Joint employers, joint liability. Third Circuit extends Title VII liability to clients of temporary staffing companies.

Matthew Faush, an African American male, was assigned by Labor Ready, a temporary staffing firm, to work at one of Tuesday Morning, Inc.’s stores for a period of ten days. While working at Tuesday Morning, Faush alleged that he was subjected to racial slurs and racially motivated accusations prior to being terminated from the assignment. Faush filed suit, alleging that Tuesday Morning, Inc. had engaged in racial discrimination in violation of Title VII. However, the District Court found that Tuesday Morning, Inc. could not be liable under Title VII as they were not Faush’s employer. The Third Circuit reversed, applying the test set forth by the United States Supreme Court in Nationwide Mut. Ins. Co v. Darden, 503 U.S. 318 (1992), focusing heavily on the degree of control exercised over Faush by Tuesday Morning, Inc. The Third Circuit’s recent decision serves as a cautionary tale to staffing companies and their clients as both must cautiously draft future agreements governing their relationships with temporary employees.

_{Case Law Alerts, 1st Quarter, January 2016}

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