52 N.Y.2d 72 (1980)

A single incident of sufficiently humiliating ethnic or religious slurs can constitute discrimination creating a hostile work environment, violating laws against discrimination in the terms and conditions of employment.

Summary

The New York Court of Appeals held that a single incident where an employer made an egregious antisemitic remark to a waitress was sufficient to establish a discriminatory practice violating the state’s human rights law. The waitress quit after the incident. The Court emphasized that the statute should be liberally construed to combat discrimination, and that an employer’s discriminatory intent is often subtle. The Court found that the employer’s crude and open contempt created a hostile work environment, and that his subsequent refusal to apologize justified the finding of a constructive discharge. The Court reversed the Appellate Division’s decision, reinstating the Human Rights Division’s order.

Facts

Eleanor Rose, a waitress at Imperial Diner, was assigned to a less desirable counter station. After being reassigned to a table station by the head waitress, Rose thanked the diner’s president, believing he was responsible for the change. In response, the president made an obscene antisemitic remark, stating she thought she was special because she was Jewish, like other Jewish women working there. When Rose expressed shock, the president repeated the remark and refused to apologize. Rose left the diner. She informed another owner, who suggested she return and ignore the incident, but Rose insisted on a public apology. When she went to collect her paycheck days later, the president again refused to apologize.

Procedural History

The State Division of Human Rights found Imperial Diner and its president guilty of discrimination, ordering a written apology, reinstatement with back pay, and $500 in damages. The Human Rights Appeal Board affirmed this determination. Imperial Diner then sought to annul the determination in the Appellate Division, which granted the petition, finding a lack of evidence of a systematic pattern of discrimination. The State Division of Human Rights appealed to the New York Court of Appeals.

Issue(s)

Whether a single incident of egregious ethnic slurs by an employer is sufficient to constitute discrimination in the terms and conditions of employment, violating Executive Law § 296(1)(a)?

Whether the employee’s decision to quit constituted a constructive discharge?

Holding

Yes, because the statute prohibits discrimination, and not just repeated discriminatory acts. The employer’s contempt created a hostile work environment directly related to her working conditions.

Yes, because the commissioner could reasonably conclude that the employer’s refusal to apologize, coupled with the offensive remarks, created an intolerable atmosphere that compelled the employee to resign.

Court’s Reasoning

The Court emphasized that the Human Rights Law must be liberally construed to achieve its purposes. Discriminatory intent is rarely announced openly, but often pursued through subtle means. Here, the employer’s contempt was blatant, creating a humiliating environment for the complainant. The Court stated, “This type of vilification is humiliating, not only when it is done wholesale, but also, and perhaps especially, when it is directed at a lone individual in an isolated incident.” A single, sufficiently egregious incident is enough to constitute discrimination; a pattern of repeated acts is not required.

The Court also addressed the issue of constructive discharge, noting that an employer may create conditions so intolerable that an employee is compelled to quit. While the employer offered the waitress her job back, his persistent refusal to apologize for the offensive remarks allowed the commissioner to find that she was compelled to resign. The Court deferred to the commissioner’s broad discretion in fashioning a remedy, finding that the ordered relief, including back pay and a written apology, was reasonably related to the discriminatory conduct. The court stated, “That is not to say that this was the only conclusion that the commissioner could have drawn from the facts. However, it was a reasonable one and thus may not be set aside by the courts although a contrary decision may “have been reasonable and also sustainable”

In dissent, Judge Meyer argued that requiring a written apology violated the employer’s First Amendment rights. He also argued that back pay should not be awarded for periods when the complainant was otherwise employed.