When something goes wrong in hiring or on the job, most people assume the only party they can hold responsible is their employer. A 2023 California Supreme Court decision made clear that’s not always true.
The background. California’s Fair Employment and Housing Act (FEHA) bars workplace discrimination and, among other things, improper medical inquiries of job applicants. But employers routinely outsource parts of hiring, background checks, drug testing, pre-employment medical exams, to outside companies. When one of those vendors causes the harm, can the worker sue the vendor directly?
What the court held. In Raines v. U.S. Healthworks Medical Group (2023), the California Supreme Court answered yes. A business that acts as an employer’s agent, carrying out FEHA-regulated activities on the employer’s behalf and having at least five employees, can be held directly liable under FEHA.
The facts. An applicant’s job offer was contingent on a medical screening performed by a third-party company. When she declined to answer an intrusive health-history question, the exam was cut off and her offer was pulled. The court held she could pursue a FEHA claim against the screening company itself, not just the employer.
Why it matters. This expands who can be held accountable. If an outside vendor, rather than your employer, is the one that discriminated or crossed a legal line, that vendor may be on the hook too. For employees, it can mean a meaningful additional path to accountability.
At Grochow Law, we represent California employees in discrimination and FEHA matters.
This post is general information, not legal advice, and doesn’t create an attorney-client relationship. Every situation is different, so reach out if you’d like us to look at yours.
