Dept of Health Services v. Superior Court
In this case, the California Supreme Court held, in summary:
"...An employer continues to be strictly liable for hostile environment sexual harassment by a supervisor. An employee's failure to report harassment to the employer is not a defense on the merits to the employee's action under the FEHA, but at most it serves to reduce the damages recoverable. And it reduces those damages only if, taking account of the employer's anti-harassment policies and procedures and its past record of acting on harassment complaints, the employee acted unreasonable in not sooner reporting the harassment to the employer." (slip opinion, p.23)