As in most workplaces, sexual harassment has been an issue of significant magnitude in educational institutions as well. It has left the education community with many questions about what constitutes sexual harassment, how to prevent it, and how to deal with the legal problems that may arise concerning it. This report dispels several myths about sexual harassment in educational settings involving both school employees and students. Sexual harassment involving public institutions and educators is governed by federal law. In addition, most states have civil-rights statutes that govern sexual harassment in both public- and private-sector employment. Topics of chapters include myths about sexual harassment, federal laws governing sexual harassment in educational institutions, related state legislation, sexual harassment of employees in education, sexual harassment of students, and preparing for and handling sexual harassment claims. Included in the appendices are federal avenues for sexual harassment in education, types of sexual harassment in employment, checklist for prevention of liability, checklist for complaints and conducting investigations, prohibition of harassment, policy against harassment, student code of conduct, typical forms of sexual harassment in employment, costs of sexual harassment in employment, and favoritism and romance in the work place. (Contains 160 footnotes.) (MLF)