DICKINSON R. DEBEVOISE, Senior District Judge.
This is an action under Title VII of the Civil Rights Act of 1964 and the Civil Rights Act of 1991, brought on behalf of the U.S. Employment Opportunity Commission, alleging that United Galaxy, Inc. d/b/a Tri-County Lexus ("Defendant"), an auto-dealership, discriminated against Intervener-Plaintiff Gurpreet Kherha by refusing to grant him a reasonable religious accommodation and failing to hire him as a sales associate. The matter comes before the Court on Defendant's motion for summary judgment. For the following reasons, Defendant's motion is denied.
Mr. Kherha has been a practicing member of the Sikh faith since birth. As a practicing Sikh, Mr. Kherha has not cut his hair since he was born, attends church regularly, and reads from the holy book every morning. He also prominently wears a turban and maintains an unshaven beard as articles of his faith. Mr. Kherha applied to be a sales associate for Defendant.
A third party independent recruiting and training company, T.K. Worldwide, Inc. ("T.K.") recruited and provided general sales training to individuals who were interested in obtaining positions as sales associates in auto dealerships. T.K. engaged the services of independent contractor Full Throttle Training Corp., and specifically its owner Dominick Pupo, to provide the three days of training on Wednesday, Thursday, and Friday in late February 2008. Mr. Kherha participated in this training program, and paid T.K. and Full Throttle $294 for training materials. During the initial screen interview, Mr. Pupo asked Mr. Kherha if he was Sikh, to which Mr. Kherha responded that he has been a member of the Sikh faith all his life. (Kherha Dep. 33:15-34:12.)
On the Thursday afternoon of training, Defendant's General Sales Manager, Clark Nelson, spent approximately 40-45 minutes with the group of ten candidates, during which time he interviewed the group as a whole. First, Mr. Nelson introduced himself and asked each candidate one general sales question. Following that, eight of the ten candidates were each given the opportunity to discuss in under two minutes, how an inanimate object provided to them by Mr. Nelson could be used to better the company and how the candidate would be able to sell it. It is undisputed that Mr. Nelson saw Mr. Kherha's articles of faith, in particular his uncut beard and his turban. It is undisputed that Mr. Nelson and Mr. Kherha never had any conversations outside the presence of the group.
After Mr. Nelson left the training room, Mr. Kherha alleges that Mr. Pupo stated to the interview group: "[H]ope that went well, . . . but now they are going to be making a decision on who's going to receive a position." (
Mr. Kherha contends that while waiting to see who would be selected for the position, Mr. Pupo asked him privately, in a five minute conversation, "whether I kept my facial hair for religious reasons and I said to him, yes, I did keep my . . . hair for religious reasons, it's because I'm a Sikh and it's part of my religion. And he went on to ask me whether or not I would be — I think he used the words open or willing to the idea if I was — if I would trim or cut, I don't know the exact terminology, but short it in some way, the length of it, in order to obtain a job. Which I told him absolutely not, and that it was a part of my religion, and that I would not, in any way, cut or trim my beard to obtain a job." (
Mr. Kherha also testified that considering Mr. Pupo knew he was Sikh from the first day they met, it seemed to him that someone was asking Pupo to ask that question. (
In contrast, Mr. Pupo testified that Mr. Nelson asked him "to ask the gentleman if he would be able to shave off his beard." (Pupo Dep. 26:13-15.) Mr. Kherha then informed Mr. Pupo that "he could not accommodate that request based on his religious beliefs." (
According to the EEOC and Mr. Kherha, Mr. Nelson interviewed Mr. Kherha, and then sent a recruiter, Mr. Pupo, to ask Mr. Kherha whether he would shave his beard for the job. When Mr. Nelson learned through Mr. Pupo that Mr. Kherha could not shave his beard because of his sincerely held religious beliefs, Mr. Nelson informed Mr. Pupo of the company's no-beard policy and of Defendant's resulting refusal to hire Mr. Kherha. It is undisputed that Mr. Kherha never spoke directly with Mr. Nelson about shaving or trimming his facial hair, or about his religion. Indeed, Mr. Kherha and Mr. Pupo testified that Mr. Nelson asked Mr. Pupo to inquire about his beard. Additionally, Defendant's Response to the Request for Admissions further provides that Mr. Nelson asked Mr. Pupo to inquire whether or not Mr. Kherha would shave his beard in order to obtain employment with Defendant. (Rivera Dec., Ex. 5 (Def. Resp. to RFAs) No. 7) ("Admit [ ] that Pupo was asked to ask Kherha whether he would be willing to shave if offered employment.").
