Right now, Kate isn't a love interest for Dutch, and that was never my intention. It would be difficult to implement until almost the endgame, and it would just turn the plot into a farce. Technically, you can avoid any sexual interactions while playing as Kate, but I can't really imagine a relationship between them. There's no chemistry between them.
On the other hand, Frank - her boss - is a jerk, but he's a jerk from her social circle. She understands him, and there's some chemistry between them. Plus, he's not as bad as he might seem at first glance.