Companies contracting with employment agencies can now be held liable for temporary employees’ discrimination claims, the U.S. Court of Appeals for the Third Circuit has ruled.

The appeals court’s ruling in Faush v. Tuesday Morning came after the district court’s dismissal of Matthew Faush’s claims that he and fellow African-American employees were subject to racial slurs and discriminatory treatment by staff at retailer Tuesday Morning Inc. The Third Circuit revived the case and sent it back to the lower court for further proceedings.

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