The landmark federal Civil Rights Act of 1964 made discrimination based on gender, and therefore sexual harassment, illegal in the United States. This law allows employees who have suffered sexual harassment at work to sue their employers to protect their rights and recover damages.
Is it illegal to sleep with your coworker?
No, you cannot be fired just for sleeping with a co-worker. However having an affair with a colleague can be a strenuous affair and can often end up badly. The reasons can be multiple- Office gossip fodder, impact on performance and so forth.
Can you sleep with your employees?
While some jobs discourage employee dating, and some explicitly disallow employee-supervisor relationships, there are still boundaries that exist regardless of the rules at any one workplace (for example, sexual harassment guidelines say that sex cant be used as a condition of employment or promotion).