Faush v. Tuesday Morning

Matthew Faush (plaintiff) was employed by Labor Ready, a staffing firm that provided temporary workers to its clients, including Tuesday Morning, Inc. (defendant). Labor Ready assigned Faush to work at a Tuesday Morning store, where he was subjected to racial discrimination. Faush did not have an employment contract directly with Tuesday Morning. Labor Ready billed Tuesday Morning at an agreed-upon rate per hour for the time Faush worked and also controlled Faush’s hourly rate, paid his wages, and maintained workers’-compensation insurance on his behalf. The agreement between Labor Ready and Tuesday Morning required both parties to comply with all applicable laws concerning employment, including the payment of overtime compensation by Tuesday Morning, and both parties promised to provide a workplace free from discrimination and unfair labor practices. Labor Ready provided Faush with a timecard on which he recorded the hours he worked. At the end of each day, the manager of the Tuesday Morning store signed a document reflecting the hours worked by each temporary employee. Temporary workers were instructed to inform Labor Ready if they were unable to report to work, but Tuesday Morning was responsible for supervising and directing their activities inside the store. Tuesday Morning also provided site-specific orientation and training, and the work the temporary employees performed was no different from that of Tuesday Morning’s regular employees. Faush sued Tuesday Morning, claiming violations of Title VII of the Civil Rights Act of 1964 (Title VII) and state antidiscrimination laws. Finding that there was no employment relationship between Faush and Tuesday Morning, the district court entered summary judgment in favor of Tuesday Morning. Faush appealed.