What Should I Do If an Employee Complains About Another Employee?

Employee complaints are one of those things that can catch a small business owner completely off guard.

Maybe an employee walks into your office and says:

"I need to tell you something about another employee."

Or you receive a message that says:

"Can I talk to you privately about something that's been happening at work?"

You may immediately start wondering:

• How serious is this?

• Do I need to investigate?

• Should I talk to the other employee?

• What if the complaint isn't true?

• Can I tell the employee who complained what I'm going to do?

• Do I need to document this?

• What if the complaint is about a manager… or even me?

The most important thing to remember is:

Don't ignore the complaint, but don't rush to judgment either.

Your job as the business owner or manager is to take the concern seriously, gather appropriate information, and respond thoughtfully and consistently.

Here's where to start.

1. Listen Without Immediately Taking Sides

When an employee comes to you with a complaint, your first job is to listen.

Let them explain what happened without immediately deciding who is right or wrong.

Try to remain neutral and professional, even if you have a strong opinion about one of the employees involved.

You can say something as simple as:

"Thank you for bringing this to my attention. I'd like to understand what happened so we can determine the appropriate next steps."

Avoid statements like:

• "I knew they were a problem."

• "They're always doing things like this."

• "I don't believe that happened."

• "Don't worry, I'll take care of them."

• "You need to keep this between us."

You don't want to make promises or conclusions before you understand the situation.

2. Get the Facts

Once you've listened to the employee, ask reasonable follow-up questions.

Depending on the situation, you may want to know:

• What happened?

• When did it happen?

• Where did it happen?

• Who was involved?

• Who else witnessed it?

• Has this happened before?

• Did you report it to anyone previously?

• Do you have any documentation or messages related to the situation?

• How has this affected your ability to work?

You don't necessarily need to conduct a formal investigation every time an employee has a disagreement with a coworker.

But you do need enough information to determine what kind of situation you're dealing with.

A complaint about someone being annoying is very different from an allegation of harassment, discrimination, retaliation, threats, workplace violence, or other serious misconduct.

3. Don't Promise Complete Confidentiality

This is an important one.

An employee may say:

"I want to tell you something, but you can't tell anyone."

You should be careful about promising that the information will remain completely confidential.

Depending on the situation, you may need to speak with other employees, review documentation, or take other steps to understand what happened.

Instead, you can explain that you'll limit the information to those who need to know and handle the matter as appropriately and discreetly as possible.

This sets a realistic expectation without discouraging employees from coming forward.

4. Determine Whether Further Investigation Is Needed

Not every employee complaint requires a formal investigation.

But some absolutely deserve more than a quick conversation.

Consider getting additional HR or legal guidance if the complaint involves allegations such as:

• Harassment

• Discrimination

• Retaliation

• Threats

• Workplace violence

• Sexual misconduct

• Wage or hour concerns

• Safety violations

• Serious policy violations

• Other potentially unlawful conduct

If the complaint is serious, don't simply tell the employee to "work it out" with the other person.

You need to determine the appropriate next step based on the circumstances.

5. Document the Complaint

Documentation is important even if you ultimately determine that the complaint doesn't require disciplinary action.

Your documentation should focus on facts, not opinions.

For example:

Weak documentation:

Sarah complained that John is rude and impossible to work with.

Better documentation:

On September 1, 2026, Sarah reported that during a team meeting on August 31, John interrupted her multiple times while she was presenting. Sarah stated that she asked him to allow her to finish speaking, but he continued interrupting.

The second version gives you something useful to work with.

It documents what was reported without automatically declaring that the allegation is true.

6. Don't Assume the Complaint Is Automatically True, or False

This can be difficult when you know your employees well.

Maybe you've worked with John for five years and think, "There's no way he would do that."

Or maybe you've already had concerns about John and immediately think, "I knew it!"

Try to put those assumptions aside.

A complaint is an allegation, not automatically a finding of fact.

At the same time, don't dismiss a complaint simply because you don't like the person making it.

Your goal is to gather information and respond appropriately, not decide who you personally like better.

7. Be Careful About Retaliation

Employees need to feel comfortable raising legitimate workplace concerns without fearing punishment for speaking up.

If an employee makes a complaint, be careful about taking negative action against that employee simply because they complained.

For example, don't suddenly cut their hours, change their schedule, exclude them from opportunities, or treat them differently because you're frustrated that they brought the issue to you.

Retaliation can create a much bigger problem than the original complaint.

If you're considering disciplinary or other adverse action involving an employee who recently made a complaint, it's a good time to get HR or legal guidance before moving forward.

8. Address the Problem, Not Just the Complaint

Once you've gathered enough information, determine what needs to happen next.

Depending on the situation, the appropriate response could include:

• No action because the concern could not be substantiated

• Coaching

• Clarifying expectations

• Mediation or facilitated communication

• Additional training

• Performance management

• Disciplinary action

• Policy changes

• Further investigation

• Legal consultation

There isn't one response that works for every complaint.

The goal is to respond appropriately, consistently, and based on the facts available to you.

9. Follow Up With the Employee

When appropriate, follow up with the employee who raised the concern.

You may not be able to tell them everything that happened as a result of your review.

For example, if another employee receives disciplinary action, that employee's disciplinary information is generally not something you should share with the person who made the complaint.

But you can let the employee know that you took the concern seriously and addressed it appropriately.

Something as simple as:

"Thank you for bringing this to my attention. We took the concern seriously and addressed it appropriately. I may not be able to share details about any personnel actions, but please let me know if you experience any additional concerns."

This can go a long way toward building trust.

What If the Complaint Is About You?

This is where things can get especially uncomfortable for a small business owner.

If an employee's complaint involves the owner, a manager, or someone who would normally be responsible for handling employee complaints, it can be difficult to remain impartial.

That's one reason having an outside HR resource can be so valuable.

An HR consultant can provide an objective perspective, help determine appropriate next steps, assist with documentation, and help leadership navigate difficult employee situations.

You don't necessarily need a full-time HR department to have access to HR support.

What If the Complaint Is Just an Employee Conflict?

Not every workplace conflict is an HR investigation.

Employees will sometimes disagree.

They may have different communication styles, personalities, work habits, or expectations.

That doesn't necessarily mean someone has violated a policy.

Your role may simply be to help employees communicate, reinforce workplace expectations, or address behavior that is affecting the workplace.

The key is knowing the difference between an ordinary workplace conflict and a situation that requires a more serious HR response.

And if you're not sure which one you're dealing with?

That's a great reason to ask an HR professional.

You Don't Have to Handle Employee Complaints Alone

Employee complaints can be uncomfortable, especially when you're a small business owner who knows everyone personally.

You may want to do the right thing but aren't sure what the right thing actually is.

You don't have to guess.

Having an HR professional available can give you a place to turn before you respond, discipline someone, dismiss a complaint, or make a decision that could create a bigger problem later.

Need an Impartial HR Resource for Your Employees?

That's exactly why Moxie HR Consulting offers the Moxie HR Hotline.

For $300/month, your employees have access to an impartial HR resource for questions and workplace concerns, while you have an HR professional you can turn to when an issue needs additional guidance or support.

Moxie can help you navigate employee complaints, workplace concerns, performance issues, documentation, and other day-to-day HR situations, without the cost of hiring a full-time HR employee.

You built your business. You shouldn't have to figure out every employee problem by yourself.

Disclaimer: This article is for general informational purposes and does not constitute legal advice. Employment laws and requirements vary based on your location, industry, business size, and specific circumstances. Serious employee complaints or allegations involving potential legal violations should be handled with appropriate HR and/or legal guidance.