In the US, if it's consensual, it's not illegal regardless of the org chart except for very particular scenarios like (I believe) military service members. It may be against company policy and a generally bad idea, but consensual sexual contact is not illegal even between the CEO and an intern.
If I'm wrong, I'd be interested in seeing the relevant laws or cases.
> In the US, if it's consensual, it's not illegal regardless of the org chart.
It's not illegal to sleep with your boss.
Unfortunately (For your boss), if you decide to break the relationship off, and are feeling particularly vengeful, you will have a slam-dunk sexual harassment case against them.
Good luck to your boss proving that the bad performance review they gave you was not retaliation for you breaking off the relationship.
Or, likewise, good luck to them proving that the good performance they gave you (But did not give Billy) is not based on you sleeping with them. Billy will also have a pretty good workplace discrimination suit for to bring, there.
> Unfortunately (For your boss), if you decide to break the relationship off, and are feeling particularly vengeful, you will have a slam-dunk sexual harassment case against them.
That's not entirely true. If the relationship is long-term or it's public knowledge, the risk of this is much lower. Secret affairs? Very risky. Open serious relationships? Not as risky (which is why companies that allow relationships generally require that they are disclosed). But still too risky.
The discrimination suit is more risky in each case, because you'll pretty much end up trying to prove your innocence because you'll look guilty by default.
These are certainly mitigating factors. However, as a manager, you are gambling with your job, your company's money, and your own money (As you can be found personally liable for sexual harassment.)
It's a big risk to take! Especially when the alternative is one of you moving to a different department.