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Second Circuit Reinstates Discrimination Lawsuit

By: Jordan A. Vazzano

Natasha Knox, a black woman of Jamaican descent, worked for a laundromat chain at several Bronx, New York locations. Knox was ultimately terminated from her employment for removing cash from the register and refusing to return it.

Knox sued her former employer and two of her former supervisors alleging discriminatory and retaliatory termination, a hostile work environment, refusal to accommodate her disability, and unpaid wages.

The relevant facts are as follows:

– Her supervisor consistently made inappropriate comments, such as calling her “too hood” and “ghetto,” and said, “The Yankee in [you] makes you timid.”

-A district manager added remarks like “You look like Aunt Jemima” and castigated her for “talking Jamaican.”

-After a car accident, her doctor restricted her to lifting no more than 25 pounds. Her accommodation requests were allegedly ignored.

-She filed internal complaints and an EEOC charge alleging discrimination and unpaid wages.

-Shortly after, she reimbursed herself $15 for taxi fare- something she said was allowed and routine, provided there was a receipt.

-Three days later, she was terminated.

The district court found that Knox had failed to adduce sufficient evidence to survive summary judgment on any of her claims. However, on appeal, the Second Circuit reversed the district court’s ruling, finding that key facts were in dispute and should be resolved by a jury.

Here is how the court applied the relevant law:

-Title VII of the Civil Rights Act prohibits discrimination based on race and national origin. The court found that the repeated race-based slurs from supervisors created a plausible inference of a discriminatory motive behind the termination.

-Retaliation under Title VII and New York law protects employees who oppose unlawful practices. The court emphasized the suspicious timing of Knox’s termination- just three days after multiple complaints- and found that the employer’s justification (the $15 reimbursement) could be interpreted as pretextual.  

-The Fair Labor Standards Act (FLSA) requires employers to pay for all hours worked, including overtime. The employee alleged she worked uncompensated shifts across multiple locations. The court determined this was sufficient to allow her wage claim to proceed to trial.

-Hostile Work Environment: Despite the harassment lasting only two months, the court noted the frequency and the source of the comments, which could be enough to create a hostile work environment.

From the above, there are some very important takeaways for employers.

-Proper documentation is critical. A $15 incident, as in this case, may appear trivial; however, in the absence of clear rules and consistent enforcement, it can become an issue. Document expectations, responses to complaints, and accommodation efforts.

-Short-term misconduct is still misconduct. The two months of racial slurs by supervisors was enough to send the case to trial. Duration isn’t the only consideration, intensity and source matter too.

-Policy enforcement must be consistent. Ignoring reimbursement violations for certain employees while penalizing another – especially one who has reported discrimination – risks being perceived as retaliatory.

It is critical to ensure that all complaints of discrimination, harassment, and retaliation are taken seriously and investigated promptly.