Bill would bar sexual harassment by professional investors doing business in Massachusetts

A bill filed in the Massachusetts House would make it unlawful for “professional investors” doing business in the commonwealth to make sexual advances, requests for sexual favors, or other verbal or physical conduct of a sexual nature when such conduct is tied to investment decisions or creates a sexually hostile business environment. The Judiciary Committee reported Sept. 25, 2025, recommending that House Bill No. 4537 ought to pass, with Michael S. Day reporting for the committee.

The measure, filed Sept. 15, 2025 as House No. 4537 and introduced via a petition of Tram T. Nguyen and others, would add a new Chapter 151G to the General Laws. It defines core terms, describes prohibited conduct, and establishes civil remedies for injured parties as well as enforcement authority for the attorney general.

Under the bill’s definitions, a “professional investor” includes entities such as banks, insurance companies, investment companies, pension or profit‑sharing trusts, partnership and venture capital funds and similar institutional buyers whose business includes sponsoring, guaranteeing or granting funds or engaging in investment transactions. The bill also defines “derivative investment,” “venture capital company,” “venture capital fund” and “venture capital investment” and uses those definitions to describe the statute’s scope.

Section 2 of the proposed chapter would make it unlawful for a professional investor to make sexual advances, requests for sexual favors, or other sexual conduct "either directly or indirectly through an intermediary" when (1) submission to or rejection of such conduct is made explicitly or implicitly a basis for business investment transactions, including sponsoring or granting funds, or (2) the conduct has the purpose or effect of unreasonably interfering with an individual’s working relationship by creating an intimidating, hostile, humiliating or sexually offensive environment.

The bill creates a private right of action. An "individual doing business in the commonwealth who is injured by a violation of section 2," or an entity that employed the injured individual to conduct business with the professional investor, may sue in any court of competent jurisdiction. The text lists potential recoverable relief including compensatory, incidental, consequential and punitive damages, injunctive and other equitable relief, and an award of reasonable attorneys’ fees and costs to be paid by the defendant.

Subsection (b) assigns the attorney general concurrent enforcement authority. The attorney general may bring an enforcement action against a professional investor for violations of section 2, seek damages and equitable relief, and recover costs and attorneys’ fees for the commonwealth. The bill permits the attorney general’s office to investigate potential violations using the powers and procedures provided by section 6 of chapter 93A.

The draft sets a limitations period in Section 3(c): any action "based upon or arising under this chapter" must be instituted within three years after the date of the last alleged unlawful act, the last alleged injury, when an injured individual became aware of the last alleged injury, or when the attorney general’s office became aware of the last alleged injury, whichever is most recent.

Section 4 instructs courts to construe the chapter liberally to accomplish its purposes and states that it does not repeal other laws of the commonwealth. The bill also references federal rules and regulations by citation where it defines terms: the Federal Investment Company Act of 1940; the Federal Small Business Investment Act of 1958; 17 C.F.R. 275.203(l)-(1); and 29 C.F.R. 2510.3‑101(d).

The Judiciary Committee’s report recommending passage was filed Sept. 25, 2025. The transcript and bill text do not record a committee roll‑call vote or amendments adopted in committee. The measure will proceed through the legislative process in the House and, if advanced, to the Senate for further consideration.