Read the entire article from The Fordyce Letter at:
Court Ruling: Employers Liable for Independent Contractor Misdeeds | The Fordyce Letter
The article states:

New York’s 2nd District Court of Appeal has ruled that an employer is liable for the misdeeds of its hiring agents, even if it considers them independent contractors.
It said “an employer may be held liable for discrimination by third parties, including independent contractors, that the employer authorizes to make hiring decisions on its behalf.”
That includes staffing firms, RPOs, EORs, PEOs, MSPs, and any other 3rd party firm between the recruitment and management of a temp/contractor and the end user of that labor.
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Workforce Vision | workforce-vision.com
A look inside the changing way that we work and employ others
Human Capital * Contingent Workforce * Globalization * Trends
Outsourcing * Staffing * Human Resources * Technology
Published by Bill Inman | billinman.com
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This is a big ruling – anyone in staffing, payrolling, the PEO industry, and MSP should educate their clients about this.