New Law: Independent Contractors in NYC are Protected Against Discrimination and Must be Trained

Effective January 11, 2020, independent contractors in New York City are protected from discrimination or harassment in the workplace and can sue under the New York City Human Rights Law (New York State Human Rights Law already protects independent contractors). In addition, independent contractors in NYC now have a right to request and receive a reasonable accommodation related to their disability, religious observance, etc.

Because independent contractors are protected under the New York City Human Rights Law, companies in NYC with 15 or more employees are now required to provide annual sexual harassment prevention training to independent contractors (It was previously encouraged). Companies must modify their policies and training materials/procedures accordingly. Training under the NYC Human Rights Law must be completed by April 1, 2020.

Eye on Real Estate Q&A: Co-op Disapproval of Sale and Suing the Board

On this week's episode of Eye on Real Estate, January 18, 2020, we were asked about suing a cooperative board for refusing a sale by creating an absolute floor price, which unit owners had to obtain in order to sell units to third-party purchasers.

Initially, we discussed the business judgment rule, which generally protects boards from lawsuits as long as the board acted in good faith and in accordance with it's power. 

However, there can be a case against the board where the board created an absolute floor price in bad faith or if the board created the absolute floor price beyond its powers as set forth in the bylaws. 

As the courts explain, the test is whether the board's floor is "a provision merely postponing sale during the option period," which is permissible or, if it is, instead, "an effective prohibition against transferability itself," which is impermissible. 

So, if you are being blocked on price, consider a lawsuit after you obtain and review the bylaws. 

For a great explanation of this issue, see Oakley v. Longview Owners, Inc.

Eye on Real Estate Q&A: Rent Control Succession Rights

On this week's episode of Eye on Real Estate, January 18, 2020, we were asked about succession rights of a niece on rent controlled property.

NYC's Rent Guidelines Board actually answers this question as follows:

A rent controlled tenant cannot grant the right to live in the apartment through a will. Nor can someone succeed a rent controlled apartment by paying the rent with personal checks. There are specific rules about who may succeed a rent controlled apartment.In general, for rent controlled apartments throughout New York State, any "family member" of the tenant may have the right to protection from eviction when the tenant dies or permanently leaves the apartment.The family member's right to protection from eviction is dependent upon such family member having resided with the tenant as a primary resident in the apartment for two years immediately prior to the death of, or permanent leaving of, the apartment by the tenant (one year for family members who are senior citizens or disabled persons).The family member may also have the right to protection from eviction if he/she resided with the tenant from the inception of the tenancy or from the commencement of the relationship.If all the requirements for succession are met, the new tenant's rent would be the same as it was when your aunt was the primary tenant, until the next increase, which can occur once a year in rent controlled apartments. 

For definitions of family members, disabled persons and more information, see HCR Fact Sheet #30: Succession Rights.

Or, you may wish to contact NYS Homes and Community Renewal (HCR), the state agency which administers the rent laws.---

It's noted that a niece is not a listed family member for succession rights at 9 NYCRR 2204.6(d)(3) and therefore must prove emotional and financial commitment and interdependence between such person(s) and the tenant to have succession rights on top of the 2 year requirement.

So, as we suggested on the radio, please consult with an attorney rather than just going it alone when seeking these valuable succession rights through a succession application to DHCR. The alternative is an eviction proceeding being brought against you.

Listen to the podcast here.