Sometimes enough is enough and you simply cannot take anymore. It sounds like this is exactly what happened with this guy's niece with her job at the accounting firm.
These sorts of workplaces have a reputation for being "old boy's clubs" so it's no surprise that they continue to harbor relics of a past age who continue to live their lives as if they're in the pages of a "Mad Men" script. It's honestly disappointing how prevalent these types of attitudes are.
This niece absolutely should not have put up with her boss's behavior. Perhaps, there were more constructive ways to go about handling the situation. A juicy lawsuit was just hanging there waiting to be nabbed up.
For more stories about horrible bosses check out this doozy of a manager who tried to tell their pregnant employee that she had to waif for cover before going into labor.
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