California’s workplace harassment protections do not stop at the company door. Employees in retail, hospitality, health care, logistics, tech, and professional services routinely interact with people who are not on the payroll: customers, patients, clients, independent contractors, delivery drivers, and sales reps. When harassment comes from those outsiders, California law still expects the employer to act. That expectation is not abstract. It carries specific duties, strict timelines, and real consequences if an employer delays or downplays a report.
This article explains how California workplace sexual harassment laws apply to third parties, what counts as harassment in those scenarios, the employer’s responsibility when outsiders misbehave, and how workers can report and pursue a sexual harassment claim in California. It also covers training and policy requirements that often decide whether a company can prevent a problem or finds itself defending a sexual harassment lawsuit in California.
The legal backbone: FEHA sets the standard
The California Fair Employment and Housing Act, often shortened to FEHA, is the primary statute governing sexual harassment in California. FEHA’s reach is broad. It applies to employers with one or more employees and protects employees, applicants, unpaid interns, volunteers, and in many contexts, independent contractors. FEHA sexual harassment rules expressly address harassment by nonemployees. The statute requires employers to take all reasonable steps to prevent and correct unlawful harassment by third parties if the employer knew or should have known about the conduct and could control the wrongdoer’s behavior in the workplace.
That “knew or should have known” language matters. It prevents employers from avoiding responsibility by claiming ignorance when warning signs were present, such as multiple complaints about the same customer or an open secret about a vendor’s behavior. The law expects active prevention, not reactive excuses.
California’s standard is stricter than federal law in several respects. Under Title VII, employer liability can hinge on whether the harasser is a supervisor or coworker and the employer’s remedial efforts. FEHA keeps those distinctions but places clear affirmative obligations on employers to address third-party harassment. Courts and the California Civil Rights Department (CRD, formerly DFEH) consistently affirm that employers can be held liable when they fail to act decisively after learning of customer or vendor harassment.
What is considered sexual harassment in California
California sexual harassment definition includes unwelcome sexual advances, requests for sexual favors, or other verbal, visual, or physical conduct of a sexual nature that affects employment, unreasonably interferes with work, or creates a hostile work environment. The conduct does not need to be motivated by sexual desire; derogatory comments about gender or sexuality, crude jokes, or demeaning slurs can qualify. Harassment can be verbal sexual harassment, physical sexual harassment, visual displays, digital messages, or any combination.
The two common frameworks still apply here:
- Quid pro quo harassment in California: A supervisor or person with authority ties job benefits to submission to sexual conduct. With third parties, quid pro quo can arise when a client or customer wields significant influence over the employee’s compensation or opportunities, for example, a sales rep whose commissions depend on a client relationship where the client demands dates or explicit photos to continue doing business. The employer’s obligation is to prevent and correct, and to remove the employee from that coercive dynamic without punishment. Hostile work environment California: Severe or pervasive conduct that alters working conditions. A single incident can be enough if it is egregious, such as sexual assault. More commonly, a pattern of lewd comments, unwanted advances at work in California, or repeated touching by a customer creates a hostile environment. The question is whether the environment would feel abusive to a reasonable person and actually does so to the victim.
Courts reject the idea that a workplace must tolerate certain behavior because “that’s just how customers are” in a given industry. Hospitality, nightlife, and entertainment settings do not get an exception. Employers must provide a workplace free from sexual harassment, period, and that includes shaping customer and vendor conduct.
Real-world examples: how third-party harassment shows up
Patterns repeat across industries, regardless of workplace culture. A bartender has her waist grabbed by a patron every Saturday. A home health aide receives late-night texts from a patient’s adult son that veer from compliments to explicit propositions. A tech support agent is told by a client that she can “sweeten the deal” by meeting off-hours. A delivery driver describes a store manager from a client site who corners him in a stockroom. A retail associate is subjected to repeated comments about her body, coupled with lingering stares and “accidental” brushing by a regular customer.
Those snapshots often share two features. First, the worker believes reporting will hurt business or cost tips, accounts, or relationships. Second, early warnings go unaddressed. Supervisors might say, “He spends a lot, just keep him happy,” or “We need this vendor for the quarter.” Those are the moments that turn into liability. Under California workplace harassment laws, the employer must prioritize worker safety over revenue pressures and must take prompt, effective steps to stop the conduct.
