Age Discrimination: It Wasn’t Me!
U.S. Court of Appeals for the Second Circuit: Halpert v. Manhattan Apartments, Inc.
In New York, unless you’re in a union, are a government worker or have a contract of employment, you are an at-will employee. You can be fired for any reason whatsoever, except, of course, for the wrong reasons (the discriminatory ones proscribed by state and federal legislation and constitutions). Those protections extend to the hiring process as well.
Michael Halpert applied for a position with Manhattan Apartments Inc. (MAI) showing rental apartments . He was interviewed by Robert Brooks. Halpert claims Brooks told him he was “too old” for the job and sent him on his way. Brooks was not an employee of MAI. He was an independent contractor (a cost saving measure used by many employers to avoid giving benefits, and sometimes, to avoid coming under the mandates of federal or state laws by keeping the number of “employees” under the amount that triggers the laws applicability). Halpert didn’t care what Brooks was. He knew his rights so he sued MAI for age discrimination.
The lower court ruled in MAI’s favor, finding that the Age Discrimination in Employment Act (ADEA) “does not apply to independent contractors.” As a result, it dismissed Halpert’s case finding that MAI was not an employer under the definition of the ADEA.
Not so fast.
Employers may be able to reduce taxes, keep costs down and avoid providing health coverage by requiring workers to be independent contractors, but they don’t get a free pass for discrimination when that independent contractor is acting on the employer’s behalf. As the court concluded, if Halpert was interviewed by Brooks for a position with MAI, or MAI let Halpert believe he was being interviewed for a position with them (and not with Brooks) “an employer (MAI) can potentially be held liable for discrimination by an independent contractor (Brooks) who acts for the employer.”
Since the ADEA provides that “an employer may not ‘fail or refuse to hire...any individual...because of such individual’s age,’” MAI could be found liable if Brooks did in fact tell Halpert he was too old for the job. The court put it this way: That prohibition applies regardless of whether an employer uses its employees to interview applicants for open positions, or whether it uses intermediaries, such as independent contractors, to fill that role.” If Brooks had authority to hire, MAI couldn’t hide behind his independent contractor status to avoid liability for discriminating against Halpert. And that question can only be resolved when the nature of Brooks’ authority and relationship with MAI is fully explored.
Accordingly, questions of fact exist which could not be resolved by summary judgment and the dismissal by the District Court was vacated.
It’s good to know that a mere declaration of independence doesn’t insulate an employer from the actions of those it hires as independent contractors. If that were the case, everyone would be required to be an independent contractor, leaving employers free to act with impunity while letting their non-employees do whatever dirty work was needed. That is one giant loophole the court was not prepared to create and one most of us would consider sound public policy. In employment as in life, you don’t necessarily dodge the bullet by claiming “it wasn’t me!” Sometimes you’re responsible, even if you don't personally pull the trigger. That’s the way it’s always been, legal constructs like "independent contractor" notwithstanding.
As a footnote, it’s worth noting that Mr. Halpert prevailed in this matter pro se—without the assistance of counsel—or put another way, as an independent contractor. There’s a certain irony in that. One hopes it’s not lost on MAI or Mr. Brooks.