LIEB BLOG

Legal Analysts

Thursday, January 28, 2021

Atheists & Agnostics are Protected from Discrimination at Work per EEOC

The EEOC just released its Compliance Manual on Religious Discrimination and lack of religious faith is protected from discrimination at the workplace.

You hear that? Atheists & agnostics - you matter too!


Here is what the manual states:

Definition of Religion

Comment: Some commenters expressed concern that the draft did not make sufficiently clear that Title VII protects against discrimination based on a lack of religious faith.

Response: The Commission has made additions to reference repeatedly that discrimination based on a lack of religious faith is prohibited.


Wednesday, January 27, 2021

NYS Senate Report on Fair Housing - Changes Coming to RE Brokerage - Get Ready NOW

A 97 page report was just issued by the NYS Senate on persistent racial and ethnicity-related housing discrimination and this report is going to change the real estate brokerage industry in NYS forever. 


Are you ready? 


According to the report, housing discrimination has changed over the last hundred years from being overt to subvert. However, housing discrimination clearly still exists and something has to be done about it now. 


Would it surprise you to learn that in 2019 there were 28,880 reported complaints of housing discrimination in the USA? Again, twenty-eight thousand complaints!!!


Did you know that the precursor to the National Association of Realtors (NAR) required its members to discriminate as follows:

A Realtor should never be instrumental in introducing into a neighborhood a character of property or occupancy, members of any race or nationality or individuals whose presence will clearly be detrimental to property values in that neighborhood. 

While this overt discrimination is less prevalent today, the report explains that: 

Today, bad actors often use subtler forms of discrimination; they direct homebuyers of different apparent backgrounds toward different communities, impose more stringent financial requirements on people of color, and provide unequal services to clients based upon their race or ethnicity.

[S]ome real estate agents utilize subtle ways to discriminate, like racially coded guidance and disparate treatment in services offered.


In acknowledging that real estate brokers and agents are the gatekeepers for neighborhoods, the report makes the following categories of recommendations:

  1. Develop a NYS Fair Housing Strategy
  2. More Proactive Enforcement of Fair Housing Laws (i.e., testing, more funding, & data collection)
  3. Licensing & Renewal Training Requirements (i.e., more training from better instructors for licensing & continuing education with a focus on implicit bias trainings)
  4. Increased Penalties & Broader Accountability (i.e., $2K fines increased from $1K & managers responsible like brokers with increased experience requirements to qualify)
  5. Standardized Broker Policies with Public (i.e., prospect identification, exclusive broker agreement requirements, & pre-approval for mortgages)
  6. Internal Brokerage Policies (i.e., brokerages need updated policy manuals with fair housing statements & explanations of the consequences for violations)
  7. State & Local Governments to Affirmatively Further Fair Housing (i.e., enforcement is everyone's responsibility) 
  8. Brokers Must Open Offices in Communities of Color (i.e., 12 firms control 50% of listings, but only about 20% to 33% of the listings in minority communities)
  9. More Diverse Brokerage Workforce (i.e., NAR's members are 80% white; need Diversity, Equity, & Inclusion initiatives to attract talent to the industry) 
The report also suggests, that brokers fund these recommendations by charging between $10 & $30 for license renewal to the 130,578 real estate brokerage licensees in NYS.

Are you ready yet? 

There are eleven new pieces of legislation supported in this report and because our state has a one-party controlled government, they are likely going to pass quickly.

Brokers, Salespersons, and other industry participants, like landlords, property managers, and attorneys need to get ahead of this now and make proactive changes to their practices today. The alternative is defending the next wave of enforcement initiatives. 

In reminding everyone of this salient fact, the report quoted Supreme Court Justice Thurgood Marshall in saying:

There is very little truth in the old refrain that one cannot legislate equality. Laws not only provide concrete benefits, they can even change the hearts of men some men, anyhow for good or evil.

It's time to change from being part of the problem to being part of the solution. Are you ready?





Tuesday, January 26, 2021

New Rules Coming on Housing Discrimination - Disparate Impact Discrimination is Changing Again

In housing discrimination, you can't treat people differently in the terms, conditions, privileges, and/or availability of housing. 


Yet, you aren't just responsible for your intended acts of discrimination, known as disparate treatment discrimination. Instead, you are also responsible for your unintended acts that impact groups of people as a secondary effect, which is known as disparate impact discrimination.


Think about it this way, if you don't rent to women, as a policy, that is clearly an act of disparate treatment sex discrimination. However, if you don't rent to long-haired people, aren't you still impacting women in sex discrimination under a different name? That is called disparate impact discrimination.


As to disparate impact discrimination, President Biden just ordered HUD to make sure that the regulations on disparate impact discrimination is preventing practices with an unjustified discriminatory effect. 


Do you think that there should be disparate impact discrimination laws? If so, what do you think they should be? 




Thursday, January 21, 2021

Fair Housing Act Prohibits Discrimination on the Basis of Gender Identity & Sexual Orientation per President Biden

On Day 1 of President Biden's Term, he expanded our understanding of the Fair Housing Act by making clear that it includes protections against discrimination on the basis of gender identity & sexual orientation. 


See his Executive Order on Preventing and Combating Discrimination on the Basis of Gender Identity or Sexual Orientation for your full understanding.


As explained by the President, the US Supreme Court ruled in 2020 that employment discrimination laws, which expressly prohibit sex discrimination, also prohibit discrimination on the basis of gender identity and sexual orientation; and that the same reasoning behind the Supreme Court's ruling will now be applied to the Fair Housing Act's prohibition of discrimination in the sale and rental of housing across our nation. 


