Three claims survived – and one involves a workplace deal HR can't ignore
A federal court ruled that Blake Lively was not an employee – a finding that wiped out her sexual harassment claim under Title VII.
On April 2, 2026, Judge Lewis J. Liman of the U.S. District Court for the Southern District of New York handed down a 152-page ruling in Lively's case against co-star Justin Baldoni and the production companies behind the film It Ends With Us. The court dismissed ten of her thirteen claims – but allowed three to proceed to trial, including retaliation under California's Fair Employment and Housing Act and breach of a workplace safety agreement.
The case stems from events during and after the production of the 2024 film, which was co-produced by Wayfarer Studios and Sony and based on Colleen Hoover's bestselling novel about domestic violence. Lively brought thirteen causes of action against Baldoni, Wayfarer Studios, its CEO Jamey Heath, co-chair Steve Sarowitz, the special-purpose production entity It Ends With Us Movie LLC, and several public-relations consultants. Her claims ranged from sexual harassment and retaliation under federal and California law, to breach of contract, defamation, and civil conspiracy.
The threshold question – and the one with the broadest implications for anyone managing a blended workforce – was whether Lively qualified as an employee at all. The court concluded she did not. Applying the well-established thirteen-factor test used to...
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