Employer liability for third-party sexual harassment in California
The employer’s duty under FEHA is to take “all reasonable steps” to prevent and correct harassment. Reasonable steps include a clear policy, accessible reporting channels, timely and neutral investigations, and remedial measures tailored to the risk. When the harasser is a nonemployee, the employer still has tools. In many settings, the company can ban the customer, change seating assignments, reroute accounts, move services online, assign two-person teams for high-risk interactions, or terminate a vendor contract for cause. When access is contract-based, “control” includes modifying or ending that access.
Key points that often decide cases:
- Notice triggers duty. Once management knows of harassing behavior, the clock begins. “Management” here includes supervisors, HR, and often any person designated to receive complaints under the company’s harassment policy. In some cases, knowledge can be imputed if the behavior occurs openly and repeatedly. Prompt response is not a single email. California sexual harassment investigation expectations include interviewing the complainant, witnesses, and the accused, and documenting steps. Employers should issue interim measures, such as separating the employee from the harasser without reducing pay or opportunity. Speed matters, but so does neutrality. A result that looks pre-judged can backfire in any later sexual harassment lawsuit in California. Retaliation is independently unlawful. California sexual harassment retaliation includes firing, cutting hours, poor scheduling, reassignment to less desirable routes or shifts, exclusion from opportunities, or subtle punishment like “we can’t trust you with this client anymore” after a report. FEHA and the Labor Code both prohibit retaliation for making a good faith complaint, participating in an investigation, or opposing harassment. Documentation is a defense and a risk. Employers should document every report, step, and decision. Workers should do the same. When facts are disputed, contemporaneous emails and incident logs often carry more weight than after-the-fact recollections.
Policy and training: where prevention actually happens
California sexual harassment policy requirements are not a check-the-box exercise. A policy should name third-party sexual harassment explicitly, describe examples, and explain that the company may remove or ban customers and terminate vendor relationships to protect employees. Reporting channels should not be limited to a direct supervisor. Alternate paths should include HR, a hotline, and, where possible, anonymous options. The policy should promise timely investigation and ban retaliation.
California sexual harassment training requirements set the minimum cadence and content. Under AB 1825 and SB 1343, employers with five or more employees must provide two hours of sexual harassment training for supervisors and one hour for nonsupervisory employees every two years, and within six months of hire or promotion. Effective programs go beyond slides. They describe what third-party harassment looks like in that specific business. For retail, that might include how to handle a persistent customer who waits at closing time. For health care, it https://charliexegr173.lucialpiazzale.com/california-sexual-harassment-punitive-damages-when-are-they-awarded might cover power dynamics with patients and family members. For logistics, it might address conduct at client sites and in loading docks.
Training should cover hostile work environment laws in California, quid pro quo risks involving clients, and how to escalate when the offender is a contractor or VIP. Role-playing can help staff practice short, firm scripts for redirecting behavior and requesting backup. Above all, training must convey that management will back employees who set boundaries, even if that costs a sale.
Edge cases and judgment calls
Not every uncomfortable interaction is legally actionable harassment. California workplace sexual harassment laws focus on unwelcome conduct that affects work or creates an abusive environment. A single awkward comment followed by an immediate apology and no recurrence might not create liability. But a pattern of “jokes,” even if framed as humor, can cross the line, especially when the target has asked for it to stop.
Alcohol and off-site events are frequent trouble spots. A client dinner after a conference, a booth event at a trade show, or a private tasting for a VIP customer may blur boundaries. Under FEHA, if the event is work-related or sponsored, the employer’s duty typically extends to that setting. The same is true for harassment at a client site where employees are assigned. The company cannot avoid responsibility by saying, “It happened across the street.” The question is whether the conduct arose out of the workplace relationship and whether the employer had the ability to prevent or correct it.
What about independent contractors? California’s protections extend to nonemployees in several ways. Independent contractor sexual harassment in California is actionable under FEHA when the contractor is a person providing services pursuant to a contract and is harassed in the course of that work. Similarly, employees can be harassed by contractors on site. Employers need to align vendor agreements with their harassment policy and reserve rights to remove individual contractor personnel for policy violations.