Mr. Nelson denies the entire episode altogether. Mr. Nelson denies asking Mr. Pupo to inquire of Mr. Kherha's beard. (Nelson Dep. 47:20-22.). Additionally, Mr. Nelson asserts that Mr. Pupo never told him that Mr. Kherha would not shave his beard. Mr. Nelson also testified that Mr. Pupo never advised him that Mr. Kherha would require an accommodation for his beard if hired, and that Mr. Nelson was unaware the Mr. Kherha would want any type of accommodation. (
According to Bryan Mendelson, Defendant's General Manager and Rule 30(b)(6) corporate witness, the purpose of the no beard policy is a general guideline to avoid "trendy styles." (Mendelson Dep. 98:3-7.) The no-beard policy applies to Tri-County Lexus and Toyota Universe; it applies to all car dealerships under the Bob Ciasulli Auto Group. (Rivera Dec. Exs. 9, 10.) The no-beard policy also applies to job applicants (Nelson Dep. at 42:7-1-13), and provides no exceptions for individuals who maintain beards for religious purposes (Rivera Dec. Exs. 9, 10.) The no-beard policy is still in effect. (Mendelson Dep. 85:8-22). It does not include a written policy for candidates to request accommodations. (
Thus, the first factual issue is Mr. Nelson's involvement in communicating with Mr. Kherha the conflict of his beard and the corporate policy. The next factual issue is if and when Mr. Kherha was told that Defendant would not hire him.
Mr. Kherha believes that seven out of the ten candidates were hired on Thursday because they were handed leather portfolios by Mr. Pupo with Lexus car materials, the type of portfolio usually given to new car owners. During this distribution, Mr. Pupo congratulated them by saying "welcome to Lexus." (Kherha Dep. at 104:16-25, Def. 56.1 Facts ¶ 85.) Mr. Kherha also testified that Mr. Pupo told seven out of ten interviewees in the training room to come back the following day to learn what they would be doing in their Lexus sales position, but that he was not one of the seven trainees invited to return. (
In turn, Mr. Pupo denies that Defendant made any hiring decisions on Thursday, and denies distributing related portfolios. According to Mr. Pupo, Mr. Nelson interviewed everybody individually on the last day of training, which was Friday. (Pupo Dep. 43:2-4.) Similarly, Mr. Nelson testified that Mr. Pupo would have asked the candidates to come in for the interviews that Friday. (Nelson Dep. 67:3-7.) Mr. Pupo indicated that he did not know why Mr. Kherha failed to appear on Friday, and denies that he advised him not to appear. (Pupo Dep. 31:2-9.) Mr. Nelson testified that had Mr. Kherha appeared on Friday for training, he would have been interviewed by Mr. Nelson and would have been considered for employment, even if he was not able to shave for religious reasons. (Nelson Dep. 78:11-19.) Further, any trainees not hired by dealership management were notified by Mr. Pupo and not the management, because management did not want to get involved with explaining the refusal. (Rivera Dec. Ex. 13 (Pupo letter to Court, April 29, 2011, ECF Doc. 26).)
Defendant contends that it did not know that Mr. Kherha needed an accommodation, and that it would have accommodated him if he had only provided Defendant with the opportunity to do so. Of note, Defendant does not allege that Mr. Kherha was not qualified to be a sales associate. Defendant purports that it "was unaware of Mr. Kherha's religion and/or what religious accommodations a Sikh would require as Mr. Kherha had no discussions with Defendant about these items." (MSJ Br. at 2.) Defendant also argues that Mr. Kherha had no reason to believe that interviews were conducted on Thursday, and argues that interviews were only provided on Friday. According to Defendant, the reason Mr. Kherha was not hired was because he did not appear to interview on Friday. The EEOC's and Mr. Kherha's version of events are clearly contrary to Defendant's assertions. Again, the EEOC and Mr. Kherha contend that Mr. Kherha was told his beard conflicted with Defendant's no beard policy pursuant to Mr. Nelson's indications via Mr. Pupo, and that Mr. Kherha was specifically not hired on Thursday following the group interview and not invited to return the following day.
