Employer Liability for Third-Party Harassment in NJ Workplaces: Your Rights Explained

When people think of workplace harassment, they often imagine it coming from a manager or co-worker. But harassment can also come from someone outside the company — like a client, customer, vendor, or contractor. This is known as third-party harassment, and under New Jersey law, employers may still be held responsible if they don’t take steps to stop it.

Let’s explore what counts as third-party harassment in NJ, how it happens, what legal protections are in place, and when it’s time to contact a workplace harassment lawyer in New Jersey.

What Is Third-Party Harassment?

Third-party harassment occurs when a non-employee (like a customer, contractor, client, or visitor) engages in harassing behavior toward an employee in the workplace.

This can take many forms, including:

• Making offensive jokes or comments based on race, gender, age, disability, religion, or other protected characteristics
• Making unwanted sexual advances
• Using slurs or racial epithets
• Stalking, intimidation, or other threatening behavior
• Repeatedly making employees uncomfortable in a way that interferes with their work

Just because the offender isn’t on your company’s payroll doesn’t mean the problem can be brushed aside. Whether it’s a vendor, client, or contractor, employers still have a legal obligation to maintain a workplace free from unlawful harassment. 

While not all bad behavior qualifies legally, understanding the difference between bullying and harassment is key: harassment involves protected traits and legal protections..

What the Law Says in New Jersey About Third-Party Harassment

New Jersey Law Against Discrimination (NJLAD)

The New Jersey Law Against Discrimination (NJLAD) is one of the strongest anti-discrimination laws in the country. It protects employees from workplace harassment and discrimination based on a wide range of characteristics, including:

• Race
• Gender
• Sexual orientation
• Religion
• Disability
• Age
• Pregnancy
• National origin
• Gender identity or expression

NJLAD applies to direct employer-employee relationships, and covers situations involving third-party harassment. If gossip, rumors, or inappropriate office talk by outsiders or colleagues creates a hostile environment, and the employer knows (or should know!) that a third party is harassing an employee and fails to take action, the employer can be held legally responsible.

This principle was reinforced in New Jersey court decisions, including Blakey v. Continental Airlines, where the court ruled that employers may be liable for failing to stop harassment even when it occurred outside the office, such as on internet chat boards accessed by coworkers.

Federal Law: Title VII

Title VII of the Civil Rights Act of 1964 also prohibits harassment based on protected categories. Like NJLAD, Title VII holds employers accountable if they allow harassment by third parties to continue after being made aware of it.

Under both state and federal law, the key legal standard is whether the employer took prompt and appropriate corrective action once it knew (or should have known) about the behavior.

CEPA May Also Apply

If the employee reports the third-party harassment and faces retaliation, the Conscientious Employee Protection Act (CEPA) might come into play as well. CEPA protects workers who object to illegal or unethical conduct in the workplace.

When Are Employers Liable for Third-Party Harassment?

In general, an employer can be held legally responsible for third-party harassment if:

1. The harassment was based on a legally protected trait.
2. The employer knew or should have known about the behavior.
3. The employer failed to take reasonable steps to stop it.

It doesn’t matter whether the harasser is on the company’s payroll. 

Imagine a hotel guest repeatedly makes crude, unwanted comments to a front-desk employee. If the employee reports it and management does nothing, the hotel could face serious consequences for ignoring workplace harassment complaints. 

“Knew or Should Have Known”

This legal standard matters in cases of manager harassment: employers can’t turn a blind eye. If a worker reports that a supervisor or even a customer is making racist jokes or engaging in sexual harassment, the employer has a legal duty to investigate and take action.

A Note on Repeated Exposure

One comment can be workplace harassment, if it’s severe enough or part of a pattern.

While a single inappropriate remark from a customer might not always meet the legal definition of harassment, repeated incidents or even one egregious comment, if left unaddressed, can quickly contribute to a hostile work environment. That’s when an employer’s legal exposure increases.

Real-World Examples of Third-Party Harassment

Consider these scenarios:

• A female nurse is repeatedly harassed by a male patient. She tells her supervisor, but the hospital says “he’s old and harmless” and does nothing.
• A Black delivery driver is subjected to racial slurs by a client at every drop-off location. The employer is aware but doesn’t want to “rock the boat.”
• An administrative assistant is targeted by cyberbullying at work — receiving mocking messages and group chat insults. HR is informed but claims it’s “just online banter” and doesn’t investigate.

In each of these cases, the employer might face legal consequences for failing to act.

What Should Employers Do to Avoid Liability?

To limit their legal exposure and protect employees, New Jersey employers should take a few clear steps:

1. Have a Clear Anti-Harassment Policy

A written anti-harassment policy should:

• Define third-party harassment
• Explain that such behavior is not tolerated
• Detail how employees can report incidents
• Include protections against retaliation

2. Train Managers and Employees

Regular training helps ensure everyone understands their rights and responsibilities. Managers, in particular, must know how to handle complaints involving outside parties.

3. Investigate Complaints Promptly

Take every complaint seriously. Even if the alleged harasser isn’t an employee, the company must investigate and document the issue.

4. Take Corrective Action

If the complaint is substantiated, take steps to prevent future incidents. This might mean:

• Restricting or banning the third party from company property
• Reassigning work duties or schedules (without punishing the victim)
• Working with security to enforce boundaries

What Can Employees Do If They Experience Harassment?

If you're being harassed by a third party at work, you have options. Here’s what to do:

1. Document Everything

Keep a record of what happened — dates, times, locations, names, and any witnesses. Save emails, messages, or any communication related to the harassment.

2. Report It Internally

Notify your supervisor, HR, or another person of authority. Use the reporting method outlined in your employee handbook, if there is one.

3. Follow Up in Writing

If the harassment continues or nothing is done, follow up with a written complaint. This creates a paper trail showing that the employer was made aware.

4. Speak to an Employment Lawyer

A workplace harassment attorney in New Jersey can help you understand whether your rights were violated and whether legal action is appropriate. They can also help you file a claim with the New Jersey Division on Civil Rights (DCR) or the Equal Employment Opportunity Commission (EEOC).

Final Thoughts

Third-party harassment is a serious workplace issue, and it shouldn’t be brushed aside simply because the offender isn’t on the company’s payroll. In New Jersey, both employers and employees have legal rights and responsibilities when it comes to this kind of misconduct. Whether it’s inappropriate comments from a client, cyberbullying by a vendor, or workplace pranks that feel targeted and discriminatory, the impact is real.

According to the APA’s 2024 Work in America survey, 15% of workers described their workplace as somewhat or very toxic. That number jumps to 24% among employees with cognitive, emotional, learning, or mental disabilities:  a group more likely to experience toxic conditions, including third-party harassment that goes unaddressed.

For employers, prevention is key: clear policies, proper training, and immediate response to complaints. For employees, knowing your rights and speaking up can be the first and most powerful step toward accountability.

Facing Third-Party Harassment? Contact Us Today

If you’ve been harassed by a customer, client, contractor, or any third party at work and your employer failed to act — you may have a valid claim under New Jersey law. No one should have to choose between their job and their dignity.

Our experienced employment law team helps workers throughout New Jersey navigate complex harassment and retaliation cases. We’ll help you understand your rights, evaluate your evidence, and build a strong legal strategy.

Contact us today for a free consultation.