In fact, the Executive Order put all perpetrators on notice by stating that the government will issue plans, within 100 days, to effectuate its policy of enforcing these prohibitions against discrimination on the basis of gender identity or sexual orientation.


While many states, such as NY, and other locales, already prohibit gender identity and sexual orientation discrimination in housing, the Federal Government stepping in to enforce violations can change the game.


How will you change your business because of this Order?  




Tuesday, January 19, 2021

Employment Sexual Harassment - Case of Interest at the NYPD

A homosexual detective was just given his chance to prove that he experienced workplace discrimination at a trial and recoup damages.

Here are his facts:

  • His homophobic colleagues vindictively called other officers wherever he was stationed & told them to harass plaintiff because he was gay;
  • 2 Sergeants constantly made homophobic slurs at civilians & gay officers in his presence; 
  • He endured over a year of homophobic derision, harassment, and verbal abuse;
  • He was singled out to do tasks, which his peers were not required to do, such as:
    • He was repeatedly required to enter a holding cell, by himself, with prisoners still inside, while plaintiff carried metal and wooden cleaning implements. This was potentially dangerous, as plaintiff could have been overwhelmed & attacked by the prisoners. Other officers were not required to do it, as it was usually a task for the maintenance crew; 
    • He was required to go on foot patrol alone during the midnight shift in dangerous areas at the 77th Precinct while other officers patrolled with partners;
  • He was given extra work when he arrived on the job; and
  • He experienced some new or escalated conduct after he started to fight the discrimination, which could be deemed retaliatory.
Do you think he should win?
How much would this be worth to you in damages if it were you who experienced these actions?

Remember, he can sue for emotional distress damages, back pay, forward pay, punitive damages, and attorneys' fees.

This case was just decided by the Appellate Courts in Doe v New York City Police Dept.



Wednesday, January 13, 2021

Dollar General to Pay Workers to Get COVID Vaccine, But Can They Without Getting Sued for Discrimination?

According to Business Insider, Dollar General is paying their employees to get the COVID vaccine, but is that legal? 


Back in 2017, the federal courts, in AARP v. EEOC, addressed the issue of paying employees for participation in wellness programs and found that both the Americans with Disabilities Act and the Genetic Information Nondiscrimination Act were violated because the incentives permitted rendered the programs not voluntary, as required by law. The incentive, at issue in the case, was "up to 30% of the cost of self-only coverage." 


How does that comport with what Dollar General is now doing? 

They are offering four hours of pay to their employees. 

Is that too much to make participation voluntary? 


Ironically, the Equal Employment Opportunity Commission is proposing a new regulation about this voluntary standard in the Federal Register for public comment. This new regulation proposes to change the 30% incentive limit (as addressed in the federal case above) to a de minimis incentive limit. In fact, the regulation gives examples of a permitted de minimis incentive, like a water bottle or modest gift card.


Isn't four hours of pay worth a lot more than a water bottle? Is Dollar General going to get sued for this program. What do you think? 




Friday, January 08, 2021

Systemic Employment Discrimination Enforcement Brought to you by the EEOC - Be Warned

The Equal Employment Opportunity Commission (EEOC) just launched a new website detailing how it pursues systemic discrimination cases against businesses throughout the US.

It's like a shot across the bow of your boat if you own or manage a business - they are coming for you if you don't start implementing Diversity, Equity, and Inclusion (DEI) initiatives now. 

When implementing your DEI initiatives focus on these 4 main categories, which EEOC targets for systemic employment discrimination enforcement:
    1. Hiring / Promotion / Assignment / Referral
    2. Policies / Practices
    3. Lay-off / Reduction in Force / Discharge Policies 
    4. ADA (disability) / GINA (genetic info) 

The EEOC defines systemic as "pattern or practice, policy and/or class cases where the discrimination has a broad impact on an industry, profession, company or geographic location.” 

Basically, it means that they are looking for more than just one plaintiff (think, class action, just a little different). 

The new EEOC website lists the top 10 systemic enforcements topics, which you should review immediately to avoid a charge from the EEOC:
    1. Use of background checks
    2. Denying women jobs in fields such as truck drivers, dockworkers, laborers
    3. Refusal to hire African American, Hispanics and older workers for front of the house positions
    4. Ending staffing agency use of referring applicants based on customer preferences
    5. Widespread sexual harassment of teenagers in fast food chains
    6. Racially hostile displays such as nooses and racist graffiti
    7. Eliminating tap on the shoulder recruiting in favor of job posting
    8. Challenging policies of issuing attendance points for medical related absences, without accounting for disabilities
    9. Challenges of deportation made against employees complaining of discrimination
    10. Challenges to abuse of vulnerable workers who were subject to years of confinement, abuse, deplorable conditions, and reduced pay following charges of discrimination

If you aren't concerned yet, be warned that in "2020, OGC resolved 33 systemic cases, recovering $69.9 million for approximately 25,000 individuals."

Do you have your policies, practices, and procedures in place to prevent EEOC from charging your company? 





Thursday, January 07, 2021

Second PPP $ - The Rules are out NOW

How do you get your Paycheck Protection Program Second Draw Loan? 


The rules are out now and here are the top 10 rules that you should know:

  1. Last day to apply & receive a new PPP is March 31, 2021;
  2. To qualify, you must use or will use full amount of your First Draw PPP loan on or before disbursement of second loan; 
  3. SBA may forgive up to the full principal loan amount; 
  4. Interest rate is 1%; 
  5. Maturity is 5 years; 
  6. Borrower must have 300 or fewer employees;
  7. Borrower must have experienced a revenue reduction of 25% or greater in 2020 relative to 2019 (quarterly comparison); 
  8. When comparing 2020 relative to 2019, any forgiveness amount of a First Draw PPP Loan that a borrower received in calendar year 2020 is excluded from a borrower's gross receipts (not disqualified from the second loan because of the first one);
  9. Each hotel, restaurant, or news organization with a location owned by a parent business in a separate legal business entity and employing not more than 300 employees is permitted to apply for a separate PPP loan; and
  10. Maximum loan amount = 2.5 months of the borrower's average monthly payroll costs.