On November 3, 2008, Mr. Kherha filed a charge of discrimination with the EEOC. (See EEOC Charge of Discrimination, Epstein Cert., Ex. A.) Therein, Mr. Kherha explained that he was recruited by T.K. to apply for a position as a car salesman at Tri-County Lexus. However, at the end of his second day of training, following a group interview, the following occurred:
EEOC investigated the claim and filed a Complaint on September 28, 2010 alleging that Defendant violated Title VII of the Civil Rights Act of 1994 and Civil Rights Act of 1991 ("Title VII") by failing to employ Mr. Kherha due to unwillingness to accommodate his religion and failure to hire. With the permission of the Court, on February 25, 2011, Mr. Kherha filed an intervening complaint alleging violations of Title VII and the New Law Against Discrimination ("NJLAD"), N.J.S.A. § 10:5-1, et seq.
Defendant's answer included a third-party complaint against recruiter/training T.K., Mr. Pupo, and Full Throttle Training Corp. Default was entered against T.K. on April 14, 2011. Default against Mr. Pupo was also entered, but vacated on May 18, 2011.
Oral argument on Defendant's motion for summary judgment was heard on June 17, 2013.
Summary judgment is appropriate "if the movant shows that there is no genuine dispute as to any material fact and the movant is entitled to judgment as a matter of law." Fed. R. Civ. P. 56(a). A dispute is "genuine" if "the evidence is such that a reasonable jury could return a verdict for the non-moving party."
Summary judgment will not be denied based on mere allegations or denials in the pleadings; instead, some evidence must be produced to support a material fact. Fed. R. Civ. P. 56(c)(1)(A);
However, the Court will view any evidence in favor of the nonmoving party and extend any reasonable favorable inferences to be drawn from that evidence to that party.
Moreover, the nonmoving party must show by competent evidence that factual disputes regarding material issues of fact exist. "[O]nly evidence which is admissible at trial may be considered in ruling on a motion for summary judgment."
To establish a prima facie case of a failure to accommodate claim, the employee must show that: (1) he has a sincere religious belief that conflicts with a job requirement; (2) he told the employer about the conflict; and (3) he suffered an adverse employment action for failing to comply with the conflicting requirement.
Mr. Kherha's sincerely-held religious belief that he must maintain an untampered with, uncut beard directly conflicts with Defendant's no-beard policy. Indeed, Defendant's General Manager and Rule 30(b)(6) corporate witness, Bryan Mendelson, admitted that although Mr. Kherha appeared neat and professional, his beard would not "pass" Defendant's no-beard policy. (EEOC 56, Facts ¶ 166.)
Defendant purports that it lacked knowledge about the conflict between Mr. Kherha's religious beliefs and Defendant's no-beard policy, thus arguing that a prima facie failure to accommodate claim cannot be established based on the undisputed material facts. In oral argument, counsel for Defendant argued that although Mr. Kherha wears a turban and an untampered beard, his religion was not readily apparent because not all Sikhs wear these religious affects. This is an oblique argument and avoids the relevant point — Mr. Kherha's garb clearly indicates that he is a person of faith, or at least should have put Defendant on sufficient notice to inquire further. Moreover, the facts establish that Mr. Pupo knew of Mr. Kherha's faith through the initial screening interview, and that he notified Mr. Nelson of his religious precept to wear an untampered beard.
An employer is on notice of a candidate's religion when "an employer has enough information to make it aware a conflict exists between the individual's religious practice or belief and a requirement for applying for or performing the job."
