Employment Litigation · Primary-source case analysis
Raines: A Business-Entity Agent May Be Directly Liable Under FEHA
Decision: Raines v. U.S. HealthWorks Med. Group, No. S273630 (Cal. Aug. 21, 2023).
In this August 21, 2023 California Supreme Court decision, job applicants alleged that an occupational-health provider used an overbroad preemployment medical questionnaire on behalf of prospective employers. The Ninth Circuit asked the California Supreme Court whether the Fair Employment and Housing Act’s (FEHA) definition of employer permits direct liability against a business-entity agent.
The statutory definition includes an employer’s agent
FEHA defines employer to include a person acting as an agent of an employer. The language can impose direct obligations on a business entity that carries out delegated employment functions.
Business entities differ from individual supervisors
Earlier decisions protecting individual supervisors from personal liability did not control a claim against a business that regularly performs employer services and can bear compliance costs.
Agency depends on delegated FEHA functions
Liability is not automatic for every vendor. The holding covers business-entity agents with at least five employees that carry out FEHA-regulated activities on an employer’s behalf. The alleged violation must arise from that agency role.
Issues reserved for further proceedings
The court answered the certified legal question without deciding the questionnaire claims on their merits. It expressly left open whether its conclusion extends to agents with fewer than five employees, and the significance of employer control over the challenged acts.
Key takeaways
- Identify which employment functions the employer delegated to the vendor.
- Map the challenged conduct to a specific FEHA duty.
- Distinguish business-entity agents from individual supervisory employees.
- Allocate contractual responsibility without assuming it eliminates statutory exposure.
Evaluating business-entity vendor liability under FEHA
Mishra X Trial Lawyers can assess direct agent liability claims and preemployment screening compliance under California’s FEHA. Bring vendor service contracts, job application forms, medical evaluation questionnaires, and administrative complaint filings. Call (949) 343-9735 or email office@mishrax.com.