Sexual Harassment by Vendors: Employer Liability in NJ

Most people think of sexual harassment at work as something that happens between coworkers or between a supervisor and an employee. But what if the harassment comes from someone outside your company?

It happens more often than people realize. A delivery driver makes repeated inappropriate comments. A consultant touches an employee in a way that crosses the line. A vendor at a trade show singles out your staff for unwanted advances.

In New Jersey, these situations raise a critical question: can an employer be held liable for sexual harassment committed by a vendor?

Let’s take a loot at how this works in practice, what the law requires, and when it’s time to consult a sexual harassment lawyer in New Jersey.

Understanding Sexual Harassment Under New Jersey Law

The New Jersey Law Against Discrimination (NJLAD) is one of the strongest anti-discrimination and anti-harassment laws in the country. It protects employees from harassment based on protected categories such as:

• Sex and gender
• Sexual orientation
• Gender identity and expression
• Race, religion, disability, age, and more

Sexual harassment under the NJLAD can include:

• Unwelcome sexual advances
• Requests for sexual favors
• Offensive jokes or comments of a sexual nature
• Unwanted touching or physical contact
• Display of sexually explicit images or materials

Importantly, what qualifies as sexual harassment is not limited to conduct from a supervisor or coworker. If an employer knows or should know that harassment is happening (and does nothing to stop it), the employer can still be held responsible. Speaking with a sexual harassment attorney in New Jersey can help you understand how these protections apply to your situation.

Vendor Harassment in NJ: Why It’s A Growing Concern

Workplaces today often rely on outside vendors and contractors. From IT consultants to delivery services, from cleaning crews to sales representatives, vendors are part of the daily work environment.

That also means employees may have regular contact with people who are not officially on the company payroll — and harassment can arise in those interactions, even when a company client is the harasser.

Some examples include:

• A vendor’s employee makes repeated sexual comments toward your staff.
• A contractor touches an employee inappropriately during a work meeting.
• A supplier pressures an employee for dates in exchange for favorable treatment.

Even though the harasser is not on the company’s payroll, the employer still has a duty to act if the harassment affects the work environment.

Employer Liability: The “Knew Or Should Have Known” Standard

During 2024, more than 88,000 new workplace discrimination charges were filed with the U.S. Equal Employment Opportunity Commission (EEOC).

Under the NJLAD, an employer can be held liable for harassment by a vendor if it knew or should have known about the behavior and failed to take prompt corrective action.

This standard means:

• If an employee reports harassment by a vendor — even something that began as workplace flirting crossing the line into sexual harassment — the employer must take it seriously and investigate.
• If the harassment is obvious — such as repeated inappropriate conduct in the workplace — the employer can’t look the other way.
• Employers must have policies in place that cover harassment by third parties, not only coworkers.

Roughly seven in ten U.S. adults now think that workers who commit sexual harassment or assault are more likely to be held accountable than they were five years ago. 

At the same time, nearly six in ten believe reports of such misconduct are treated with greater seriousness: signaling a shift in how the public might view employer liability due to vendor harassment.

Your employer ignoring sexual harassment complaints or dismissing them because the harasser is “not an employee” is not a valid legal defense.

What Employers Are Expected To Do

To comply with the NJLAD, New Jersey employers should take proactive measures when it comes to vendor harassment.

1. Have A Clear Anti-Harassment Policy

Your harassment policy should explicitly state that harassment by vendors, contractors, or other third parties will not be tolerated. Employees should know they have the right to report harassment regardless of who commits it.

2. Train Employees And Supervisors

Employees should be trained on what harassment looks like and encouraged to report incidents. Supervisors need to understand their responsibility to act immediately when they learn of harassment by vendors.

3. Provide Safe Reporting Channels

There should be multiple ways for employees to report harassment — not only through their direct manager. This is especially important if the issue involves a sexual harassment complaint against a supervisor. Confidential reporting options help employees feel safer coming forward.

4. Respond Promptly To Complaints

Investigate every complaint, even if it involves a third party. Document your actions and take steps to stop the harassment, such as speaking with the vendor, reassigning staff, or ending contracts if needed.

5. Protect Employees From Retaliation

The NJLAD also protects against retaliation. If an employee reports vendor harassment, they cannot be punished, demoted, or terminated for speaking up.

Why Some Employers Get It Wrong

Despite the law, some employers still mishandle vendor harassment. Common mistakes include:

• Dismissing the behavior as “not our problem” because the vendor is not an employee.
• Failing to train supervisors to recognize and respond to third-party harassment.
• Ignoring repeated complaints until the situation escalates.
• Retaliating against employees for reporting harassment instead of addressing the source.

These mistakes damage workplace culture, leading to low morale and turnover.

Employee Rights In Vendor Harassment Cases

If you are an employee in New Jersey and a vendor has harassed you, you have rights under the NJLAD. You can:

• Report the harassment to your employer and expect a fair response.
• File a complaint with the New Jersey Division on Civil Rights (DCR) or the Equal Employment Opportunity Commission (EEOC).
• File a lawsuit in state or federal court if your employer fails to act.

Employees should keep records of what happened — including dates, times, witnesses, and any communications — in case legal action becomes necessary.

How Vendor Harassment Affects The Workplace

The impact of vendor harassment goes beyond legal liability. It can create a hostile work environment, harm productivity, and make employees feel unsafe.

When workers believe their employer won’t protect them from outside harassment, trust breaks down. That leads to:

• Higher stress levels
• Decreased job satisfaction
• Increased turnover
• Damage to the employer’s reputation

That’s why proactive steps are all about building a respectful and safe workplace culture.

What To Do If You Experience Vendor Harassment

If you are experiencing harassment from a vendor while working in New Jersey, here are steps you can take:

1. Document the behavior. Keep notes with details of what happened.
2. Report it internally. Use your employer’s reporting system or go to HR or another trusted supervisor.
3. Follow up in writing. Written complaints create a record that the employer cannot ignore.
4. Seek legal advice. If your employer fails to act or retaliates against you, talk to a sexual harassment lawyer in New Jersey.

Key Takeaways

• The NJLAD protects employees from harassment in the workplace, including harassment by vendors and other third parties.
• Employers in New Jersey can be held liable if they knew or should have known about vendor harassment and failed to act.
• A strong anti-harassment policy, training, and prompt response are essential for compliance and employee safety.
• Employees have the right to report vendor harassment without fear of retaliation, and they may pursue legal remedies if employers fail to address the problem.

You Deserve a Workplace Free of Harassment

Sexual harassment by vendors is a real issue in New Jersey workplaces. Just because the harasser is not on the company’s payroll does not mean the employer is off the hook. Under the NJLAD, employers have a duty to protect their workers from harassment… regardless of the source.

For employees, knowing your rights is crucial. For employers, taking harassment seriously and acting quickly is both a legal responsibility and a moral one.

Still Have Questions? Contact Us For Your Free Consultation

If you’ve been harassed by a vendor at work, or if you’re an employer unsure of your responsibilities under New Jersey law, we can help. Contact us today for legal advice and a free consultation. We’ll review your situation, explain your rights, and help you take the right steps forward.