Staffing Agency Complies with Client’s Request…and Pays Out Almost Seven Figures

Staffing agencies operate on narrow margins and face high competition in the market.  It isn’t surprising to see contracts between a staffing agency and a client where what the client wants is what the client gets, without review by employment law counsel or a broader understanding of the law.  Staffing agencies may give into client requests that seem unusual or improper just to keep the client, and perhaps think any consequences will ultimately fall on the client.

But following that procedure all led up to one staffing agency that recently settled its lawsuit with the EEOC for an $875,000 fine, as well as the requirements that the staffing agency hire an independent contractor to draft and implement discrimination and harassment policies and bring on a third party to train managers and recruiters on sex discrimination and anti-discrimination policies.  No small hit to the staffing agency.

The Facts

So what did the staffing agency do to subject themselves to this enormous penalty?  Managers directed recruiters to comply with some clients’ requests to send only male candidates for certain positions.  Some clients requested only men for jobs that were labor intensive, or historically staffed by a higher percentage of men than women.  The recruiters played along with the client’s blatant sex discrimination and told women that these jobs were unavailable.  Recruiters who objected had their concerns dismissed.

Why did the EEOC come down so hard on the staffing agency when it was the client who made the request in the first place?  If a staffing agency engages in discriminatory, retaliatory, or harassing conduct toward its own employees (here, by sending only men to the client and falsely telling women the jobs were unavailable) the staffing agency is responsible, even if the agency only engaged in the conduct to comply to a verbal, written, or contractual request from the client.

Staffing Agencies Deserve the Peace of Mind

Staffing agencies are advised to seek legal counsel when faced with a request from a client that may come back and stick the agency with an almost million-dollar payout.  No client is worth that risk. myHRcounsel supports staffing agencies and all employers by providing on-demand legal services from licensed attorneys with no disclaimers.  With an affordable legal solution, myHRcounsel is here to provide you with the peace of mind.