I'll ignore your strawman entirely.... and just say: If the OP wants to protect his business, the offending employee's intent is immaterial when it comes to exp

I'll ignore your strawman entirely.... and just say: If the OP wants to protect his business, the offending employee's intent is immaterial when it comes to exposing himself^ and his company to undue legal risk. ^ IIRC in California managers (as company representatives) are personally liable if they knew of the harassment and didn't take corrective action. OP needs to lawyer up, deal with this, and address harassment more broadly in the company. Sucks to deal with... but is mandatory training for all medium-to-big companies.