A federal appeals court upheld the demotion of an Indiana employee for not reporting a colleague’s sexual harassment complaint to higher-ups and instead conducting an investigation of her own.Kristie Alley is a former employee of Penguin Random House’s shipping warehouse in Crawfordsville, Indiana, where she held a management position.She sued the company for retaliation under Title VII of the Civil Rights Act of 1964 and for breach of contract under Indiana law, alleging she was demoted from her position in …