Katharine McPhee 'embarrassed' to be caught kissing married Smash director

(UPI) -- American Idol runner-up Katharine McPhee is reportedly "embarrassed" that she was caught kissing married director Michael Morris.

The 29-year-old actress and her former Smash director, 47, were photographed kissing in broad daylight, and according to TMZ the duo is dating despite the fact that they're both married to other people.

Unlike Morris, who was still living with his wife and was kicked out of his house after the pictures were posted online, McPhee has been separated from husband Nick Cokas for some time now and "has had friends living with her for months."

"She is SO embarrassed she was caught," a source told Us Weekly of the photos. "She should have known better!"

Despite everything, sources close to the actress say she's a nice person and think the situation is very unfortunate for everyone involved.

"[She] is so cool and the nicest person," a second insider said. "It's so sad that this happened to her. She's truly great."