News

September 30, 2025

The Customer is not Always Right – Not in Biased Hiring Preferences

That’s what the U.S. EEOC said last year and reiterated in a related case this year. Last year’s issue arose for a staffing firm that followed its customers’ requests for sex-based hiring preferences. In that case, the company settled to the tune of $875,000. In addition, it agreed to:

  • retain an independent consultant to draft and implement policies and procedures prohibiting discrimination against female workers and investigate all complaints of discrimination;
  • retain a third party to train its managers and recruiters on the requirements of Title VII and its new anti-discrimination policies; and
  • hold management and recruiters accountable for compliance with its anti-discrimination policies and procedures through written evaluations and active monitoring.

 
In the recent case, the EEOC alleges the staffing firm complied with its customer’s request to refer only male laborers to its work sites. It is seeking back pay, front pay, compensatory damages and punitive damages for the affected females, as well as injunctive relief to prevent future discrimination.

Lessons Learned? It’s not just staffing firms. It’s not just sex-based requests. Government contractors, health care, financial services, and nearly every company that provides services to the public may face client or customer demands or requests for their services to be provided by an employee of a particular race, religion, national origin, or any other legally protected status. Train your managers, HR team and recruiters. If they receive such a request, it should be referred to HR leadership and/or legal counsel and likely must be declined.