One of the questions being asked in light of the David Letterman situation is where the line is drawn between an employer and an employee (or manager/subordinate) having a relationship.
The line is fairly easy to see, yet employers get themselves into trouble by crossing that line without regard for the consequences. I've seen this first-hand, with a manager and a subordinate at a supermarket having a relationship that went badly. The effect that the break-up and charges of sexual harassment was devastating to not only the two involved, but also to all their co-workers. I thought they both acted stupidly.
Relationships at work are a bad idea. The best thing that two co-workers can do is keep their clothes on--that goes double for the manager who has the hots for a subordinate.
This Letterman situation is going to get far worse before it gets better. And yes, Letterman is an idiot for getting himself into this situation.
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