Final answer:
A hostile environment occurs when submission to or rejection of sexual conduct is used as a basis for employment decisions in the context of sexual harassment at the workplace.
Step-by-step explanation:
In the context of sexual harassment at the workplace, a hostile environment occurs when submission to or rejection of sexual conduct is used as a basis for employment decisions.
This means that if an employee is subjected to unwelcome sexual advances, requests for sexual favors, or other verbal or physical conduct of a sexual nature, and their submission to or rejection of such conduct is used as a determining factor in employment decisions, it creates a hostile environment.