Well of course, I could have predicted it. Yet another CEO with an alleged zipper problem resigns amid allegations of sexual harassment.

Backed by celebrity attorney Gloria Allred, both Hurd (Hewlett-Packard CEO) and Fisher deny that there was any sexual relationship. (Does this remind us of I did not have sex with that woman?) The internal company report found that there was no violation of its sexual harassment policy but that Hurd broke HP rules of conduct and irreparably harmed his credibility and integrity.

Hurd, a wall street darling, who had rewired HP by a series of cost cutting measures, including laying off over 20,000 employees, now finds himself involuntarily laid off.

Allegedly, while Hurd did not violate the HP sexual harassment policy, he did falsify expense reports for dinners and other meetings he had with Fisher. Reportedly, he offered to reimburse the company for the expenses. He called the disputed funds “mistakes,” –the total amounts were said to range from $1,000 to $20,000.

According to Michael Holston, HP executive vice president and general counsel, Hurd’s actions “showed a profound lack of judgment.” Ironically, Hurd had brought Holston into the company in 2006 after Holtson investigated a boardroom scandal involving company spying on board members, employees and journalists. That investigation ended with the resignation of the company’s chairman and the elevation of Mr. Hurd to CEO.

Fisher worked for HP as a contractor attending events in Asia, Europe, and the United States, meeting and greeting executives and clients. She was paid between $1,000 and $5,000 for each event. Fisher, a single mother, worked as an actress and, allegedly in the early 80s, a porn star.

What lessons can you take away from this story? A recent survey at careerbuilder.com in 2009 revealed that more than 8,000 employees had dated a coworker. Is it worth the risk?

Hurd of course, will receive $12 million in severance, plus stock & options that could bring the total package to more than $40 million according to the Associated Press. That would of course be less whatever he paid Ms. Fisher in her undisclosed settlement of a sexual harassment claim. Allred brought that claim to the board’s attention in June. (Meanwhile, stockholders took a $9 billion hit on Monday and employees wonder what’s next. If you want a cynical take from the employee perspective go to F*#@ You Mark Hurd.)

What severance will you receive if you have to resign in disgrace?

My advise to the executives and managers that I coach is always the same: don’t do it! Of course some people end up happily married to coworkers, even those that they formerly supervised, but these things more often end badly. Even if you think it’s voluntary, she (it’s almost always a she) may not. And then, when the break-up happens (and, let’s be honest, most relationships do end), she has a great he said/she said claim that it was never welcome and she was just doing it to keep her job. I have investigated, mediated or negotiated a number of these messes and they are never a pretty sight. There’s also the unpleasant specture of a third party favoritism claim, a so-called “paramour preference” suit.

Hurd himself is married to a former employee of his from another company. Will more allegations surface? Stay tuned. In any event, Tiger Woods and Jesse James are probably glad that the press has someone else to focus on.

Be smart, be safe, and keep your zipper zipped.