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Most people have heard the story by now: Lisa Nowak, a NASA astronaut, was arrested for allegedly trying to kidnap a woman she believed was her rival for the affections of astronaut William Oefelein. Police reported that Nowak drove 900 miles, from Houston to Orlando, while wearing an adult diaper so she wouldn't have to stop for bathroom breaks, to confront the other woman, who is also an astronaut.

The incident brings up a question: How can a company protect itself from employees who develop romantic relationships with each other that go awry, whether it's peer-to-peer or supervisors and subordinates?

"The [Nowak] case highlights the fact that when all the sex, romance and passion happens, people who normally use good judgment, don't," says Lynn D. Lieber, an employment-law attorney specializing in harassment and discrimination law and CEO of San Francisco-based Workplace Answers.

The first thing to do is to make explicit that "Relationships that might result in favoritism and can cause bias in determining promotions and pay raises and assignment planning and rewards and recognition are prohibited," says Janet Reid, managing partner in Cincinnati-based Global Lead Management Consulting.

Beyond that, Lieber and Reid offer seven steps a company should take to protect itself from unraveling office trysts:

• No. 1: Follow through with background checks. Reid recommends that companies conduct a national check of a new employee's or new supervisor's criminal and civil background and also research the applicant's financial records to ascertain responsibility and stability.

• No. 2: Conduct harassment-prevention training for all employees. Training should detail prohibited behavior and inform employees that the employer has the right to get involved in a workplace relationship.

• No. 3: Inform employees. Employees need to know that, if they're dating a peer, even though a harassment policy cannot prohibit that relationship, they still have to abide by the company's no-harassment policy.

• No. 4: Conduct separate training for supervisors. Supervisors need to know why they cannot date employees. One reason is the inherent conflict of interest. A supervisor dating an employee can make the company vulnerable to lawsuits from other employees who may sense favoritism. Supervisors should know they are personally liable if they harass an employee and that in all sexual-harassment cases the supervisor is personally named. If a supervisor is found guilty of sexual harassment, the supervisor's personal assets are in jeopardy.

• No. 5: Stress confidentiality. Reid suggests employers create a phone line where employees could report harassment anonymously. Lieber adds that if an employee or supervisor is questioned about a relationship, that conversation should remain confidential. If a supervisor wants to date a subordinate, bring that to management before the relationship develops so a solution can be created, such as a transfer for the supervisor or employee.

• No. 6: Listen to rumors and gossip. Rumors and gossip will tell the who, what, when and where. Supervisors are obligated to confront employees who it is rumored are dating after confirming that the rumors are most likely true. Inform the two again of the workplace's policy. Also listen for jokes that deal with gender, race, orientation and disability to stop it.

• No. 7: Enforce the policy equally. Juries get angry when there is favoritism, and inconsistent rules and regulations often lead to discrimination lawsuits. If two well-respected employees are in a relationship, utilize a consensual relationship agreement where employers ask employees to sign a legal document that says the relationship is consensual, that the employee will behave appropriately in the workplace, and that the employee is aware of the no-harassment policy.

If you like this story, check out these related stories on www.DiversityInc.com:

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