LIEB BLOG

Legal Analysts

Friday, October 09, 2020

Guess how much employers pay, on average, in litigation costs in defending discrimination cases?

According to the EEOC, they pay $174,000 and attorneys' fees on cases that go to trial are between $195,000-$279,000.


You should get your training to prevent discrimination at your workplace today - sexualharassmenttrainingny.com or call 646.216.8038






Guess how much employers pay, on average, to settle discrimination cases?

According to the EEOC, they pay $45,466 to settle cases in conciliation before lawsuit (it only goes up from there).




Employment Discrimination Lawsuit Rules Are Changing

On October 9, 2020, the EEOC submitted a proposed rule in the Federal Register to change the conciliation procedures in an employment discrimination lawsuit. 

Basically, a conciliation is a required mediation of the discrimination case undertaken after EEOC finds reasonable cause for a charge, but before a lawsuit is filed. Historically, the process has been a mystery for employers as EEOC kept the steps, charges, and process secret. This mystery has resulted in approximately 1/3 of employers refusing to participate in conciliation even though the process is confidential and can't constitute evidence against such employer (unless otherwise agreed upon in writing).

The proposed rule requires that "the Commission will provide to the respondent, if it has not already done so:

(1) A summary of the facts and non-privileged information that the Commission relied on in its reasonable cause finding, and in the event that it is anticipated that a claims process will be used subsequently to identify aggrieved individuals, the criteria that will be used to identify victims from the pool of potential class members;

(2) a summary of the Commission's legal basis for finding reasonable cause, including an explanation as to how the law was applied to the facts, as well as non-privileged information it obtained during the course of its investigation that raised doubt that employment discrimination had occurred;

(3) the basis for any relief sought, including the calculations underlying the initial conciliation proposal; and

(4) identification of a systemic, class, or pattern or practice designation. The Commission also proposes to specify that the respondent participating in conciliation will have at least 14 calendar days to respond to the initial conciliation proposal from the Commission."

These rules are terrific and will result in increased settlements because an employer now has the ability to ascertain risk and then, strategically engage in meaningful settlement discussions in the conciliation process rather than blindly throwing money at a situation to make it go away. 


We encourage you to comment on the proposed rule should you have any suggestions to enhance its effectiveness by writing your thoughts, up until November 9, 2020, and sending them by mail, with reference to RIN Number 3046-AB19, to Bernadette B. Wilson, Executive Officer, Executive Secretariat, U.S. Equal Employment Opportunity Commission, 131 M Street NE, Washington, DC 20507.




Monday, October 05, 2020

Federal Eviction and Foreclosure Moratoriums Invite Litigation

Andrew Lieb published the article in The Suffolk Lawyer, Federal Eviction and Foreclosure Moratoriums Invite Litigation. This article discusses issues that will be litigated if an eviction moratorium is raised as a defense to an eviction proceeding.

Tuesday, September 29, 2020

Employers in NYC Must Update Their Sick and Safe Leave Policies

On September 28, 2020, Mayor De Blasio signed a bill into law amending the New York City Paid Sick and Safe Leave law to make it largely consistent with New York State's new Paid Sick Leave law. 

The law amends the New York City Paid Sick and Safe Leave law as follows:

Amount of Sick Leave

  • Employers with 4 or fewer employees and a net income of over a million dollars are obligated to provide 40 hours of Paid Sick and Safe Leave per calendar year (no prior requirement);
  • Employers with 5-99 employees (regardless of net income) are required to provide 40 hours per calendar year (unchanged);
  • Employers with 100 or more employees are required to provide 56 hours of paid sick leave per calendar year (previously 40 hours). 
Other Notable Changes:
  • Each pay period, an employer must provide to all employees a writing (whether via paystub or other document) containing the amount of sick leave accrued and used by the employee;
  • If employers require employees to provide supporting medical documentation when using Paid Sick and Safe Leave, employers must reimburse employees for any fees incurred in obtaining such documentation;
  • The new law permits the City to conduct an investigation into employer violations (even if there is no employee complaint) and commence a civil litigation against an employer;
  • Employers can face civil penalties of $500 per violation plus a $15,000 penalty if they engage in a "pattern or practice" of violation of the law. If employee is discharged in violation of the law, an employer can be obligated to pay a $2,500 penalty in addition to lost wages/benefits.

