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Why Employers Must Address Customer Misconduct—Before It Escalates
While HR departments are well-versed in resolving co-worker disputes, harassment from customers, vendors, or clients is a growing concern that many organizations are ill-prepared to manage. Yet, legal and reputational risks make it imperative that companies have a strategy for addressing hostile behavior from external sources.
According to Elissa Rossi, VP of compliance at harassment training firm Traliant, businesses can’t afford to overlook how customers treat employees—especially in retail, hospitality, and healthcare, where public-facing roles are most vulnerable.
“Even if it’s not a legal violation, it’s still a workplace issue,” Rossi emphasized.
Companies Can Be Liable for Third-Party Harassment
The U.S. Equal Employment Opportunity Commission (EEOC) has ruled that employers can be held responsible for discriminatory or harassing conduct by non-employees. A notable case involved SmartTalent, LLC, which was fined $875,000 after honoring client requests to only hire male workers.
Other high-profile incidents include Buffalo Wild Wings firing two servers who complied with a racist seating request and Costco losing a court case over an employee who faced ongoing harassment from a customer. In each example, company policies—or the lack of them—failed to protect employees and led to serious consequences.
A 2025 report from Traliant found that while most harassment comes from colleagues or supervisors, 14% of workers report being harassed by customers or clients. And the rise in customer aggression since 2020 makes the issue even more urgent.
Set Clear Standards for “Annoying” Behavior
Rossi noted that companies need to define the threshold for inappropriate behavior—even if it’s not illegal or extreme. “You have to decide when something crosses the line from annoying to disruptive,” she said.
Establishing levels of severity can help HR professionals and frontline managers know when and how to act. More companies are using internal or third-party HR partners to define these boundaries in advance, rather than improvising in the moment.
This ensures that employees know they are supported and that expectations for customer behavior are clearly communicated.
Recognize When Behavior Becomes Disruptive or Threatening
Some incidents escalate into dangerous territory—and companies must respond decisively without defaulting to law enforcement. Rossi explains that historically, the approach was binary: either “business as usual” or “call the police.” But this model is outdated and can cause more harm than good.
Publicized incidents—like the 2018 Starbucks arrest of two Black customers, excessive force used on a woman at Waffle House, or racial profiling cases at CVS and LA Fitness—have shown how bias, misjudgment, or poor training can turn routine enforcement into public backlash.
Equity advocate Dr. Janice Gassam Asare recommends a framework of critical questions before involving law enforcement. These include:
- Has a law actually been broken?
- Is there an internal procedure for resolving this situation?
- Could de-escalation resolve the issue more effectively?
De-Escalation Training Is Essential
Rather than immediately escalating a customer situation, de-escalation should be a core part of employee training. It offers a middle ground between ignoring misconduct and criminalizing it.
“Even if the customer is acting intentionally inappropriate, giving employees the tools to de-escalate can protect everyone involved,” Rossi said. “It also gives the company time to assess the situation and take the appropriate action later.”
De-escalation skills help employees manage tense moments, protect their mental well-being, and avoid snap decisions that could damage the company’s brand—or their safety.
Final Takeaway: Policy and Preparedness Matter
Customer aggression is no longer rare—and employers can no longer afford to treat it as isolated or unimportant. Policies must be inclusive of third-party harassment, and training must address real-world scenarios involving customers.
HR’s role is to ensure that employees feel protected, heard, and empowered, whether the threat comes from inside or outside the organization. That means clear procedures, thoughtful training, and proactive support—before harassment escalates into legal or reputational crises.
