Work place sexual harassment

You first need to familiarize yourself with your obligations as a NY employer. Start here: Sexual Harassment Prevention Model Policy and Training (ny.gov) You need to execute (and implement prospectively) the minimum standards, such as making a model complaint for available and adopting the minimum standard policy. For the incident at play, review your obligations about conducting a confidential investigation. That should include interviewing the reporting party, the purported victim, and the alleged offending employee.  Running a business anywhere is not easy and at this moment, NY is not making it any easier. You should have a viable relationship with a business and employment attorney (meaning, not necessarily someone on retainer but accessible communications to sort the wheat from the chaff from in the first instance). The internet is not the best place to have to turn in your time of legal need. There is no menu or list of outcomes explaining how to conclude your investigation or what to do once done. That is left for you, but you have to document your process and maintain confidentiality of the sensitive data collected.