You get word through the grapevine that one of your lower level employees is very upset. You call him into your office to try and get some understanding around the issue.

Tom steps in with trepidation. "CEO, I did not mean for my discomfort to get to your level, but I would like to discuss some issues with you. I have been working here for three years, but in the last year I have felt like it has become a hostile work environment. The department in which I work has begun to play a sort of game. The goal of the game seems to be to slap each other's genitals using a pool noodle. At first just Sam and Pete were playing, but now management seems to actively encourage it. They have used departmental funds to purchase the noodles, and will regularly join in on the games. I do not enjoy the game at all, and do not play, but they will force me into it, even after multiple attempts to tell them no. I have even been told that I am not management material because I do not fit into the "office culture.""

You tell Tom that these are serious allegations and you will have them looked into immediately. You call Jeff, Tom's supervisor into your office and tell him, "Jeff, the situation with Tom is unacceptable; we cannot have these kinds of issues in the office. You MUST take care of the situation quickly and quietly. It has to STOP."

The next day you hear that Tom has been fired. You call Jeff and ask, "WHAT DID YOU DO?" Jeff says that he took care of the issue and all is good. Tom is no longer with the company and everyone is happier. You fire Jeff immediately.

Jason, Jeff's protégé is promoted and told to fill Tom's position immediately. He sets up a barrage of interviews over the next few days. He comes back in a few days later to report what he has found. "CEO, there is only one acceptable candidate, and he is demand a lot of money to come work here." You reply, "Only one?" He responds, "Yes, there were four finalists, but only one has what it takes." You ask, "Really? Tell me why." Jason explains, "John is good, but he wants too much money, Allison is Prego, no good, Sally is...well, not John if you know what I mean, and Amanda is...well...Mexican..." He continues, "So really, only one acceptable candidate. This is a sales position, so we really need someone strong and manly to fill it."

What employment law issues do you see in the above fact pattern? What would you, as CEO, do to address them?