In a unanimous decision, the California Supreme Court recently clarified that third-party entities providing services to employers could potentially face liability under the Fair Employment and Housing Act (FEHA), an important development for legal professionals operating in the Golden State. The implications of such a decision could be significant, affecting not only employers but service providers working with businesses across the state as well.
Specifically, the ruling suggests that when these service providers work with employers who have California-based applicants or employees, there is a risk of being held liable under the FEHA. This recent decision means service providers to employers must exercise due care to ensure compliance with California’s rigorous anti-discriminatory laws.
This landmark decision provides a strong reminder that businesses and service providers must take active steps toward understanding and adhering to both federal and local employment laws. Companies need to exercise due diligence when engaging with third-party service providers, verifying that these providers comply with the FEHA to further minimize potential liability exposure.
Ultimately, compliance with anti-discrimination laws extends beyond just employers. As the state of California continues to expand the net of potential liability under these laws, service providers and businesses alike need to remain ever-vigilant to stay within the bounds of the law.
For further details on the landmark ruling, you can visit JDSupra’s full coverage.