.
ASG Law offers legal advice for employers.