7th Cir.

Alma Sanchez v. El Milagro, Inc., doing business as El Milagro

May 27, 2026 ·24-3250 ·Panel Decision ·Ripple · By Aisha Johnson

The Seventh Circuit affirmed a summary judgment ruling in a sexual harassment case brought under Title VII and the Illinois Human Rights Act. While the court acknowledged that the alleged conduct could constitute a hostile work environment, it held that the employer was not negligent in its response to the complaints.

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Background

Plaintiff Alma Sanchez worked at an El Milagro tortilla factory and alleged that a coworker, Francisco Gutierrez, sexually harassed her on three occasions by touching her buttocks. Sanchez claimed the employer failed to investigate her complaints promptly. The district court granted summary judgment for the employer, and Sanchez appealed.

The court’s reasoning

The court reviewed the grant of summary judgment de novo. It noted that while the alleged conduct, viewed in totality, could be found to create a hostile work environment, the employer is only liable for coworker harassment if it was negligent in controlling working conditions. The court found that Sanchez did not provide her supervisor with enough information to make a reasonable employer think she was being sexually harassed regarding the first two incidents, as she described them as accidents. However, after she reported the third incident in writing, the employer conducted an investigation and took corrective action, which the court deemed prompt and appropriate.

The dissent

I respectfully dissent as to Section II.B.2.

Lee

What it means going forward

Employers may still face liability for hostile work environment claims based on severe physical contact, but they can avoid liability for coworker harassment if they can demonstrate that the employee did not provide sufficient notice of the sexual nature of the conduct or if the employer took prompt and appropriate corrective action upon receiving a formal complaint.

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