PODCAST | How Businesses Can Get The PPP Round 2 Loan

On this Podcast, we discuss the highlights of the second Paycheck Protection Program with financial planner, Louis Soriano. Answering questions about whether:
  • You can get a second loan
  • What the qualifications are to apply
  • What size businesses can apply
  • How this works with taxes
  • If the first loan needs to be forgiven to get the second loan

And MUCH MORE!




Wednesday, January 06, 2021

Are Your Staff Employees or Independent Contractors? A New Regulation Answers The Question

During the last two weeks of his Presidency, Trump's Department of Labor just revised the test for whether an individual is an independent contractor or employee under the Fair Labor Standards Act. 


This is significant because employees are entitled to minimum wage and overtime whereas independent contractors are not. 


If an employer misclassifies a staff member as an independent contractor when such staff member should be classified an employee, it can result in a devastating blow to the employer who will be exposed to statutory penalties, back pay, attorneys' fees and more. 


Now, Trump's government is using the "economic reality" test to determine employee status. 


According to the government, "the ultimate inquiry is whether, as a matter of economic reality, the worker is dependent on a particular individual, business, or organization for work (and is thus and employee) or is in business for him- or herself (and is thus an an independent contractor)." 


Under this test, the Department of Labor or a Court hearing the case will look to five distinct factors to answer the test. However, two of those factors now have more probative value in answering the question than the rest. These two key factors are:

  1. The nature and degree of the worker's control over the work; and
  2. The worker's opportunity for profit or loss. 

The other factors, of less importance, are:
  1. The amount of skill required for the work;
  2. The degree of permanence of the working relationship between the individual and the potential employer; and 
  3. Whether the work is a part of an integrated unit of production.
Regardless, employers better take note of this change and analyze their staff's true work to ascertain if they are classified properly. If this is too much, you better hire a consultant to do the job NOW.
 

Here's a question

While the government argued in support of this new test by pointing to the need for clarity for business, is this the time to tax companies with new rules in the middle of a pandemic where small businesses are closing every day? 

More so, with a change in the Presidency less than two weeks away, will Biden just change this back next month? 

This new regulation isn't effective until March 8, 2021, so Biden could theoretically undo it before it even takes off. 

Should he? 



Tuesday, January 05, 2021

Commenting Turned On - Please Share Your Thoughts on the Lieb Blog

We are updating our platforms for 2021 and are now encouraging unrestricted commenting. 


Say what you want and share as you feel comfortable. This platform is for you - the business community. 


We promise to do our best to answer your questions and participate in the discussion.


Please know that there is no attorney / client relationship established by participating in this blog and it is a public, non-confidential, forum. So, watch what you say because the world will know. No spam, discrimination, or harassment will be tolerated and all are welcome.


Together, we are going to reemerge as a stronger business community in 2021. 


Here is to a great year!




Monday, January 04, 2021

Pass Rate for NYS Real Estate Salesperson Test Announced

Does it shock you to learn that from January through October 2020, of the 13,527 examinees, only 59% passed the Real Estate Salesperson exam?


Brokers did a little better - of the 1,098, 66% passed.


Isn't that low? 

How do we get brokers to pass at a higher rate?

Would it help if the state released past exams? That makes sense, doesn't it? How can you study otherwise?




Thursday, December 31, 2020

New Eviction Law Extends Residential Eviction Moratorium to May 1, 2021

On December 28, 2020, Governor Cuomo signed the COVID-19 Emergency Eviction and Foreclosure Prevention Act of 2020 (“Act”). Essentially, the Act provides tenants with an opportunity to submit a Hardship Declaration, which stays most evictions until May 1, 2021. The second part of the Act which provides for mortgage foreclosure relief is discussed in a separate blog HERE.


The Details:

  • Essentially, once a tenant provides a Hardship Declaration, the eviction is stayed until May 1, 2020.
  • The Act applies to residential nonpayment AND holdover eviction proceedings.
  • The Act does not apply to tenants of seasonal rentals with a primary residence to return to and tenants who infringe on other tenants' use and enjoyment of the premises or pose a substantial safety hazard to others, but only upon the landlord proving same.
  • To qualify, a tenant must provide the Hardship Declaration and must declare that they are suffering a financial hardship, such as:
      • Significant loss of income
      • Increase in necessary out-of-pocket expenses due to COVID-19
      • Childcare responsibilities or care for the elderly, disabled, or sick family member
      • Moving expenses and difficult relocating
      • Other circumstances negatively affecting the ability to find meaningful employment
      • Vacating the premises and moving into new permanent housing poses a significant health risk
  • Sample hardship declarations will be available on the Office of Court Administration website.
  • New Eviction Proceedings - upon a Tenant's submission to the landlord of the Hardship Declaration, the landlord is prohibited from commencing any eviction proceeding until May 1, 2021. The landlord can commence an eviction proceeding if the landlord files the following:

