Alley v. Penguin Random House, No. 21-3158 (7th Cir. 2023)
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Alley, working at Penguin Random House’s warehouse, was promoted to the management position of Group Leader. Penguin required all managers and supervisors to report sexual harassment allegations and provided clear instructions, including how to report anonymously. Alley received a copy of this policy and participated in training that referred to it. In 2019, Penguin employee Guzman informed Alley that Lillard was sexually harassing her. Alley conducted her own investigation. Haines, Guzman’s then-coworker and roommate, submitted a corroborating statement. Alley also contacted Pendleton, a former Penguin employee, who had stopped coming to work months earlier; Alley suspected it involved Lillard.
Haines and another employee went to HR independently, reporting that Lillard was sexually harassing Guzman. Penguin investigated. Alley admitted that she already knew of Guzman’s allegations and that she had contacted Pendleton. She forwarded the statements from Guzman and Haines. Alley later alleged that she too had been sexually harassed by Lillard starting in 2015. Golladay, her former Group Leader, acknowledged that Alley had reported the harassment and that he did not report it. Golladay was not disciplined. Penguin terminated Lillard and demoted Alley.
Alley sued, alleging retaliation under Title VII and breach of contract under Indiana law. The Seventh Circuit affirmed the rejection of both claims, Alley was demoted for her failure to report allegations as required by Penguin policy. She did not engage in statutorily protected activity.
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