Employment Litigation · Primary-source case analysis

Raines: A Business-Entity Agent May Be Directly Liable Under FEHA

By Aneeta Mishra and Timothy Chan

Published September 10, 2026

Job applicants alleged that an occupational-health provider used an overbroad preemployment medical questionnaire on behalf of prospective employers. The Ninth Circuit asked whether FEHA's 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 entity must exercise authority delegated by the employer over conduct regulated by FEHA, and the alleged violation must arise from that role.

The holding did not decide ultimate liability

The court answered the certified legal question and left factual agency, statutory coverage, and the merits of the questionnaire claims for further proceedings.

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.