California is renowned for its progressive stance concerning employee rights, with the state’s Fair Employment and Housing Act (FEHA) traditionally considered one of the most employee-friendly civil rights laws in the country. The law’s latest amendment signifies further progression, promising to reshape the professional landscape, as it extends FEHA liability to involve “institutional agents” of employers.
Until this amendment, ambiguity prevailed over the extent to which employees could not only sue their employers for discrimination and harassment but also target independent businesses that operate on behalf of their employers. Previous interpretations of the law were conducive to scenarios where companies could avoid legal liabilities by outsourcing certain operations.
However, California’s recent interpretation of the law appears to be eradicating these loopholes. Responsibility is no longer restricted to the employees’ direct employers, allowing individuals to take legal action against entities operating as “institutional agents.”
This shift is substantial, with potential repercussions leading to increased legal exposure for firms and independent contractors. Understanding the implications of this recent amendment is crucial for corporations, law firms, and other professional entities interacting with California-based businesses.
The full details of this piece of legislation are available at JD Supra.