I work in a small business where I am a supervisor. I have become involved in a consensual relationship with a subordinate that I have known for many years. We keep things very quiet at work, and our work output has not suffered in any way (in fact it may be better.) We are both happy and are planning our futures. We prefer to keep our personal lives just that--personal.

The problem is the others that work in the small department with us. They have caught wind of our relationship and now the chemistry seems to have changed. I think they are worried about potential favoritism and probably my ethics. There have been no incidents of favoritism; my partner would not stand for it as a matter of principle and feels (luckily for me) that I am benefit enough by myself.

The rules I have read on harassment make it clear that I would have to pressure someone for something or make the job an uncomfortable place to qualify.

My question is: Could the others at work, with whom I am not involved, claim harassment for the perceived possibility of favoritism?

They can try. Whether or not they can succeed will depend upon how much evidence they can provide of the perceived favoritism (which might be more than you realize - it's tough to tell when you're inside the situation).

Though you didn't ask this, I'll include it as a freebie: getting involved in even a consentual relationship with a subordinate can be a very, very bad idea, for which you can be terminated even if no one complains. It can cause all kinds of hassles should you break up.

Could the others at work, with whom I am not involved, claim harassment for the perceived possibility of favoritism? They can complain to the boss about favoritism but that's not any form of prohibited harassment. As long as the relationship is consensual, you're not doing anything illegal. Even if it weren't, then the only person with any legal standing to complain is the subordinate.

cbg is right - having a relationship with a subordinate causes all sort of complications, just as you are beginning to experience, and is a very bad idea. If you want to maintain job security and the relationship, then somebody needs to look for a position with a different employer. At the very least, either you or the subordinate needs to move into a different department so he or she is not reporting to you.

It may help as a supervisor by providing them with easily measurable standards of performance in their reviews. Tell them exactly what you look for and what they have or can do for what compensation (raise, bonus, special work assignments). Be as specific as you can. Keep it in writing, let them sign it. Give the impression that you, as a supervisor, want to help them be the best they can, and recognize them for it. (what good supervisor wouldn't?) Disapline procedures should be laid out up front & followed in a "action = consequence" manner. Keeps the ball in their court (if you are more than 15 minutes late 3 times in 3 months you will be suspended). This not only protects you against accusations later, but can improve moral & performance on the job. People just do better when they know exactly what's expected of them. This may also help you in case the relationship goes sour. Emotions get strong and judgment can take a back seat for anyone!

If this indivdiual is in California, there is a problem. The California Supreme Court just ruled that employees can suffer sexual harrassment if there is favoritism because of a relationship such as this. In short, if the boss is involved with another employee, subordinate or not, and he/she shows favoritism to her/his chosen, that can be interpreted as sexual harrassment towards the other employees. It was in the newspaper yesterday.

I have heard that courts are divided on this issue.
Nepotism (hiring/promoting relatives) is legal, and likely & logically will stay that way because natually a trusted family member would be preferable in many situations to a stranger. Mom & Pop would also rather give the family business to kid, and husband & wife share it as income, etc. SO.....It is legal to show preference to husband/wife for job related decisions.
The same goes for friends...UNLESS a predjudice is shown on the basis of race...there was a court case like that. So where does the "girlfriend/boyfriend" fit in? is it like hiring on the basis of social connection? or a condition of employment? Hmmmm....once they get married, it would be classified as nepotism, right? It will be interesting to see where all this goes in years to come.