He cannot sue you or your company for sexual harassment without first filing a charge of discrimination with a state or federal agency. As to his likelihood of prevailing, from your description of the facts it sounds highly unlikely. You may want to discuss this was an employment attorney to look at taking proactive steps. Many of us will provide a free consultation.
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Additional information is needed such as the number of employees your business employs, whether you have a sexual harassment policy, whether the alleged harassor is a supervisor or manager, and more. Federal and Illinois law differ on sexual harassment. Under Illinois law, there is strict liability for sexual harassment committed by a supervisor or manager. Under federal law, there is a strong defense to unreported claims of sexual harassment.
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More information is needed. The best advice would be to set an appointment with an attorney who specializes in employment law and sexual harassment cases. Then after a thorough review of all of the facts, they can give you an opinion as to what procedural steps, if any, that you should take, and if you have any legal exposure. I would suggest that you begin your search for an attorney on this Avvo website. There is a tab "Find A Lawyer" on the home page of Avvo at www.avvo.com that will help you find a lawyer in this practice area in your locale. Good luck!
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