Defendant looks to a case arising from the United States District Court of the Southern District of Alabama,
Taking the facts in the light most favorable to Mr. Kherha and the EEOC, no accommodations were provided, nor was information of a method to request accommodations provided. Defendant's motion for summary judgment must be denied because a reasonable finder of fact could conclude that Defendant was given notice of Mr. Kherha's need for a religious accommodation here but failed to provide one, and therefore suffered an adverse employment action.
Defendant argues that any statements made or repeated by Mr. Pupo based on his firsthand knowledge are inadmissible hearsay because he is not an agent of Defendant. Federal Rule of Evidence 801(d)(2)(D) provides that "a statement is not hearsay if — [it] is offered against a party and is . . . a statement by the party's agent or servant concerning a matter within the scope of the agency or employment, made during the existence of the relationship." The purpose of the hearsay rules is to exclude testimonial evidence where the parties are not able to cross examine the declarant to test the veracity of the statement. That is not the case here, where the parties have had an opportunity to depose Mr. Nelson, Mr. Kherha, and Mr. Pupo, and the fact-finder will have the opportunity to gauge each witness's sincerity and credibility.
Mr. Pupo's statements are admissible as agency admissions, despite that he is an independent contractor. Significant involvement, either as an advisor or other participant in the process leading to an employment decision, suffices to establish Mr. Pupo's "agency" for purposes of admitting statements under Fed. R. Ev. 801(d)(2)(D). For example, in
Defendant urges the Court to consider that T.K. and by extension Full Throttle had absolute control over the manner and selection of individuals recruited to attend the training; that Defendant had no input in how the training was conducted and which candidates were referred for interviews; and that T.K. and Full Throttle reaped the entire financial benefit of the recruitment because the students paid training fees directly to them. Defendant further argues that "[b]y extension, Full Throttle is retained by T.K. so there is a less tenuous, if any, connection between Defendant and Full Throttle and Full Throttle and its owner Pupo.". (MSJ Br. at 10-11.)
However the facts establish that Mr. Pupo was hired to recruit, train and present candidates for consideration. Not only did Mr. Pupo prepare the candidates for consideration, but he also facilitated a group interview for Mr. Nelson on the second day of training; undisputedly delivered messages back and forth on Mr. Nelson's behalf concerning which candidates were or were not hired; and delivered message back and forth on Mr. Nelson's behalf to and from Mr. Kherha concerning Mr. Kherha's willingness to shave and conform his religious precepts for company policy. Indeed, Defendant admitted that Mr. Pupo was asked to inquire whether or not Mr. Kherha would be willing to shave if offered employment. (Rivera Dec., Ex. 5 (Def. Resp. to RFAs) No. 7) ("Admit [ ] that Pupo was asked to ask Kherha whether he would be willing to shave if offered employment."). Mr. Pupo's significant involvement in the decision-making process therefore suffices to establish his agency.
Moreover, even if he were to be considered a non-agent independent contractor, Defendant will still be liable for foreseeable representations made by Mr. Pupo under Defendant's apparent authority. "Apparent authority arises in those situations where the principal causes persons with whom the agent deals to reasonably believe that the agent has authority" despite the absence of an actual agency relationship.
Under the doctrine of apparent authority, liability is imposed "not as the result of the reality of a contractual relationship but rather because of the actions of a principal or an employer in somehow misleading the public into believing that the relationship or the authority exists."
Defendant argues that apparent authority is absent here because that "T.K. and Full Throttle through Pupo at all times identified themselves separately from Defendant whether in Pupo's introduction, on the training receipt or in Pupo's repeated testimony that he is not involved in hiring decisions. Plaintiff even admitted `at the end of the day [he is] sure that the decision process [for hiring] was left on an actual Tri-County employee.'" (MSJ Br. at 14.)
However, at Defendant's direction, Mr. Pupo notified all candidates of the final decision. Moreover, Mr. Pupo delivered messages on Mr. Nelson's behalf. Mr. Pupo's involvement in the hiring process extended beyond simply screening and training prospective candidates. Even if Mr. Pupo were not the final decision-maker, he acted on behalf of Mr. Nelson by advancing and rejecting certain candidates in the hiring process. In Mr. Kherha's case, Mr. Nelson delivered messages via Mr. Pupo regarding Mr. Kherah's willingness to modify his beard to conform with the company's no-beard policy. Defendant cannot hide its colorable discriminating behavior behind the cloak of an individual contracted to do its bidding.