The amendments to the law take effect on September 30, 2020. Employers with employees in New York City should update their policies to avoid exposure.



Friday, September 25, 2020

NYS Senate Committee - Housing Discrimination Hearing

 Watch the hearing live now here 


What do you think? 


The key question was whether there should be legislation to cap the number of salespersons per supervising broker. Wowwwwwww




Tuesday, September 22, 2020

Is Your Pot Smoking History Holding Your Job Prospects Back?

If you were ever convicted of unlawful possession of marijuana, you can now easily get your record expunged and then, records about your arrest, prosecution, and criminal history will be destroyed.

Persons eligible to apply for the destruction of expunged marijuana (a/k/a, marihuana) convictions records are: 
  • Persons convicted of Penal Law 221.10: “A person is guilty of unlawful possession of marihuana in the first degree when he knowingly and unlawfully possesses one or more preparations, compounds, mixtures or substances containing marihuana and the preparations, compounds, mixtures or substances are of an aggregate weight of more than one ounce.”
  • Persons convicted of Penal Law Section 221.05: “[a] person is guilty of unlawful possession of marihuana in the second degree when he knowingly and unlawfully possesses marihuana.”

Persons adjudicated as Youthful Offenders are not eligible for expungement and destruction because such adjudication is not considered a conviction.

The following records will be destroyed:
  • Arrest records;
  • Prosecution records;
  • Criminal history records;
  • Any dismissal of your case; and
  • Any expungement of your conviction.

It is important to note that only convictions of Penal Law 221.10 and 221.05 may be expunged and the destruction of records does not include any other conviction for any other felony or misdemeanor concerning the drug.

If you are interested in getting your marijuana conviction expunged and records destroyed, you should complete an Application to Destroy Expunged Marihuana Conviction Record and file it with the court where you were convicted. There is no application filing fee and you may file multiple applications if you were convicted in multiple courts.


Monday, September 21, 2020

Commercial Eviction and Foreclosure Moratoriums Extended through October 20, 2020

By Executive Order 202.64, 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 October 20, 2020. This means that no eviction or foreclosure proceeding may be commenced against commercial tenants for nonpayment of rent or mortgage until such date.

There are no moratoriums in place for residential properties by Executive Order. Irrespective of Governor Cuomo’s Executive Orders, court directives are still in place whereby landlords and lenders are permitted to initiate residential and commercial evictions and foreclosures not based on nonpayment but such proceedings remain suspended until further notice. You can read more about these court directives HERE and HERE. Further, residential evictions remain governed by the Tenant Safe Harbor Act as well, which prohibits courts from issuing a warrant of eviction or judgment of possession against a residential tenant experiencing COVID-19-related financial hardship, among others.



Thursday, September 03, 2020

CDC's Moratorium - Required Declaration for Effectiveness - As Promised on the LiebCast

State of         ______________    )
                                                     ) ss:
County of     ______________    )

______________, being duly sworn, deposes and says the following: 

I certify under penalty of perjury, pursuant to 28 U.S.C. 1746, that the foregoing are true and correct:

