Sexual Harassment in Small Businesses Without HR Departments

 Posted on August 20, 2025 in Sexual Harassment

While there are no definitive statistics on the exact number of companies without HR departments, a significant portion of small businesses and startups – as well as some larger corporations – operate without a dedicated HR department. One study found that one-fourth of Fortune 100 companies did not have an HR department. When there is no formal HR department, addressing sexual harassment claims can be a little more challenging.

With no formal path for reporting sexual harassment in the workplace and no HR policies to guide them, employees may be unsure of where to turn or fear retaliation from supervisors or company owners. Under federal law and the Illinois Human Rights Act (IHRA), employees in small businesses have the same right to a harassment-free workplace, and employers are legally bound to respond appropriately when complaints arise.

If you work in a small company with no HR department and you have experienced sexual harassment, you have other reporting options aside from HR. An experienced Wheaton, Illinois, sexual harassment lawyer can evaluate your claim, guide you through the reporting process, and represent you in filing a sexual harassment claim.   

Illinois Sexual Harassment Laws Apply to Small Employers

The Illinois Human Rights Act was expanded in 2020 through the Workplace Transparency Act (820 ILCS 96/). This expansion broadened the scope of the IHRA in many ways, primarily making it apply to employers with one or more employees for at least 20 calendar weeks during the current or preceding year. Previously, the threshold was 15 employees. Coverage was also changed to include full-time, part-time, seasonal, and temporary workers. While Federal Title VII applies to businesses with 15 or more employees, Illinois law "fills the gap" for smaller workplaces.   

What Are Some of the Challenges Workers in Small Businesses Without HR May Face?

With no formal HR department, there may be no formal reporting procedures, and possibly even no written policies. In smaller businesses, those responsible for sexual harassment could be the owners or supervisors, making it very difficult for workers who are sexually harassed.

Smaller companies tend to have close working environments, which can further heighten the fear of retaliation. In a large corporation, an employee may feel more comfortable reporting sexual harassment to HR because it is unlikely that everyone in the company will immediately be aware of it.

Even when there is no HR department, the owner or manager is responsible for addressing employee complaints. There must also be a written sexual harassment policy that is provided to all employees. Illinois law requires annual sexual harassment prevention training for all employees. If an owner or manager fails to take corrective actions, IHRA complaints, lawsuits, and damages may become a reality.  

How Do You Report Sexual Harassment When Your Company Has No HR Department?

If there is no HR department, sexual harassment claims should be reported to the business owner, manager, or supervisor in an email. It is essential to maintain detailed written records of incidents, including specific details, names of witnesses, precise times, and accurate dates. If internal reporting is not possible or does not feel safe, an employee should consult with an attorney on the best course of action, which may include filing a complaint directly with the Illinois Department of Human Rights. Illinois law prohibits retaliation (including demotion, termination, reduced hours, or other adverse actions) for reporting harassment in the workplace.

Contact a DuPage County, Illinois Sexual Harassment Lawyer

Just because you work in a small business without an HR department does not mean you have to tolerate sexual harassment. Illinois law protects employers in workplaces of every size. If you believe filing a sexual harassment lawsuit is the right choice, a  Wheaton, IL workplace harassment attorney from Mirabella, Kincaid, Frederick & Mirabella, LLC can help.

You may be entitled to reinstatement, back pay, emotional distress damages, and attorney’s fees, depending on your situation. At MKFM Law, we take the time to fully educate our clients about the legal process, developing strategies that are uniquely tailored to their goals and objectives. To schedule your initial attorney meeting, call 630-665-7300.