Carlisle Corp. owned and operated Wendy’s restaurant franchises. John Stephens was an area…

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Carlisle Corp. owned and operated Wendy’s restaurant franchises. John Stephens was an area manager with responsibility for six of them. Henrietta Bradford, the manager of one of the restaurants, complained of sexual harassment by Stephens to John Hughes, the CEO of Carlisle. Hughes told Stephens to change his conduct and told him he could be fired for sexual harassment. Sometime later Hughes received a similar complaint involving Stephens at another of the restaurants. Hughes fired him. Stephens sued for wrongful discharge claiming Carlisle’s company handbook created an employment contract. The employee handbook stated, “… either the employee or the employer is privileged to terminate the employee.” Should Carlisle be liable for firing Stephens?

 

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