Federal court certifies class of 250,000 California job applicants in employment action against U.S. Healthworks, Concentra

August 16, 2024 (San Diego, CA) – Following supplemental briefing, a federal court in San Diego has certified a class of approximately 250,000 California job applicants in a groundbreaking lawsuit against U.S. Healthworks (USHW) and its parent companies, Concentra and Select Medical, alleging systematic and pervasive violations of California’s Fair Employment and Housing Act (FEHA).

The class action, initiated by the firm in 2019, alleges that USHW administered a standardized health history questionnaire (HHQ) to job applicants during pre-placement medical exams (PPEs) on behalf of thousands of California employers that contained intrusive and irrelevant questions that had nothing to do with any applicant’s job in violation of FEHA. For example, as a condition to clearing applicants for work, USHW required every applicant to disclose whether they have ever had a venereal disease, the date of their last menstrual period, and every medication the applicant was taking—along with dozens of other inappropriate, invasive, and irrelevant medical questions.

The Court’s order certifies the following class: 

“Every applicant for a paid position who underwent a post-offer, pre-placement examination and was subjected to USHW’s health history questionnaire at a USHW facility in California between October 23, 2017, and December 31, 2018.”

The Court’s decision follows an important legal precedent secured by the firm from the California Supreme Court in 2023, which agreed with the firm that business entities acting as agents of employers can be held directly liable under FEHA for employment discrimination. In the order certifying the class, the Court endorsed the firm’s interpretation of the Supreme Court’s decision, finding that a business entity like USHW is an “agent” and thus itself an “employer” liable under FEHA when it undertakes a FEHA-regulated activity on behalf of an employer. In doing so, the Court rejected USHW’s argument that, to be directly liable, USHW must not only administer PPEs on behalf of employers, but also qualify as an “agent” under common law.

Ms. Raines and the Class are represented by firm lawyers Randy Erlewine, David Given, and Kyle O’Malley. Noting the firm’s efforts, the Court wrote:

“[T]here is no dispute that Plaintiffs’ counsel has extensive experience litigating class action cases and has vigorously protected the interests of the class. This matter has been thoroughly litigated, and Plaintiffs’ counsel has secured favorable results before the California Supreme Court and Ninth Circuit.”

The class action now moves forward with the aim of holding USHW accountable for its alleged discriminatory practices and seeking redress for affected job applicants, with the Court ordering the parties to meet and confer within the next 30 days on a form of class notice to be sent to affected California job applicants.

Phillips, Erlewine, Given & Carlin LLP is committed to protecting workers’ rights and ensuring fair employment practices. With a track record in cutting-edge employment and class action work and a dedication to justice, the firm proudly represents clients in employment law disputes, discrimination cases, class actions, and related legal matters.