    • Affidavit of service of the Hardship Declaration in English and tenant’s primary language.
    • Affidavit of Service of predicate notices pursuant to RPAPL and the lease; and 
    • Affidavit of the Petitioner/Petitioner’s agent attesting to the following:
      • Petitioner or his agent did not receive a Hardship Declaration from the Tenant 
      • The tenant returned the Hardship Declaration but the tenant is “persistently and unreasonably engaging in behavior that substantially infringes on the use & enjoyment of other tenants or occupants or causes a substantial safety hazard to others, with a specific description of the behavior alleged.” 
      • If the Court determines that the landlord failed to provide the Hardship Declaration, the court shall stay the eviction for at least 10 days for the tenant to complete the declaration. 
  • Pending Eviction Proceedings - proceedings commenced before 12/28/20 and commenced within 30 days of 12/28/20 are stayed for at least 60 days, or to such later date set by the Court. If the tenant submits the Hardship Declaration, the eviction proceedings are stayed until May 1, 2021. 
  • Post Warrant of Eviction - in any eviction proceeding in which an eviction warrant has already been issued, execution is stayed until the court holds a status conference with the parties. If the tenant provides a Hardship Declaration, the execution of the warrant is stayed until May 1, 2021.

What is most important to both tenants and landlords is that while the law stops most evictions in NYS until May 1, 2021, it does not affect the tenants' obligation to pay rent. No payments are canceled. 

Unfortunately, despite the law's intentions, it is still lacking. Inevitably, tenants will continue to incur insurmountable debt and small landlords will eventually find themselves in the middle of the looming foreclosure tsunami. 

What do you think?




Wednesday, December 30, 2020

No NYS Residential Foreclosures Until May – New Law

On 12/28/2020, the COVID-19 Emergency Eviction and Foreclosure Prevention Act of 2020 became law. 


This law effectively stops all residential foreclosures in NYS until May 1, 2021, but it does nothing about the borrower's obligation to repay their loan.  

 

Do you think that makes sense?

Isn’t that just delaying the inevitable foreclosure crisis?

Shouldn't something be done about the loan too? 

 

Here is how the law works – a homeowner needs to submit a hardship declaration to their lender and magic, no more foreclosure until May.

 

The Details:

o   Either the court or lender (depending on foreclosure status) must provide the borrower with a statement explaining the law.

o   To qualify, a borrower must be suffering a financial hardship including, such as

§  A significant loss of household income;

§  Increase in necessary expenses;

§  Childcare responsibilities;

§  Moving expenses; and/or

§  Other circumstances negatively affecting the borrower’s ability to find meaningful employment.

o   Sample hardship declarations will be available on the Office of Court Administration website.

o   New Foreclosures – If the borrower does not provide the declaration, the lender is required to file all sorts of documents to commence a foreclosure proceeding, including:

§  Affidavit of Service of the Hardship Declaration in English and in the borrower’s primary language.

§  Affidavit of Service of RPAPL 1303 and 1304 notices; and

§  Affidavit of the Petitioner/Petitioner’s agent attesting that the Petitioner or his agent did not receive a Hardship Declaration from the Borrower.

o   Existing Foreclosures – Paused (stayed) for at least 60 days to provide the borrower time to complete and submit the hardship declaration.

o   This also stops foreclosure sales if the case already was decided by the court in a judgment.

 

Make no mistake, this new law does NOT excuse borrowers from paying the mortgage. 

So, what is the point? 

Isn’t it misleading borrowers into digging an even bigger financial hole?

What do you think? 




NYC Council Eliminates "At Will" Employment for the Fast Food Industry

The New York City Council recently passed two (2) bills which, once enacted, will end "at will" employment (employees can be fired for any reason with or without cause) for employees in the NYC fast food industry. Rather, employers in the fast food industry may only lawfully terminate employees for "Just Cause" or for "Bona Fide Economic Reasons" as explained below:


1)  "Just Cause": New York City Council Bill,  Int. No. 1415-A  prohibits fast food industry employers in NYC from terminating an employee's employment, who has been employed longer than thirty (30) days, or reduce their weekly hours by more than 15% without "Just Cause" which is defined as: "failure to satisfactorily perform job duties or misconduct that is demonstrably and materially harmful to the fast food employer’s legitimate business interests." 


Factors used to determine whether an employee was terminated for Just Cause include: whether the employee violated the employer's policy, the employee's knowledge of the applicable rule/policy, training provided to the employee, whether an adequate investigation was conducted and whether progressive discipline was reasonably applied. Notably, absent egregious conduct by the employee, a termination will not considered to be for Just Cause unless the employer has a pre-established written policy on progressive discipline and can demonstrate that it is reasonable and was properly applied with respect to the terminated employee (employers may not rely upon discipline issued more than a year before the termination). Employers must provide the employee, within five (5) days of termination, with a written explanation of all the reasons for termination of employment.


2) "Bona Fide Economic Reasons"New York City Council Bill, Int. No. 1396-A permits fast food industry employers to terminate an employee or reduce their weekly hours by more than 15% for "Bona Fide Economic Reasons" which is defined as "the full or partial closing of operations or technological or organizational changes to the business in response to the reduction in volume of production, sales or profit." An employer's decision to terminate an employee based on Bona Fide Economic Reasons must be supported by the employer's business records. If the employer does possess a Bona Fide Economic Reason for terminating employees, employees must be terminated "in reverse order of seniority." In addition, an employer may not hire a new employee or increase a current employee's hours unless the employer first makes a reasonable effort to reinstate any employees terminated for economic reasons within the prior twelve (12) month period. 


Aggrieved employees may bring a civil action for discharges in violation of these bills or, after January 1, 2022, may bring an arbitration proceeding. Employers bare the burden of proving that the termination was for Just Cause or for Bona Fide Economic Reasons. If the employer fails to meet its burden, the employee may be reinstated, awarded backpay, reasonable attorneys fees and punitive damages. The employer may also be assessed civil penalties. 