 I have used best efforts to obtain all available government assistance for rent or housing;
 I either expect to earn no more than $99,000 in annual income for Calendar Year 2020 (or no more than $198,000 if filing a joint tax return), was not required to report any income in 2019 to the U.S. Internal Revenue Service, or received an Economic Impact Payment (stimulus check) pursuant to Section 2201 of the CARES Act;
 I am unable to pay my full rent or make a full housing payment due to substantial loss of household income, loss of compensable hours of work or wages, lay-offs, or extraordinary out-of-pocket medical expenses;
 I am using best efforts to make timely partial payments that are as close to the full payment as the individual’s circumstances may permit, taking into account other nondiscretionary expenses;
 If evicted I would likely become homeless, need to move into a homeless shelter, or need to move into a new residence shared by other people who live in close quarters because I have no other available housing options.
 I understand that I must still pay rent or make a housing payment, and comply with other obligations that I may have under my tenancy, lease agreement, or similar contract. I further understand that fees, penalties, or interest for not paying rent or making a housing payment on time as required by my tenancy, lease agreement, or similar contract may still be charged or collected.
 I further understand that at the end of this temporary halt on evictions on December 31, 2020, my housing provider may require payment in full for all payments not made prior to and during the temporary halt and failure to pay may make me subject to eviction pursuant to State and local laws.

I understand that any false or misleading statements or omissions may result in criminal and civil actions for fines, penalties, damages, or imprisonment. 
_________________________________ 
Signature of Declarant                                 


Sworn to before me this 
____ day of ___________, 2020

_________________________________ 
Notary Public



Wednesday, September 02, 2020

CDC's Residential Eviction Moratorium - Fines up to $500,000 and Jail - You Better Read This

CDC's eviction moratorium has teeth and the details matter. 

CDC issued an Agency Order, under the Public Health Service Act, to temporarily halt residential evictions to prevent the further spread of COVID-19 through December 31, 2020. 

The Order applies to residential tenants (not transient or "seasonal tenant[s]") who have provided an executed and sworn copy of the Declaration form, set forth in Attachment A of the Agency Order, to their landlord. 

Such Declaration swears that:
  1. The individual has used best efforts to obtain all available government assistance for rent or housing;
  2. The individual either (i) expects to earn no more than $99,000 in annual income for Calendar Year 2020 (or no more than $198,000 if filing a joint tax return), (ii) was not required to report any income in 2019 to the U.S. Internal Revenue Service, or (iii) received an Economic Impact Payment (stimulus check) pursuant to Section 2201 of the CARES Act;
  3. the individual is unable to pay the full rent or make a full housing payment due to substantial loss of household income, loss of compensable hours of work or wages, a lay-off, or extraordinary out-of-pocket medical expenses;
  4. the individual is using best efforts to make timely partial payments that are as close to the full payment as the individual’s circumstances may permit, taking into account other nondiscretionary expenses; and 
  5. eviction would likely render the individual homeless—or force the individual to move into and live in close quarters in a new congregate or shared living setting—because the individual has no other available housing options.
Landlords and tenants alike better get this right as DOJ can bring actions against violators and "a person violating this Order may be subject to a fine of no more than $100,000 if the violation does not result in a death or one year in jail, or both, or a fine of no more than $250,000 if the violation results in a death or one year in jail, or both, or as otherwise provided by law." If the violator is an organization, the fines are $200,000 and $500,000, respectively. 

This does NOT mean that landlords DON'T have rights.

It is expressly noted that "[t]his Order does not relieve any individual of any obligation to pay rent, make a housing payment, or comply with any other obligation that the individual may have under a tenancy, lease, or similar contract." Nor does the order preclude "the charging or collecting of fees, penalties, or interest as a result of the failure to pay rent or other housing payment on a timely basis..." As we just wrote in Dan's Papers - Sue the Tenant for a Judgment

Finally, it is noted that the Order does not prevent evictions "for reasons other than not paying rent or making a housing payment" nor does it preclude "foreclosure on a home mortgage."

As an aside, the CDC is justifying this Order by pointing to the "over 174,000 deaths due to the disease" and comparing it "to the peak mortality observed during the 1918 H1N1 influenza pandemic," while asserting that "eviction moratoria-like quarantine, isolation, and social distancing-can be an effective public health measure utilized to prevent the spread of communicable disease." Perhaps we should stop downplaying this pandemic - it is real per Trump's Federal Agency.