BaronHR, LLC, a national staffing agency, will pay $2.2 million to settle claims it discriminated against low-wage, low-skill job applicants on the basis of race, gender, and disability in violation of Title VII of the Civil Rights Act of 1964 and the Americans with Disabilities Act.

While Baron has also agreed to change its employment policies and practices to prevent future discrimination, its imminent shut down moots that pledge unless the company resumes business.

Los Angeles regional EEOC attorney Anna Park stated: “Hiring discrimination remains a persistent problem in low-skill, low-wage industries. Employers need to take their responsibilities seriously to ensure all applicants receive employment opportunities regardless of race, national origin, sex, or disability.”

Take-Aways:   Staffing companies can provide temporary workers as well as payroll and HR functions such as screening and onboarding.  Yet, labor claims against an agency expose the businesses utilizing its workers to liability as joint employers. The BaronHR example underscores the importance of due diligence in choosing such a provider.

For further information, please contact Tim Bowles, Cindy Bamforth or Helena Kobrin.

See also:

• 72 Million Reasons Not to Mess With Women: Employer Agrees to End Widespread Sex Discrimination (February 16, 2024)
• Workplace Discriminators, Expanded: Third-Party Service Companies May Be Liable as “Employers” (August 25, 2023)
• EEOC Obtains $2 Million Settlement with McDonald’s Franchisees for Tolerating Sexual Harassment  (February 23, 2023)

Helena Kobrin
April 12, 2024