It is imperative that fast food industry employers consult with counsel and create/modify applicable polices to ensure they are in compliance with these new bills prior to the effective date (180 days after enacted). 



Monday, December 28, 2020

Employment Sexual Harassment - Case of Interest - Exceeding Petty Slights or Trivial Inconveniences

Back on October 11, 2019, the NYS Human Rights Law was modified with a new standard for actionable employment sex discrimination. The new standard was intended to align NYS more closely with the NYC Human Rights Law. 


The new standard is that conduct that exceeds "petty slights or trivial inconveniences" is actionable. 


As to what that means, the NYC law was interpreted by the Second Circuit Court of Appeals (Federal Court) in Mihalik v. Credit Agricole Cheuvreux North America, Inc., which is the leading case. 


Now, we have a leading case interpreting the NYS law as well by a State Court. 


On December 15, 2020, the NYS Appellate Division decided Franco v Hyatt Corp. and found the following allegations to constitute conduct that exceeds petty slights or trivial inconveniences:

  1. Supervisor made repeated sexual advances towards him, including reaching out to touch his face and holding his hand in an elevator while they were alone.
  2. Supervisor also initiated conversations that made him uncomfortable, telling him she had a "crush" on him, telling him she was single and twice inviting him to her home to repair "a hole" in her apartment. 
  3. Supervisor said she had a tattoo, adding that "You have to undress me to see it." 
  4. After victim rebuffed advances, supervisor brought him to the Human Resources manager's office to complain about his work product and that she solicited complaints about him from other coworkers.
Interestingly, this case involved a female harasser of a male subordinate. 

When we train the NYS / NYC Mandatory Sexual Harassment Prevention Course to companies around the country, at sexualharassmenttrainingny.com, we always get push back to the concept that sexual harassment can be female on male. This case is a good reminder that everyone is protected from harassment at work. 





 

PODCAST: Religious Freedom to Discriminate

Wednesday, December 23, 2020

NYS Proposes Regulations that Require Appraisers to Learn Fair Housing / Anti-Discrimination

On 12/23/2020, the NYS Department of State proposed mandating fair housing education as a condition of license renewal for appraisers and assistant appraisers.  


The proposed regulations would be at 19 NYCRR 1107.2(b), 19 NYCRR 1107.33(a), (b), and (c), and 19 NYCRR 1107.34. 


In substance, the regulations would require that every licensed or certified appraiser complete an approved course of study in Fair Housing and Fair Lending every two years with the following course topics: 

a) 7 Hour Introduction to Fair Housing and Fair Lending Instruction

b) 4 Hour Update on Fair Housing and Fair Lending Instruction


Now, we are in the public comment period until 02/21/2021. To make your comments, email the regulator at david.mossberg@dos.ny.gov


While we are very encouraged by increased fair housing and anti-discrimination trainings being required in NYS, we are concerned with how specific the subtopics of education are and how they offer no explanation as to what exactly the government is looking for within each subtopic. We are also concerned about how this requirement will impact federal government contractor appraisers who must follow Executive Order 13950 on Combating Race and Sex Stereotyping and are therefore restricted on engaging in trainings on unconscious bias or implicit bias to the extent that "it teaches or implies that an individual, by virtue of his or her race, sex, and/or national origin, is racist, sexist, oppressive, or biased, whether consciously or unconsciously," per the US Department of Labor. We hope that these issues will be addressed before this regulation is finalized. 


To the specific subtopic requirements, under topic a), the subtopics are as follows:

(1) Fair housing, fair lending requirements, and the history of lending 2 hours

(a) What is fair housing?

(b) What is fair lending?

(c) Roadblocks to fair housing/lending

(d) Federal laws Civil Rights Act of 1866

Civil Rights Act of 1964 Fair Housing Act of 1968

Supreme Court

The Housing and Community Development Act of 1974

The Fair Housing Amendment Act of 1988

Other legislation

- Community Reinvestment Act

- Equal Credit Opportunity Act

- Home Mortgage Disclosure Act

- Real Estate Settlement Procedures Act American Disabilities Act

(ADA)

(e) New York State Law - Executive Law includes the Civil Rights

Law of the State (NY Human Rights Law - Article 15)

- Additional protected classes; age and marital status

- Includes residential property, land commercial property and credit

transactions

(f) Local Regulations

(g) Exemptions and Exceptions

- Senior Citizen Housing

- Drug users and alcohol abusers

- Two family exemption

(h) USPAP/FIRREA

(i) Enforcement and Duties

-U.S. Department of Justice

-Department of Housing and Urban Development (HUD)

-New York State Department of State, Division of Licensing

-New York State Division of Human Rights

-Administrative Law Judges

-Federal and State Courts

-Responsibilities of individual appraisers

(j) Penalties New York State Federal Government

(2) Development of appraisal (Standard 1 USPAP) 1.5 hours

(a) Bias and discrimination in the analysis in development

(b) Documentation of sources

(c) Secondary market guidelines Fannie Mae, Freddie Mac, HUD,

VA

(3) Reporting of appraisal results (Standard 2 USAP) 1.5 hour

(a) Bias and discrimination in the report

(b) Documentation of sources

(c) Secondary market guidelines Fannie Mae, Freddie Mac, HUD,

VA

(4) Case studies 2 hours

(a) Neighborhood issues

(b) Improvement issues

(c) External obsolescence

(d) Conscious and Unconscious bias


Under topic b), the subtopics are as follows:

(1) Fair housing, fair lending requirements, and the history of lending 1 hour

(a) What is fair housing?

(b) What is fair lending?

