Griffin v. Sirva, Inc., 30 N.Y.3d 174 (2017)
Under the New York State Human Rights Law, liability for employment discrimination based on a criminal conviction is limited to employers, while aiding and abetting liability can extend to non-employers.
Summary
The New York Court of Appeals addressed three questions certified by the Second Circuit Court of Appeals regarding the scope of liability under the New York State Human Rights Law (NYSHRL). The case involved two former employees of Astro Moving and Storage Co., Inc. who were fired after their criminal records revealed past convictions for sexual offenses. The court held that liability under NYSHRL § 296(15), which prohibits discrimination based on criminal convictions, is limited to employers, as defined by common-law principles that emphasize the power to control the employee. However, the Court found that NYSHRL § 296(6), the aiding and abetting provision, could extend liability to non-employers, even out-of-state entities, who aid or abet discriminatory practices.
Facts
Plaintiffs, former employees of Astro Moving and Storage Co., Inc., had prior convictions for sexual offenses. Astro contracted with Allied Van Lines, Inc., a subsidiary of Sirva, Inc. Under the contract, Astro was required to adhere to Allied’s guidelines, which included criminal background checks and automatic failure for employees with sexual offense convictions. After Sirva investigated the plaintiffs’ criminal records, Astro fired them. Plaintiffs sued Astro, Sirva, and Allied, alleging violations of the NYSHRL, among other claims.
Procedural History
The plaintiffs moved for partial summary judgment, which the district court denied. The court granted summary judgment to Allied and Sirva, holding that § 296(15) applied only to employers and that Allied and Sirva were not the plaintiffs’ employers. The plaintiffs appealed to the Second Circuit, which certified three questions to the New York Court of Appeals regarding the scope of liability under the NYSHRL.
Issue(s)
1. Whether NYSHRL § 296(15), prohibiting employment discrimination based on a criminal conviction, limits liability to an aggrieved party’s “employer.”
2. If § 296(15) is limited to an employer, how should courts determine whether an entity is the aggrieved party’s “employer” under § 296(15)?
3. Whether NYSHRL § 296(6), providing for aiding and abetting liability, applies to § 296(15) such that an out-of-state principal corporation that requires its New York State agent to discriminate in employment based on a criminal conviction may be held liable for the employer’s violation of § 296(15).
Holding
1. Yes, because NYSHRL § 296(15) incorporates Article 23-A of the Correction Law, which limits liability to employers, both public and private.
2. Common-law principles, focusing on the employer’s power to control the employee in their work, determine whether an entity is an employer under § 296(15).
3. Yes, because § 296(6), the aiding and abetting provision, extends liability to out-of-state non-employers who aid or abet discriminatory practices.
Court’s Reasoning
The court held that NYSHRL § 296(15) is limited to employers, finding that the statute’s language, legislative history, and incorporation of Article 23-A of the Correction Law all supported this interpretation. Article 23-A specifies that the prohibition applies to applications “at” an employer or to employment held. The Court noted that an employer has to consider exceptions under Correction Law § 752, making it clear that only employers could violate the statute. The court also found that when determining who constitutes an employer, common-law principles would apply, giving “greatest emphasis” to the alleged employer’s power to control the employee in their work. For the aiding and abetting claim, the Court found that § 296(6) applies to any “person,” and is not limited to employers. The purpose of this section, as expressed in legislative history, was to hold liable anyone who aids or abets discriminatory conduct, regardless of their status. The court cited a previous case, *National Organization for Women v. State Division of Human Rights*, where the aiding and abetting provision was applied to a newspaper that was not an employer.
Practical Implications
This case clarifies the scope of liability under the NYSHRL for employment discrimination based on criminal convictions. It confirms that non-employers can be held liable for aiding and abetting discrimination under NYSHRL § 296(6), even if they are not the direct employer, especially if they have significant control over an employer’s employment practices. Businesses, especially those with contractual relationships that influence employment decisions of other entities, must be aware of this potential liability. Attorneys should use the common-law test, and *GTE* factors, when determining if an entity is an “employer”. Moreover, the case highlights that the NYSHRL’s extraterritoriality provision can extend liability for discriminatory acts committed outside of New York if they impact New York residents.