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Even if policies don't prohibit these relationships, this is a consideration that whoever is in the power position needs to consider seriously.

Any kind of favoritism toward one employee over others is obviously a concern in the workplace.

Yet few small companies have formal policies on workplace dating and even fewer ban such romances.

In large part, that’s because firms believe it’s none of their business if co-workers pair up.

Disastrous love affairs may damage morale and productivity.

Some workplace romances can lead to sexual harassment cases, which can carry serious legal – and financial - consequences.

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That is to say, the employer does not need admissions from the employees, or explicit emails, or video evidence.

Just last month, Gary Friedman, the chief executive of Restoration Hardware, stepped down in the middle of the company's public offering. A couple years ago, Hewlett-Packard's chief executive, Mike Hurd, resigned amid accusations of falsifying expense reports to hide a personal relationship with an independent contractor.

The reason: an internal inquiry into his relationship with a 26-year-old female employee. As companies grow and add employees, you will often see signs of budding workplace relationships.

The Society for Human Resource Management and Career conducted a Workplace Romance survey in 2006 and found that only 9 percent of the HR professionals surveyed indicated that dating among employees was prohibited in their organizations.

More than 70 percent did not have formal written or verbal policies dealing with romantic relationships.