Certified Staffing Profesional Practice Exam

What is the liability of a staffing firm when it knows a client is rejecting employees due to protected class status?

1. The staffing firm is not liable

2. The staffing firm could be liable

3. The client is solely liable

4. Both parties are exempt from liability

The correct answer is: The staffing firm could be liable

A staffing firm's liability when it becomes aware that a client is rejecting employees based on protected class status, such as race, gender, disability, religion, etc., is significant. When the staffing agency knowingly participates in or facilitates discriminatory practices by a client, it opens itself up to potential legal issues under various equal employment opportunity laws. The correct understanding is that the staffing firm has a duty to ensure that its practices do not contribute to discrimination. If it is aware of the client's discriminatory actions but continues to supply candidates or does nothing to address the situation, it may be considered complicit in that discrimination. Therefore, the staffing firm could be liable for failing to act against the discriminatory behavior, potentially facing legal repercussions from affected employees. This view is supported by the principle that staffing agencies have a responsibility not only to their clients but also to the fair treatment of workers. Consequently, awareness of discrimination places an ethical and legal obligation on the staffing firm to respond accordingly to mitigate liability.