Practical steps when harassment comes from a customer or vendor
Workers often ask for a simple sequence that balances safety, documentation, and job security. The following checklist captures what tends to work on the ground and aligns with the sexual harassment complaint process in California.
- Prioritize safety in the moment. Step away, call a coworker or supervisor, or request security. If physical contact occurs, seek immediate help and medical attention if needed. Document promptly. Write down the date, time, location, names, exact words or actions, any witnesses, and how it affected your work. Save texts, emails, or images. These become sexual harassment evidence in California if a claim proceeds. Report through official channels. Use your company’s policy, HR portal, hotline, or a supervisor you trust. If your supervisor is part of the problem, go to HR or another designated contact. Early reporting triggers the employer’s duty to act. Ask for protective measures. Reasonable measures include changing schedules, reassigning the account, ensuring two-person coverage, or banning the offender. Make clear that you do not want your hours or pay reduced. Follow up in writing. If you do not receive confirmation or next steps within a short time, send a brief email summarizing your report and request for action. This creates a timeline and helps prevent miscommunication.
How to file a sexual harassment complaint in California
If internal reporting does not resolve the issue, or if retaliation occurs, you can seek relief outside the company. In California, the administrative gateway is the Civil Rights Department. The agency investigates FEHA sexual harassment claims and issues right-to-sue notices.
You have options for the order of operations:
- File with the CRD directly. You can submit an intake form online, by mail, or by phone. CRD may investigate or offer mediation. If the case aligns with agency priorities, CRD can prosecute the matter. If not, you can request an immediate right-to-sue letter, which allows you to proceed in court. File with the EEOC. There is worksharing between the EEOC and CRD, and a filing with one can be cross-filed with the other. EEOC sexual harassment California filings often proceed under federal law, but if your claims are primarily under FEHA, the CRD route typically provides broader protections.
The filing deadline sexual harassment California workers face depends on the statute. Under FEHA, the period to file with CRD is generally three years from the last discriminatory act. There are nuances, especially for delayed discovery or ongoing patterns, so it is best to confirm the current timeline with a California sexual harassment attorney. Once you receive a right-to-sue letter, you usually have one year to file in court.
Mediation and arbitration may appear in your path. Many employers include arbitration agreements. California sexual harassment arbitration rules have evolved, and enforceability can hinge on when and how the agreement was signed, and whether the Federal Arbitration Act applies. Mediation can be useful, particularly in third-party harassment cases where business relationships can be restructured. CRD offers free mediation for eligible cases.
Remedies and damages: what cases can recover
Sexual harassment damages in California can include back pay and front pay for lost wages or reduced hours, emotional distress damages, and, in some cases, punitive damages if the employer acted with malice, fraud, or oppression. Attorney’s fees and costs are available under FEHA to prevailing plaintiffs. Equitable relief, such as policy changes, training, or reassignments, can also be ordered. In practice, California sexual harassment settlements vary widely, from modest five-figure amounts for early resolution to significant six or seven-figure settlements where severe harassment and retaliation are proven.
Retaliation claims often increase damages. A worker who reports third-party sexual harassment California and then loses shifts or an account may recover for both the underlying harassment and the retaliatory loss. Wrongful termination sexual harassment California claims can add further damages if the employee is fired in violation of public policy.
Employer playbook for prevention and response
Employers have a legal obligation and a business incentive to get this right. A few operational practices make a measurable difference:
- Incorporate third-party rules into contracts. Vendor agreements should require compliance with the company’s anti-harassment policy, grant the company authority to remove specific vendor personnel, and set consequences for violations. Large clients may resist at first, but clear terms protect both sides. Train with specifics. California AB 1825 sexual harassment training and California SB 1343 harassment training set the baseline. Go beyond slides with scenarios drawn from your workflows: curbside pickup, home visits, client dinners, and on-site deployments. Equip staff with scripts and escalation procedures. Empower supervisors to act. Store managers and line supervisors should be trained to escort problem customers out, pause service, and document incidents without waiting for corporate permission. Back them up when they use that authority. Map risk points. Analyze where your employees are most exposed: late-night shifts, isolated exam rooms, delivery routes, or client premises. Adjust staffing and security accordingly. Use two-person teams where appropriate and maintain visibility. Measure and learn. Track complaints, actions taken, and outcomes. Look for patterns by location, time, or offender. Share lessons with managers and update training and policies as needed.
