Most people understand that a supervisor or coworker can cross a legal line when they sexually harass a colleague. But what happens when the harasser isn't on the payroll? What if it's a regular client who makes inappropriate remarks at every meeting, a vendor who sends unwanted messages, or a customer who routinely makes lewd comments to your staff? Under California law, this conduct is not only unacceptable — it is illegal, and your employer may be fully liable for failing to stop it.

This is the realm of third-party sexual harassment, and it is one of the most misunderstood and underreported areas of California employment law. If you or someone you know is dealing with harassment from a non-employee, here is what you need to know.

What Is Third-Party Sexual Harassment?

In California, harassment by individuals not employed by your employer is termed third-party harassment. This encompasses harassment by clients, customers, vendors, or any other non-employee who interacts with employees during the course of their work. Common examples include delivery drivers, visiting contractors, clients at professional meetings, or regular customers at a retail store.

Real-world examples include: a client who makes repeated inappropriate comments about an employee's appearance during meetings; a vendor who regularly makes sexual jokes while restocking office supplies; a delivery person who makes unwelcome sexual comments to the receptionist; a contractor who gives unwanted back rubs to employees; or a regular customer at a retail store who sends flirtatious and inappropriate messages to an employee.

The Law: FEHA and Senate Bill 1300

The primary law governing third-party sexual harassment in California is the Fair Employment and Housing Act (FEHA), codified at Government Code § 12940. The California Fair Employment and Housing Act recognizes that everyone deserves a workplace free from harassment, including from third parties.^[1]

For years, employer liability for third-party conduct was limited to sexual harassment only. That changed with the landmark passage of Senate Bill 1300 (SB 1300). When SB 1300 took effect on January 1, 2019, it expanded protections for California employees under FEHA. Prior to SB 1300, employers could be held liable only for sexual harassment by nonemployees. Now, employers can be held liable for any type of harassment covered by FEHA, such as harassment based on race, national origin, religion, disability, gender identity or expression, age, sexual orientation, and other protected characteristics.^[2]

Additionally, California holds employers liable for coworker and third-party harassment under a "knew-or-should-have-known" standard. FEHA does not require harassment to be "severe or pervasive" to be actionable.^[3] This is a significantly lower bar than federal law, making California one of the strongest states in the nation for employee protections.

When Is Your Employer Liable?

An employer is liable for third-party sexual harassment just as it would be for harassment by a coworker — that is, the employer is liable if its behavior regarding the harassment is negligent. Negligence means that the employer knew or should have known of the harassment and failed to take appropriate corrective action, taking into account the employer's degree of control over the client or customer.^[4]

The FEHA makes clear that employers must take "immediate and appropriate corrective action" once they learn of harassment by a non-employee. The appropriate response depends on the circumstances. For example, an employer might restrict a customer's access to the premises, transfer a student to another class, or terminate a vendor contract.^[1]

Important Protections You May Not Know About

It is important to note that it is not only women who can be victims of third-party sexual harassment. Regardless of your sexual orientation or gender, you can be a victim of third-party sexual harassment if you have been harassed on the basis of your gender or sexuality. Men, women, and gender non-conforming people alike can experience third-party sexual harassment in the workplace.^[5]

Under California law, this kind of language in contracts is often not enforceable due to Senate Bill 1300. Employers cannot require their workers to give up their legal rights to sue for issues like sexual harassment as a condition of getting or keeping a job, receiving a raise, or earning any other form of benefit.^[6] This means any non-disparagement clauses or silencing agreements your employer asks you to sign in exchange for continued employment are likely void.

Critically, employees do not have to be fired or lose pay to succeed in a claim against their employer for third-party harassment under FEHA. Harassment alone can violate the law if it creates an intimidating, hostile, or offensive work environment.^[1]

What Remedies Are Available to You?

If your employer fails to act and you pursue a claim under FEHA, you may be entitled to significant remedies. These can include compensation for lost wages, emotional distress damages, punitive damages in egregious cases, and attorneys' fees. If the employer does not take reasonable action to prevent the harassment, you can sue for damages. Common perpetrators include vendors, customers, clients, independent contractors, or another company outsider.^[7]

Whether the harasser is a co-worker, supervisor, or even a third party, the employer must act swiftly to protect the rights and dignity of the employee. By adhering to these obligations, employers not only comply with state laws but also help prevent workplace sexual harassment lawsuits, protect against employment discrimination, and promote a culture of respect and accountability.^[8]

The Bottom Line

California law is unequivocal: your workplace must be free from sexual harassment — whether the harasser is your supervisor, a coworker, or a client your company depends on for revenue. If your employer prioritizes business relationships over your right to dignity and safety, they are breaking the law. You don't have to accept it, and you don't have to face it alone.

At Smith Reback Law, we have deep experience representing California employees who have suffered third-party workplace harassment. We understand the nuances of FEHA, the impact of SB 1300, and how to build a compelling case on your behalf. Your consultation is confidential, and we are here to fight for you.