Aug 7, 2025sexual harassmentworkplace harassmentthird-party harassmentemployee rightsNew Jersey Law Against DiscriminationNJLADemployer responsibilityclient harassmentlegal adviceretaliationemployment lawEEOCNew Jerseyworkplace discrimination

When Your Company Client Is the Harasser: Your Rights in NJ

Sexual Harassment by Clients in NJ

Sexual harassment at work is difficult enough when it comes from a manager or a co-worker. But what if the person crossing the line isn’t even employed by your company? What happens when the harasser is a client or customer?

Unfortunately, client sexual harassment happens more often than people realize: in industries like hospitality, sales, healthcare, entertainment, and tech. And while it might seem like your employer can’t do much about someone they don’t directly employ, law says otherwise.

Let’s break down how the law works, what your rights are, when it’s worth it to contact a sexual harassment lawyer in New Jersey, and what steps to take if you find yourself in this uncomfortable and unfair situation.

What Is Third-Party Sexual Harassment?

Third-party sexual harassment refers to unwelcome sexual conduct directed at an employee by someone outside the organization — such as a:

  • Client or customer
  • Vendor or supplier
  • Contractor or consultant
  • Business partner
  • Franchise owner
  • Guest at a work event

Just like harassment from a co-worker, this behavior can include:

  • Sexual comments or jokes
  • Inappropriate touching
  • Repeated romantic advances
  • Lewd gestures or emails
  • Requests for sexual favors
  • Threats or retaliation for rejecting advances

The fact that the harasser isn’t on the company’s payroll doesn’t change how harmful or illegal their behavior is. 

Your employer still has a legal responsibility to protect you from customer harassment in NJ, whether it comes from a client, customer, vendor, or contractor. You shouldn’t have to put up with inappropriate behavior to keep your job or maintain a business relationship.

“The decision to speak up is powerful. But knowing what happens after — and how to protect yourself — is just as critical.”

— Olivia Rhye

Why Third-Party Harassment Happens

There’s often a power imbalance at play. You might feel uncomfortable speaking up because:

  • The client is bringing in big revenue.
  • Your boss seems friendly with the vendor.
  • You’re new to the job and afraid to “rock the boat.”
  • You’ve seen other complaints ignored or dismissed.

Unfortunately, some companies will look the other way when the harasser isn't on their payroll — especially if there’s money or partnerships at stake.

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New Jersey Law and Employer Responsibility

In 2024, the U.S. Equal Employment Opportunity Commission (EEOC) received over 88,000 new workplace discrimination complaints — marking a jump of more than 9% from the previous year. While the EEOC doesn’t break out sexual harassment on its own, sex-based discrimination (which includes sexual harassment) accounted for nearly one in three charges filed.

Under the New Jersey Law Against Discrimination (NJLAD), sexual harassment is considered a form of gender-based discrimination. This law applies to both public and private employers and provides protections for employees regardless of whether the harasser is internal or external.

The key question in a third-party harassment case is not whether the harasser works for the same company, but whether:

  • The employee was subject to unwelcome sexual conduct, and
  • The employer knew or should have known about the conduct and failed to take appropriate action.

If your employer is aware that a client is harassing you and chooses to do nothing (or worse, retaliates against you for speaking up), they can be held legally responsible.

What the Law Requires of Employers

When it comes to sexual harassment by clients or customers, employers are not off the hook. The NJLAD makes it clear that companies have a legal duty to prevent and respond to harassment, regardless of who is committing it.

Here’s what a responsible employer should do:

  1. Have a clear anti-harassment policy that includes third-party conduct.
  2. Train managers and employees to recognize and report harassment.
  3. Encourage employees to speak up without fear of retaliation.
  4. Promptly investigate all complaints — even informal ones.
  5. Take corrective action, which may include:

Even workplace flirting can be considered sexual harassment if it’s unwelcome or creates a hostile environment.  If the employer fails to take any meaningful steps and the harassment continues, the company itself may be held liable in court.

Reporting Third-Party Harassment: What to Do

If you’re experiencing harassment by a client or customer, consider the following steps:

1. Document the behavior

When building the evidence you need for a sexual harassment case, keep detailed notes that include dates, times, names, and specific descriptions of each incident. Save any supporting materials like emails, texts, or voicemails. 

2. Report it to your employer

Let your manager or HR department know (preferably in writing) that a client or customer is engaging in unwelcome conduct. Be as specific as possible about:

  • What happened
  • How it affected you
  • What outcome or solution you’re requesting

3. File a Complaint with the State

If internal reporting doesn’t result in action, or retaliation occurs,  you can file a formal complaint with the state. In New Jersey, you have the following options:

Filing a state complaint may lead to an investigation, mediation, or even a formal hearing.

4. Speak with a lawyer

Finally, consider getting legal advice from a sexual harassment attorney in New Jersey who focuses on employee rights. They can:

  • Help assess the strength of your case
  • Communicate with your employer or the state on your behalf
  • Represent you if legal action is needed
  • Make sure you don’t miss any deadlines or procedural steps

Speaking to an attorney does not mean you’re committing to a lawsuit — but it means you’re taking steps to understand and protect your rights.

What If You’re Retaliated Against?

Retaliation can be as damaging as the harassment itself. If your employer reacts to your report by cutting your hours, taking you off a project, or even firing you, that’s illegal under the NJLAD.

Retaliation can include:

  • Termination or forced resignation
  • Reduced hours or pay
  • Removal from accounts or clients
  • Negative performance reviews after reporting
  • Exclusion from meetings or advancement opportunities

If you experience any of these after reporting harassment, you may have a retaliation claim under New Jersey law in addition to a harassment claim.

You Don’t Have to Tolerate Harassment from Clients

It’s common for employees to feel helpless when the harasser is a client. You might worry that speaking up will damage the business relationship or cost the company money… and that you’ll be blamed for it.

But it’s your employer who is responsible for providing a safe and harassment-free workplace. That includes protecting you from clients who cross the line, whether it happens in person, over email, or even in inappropriate social media DMs sent outside of work hours.

You don’t have to put up with inappropriate touching, offensive remarks, or suggestive comments — and you don’t need to wait until it gets worse before taking action.

If you're facing sexual harassment from a client, customer, or outside party and your employer isn't taking it seriously — you don’t have to deal with it alone.

We’ve helped workers across industries hold employers accountable for failing to address harassment, and we’re ready to fight for you.

Contact us today for a free and confidential consultation.

BJB Employment Law Editor
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