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Can nonemployees sue under Title VII? 5th Circuit says 'no'

November 2020 employment law letter
Authors: 
Michael Foley, Jones Walker LLP

In a recent employer-friendly decision, the 5th Circuit concluded nonemployees can't sue under Title VII based on allegations they were the intentional target of an employer's retaliatory animus against an employee.

Facts

James Simmons worked for a third-party wholesaler of life insurance products to clients of UBS Financial Services, Inc., though he frequently worked out of UBS's offices. His daughter was a UBS employee who submitted an internal complaint of pregnancy discrimination and filed a charge with the Equal Employment Opportunity Commission (EEOC). She eventually resigned and settled her claim.

In the following months, Simmons' third-party relationship with UBS deteriorated. Allegedly in retaliation for his daughter's complaints, the company revoked his right of access to its offices and then eventually prohibited him from doing business with its clients. That effectively ended Simmons' job with his own employer.

Lawsuit and district court decision

Simmons sued UBS, among others, and alleged the company "retaliated against his daughter by taking adverse actions against him." Stated differently, he sued the company based on its employment relationship with his daughter, even though he wasn't UBS's employee. The company promptly asked the court to dismiss the lawsuit, contending he couldn't sue under Title VII because he wasn't its employee.

A federal district judge in Texas agreed with UBS and dismissed Simmons' complaint because his nonemployee status foreclosed his legal standing to sue under Title VII. He then appealed to the 5th Circuit.

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