(c) Roadblocks to fair housing/lending

(d) Federal laws Civil Rights Act of 1866

Civil Rights Act of 1964 Fair Housing Act of 1968

Supreme Court

The Housing and Community Development Act of 1974

The Fair Housing Amendment Act of 1988

Other legislation

- Community Reinvestment Act

- Equal Credit Opportunity Act

- Home Mortgage Disclosure Act

- Real Estate Settlement Procedures Act American Disabilities Act

(ADA)

(e) New York State Law - Executive Law includes the Civil Rights

Law of the State (NY Human Rights Law - Article 15)

- Additional protected classes; age and marital status

- Includes residential property, land commercial property and credit

transactions

(f) Local Regulations

(g) Exemptions and Exceptions

Senior Citizen Housing

Drug users and alcohol abusers

Two family exemption

(h) USPAP/FIRREA

(i) Enforcement and Duties

-U.S. Department of Justice

-Department of Housing and Urban Development (HUD)

-New York State Department of State, Division of Licensing

-New York State Division of Human Rights

-Administrative Law Judges

-Federal and State Courts

-Responsibilities of individual appraisers

(j) Penalties New York State Federal Government

(2) Development of appraisal (Standard 1 USPAP) 1 hour

(a) Bias and discrimination in the analysis

(b) Documentation of sources

(c) Secondary market guidelines Fannie Mae, Freddie Mac, HUD,

VA

(3) Reporting of appraisal results (Standard 2 USAP) 1 hour

(a) Bias and discrimination in the report

(b) Documentation of sources

(c) Secondary market guidelines Fannie Mae, Freddie Mac, HUD,

VA

(4) Case studies 1 hour

(a) Neighborhood issues

(b) Improvement issues

(c) External obsolescence

(d) Conscious and Unconscious bias


 




Thursday, December 17, 2020

New Laws for Building Owners on Alterations Impeding Emergency Egress and Disposal of Construction and Demolition Waste

On December 15, 2020, Governor Cuomo signed Senate Bill 1714 into law which effectively amends Section 382 of the Executive Law. Effective immediately, the new law imposes a civil penalty of up to $7,500 on building owners who make alterations to their buildings which violate the uniform fire prevention and building code and which block access to an egress during a fire or other emergency. The penalty is imposed on building owners who have or should have had knowledge of such impediment.

Building owners must ensure compliance with the uniform fire prevention and building code or risk exposure to not only the civil penalty imposed by the new law, but also to liability for any other damages and injuries which could have been avoided if the building was up to code.

Moreover, building owners should also be aware of the new law which criminalizes the improper disposal of construction and demolition waste. Effective December 15, 2020, any person who knowingly, recklessly, or intentionally disposes of construction and demolition waste and/or hazardous substances may be convicted of a crime with fines of up to $300,000 for a class C felony, be ordered to restore the property where the wastes were released to its original state and pay for costs for the disposal and restoration of the property, twice the amount of any gain from the crime, and be subjected to any other sentence authorized by law, including imprisonment.


Wednesday, December 16, 2020

New York is Really Tired of Banks and Title Companies Not Accepting Powers of Attorney

Governor Cuomo has signed into a law Assembly Bill A5630A which aims to simplify the statutory short form power of attorney and increase its acceptance by third parties (looking at you title insurers and banks). 

Previously, a power of attorney could be void because it did not contain the "the exact wording of the form set forth in Section 5-1513". This strict language caused many third parties relying on the form to refuse to honor powers of attorney not prepared using their own templates out of fear that the form they were unfamiliar with had a small technical error rendering it invalid. 

Now, a power of attorney is valid so long as it "substantially conforms to the form required pursuant to Section 5-1513" even if it contains insignificant mistakes in "wording, spelling, punctuation, or formatting, or the use of bold or italic type... or uses language that is essentially the same as, but not identical to, the statutory form." Even more, "failing to include clauses that are not relevant to a given power of attorney shall not in itself cause such power of attorney to be found to not substantially conform with the requirements of such form." Long story short, the statute now gives much more leeway in the preparation of the form, hopefully avoiding the voiding of powers which in all fairness should have been valid for the purpose intended. 

To promote acceptance of more powers of attorney, the new bill bakes in protections for third parties relying upon powers, as well as penalties for third parties that unreasonably reject powers. 

Section 5-1504 of the General Obligations Law is amended to contain a presumption that a duly acknowledged (notarized) power of attorney is genuine and valid. It also is amended to provide for a mechanism to release a third party relying upon a power of attorney from liability after reasonable acceptance. The third party may "request, and rely upon, without further investigation" (1) an agent's certification under penalty of perjury any factual matters relating to the power and (2) an opinion of counsel (from the principal is fine) as to any matter of law concerning the power. There are strict time limits (10 business days) in which the third party must reject a power of attorney together with a written explanation given to the principal and agent, and then either reject or honor the power after receipt of written explanation received from the agent/principal (7 business days). Most importantly, if the agent receives an acknowledged affidavit from the agent stating that the power is in full force and effect, the third party must accept the power of attorney except for reasonable cause, which is enumerated in the statute. If the third party and agent/principal follow all the steps in this dance, the "third party shall be held harmless from liability for the transaction." 

But what if your bank or title insurer still won't accept your power of attorney? A special proceeding may be commenced against the third party refusing to honor the power, awarding damages (including reasonable attorney's fees and costs) if the third party acted unreasonably in refusing to honor the power of attorney. 

Time will tell if these changes, coupled with the elimination of the statutory gift rider, will result in more widespread use and acceptance of powers of attorney. Banks and title insurers are notorious for avoiding risk when it comes to the use of powers of attorney and the State's attempts to promote their acceptance has bordered on Sisyphean. 




