The U.S. Equal Employment Opportunity Commission (EEOC) announced in a recent press release that it filed a lawsuit against BaronHR, LLC, a national staffing agency, and Radiant Services Corporation, a commercial laundry facility in Southern California, for discriminatory denial of employment based on race, national origin, and sex.

The EEOC charged that since 2015, BaronHR and Radiant failed to recruit, refer, and hire Black, Asian, and White applicants for low-skill positions. It further alleged that Radiant requested only female applicants for certain “light” job positions, and only male applicants for “heavy” job positions. Moreover, the EEOC alleges that BaronHR required that applicants have no medical condition or history of injury, thus BaronHR excluded qualified individuals with disabilities, perceived disabilities, or a record of a disability.

The EEOC noted that it conducted an investigation following Commissioner’s Charges alleging violations of Title VII of the Civil Rights Act of 1964 and the Americans with Disabilities Act (ADA), which prohibit discrimination in recruitment and hiring. After attempting to reach a pre-litigation settlement through its conciliation process, the EEOC filed the lawsuit in EEOC v. Radiant Services Corp. and BaronHR, LLC, Case No. 2:22-cv-06517, in the U.S. District Court for the Central District of California.

“Staffing agencies and employers have a dual-employer relationship, which makes both responsible for ensuring a discrimination-free workplace,” said Anna Park, regional attorney for the EEOC's Los Angeles District Office. “Preferential hiring has no place in the workforce and acquiescing to such requests extends liability from the employer to the staffing agency.”

Acting Los Angeles District Director Christine Park-Gonzalez said, “Screening out qualified job applicants based on sex, race, national origin, or disability is prohibited under federal law. The EEOC is here to ensure that job applicants and workers are protected from such injustices in the workplace.”

Moreover, eliminating barriers in recruitment and hiring, especially class-based recruitment and hiring practices that discriminate against racial, ethnic and religious groups, older workers, women, and people with disabilities, is one of six national priorities identified by the EEOC’s Strategic Enforcement Plan (SEP).

Takeaway

Employers must follow federal (and state) anti-discrimination laws, and must ensure that any staffing agency they use also follows these laws. The BaronHR matter shows that an employer and staffing agency share a dual-employer relationship and can be held jointly liable for any discriminatory action toward applicants.

The EEOC provides information regarding the types of discrimination prohibited by the laws enforced by the EEOC, such as race, national origin, disability, and sex through its website at https://www.eeoc.gov/discrimination-type. It also issued an Enforcement Guidance on December 3, 1997, which provides guidance on the application of federal employment discrimination laws to individuals placed in job assignments by temporary employment agencies and other staffing firms.

HEC members may contact their HR Consultant or call our hotline at 808-836-1511 with questions regarding complying with federal and state anti-discrimination laws.