California staffing agencies can be held liable for workplace discrimination. However, in a recent decision of Duckworth et al. v. Tri-Modal Distribution Services Inc., a state appellate court ruled the staffing agency was not liable for alleged racial discrimination of two black employees who weren’t promoted. The court held that because the two workers were “leased” to the company they worked for – and that company had the authority over employment actions – the staffing agency was effectively off-the-hook.
As our Los Angeles racial discrimination attorneys can explain, this, like many similar cases comes down to the degree of control each firm had in employment-related decisions. As an increasing number of companies turn to staffing agencies to fill certain positions, the question of who the actual employer is becomes pertinent when determining who is responsible for employment-related discrimination claims. The question will be which entity retains substantial control and are in fact employers in all but name. Continue Reading ›