An employer may be held liable for discrimination by third parties, including independent contractors authorized by the employer to make hiring decisions on its behalf, a federal appeals court held last week. Although this decision is not binding on cases brought by New Jersey employment lawyers, the decision may prompt some employment lawyers in New Jersey to persuade the Third Circuit and New Jersey courts to head in the same direction.
In clarifying its case law, the Court of Appeals for the Second Circuit in Halpert v. Manhattan Apartments Inc. reversed a lower court that granted summary judgment to the employer under the Age Discrimination in Employment Act. Michael Halpert applied to Manhattan Apartments to be a "shower," someone who takes prospective buyers through apartments. He claimed Robert Brooks, an independent contractor retained by Manhattan Apartments, told him he was "too old" for the job. The lower court said summary judgment was warranted because Brooks was not an employee of Manhattan Apartments. This decision was reversed. The Court stated that when a company gives an individual authority to interview job applicants and make hiring decisions on the company's behalf, the company runs the risk of ebbing liable for discrimination.
