More HR Wisdom from Hollywood Drama

What We Can Learn From the Blake Lively/Justin Baldoni Saga

In January 2025, when news was breaking about Blake Lively’s sexual harassment lawsuit against Justin Baldoni, we saw an important lesson for HR managers about navigating the resignation of potentially toxic employees. The latest twist in this Hollywood legal drama prompts a refresher lesson in avoiding retaliation complaints.

A Brief History of the Case(s)

In December 2024, Blake Lively filed a lawsuit accusing Justin Baldoni of sexual harassment during the filming of It Ends With Us, a movie in which both of them starred and Baldoni directed. She also accused him of orchestrating a public smear campaign in retaliation for raising concerns about a hostile work environment on the set. Baldoni denied all allegations and filed a countersuit for defamation and extortion, which was dismissed in June 2025. The legal battle continued with both sides presenting witness depositions and text messages to support their positions, with failed attempts to mediate and settle the claims. Then on April 3, 2026, a federal judge dismissed 10 out of 13 of Lively’s claims, including sexual harassment and defamation. The remaining claims, which are expected to proceed to trial in May, involve retaliation, breach of contract, and aiding and abetting retaliation.

The HR Lesson

The current status of this drama serves as a reminder that California law protects employees from retaliation even if their original complaint is not deemed to be valid. Retaliation may be found when there is a nexus, or a causal link, between an employee’s protected activity and a negative employment action. For example, if an employee who makes a complaint about harassment (or workplace safety, or wages, or being denied a leave of absence… the list goes on) receives an unexpectedly critical performance review, he/she could easily perceive the low scores to be retaliatory. Layoff, demotion, changed responsibilities or work schedule, and even being “given the cold shoulder” by management could be considered retaliation when they occur in close proximity in time to a legally-protected activity. And even if the employee’s complaint is investigated and found to be unsubstantiated, the company’s actions following that complaint could lead to significant legal risk.

How to Minimize Risk

So does an employee who makes a workplace complaint now live in a protected bubble with no accountability for performance? No! The law says an employee cannot be treated differently than others due to exercising his/her rights, but it does not create a shield from appropriate consequences. Employers can proceed with caution, keeping the following important points in mind:

Consistency is Key! When employees understand the company’s expectations and managers provide ongoing performance feedback, disciplinary actions should not take employees by surprise. Employers can maintain consistent performance management practices to earn employees’ trust and show that everyone is being held to the same standards and given fair warnings and opportunities to improve.

Maintain Professional Boundaries. It may be perfectly natural for a manager to pull back from socializing with an employee, whether out of personal frustration or fear of making the situation worse, when a workplace complaint starts to brew. But this change in temperature can become fuel in an employee’s retaliation complaint, depicted as being excluded from office conversations or left out of department decision making. While it’s great to have friendly working relationships with staff, managers should maintain enough professional distance that workplace interactions don’t require an abrupt about-face when a challenge develops.

Document, Document, Document. You needed to eliminate that employee’s position three months after receiving a hostile work environment complaint? The job was restructured to a part time schedule while the employee was out on leave for a workplace injury? If you don’t have detailed documentation to support changes like these, a retaliation complaint may be right around the corner. Smart managers keep notes about verbal warnings, deliver effective written warnings, and can present the business-related reasons to support employment decisions.

Seek Legal Counsel. You may be 100% confident that the company’s actions are not retaliatory and have nothing to do with an employee’s recent protected activity, but attorney support is always a wise investment. Before letting the employee go or taking other major actions, allow your attorney to review documentation, assess potential risk, and help you navigate the next steps.