Millien v. The Madison Square Garden Company

CourtDistrict Court, S.D. New York
DecidedAugust 7, 2020
Docket1:17-cv-04000
StatusUnknown

This text of Millien v. The Madison Square Garden Company (Millien v. The Madison Square Garden Company) is published on Counsel Stack Legal Research, covering District Court, S.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Millien v. The Madison Square Garden Company, (S.D.N.Y. 2020).

Opinion

DOCUMENT ELECTRONICALLY FIL UNITED STATES DISTRICT COURT DOC #5 __ SOUTHERN DISTRICT OF NEW YORK DATS FILED:S///2020.__.

Clint Millien, et al., Plaintiffs, 17-cv-4000 (AJN) ~ MEMORANDUM The Madison Square Garden Company, et al., OPINION & ORDER Defendants.

ALISON J. NATHAN, District Judge: A hearing was held on November 19, 2019, during which time the Court heard Plaintiffs’ Motion for Final Approval of the Class Action Settlement and their Application for Award of Attorney’s Fees and Costs and an Incentive Award for the Class Representatives. Having considered the written submissions of the parties, having held a final fairness hearing, and having considered the arguments offered at that hearing, it is hereby ordered that the Class is finally certified and the Settlement is finally approved. I. BACKGROUND Lead Plaintiff Clint Millien filed this lawsuit against Defendants on April 26, 2017 in New York Supreme Court. Defendants then removed this case to federal court, and Plaintiff Millien amended his Complaint, adding another Plaintiff, Felipe Kelly. The Amended Complaint brings several claims. First, Plaintiffs allege that Defendants failed to provide them and proposed class members with copies of their background check report and other required notices before deciding not to hire them as required by the federal Fair Credit Reporting Act (“FCRA”) (Count 1) and New York Fair Credit Reporting Act (“NY FCRA”) (Count 2). See Amended Complaint, Dkt. No. 13, {fj 140-158.

The FCRA requires that before taking an “adverse action based in whole or in part on [a consumer report]” employers must provide the consumer with “a copy of the report” and “a description in writing” of the rights a consumer has under the FCRA. 15 U.S.C. § 1681b(b)(3)(A)(i) and (iii). The statute further defines consumer report to include background checks conducted for employment purposes, and defines adverse actions to include “a denial of

employment or any other decision for employment purposes that adversely affects any current or prospective employee.” See 15 U.S.C. § 1681a. The FCRA authorizes statutory damages between $100 and $1,000 per person for “willful noncompliance,” in addition to actual damages. See 15 U.S.C. § 1681n. The NY FCRA states that when an entity requests background check containing “criminal conviction information,” it must “provide the subject of such report a printed or electronic copy of article twenty-three-A of the correction law.” N.Y. Gen. Bus. Law § 380-g(d). Those who do not comply are liable for actual damages, as well as punitive damages, if non-compliance was willful. Id. §§ 380-l; 380-m. Article 23-A of the Corrections Law states in the pertinent part:

No application for any license or employment, and no employment or license held by an individual, to which the provisions of this article are applicable, shall be denied or acted upon adversely by reason of the individual’s having been previously convicted of one or more criminal offenses, or by reason of a finding of lack of “good moral character” when such finding is based upon the fact that the individual has previously been convicted of one or more criminal offenses, unless:

(1) there is a direct relationship between one or more of the previous criminal offenses and the specific license or employment sought or held by the individual; or

(2) the issuance or continuation of the license or the granting or continuation of the employment would involve an unreasonable risk to property or to the safety or welfare of specific individuals or the general public.

N.Y. Correc. Law § 752. Another section of Article 23-A gives a specific list of factors that an employer must consider when deciding when making a determination pursuant to § 752. See N.Y. Correc. Law § 753. Second, Plaintiffs claim that when Defendants decided not to hire them and other class members based on a failure to disclose criminal convictions on their applications that were later revealed by a background check, Defendants violated the New York City Human Rights Law

(“NYCHRL”) by failing to conduct the required analysis under Article 23-A (Count 3). While Article 23-A does not appear to have a private right of action, the NYCHRL effectively creates one for those who apply to positions in New York City. It states: It shall be an unlawful discriminatory practice for any employer, employment agency or agent thereof to deny employment to any person or take adverse action against any employee by reason of such person or employee having been convicted of one or more criminal offenses, or by reason of a finding of a lack of “good moral character” which is based on such person or employee having been convicted of one or more criminal offenses, when such denial or adverse action is in violation of the provisions of article 23- a of the correction law.

N.Y.C. Admin. Code § 8-107(10)(a) (emphasis added). The available remedies under this provision are the same for other violations of the NYCHRL, which is the City’s primary employment discrimination statute. Third, Plaintiffs also claim that Defendants’ practice of refusing to hire prospective employees based on a failure to disclose criminal convictions was discrimination against Black and Latino applicants on a disparate impact theory in violation of the NYCHRL (Count 4). A few weeks before discovery closed, but before the bulk of the depositions were conducted, the parties engaged in private mediation. The result of that mediation is the present settlement. There are three kinds of relief under the agreement. All 508 class members (termed the “FCRA Class”) will receive a payment of $200. A subclass of 281 members who applied to jobs in New York City (termed the “NYC Class”) will get an opportunity to receive an additional $1,700 payment. After preliminary certification, the NYC class members were required to submit claims forms. For the 132 members that did so, Defendants will then conduct an Article 23-A analysis and determine whether the class member, in light of that analysis, would have been eligible for employment, regardless of whether the class member fully disclosed his or her criminal record. See Settlement Agreement at 10-13. Class members who submitted claims

forms and were otherwise eligible for employment would then receive $1,700 each. MSG also agrees to implement various policy changes regarding hiring and employment of those with criminal records. The Lead Plaintiffs would each receive $7,500 service awards. The agreed upon amount of attorneys’ fees and costs is $750,000. In exchange, the Defendants are released from “all claims . . . under any legal or equitable theory under the FCRA and/or NY FCRA.” Id. at 20. Additionally, the NYC Class would release Defendants from “all claims . . . relating to their criminal records, including discrimination claims . . . under Title VII . . . the NY FCRA, the Correction Law, and the NYCHRL.” Id. at 21.

II. CLASS CERTIFICATION The FCRA Class is defined as “individuals who were denied employment with MSG based on the content of his or her Background Check Report from April 26, 2015 through the date of Preliminary Approval of the Settlement.” Settlement Agreement at 7.

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Millien v. The Madison Square Garden Company, Counsel Stack Legal Research, https://law.counselstack.com/opinion/millien-v-the-madison-square-garden-company-nysd-2020.