New York's Highest Court Limits Ability of Non-Residents to Sue Under New York State and New York City Human Rights Laws

July 13, 2010

By: Colin M. Leonard

In a 4-3 decision, the New York Court of Appeals ruled on July 1, 2010, that a non-resident cannot sue his employer under the New York State  and City Human Rights Laws, unless he can demonstrate that the alleged discriminatory conduct had an impact within the State or City of New York. The case, Hoffman v. Parade Publications, Inc. resolves a split of authority over the applicability of the State and City Human Rights Laws to non-residents. Prior to Hoffman, some courts had ruled that a non-resident plaintiff could assert a Human Rights Law claim when the termination decision was made in New York, even if the plaintiff otherwise had no connection to New York. The Hoffman case has been closely watched by New York employers who have employees working in other parts of the country. Plaintiffs’ attorneys often seek to take advantage of the State or City Human Rights Laws where possible, because those laws are often broader and more protective of employees than are federal law and the laws of many other states.

The case was brought by Howard Hoffman, a former employee of Parade Publications, the publisher of a nationally syndicated Sunday newspaper insert, with headquarters in New York City. Hoffman, however, worked in the company’s Atlanta, Georgia office and resided in that state. He attended quarterly meetings at the company’s New York City headquarters, but otherwise had no contact with New York and did not service any accounts in New York.

In October 2007, the company’s president contacted Hoffman by phone from New York City and told him the Atlanta office was being closed and that he was being terminated. Hoffman subsequently sued Parade Publications alleging age discrimination in violation of the New York State and New York City Human Rights Laws.

The trial court dismissed the complaint, holding that neither the State nor City Human Rights Laws applied to Hoffman, because the impact of the termination decision was not felt within the City or State of New York. The Appellate Division reversed and concluded that a non-resident plaintiff need only establish that the discriminatory decision was made in New York. The Court of Appeals then reversed the Appellate Division.

The Court of Appeals reviewed the City and State Human Rights Laws and noted that the statutory language expressed an intent to protect “inhabitants” of the City, “the people” of the State and those “individual[s] within” the State. According to the Court, it would be inconsistent with the statutory intent to extend the protection of those laws to non-residents who have at most “tangential contacts” with the City or the State. By focusing on whether the impact of the decision is felt within the State or the City, the Human Rights Laws will provide protection to non-residents who work in New York. At the same time, the impact analysis excludes non-residents from “forum shopping” their claims to take advantage of New York’s and New York City’s broader Human Rights Laws. Had Hoffman sued Parade for age discrimination under Georgia state law, his maximum recovery would have been a fine of $250.

After Hoffman, it is clear that the mere fact a termination decision was made in New York will be insufficient, standing alone, to assert a cause of action under the State or City Human Rights Laws with regard to a non-resident employee who does not work in New York and/or New York City. What remains unclear is how courts will assess the “impact” requirement going forward. In many ways Hoffman was an easy case because Hoffman clearly did not work in New York. But other situations may prove more difficult, such as the employee who reports to multiple offices, including one in New York. Or an employee who travels frequently on business within New York, but is otherwise based at a location outside of the State.