Monday, December 14, 2020

Commercial Eviction and Foreclosure Moratoriums Extended through January 31, 2021

Through Executive Order 202.81, Governor Cuomo extended the moratoriums for the initiation of a proceeding or enforcement of an eviction of any commercial tenant for nonpayment of rent or a foreclosure of any commercial mortgage for nonpayment of such mortgage to January 31, 2021. This means that no eviction or foreclosure proceeding may be commenced against commercial tenants for nonpayment of rent or mortgage until such date.

In addition, New York City’s Guaranty Law, which prohibits commercial landlords from enforcing personal guaranties against natural persons for payments during the COVID-19 period, was extended and now covers payments due from March 7, 2020 through March 31, 2021. The law was recently challenged in the United States District Court in the Southern District of New York for violating the Constitution, but the law was ultimately upheld. The Court reasoned that while the law does substantially impair contracts, the law is constitutional as it advances a legitimate public interest, and the law is reasonable and necessary in advancing such interest.

While commercial landlords may still seek relief by commencing a holdover eviction, landlords may be better off commencing an action in Supreme Court where they can seek damages for breach of contract, removal of the tenant through an ejectment action, and the enforcement of personal guaranties (for non-NYC landlords), if any. Landlords are advised to consult counsel to ensure compliance with the terms of the lease and all landlord-tenant laws currently in place to avoid any delays and additional damages.

There are currently no moratoriums in place for residential evictions. Residential landlords may commence both holdover and nonpayment proceedings. However, for nonpayment proceedings, courts may not grant a judgment of possession and warrant of eviction against tenants in a nonpayment proceeding who raise the affirmative defense of a COVID-19 financial hardship and proves same. Further, tenants who submit a CDC declaration form stating their inability to pay rent, among others, to their landlords are also protected from nonpayment eviction proceedings until December 31, 2020.



Friday, December 11, 2020

NYS Human Rights Event on Discrimination & COVID-19

On Tuesday December 15, 2020 at 12:30PM, the NYS Division of Human Rights is hosting a virtual event about discrimination and COVID-19. 


The event will discuss "unjust targeting and attacks against Asian Americans, systemic health care disparities in Black and Brown communities, and the challenges, particularly in workplaces, for people with disabilities." 


As discrimination litigators and trainers we will be attending, will you? 





Thursday, December 10, 2020

Service Animals, Not Emotional Support Animals, on Airplanes - The Law is Changing on January 11, 2021

The US Department of Transportation just added a new wrinkle into your post-pandemic travel plans if you have an emotional support animal. According to new regulations, effective January 11, 2021, carriers can consider emotional support animals to be pets and therefore, make no special accommodations for you even if you are emotionally disabled and need such emotional support animal to function. This is a particularly troublesome decision by the US Government for veterans suffering from PTSD and autistic individuals who both often need emotional support animals to function. 


The new regulations also have enhanced rules for disabled passengers with service animals. A service animal is now defined as a "dog, regardless of breed or type, that is individually trained to do work or perform tasks for the benefit of a qualified individual with a disability, including a physical, sensory, psychiatric, intellectual, or other mental disability." As a result, if you have a service monkey or peacock, too bad - these animals don't count anymore. Previously, they did as per the Department of Transportation's website and pursuant to a 2008 regulation (14 CFR 382.117).  


Even if your service animal is a dog, there are other rules that you still need to know. The Department of Transportation is created a form that can be required for travelers requesting an accommodation. This form requires that you certify that your animal is trained, has good behavior, and good health. Additionally, the form can be required up to 48 hours before flights or at the departure gate for animals that will be transported in the cabin. Finally, the regulations allow carriers to require service animals to be harnessed, leashed, or otherwise tethered while onboard. 


It is imperative that airlines train their teams about these new regulations and travelers are immediately noticed about their lessoned rights and heightened obligations.





Tuesday, December 08, 2020

Housing Discrimination Plaintiffs Now Have Two Bites at the Apple

Complying with Employment Laws Applicable to Remote Employees

The Covid-19 pandemic has compelled many employers to employ remote workers for the first time. Managing remote employees can be challenging and employers may be exposed to substantial liability if they do not have an understanding of how federal, state and local employment laws apply to remote employees. 

Mordy Yankovich, Esq. shares three areas of potential exposure for employers and how to best mitigate such exposure in the legal publication, "Complying with Employment Laws Applicable to Remote Employees". 

This article was published in the Suffolk Lawyer. 




NEW PODCAST: Keeping Your Property After Divorce

NEW PODCAST = Equitable distribution, maintenance, and all fancy legal terms explained with our expert Eric Wrubel, who discusses how to keep your kids inheritance away from the ex. #listentolieb #theLIEBCAST #divorces #realestateanddivorce 

CLICK HERE TO LISTEN




Monday, December 07, 2020

Lieb at Law, P.C. seeks Paralegal For Busy Real Estate Department (Smithtown Office)

Lieb at Law seeks digitally savvy, detail oriented and motivated real estate paralegal. Law firm conducts several real estate closings a day and represents buyers, sellers and lenders in residential and commercial real estate transactions. The firm is a paperless office with a focus on technology and substance. Must be able to work within cloud-based programs and be friendly, charismatic and organized.


The firm’s sister company, Lieb School is one of the largest real estate schools in the state offering continuing education classes to real estate brokers and salespersons. Candidates cannot be a practicing real estate salesperson / associate broker due to conflicts of interest. 

