At this point your upper management should have assigned someone from HR, or other trained individual, to conduct interviews.
When you were interviewed, if you were interviewed, you were informed of the nature of the allegation(s) and the person(s) making the complaint.
Many companies use the interview as your statement and treat it like an affidavit.
So, what is it that is being investigated? Is the person(s) that is making the complaint using sick leave and/or being seen by a medical professional? Are you supervising this employee while the investigation continues?
I can understand your shock at being accused of sexual harassment but do you even know what that is?

Thread situation:
"Sexual harasement" situation followed by suggestions for recording interviews.

My personal situation is somewhat backwards.

I've been meaning to secretly record my "disagreements" w/spouse to show how she goes off on tangents and the whacked out rationale of some of her positions.

However, I'm afraid if I do, harasement will soon follow. :(

Can't win,
Sherwood

Whatever you do with this individual, never ever be alone with her. Always have a female hr rep in your office for discipline, counseling or even praise. Do not discuss her performance with anyone other than your manager of HR. Document everything no matter how miniscule.

Ah, so you plan on being unemployed your entire life. Federal law allows such accusations. It does not matter where you work, or how big the company is. It could even be a family company with your soon-to-be ex wife filing. Sexual harassment is defined through the eyes of the plaintiff.

I do believe this is one reason sexual harassment is defined through the eyes of the plaintiff. It's also why you can be found personally responsible, and damages levied against you, not just the company.

The company is screwed, once the accusation is made they must investigate or they are exposed to litigation for ignoring a complaint of which they had knowledge.

Can't fire the employee as it might be seen as retaliatiory.

Well, you know and she knows. Don't let her get empowered by this. Thats going to reinforce the behavior.

Don't record ANYTHING unless you have advice of counsel that its legal-its not in most places.

If your team plays like one, it'll play itself out in your favor without you having to do much; it'll take a bit, but be patient.

US law in this area sucks-the pendulum swung too far one way, maybe for a reason, but it needs to swing back a bit.

You can terminate the employee with cause. However, now might not be a good time. Unless you're the owner, which you are not, I would strongly recommend that you have your ducks in a row, and strongly consider getting the concurrence of a higher up official prior to any disciplinary action at this point. I'm not talking about a rubber stamp either. Sexual harassment claims are fairly common these days and they come from both sides. Most do not see the light of day.

Federal law may "allow" such accusations to be made anonymously, but it does not require that businesses give employees a way to anonymously report such accusations. A company makes a decision to do that; or maybe I should say, dumb people running a company make the decision to allow such accusations to be hurled anonymously.

As for your comment that "sexual harassment is defined through the eyes of the plaintiff" -- only in the plaintiff's lawyer's wet dreams! "Reasonable person" standards will be used in evaluating any questionable behavior. It is not just a case of the plaintiff saying that the behavior made him/her uncomfortable and they get a settlement check!