Can a corporate entity be the victim of race discrimination? 5th Circuit says yes

A recent decision from the U.S. 5th Circuit Court of Appeals (whose rulings apply to Louisiana employers) clarifies that corporate entities have standing (i.e., the authority or right) to bring claims for race discrimination. Let's take a look at how the case arose.

Background

Staffing company White Glove, which is not minority-owned, provides temporary kitchen and foodservice personnel for its clients. When White Glove entered into negotiations with a hospital to provide temporary kitchen workers, the hospital's catering coordinator allegedly told the company's representatives that the chef “only really want[ed] to work with Hispanics” and “preferred Hispanics.” The chef also allegedly told a White Glove representative to “send [him] some compadres,” which the representative interpreted to mean Hispanic workers.

The hospital asked White Glove to provide some workers before a formal contract was executed. The staffing agency sent an African-American woman to work in the hospital's kitchen. After several shifts without incident, the only other African-American employee told White Glove's employee that she was surprised another African-American worker was brought in because “they usually don't let blacks in the kitchen.” The same hospital employee also explained that her employment was secure “only because” she had been working in the kitchen for nearly 20 years.