Blake Lively’s Harassment Lawsuit – What HR Pros Need to Know

While most of us were celebrating the holidays with family and friends, a legal drama stole the spotlight in Hollywood – and it’s far from over.

As you might have heard by now, actress Blake Lively has taken legal action against “It Ends With Us” director and co-star Justin Baldoni, his production company Wayfarer Studios and several other defendants. 

In Lively’s view, she endured sexual harassment and a hostile work environment while working on-set with Baldoni. She also claimed she faced retaliation – a public smear campaign – for speaking out about the alleged misconduct.  

Brief Background on the Blake Lively – Justin Baldoni Fallout

For those unfamiliar with this ongoing feud, here’s a brief recap: Lively and Baldoni worked together on the film. After the filming wrapped, fans quickly noticed that Lively and Baldoni promoted the movie using very different strategies.

Moreover, they didn’t do any joint promotions or appear together at the premiere. Soon, the rumor mill started churning about the co-stars not getting along.

Almost immediately, the court of public opinion was in session, with fans vehemently declaring themselves for #TeamBlake or #TeamJustin on various social media platforms.

Legal Allegations in Blake Lively’s Complaint 

Late last month, Lively filed an administrative complaint with the California Civil Rights Department against Baldoni, his production company Wayfarer Studios and others.

Among other things, Lively’s complaint accuses Baldoni of sexual harassment and fostering a toxic work environment. Specifically, Lively alleges Baldoni made sexually inappropriate comments and discussed his “previous porn addiction” with Lively, among other things. (We’re not going to take a deep dive into the salacious details. They’re already all over the Internet. And you can read the complaint in the link above for more info.)

Moreover, Lively alleges, Wayfarer Studios provided no way for her to report sexual harassment to HR. Instead, Lively asserts, her only option was to report her concerns to Baldoni – the director and her alleged harasser. At an “all-hands meeting” on Jan. 4, 2024, the cast addressed “the hostile work environment that had nearly derailed production of the film,” the complaint alleged. 

Her complaint also includes screenshots of text exchanges that allegedly show the defendants engaged in  “a carefully crafted, coordinated, and resourced retaliatory scheme to silence her.”

Lively then filed a federal lawsuit in New York against Baldoni, Wayfarer Studios and his publicity team, repeating the allegations outlined in the administrative complaint. The suit seeks compensatory damages, including “lost wages” and money for “mental pain and anguish.”

Baldoni has categorically denied the allegations. He has filed a libel lawsuit against the New York Times for its coverage of Lively’s complaint in an article titled “‘We Can Bury Anyone’: Inside a Hollywood Smear Campaign.” Lively is not a defendant in the case. The lawsuit claims Lively’s complaint “cherry-picks” the text messages in a way that alters their meaning. The suit seeks $250 million in damages.

The Times stood by the article, saying its report was “based on a review of thousands of pages of original documents, including the text messages and emails that we quote accurately and at length in the article.”

Lessons From a High-Profile Harassment Case

The lawsuit has captured headlines in the mainstream media, but the case – even in this early stage – provides critical reminders for HR to carry into the new year. 

1. Sexual Harassment and Hostile Work Environments

When can sexual harassment rise to the level of a hostile work environment? 

To constitute a hostile work environment under federal law, conduct and/or comments must be based on a protected characteristic, i.e., the harassment must be because of a person’s gender (or race, disability, age, etc.), and must be severe or pervasive enough to create an environment that a reasonable person would consider intimidating, hostile, offensive or abusive, employment attorney Amy Epstein Gluck of the firm Pierson Ferdinand LLC previously told HRMorning.

In an insightful LinkedIn post, Gluck discusses Lively’s complaint and offers several action steps to help prevent similar misconduct mistakes in the workplace. Among other things, Gluck suggests putting the company’s anti-harassment policy in the employee handbook and including “specific misconduct and examples, i.e., no sexual or sexist jokes, sexual puns, sexual innuendo, smacks on the butt, grabbing of any body parts, etc.” 

2. The Likeability Factor

The Lively-Baldoni dispute also serves as a reminder that all complaints of harassment should be taken seriously and handled properly. 

While discussing this case, many people on social media commented about Lively’s past behavior in resurfaced interviews – and used that as justification for not believing her. Many people online decided that Lively was “unlikeable” and so concluded she wasn’t a victim of workplace harassment. 

This may sound like a no-brainer, but let’s spell it out anyway for the sake of having a reminder: “Likeability” isn’t a prerequisite for employment law protections from harassment, discrimination and retaliation. Put another way, even a so-called “unlikeable person” can be a target in the workplace.

At some point in your career, you may receive a complaint from someone who isn’t your favorite person. Even so, that individual deserves to be taken seriously – and to have their complaint handled properly.

3. Legal Implications of Retaliation in the Workplace

You’ve probably worked with a manager who got bent out of shape about an employee’s accusation of harassment (or discrimination). 

HR needs to step in and be the voice of reason before that frustrated manager reacts in a way that comes across as retaliatory behavior. Here’s why: Even if an underlying harassment or discrimination claim turns out to be unfounded, an employer can still be held liable for workplace retaliation connected to that complaint.

4. Reputational Harm

This case shows how unresolved workplace problems can derail into full-blown legal proceedings – and how that fallout can damage an employer’s reputation.

Based on Lively’s allegations, the employer held an all-hands meeting in January 2024 to resolve workplace disputes.

Fast-forward one year: Lively filed a lawsuit, and the next day, Baldoni was dropped by WME talent agency.

5. Provide Training on Documentation

We recently outlined common manager mistakes that can get your company sued. This current case involves several on the list, including mistake No. 1: sloppy documentation. 

Let’s consider the proverbial paper trail. Solid documentation can protect employers from potential legal trouble. But on the other hand, paperwork mistakes can cause legal headaches. 

Either way, documentation will likely become a focal point if you end up in court. For example, the text exchanges take center stage in the current dispute. 

For practical purposes, it’s not enough to tell managers to document. Instead, they need to be trained on how to create solid documentation. And they need to know what NOT to put in a text. Or an email. Or a Slack message. 

Managers need to know that good documentation can be their best defense if things ever end up in court. Teach them to write down everything – objectively clearly and professionally – as if a jury might read it one day. By focusing on facts, avoiding bias and showing they followed the rules, managers protect themselves and the company while keeping everything above board.

6. Change Management: What to Expect in 2025

We know that we have potentially widespread changes coming in this year. Have you positioned yourself to lead your company through upcoming changes?

For weeks, we’ve been getting ready for policy shifts that could seriously shake up the workplace later this month under Trump’s second administration.

Given our current political backdrop, what other changes can we expect in 2025? Will this lawsuit kick off #MeToo 2.0? It’s quite possible.

If you’re looking for a work-related New Year’s resolution, now’s probably a good time to review HR best practices for workplace investigations. 

The Bottom Line 

High-profile cases like this one offer HR pros a valuable reminder: Staying proactive is key to tackling workplace challenges before they spiral out of control. It’s not just about having policies in place; it’s also about creating a work culture of respect, safety and inclusivity.