These steps align with employer responsibility sexual harassment California standards and can reduce legal exposure while improving morale and retention.
Investigations that hold up under scrutiny
A good investigation starts fast and keeps an open mind. California sexual harassment investigation practices generally include appointing a trained, impartial investigator, outlining the scope, and interviewing the complainant for details and desired safety measures. The investigator should interview witnesses and the accused, review physical or digital evidence, and issue factual findings. The burden is not “beyond a reasonable doubt.” The standard is often a preponderance of the evidence, which asks whether it is more likely than not that the conduct occurred.
Confidentiality has limits. Absolute secrecy cannot be promised because fairness requires giving the accused enough detail to respond. That said, information should be shared only on a need-to-know basis. Closure matters. Even when evidence is inconclusive, the employer must communicate the outcome, reiterate anti-retaliation rules, and implement reasonable preventive measures, like keeping the customer off the employee’s schedule or limiting access.
When the customer is “key” to the business
Executives sometimes ask whether they must cut off a major customer who harasses staff. FEHA’s answer is straightforward: if the customer’s conduct creates a hostile work environment California employees must endure, and the company can control the customer’s access, the company must act to stop the harassment. That can mean escalating warnings, requiring the customer to designate a different contact, moving the relationship to remote service only, or ending it altogether. The short-term revenue loss often pales compared to the cost of a sexual harassment lawsuit California juries will scrutinize, plus the damage to reputation and internal culture.
On the vendor side, the leverage is often contractual. A vendor whose employee harasses your staff should be required to remove that person from your sites or accounts immediately. Recurrences justify terminating the contract for cause. Document every step and notify your workforce of the protective measures so they see the commitment in practice.
Retaliation pitfalls to avoid
Retaliation claims frequently succeed where harassment claims are close calls. Managers sometimes think moving a complainant away from a harassing customer “for their own good” solves the problem. If that move reduces commission, prestige, or advancement potential, it can be adverse action. Similarly, labeling a complainant “not a culture fit” after a report invites risk. FEHA protects those who report harassment, participate in investigations, or testify. California sexual harassment whistleblower protection overlaps with other Labor Code provisions that shield employees who raise safety concerns. Teach managers to consult HR before making any change affecting a complainant’s pay, schedule, or duties.
The role of counsel and timing
A sexual harassment lawyer California workers consult will usually assess the strength of the facts, the employer’s response, and the timeline. The California sexual harassment statute of limitations for filing with CRD is generally up to three years from the last act, but do not wait if you can avoid it. Memories fade and evidence gets lost. Early involvement can increase the chance of internal resolution. If the matter proceeds, a California sexual harassment attorney can advise on whether to mediate early, push for a right-to-sue letter, or file in court. Many plaintiffs’ lawyers take these cases on contingency. Employers should involve counsel early to ensure investigations and communications are consistent and protected where appropriate.
What a workable reporting culture looks like
The best predictor of legal outcomes is not the existence of a policy, but whether people use it. A healthy reporting culture shows up in small ways: employees who ask for a manager when a customer crosses a line, supervisors who intervene without rolling their eyes, HR that follows up quickly and keeps complainants informed, and executives who back bans even when sales objects. Companies that encourage reporting tend to see earlier complaints, which are easier and less costly to resolve. Workers who feel protected are more likely to stay, which lowers turnover and training costs. The relationship between compliance and performance is not soft. It is operational.
Final thoughts
Third-party sexual harassment California law treats customer and vendor misconduct as an employer problem with employer solutions. FEHA asks a practical question: once you knew or should have known, did you take all reasonable steps to prevent and correct? If the answer is yes, you will have records of training, policies, prompt responses, and concrete measures that changed access or behavior. If the answer is no, the record will show delay, minimization, or business-first rationales that do not hold up.
For employees, the path is equally practical. Document, report, ask for protective measures, and, if necessary, use the California Civil Rights Department sexual harassment process to secure your rights. For employers, invest in training that reflects your real risks, write contracts that give you leverage over third parties, and stand behind your people when they set boundaries. That is both the legal standard and the workable path to a safer workplace.