Responsibilities:

  • New business intake – opening and closing files and tracking / closing potential cases
  • Answering phones, distributing mail and deliveries, announcing visitors, maintaining office appearance, watering plants, cleaning after closings
  • Help manage digital calendar
  • Coordinating closings
  • Drafting and reviewing contracts of sale (if qualified)
  • Ordering and clearing title
  • Coordinating with brokers, surveyors, expeditors, lenders and other client-vendors
  • Client management
  • Maintaining files as always up-to-date through use of case management technology
  • Preparing closing statements
  • Helping Litigation team and Real Estate School when needed
  • Helping social media / marketing

Requirements:

  • No typos in cover letter and resume
  • Friendly
  • Willing to work outside scope
  • Required to be self-sufficient and take pride in your work-product
  • Detail-oriented / organized / multi-tasker
  • Proficient in Microsoft Word, Excel, and Google Calendar
  • Minimum of typing 60+ words per minute
  • Bachelor’s Degree from competitive school preferred
To apply, email cover letter and resume to careers@liebatlaw.com



NEW PODCAST: New Innovation Streamlines Divorce Proceedings

2021 is expected to be the War of the Roses. Find out how the pandemic has impacted families nationwide and backlogged the court system. We found a new solution. Divorcing couples and their counsel will no longer have to wait for the overburdened New York State court system to schedule a trial on financial issues related to their divorce. We bring on the founder of a brand new platform for litigants in a divorce or family law action to have financial issues heard by an experienced, neutral third party who will render a binding decision following the presentation of admissible evidence. 




Thursday, December 03, 2020

NEW PODCAST: The End of Ladies Night in NY

Stores Now Have To Follow New Gender-Neutral Pricing Laws. Just in time for the holidays. Let's see how this spreads throughout the country and learn the new criteria to avoid major fines for service providers and product retailers.






NEW PODCAST: Sports, Stadium Design & Crowd Management - Industry Updates and 2021 Plan

Tuesday, November 24, 2020

Stop Speculating about Mandatory Vaccines. The Law is VERY Clear!

There is an EXPLOSION of 2 fundamental rights: Personal freedom and societal regulation. On #theLIEBCAST podcast, we review the substantive due process right to personal liberty and public health.

We look at a previous case from the 1905 smallpox public health crisis and discuss religious and disability exemptions. We discuss how the government has historically limited our liberties in regard to the safety of water quality, transportation, sewage and disease control. What does the country need to get herd immunity from COVID19 and get back to a new normal? #ListenToLieb





Thursday, November 19, 2020

Department of Justice Sues, then Settles, with NAR Concerning Anticompetitive MLS Practices

Today, the Department of Justice Antitrust Division announced the simultaneous commencement and settlement of antitrust and anticompetitive practice complaints against the National Association of Realtors. 

In its press release, found HERE, the DOJ identified four areas of anticompetitive practice which they allege "result[ed] in decreased competition among real estate brokers":

  1. Prohibiting local MLSs from disclosing to prospective buyers the amount of the commission earned by buyer brokers;
  2. Permitting buyer brokers to misrepresent to buyers that their buyer brokerage services are free;
  3. Enabling buyer brokers to filter MLS listings by the amount of buyer broker commission offered; and
  4. Preventing non-NAR brokers from accessing key lockboxes for homes listed on MLS.

The settlement will directly address these four issues in order to "enhance competition in the real estate market, resulting in more choice and better service for consumers." The proposed settlement can be found HERE and will be open for public comment once posted to the federal register. 

NAR has routinely found itself under antitrust scrutiny due to its overwhelmingly popular MLS platforms, which often are the only multiple listing platforms available in local markets. Three recent federal lawsuits filed against NAR have focused on NAR's policies regarding compensation for buyer brokers, alleging that buyer brokers are unable to compete on price due to the requirement that all listings on MLS offer some form of cooperating brokerage commission. It is alleged that these anticompetitive practices have driven up the overall cost of brokerage services for consumers by eliminating competition on the buyer broker side of the market. 

The announcement by the Department of Justice was silent with regard to whether any additional investigations into NAR were ongoing. 




Wednesday, November 11, 2020

Building Code Violation Law Passed in NYS

Starting on December 11, 2020 there will be time limits to remedy any determinations of building code violations in NYS per new law


The Real property Actions and Proceedings Law (RPAPL) 777(a) has been amended to ensure that no code violations or dangerous conditions remain outstanding for "more than sixty days from the date of the order of the court" if the owner (or mortgagee or liener) enters into a consent order to remedy the issue upon the petition being granted against such owner. 


We expect that this sixty day period will be applied by the various town / city / village attorneys in plea agreements as well. 


Now, there is a rush to fix unless good cause for delay can be shown.




NYS Passes Law to Increase Free Speech & Public Participation

Effective November 10, 2020, NYS strengthened its laws against lawsuits that are brought and intended to chill free speech, called Strategic Lawsuits Against Public Participation ("SLAPP suits"). 


NYS' prior anti-SLAPP / free speech law had been limited to protecting speech concerning "controversies over a public application or permit, usually in a real estate development situation." 


Now, the anti-SLAPP law deals with "anything other than a 'purely private matter.'" Additionally, the law now requires courts to provide costs and attorney's fees if a lawsuit against public petition and participation was initiated in bad faith to chill speech. 


The new laws are Civil Rights Law 70-a, which deals with the costs and attorney's fees, and Civil Rights Law 76-a, which expands the types of speech that is protected by the anti-SLAPP law. Specifically, Civil Rights Law 76-a now permits a suit concerning "[a]ny communication in a place open to the public or a public forum in connection with an issue of public interest; or ii. [a]ny other lawful conduct in furtherance of the exercise of the constitutional right of free speech in connection with an issue of public interest, or in furtherance of the exercise of the constitutional right of petition."


To read the full bill, click here