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Company on the hook for third-party staffer's bias

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September 30, 2009
1 minute read
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Here’s another thing to keep in mind when using third-party staffing firms: Keep an eye on their practices to make sure they aren’t breaking the law — and putting you in the hot seat.
A real estate company used an independent contractor to interview and hire employees to show apartments. One of the candidates chosen for an interview was a 44-year-old man.
During the interview, the contractor allegedly told him he was “too old” for the job and turned him down. The candidate sued the company for age discrimination.
The company argued it couldn’t be held liable, because the biased decision was made by a contractor, not by anyone within the company.
But the court didn’t buy it. It ruled that the company’s responsibility for what happens during its hiring process, whether interviews are conducted and decisions are made by management and HR, or the process is outsourced to a third party.
Cite: Halpert v. Manhattan Apartments

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