Whatcom County Council introduced an amendment during its most recent regular meeting that would close a loophole that kept the government body from knowing about a $225,000 payout to settle a sexual harassment claim made by a county employee against her manager.
The payout, which was made in November 2023 following sexual harassment claims against former public works director Jon Hutchings, was just under the $250,000 threshold for notifying county council of a third-party payment, according to previous reporting by The Northern Light. The payment was made through the Washington Counties Risk Pool (WCRP), which Whatcom County joined in 1988.
While the settlement was paid in 2023, Whatcom County Council said it did not learn of the six-figure payment, nor the allegations against Hutchings, until Cascade PBS reported the payment in an April 2024 exposé.
After more than a year of internal investigation, county council found that while the payment was made through the risk pool, the county still reimbursed the pool because the payout was below the $250,000 deductible for a single claim. Liability for the claim was passed from the county to the risk pool, and council was never informed about the payment, despite Whatcom County taxpayers footing the bill.
Hutchings resigned from his position in October 2022.
On September 23, new language added to county code 3.05 – which covers tort and damage claims and payouts – proposed that the county establish a risk management working group staffed by the county executive, director of finance, prosecuting attorney, county risk manager, at least one member of county council and additional county employees. The amended code would also require council be notified of payments made by third parties, such as the WCRP, within 30 days of payment.
WCRP acts as an insurance policy for counties to weather large legal payouts as well as provides risk management, claims handling and administrative services. The pool provides services to 24 of Washington’s 39 counties.
Whatcom County Council hired Matrix Consulting Group this February to review the county’s policies and procedures for human resources. On September 16, Matrix released a 102-page report outlining multiple high-priority recommendations for the county to make on how it reports sexual harassment and how human resources works with rank-and-file county employees.
Matrix recommended the county centralize its complaint and investigations process, implement a standard procedure for investigating sexual harassment across all county offices and departments, and improve its timeliness on how it handles human resources complaints.
Council is expected to vote on the amendment in October. The next county council meeting is scheduled for Tuesday, October 7.
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