In conclusion, with respect to the failure to accommodate Title VII and NJLAD claims, because the accounts submitted by the EEOC, Mr. Kherha, and Mr. Pupo clearly contrast with Mr. Nelson's denial of these statements, the motion for summary judgment must be denied because of the existence of genuine issues of material fact. Defendant cannot avoid that conclusion by attempting to exclude relevant and admissible evidence of agency admissions.
To establish a prima facie claim for failure to hire under Title VII and the NJLAD, a plaintiff must show: (1) that he belongs to a protected category; (2) that he applied for and was qualified for the job; and (3) that he was rejected, despite his qualifications; and (4) that after his rejection, the employer continued to seek applicants from persons with plaintiff's qualifications.
It is undisputed that Mr. Kherha was qualified for the sales associate position. Rather, Defendant argues that there is no failure to hire claim here, because Mr. Kherha did not actually apply for the position when he unilaterally decided not to appear on Friday. Because of his failure to appear, Defendant argues that Mr. Kherha cannot satisfy the prima facie test. In support of this argument, Defendant relies on Mr. Pupo's testimony that he never told Mr. Kherha not to come on Friday. Defendant again tries to shift the blame from itself to Mr. Pupo, by pointing out that Defendant was not in the training room when the alleged portfolios were distributed. Additionally, Defendant asserts that interviews with Mr. Nelson were actually held on Friday. Further, Defendant argues that it has a legitimate, nondiscriminatory reason for not hiring Mr. Kherha when he did not appear for the Friday one-on-one interview. Defendant argues that Mr. Kherha cannot establish discriminatory animus because he did not appear on Friday for the one-on-one interview out of sheer speculation that he was not hired on Thursday.
Defendant urges the Court to examine cases which are distinct to the facts considered today. For example, in
Defendant also calls the Court's attention to an unpublished decision related to an EEOC complaint for age discrimination.
The reasoning employed by the Fourth Circuit Court of Appeals is more persuasive here, where Mr. Kherha's qualifications were not at issue, and it was reasonable for him to infer that he was out of the hiring process because there was no discussion regarding a possible accommodation.
Taking the facts in the light most favorable to the nonmoving party, a reasonable factfinder could deduce that Defendant's assertion that Mr. Pupo was not hired because he did not return for one-on-one interviews on Friday is pretext for discriminatory animus because he was not provided any information to suggest that a reasonable accommodation could be made when the conflict between Mr. Kherha's religious precept of maintaining an untampered beard and the corporate policy became evident, and when Mr. Kherha was not invited to return the following day while seven other candidates were. It is undisputed that Mr. Kherha was otherwise qualified for the position. Again, Defendant tries to exclude the statements by Mr. Pupo as purported hearsay; the Court has addressed this issue above. Genuine issues of material fact are present and therefore summary judgment must be denied with respect to the failure to hire claim.
Defendant also moves for summary judgment on Plaintiff's request for punitive damages. Punitive damages are rewarded pursuant to Title VII "if the complaining party demonstrates that the respondent engaged in a discriminatory practice or discriminatory practices with malice or with reckless indifference to the federally protected rights of an aggrieved individual." 42 USCS § 1981a(b)(1).
Similarly, pursuant to the NJLAD, "[p]unitive damages may be awarded to the plaintiff only if the plaintiff proves, by clear and convincing evidence, that the harm suffered was the result of the defendant's acts or omissions, and such acts or omissions were actuated by actual malice or accompanied by a wanton and willful disregard of persons who foreseeably might be harmed by those acts or omissions. This burden of proof may not be satisfied by proof of any degree of negligence including gross negligence." N.J.S.A. § 2A:15-5.12(a). Factors to be considered by the trier of fact include, but are not limited to, "(1) The likelihood, at the relevant time, that serious harm would arise from the defendant's conduct; (2) The defendant's awareness or reckless disregard of the likelihood that the serious harm at issue would arise from the defendant's conduct; (3) The conduct of the defendant upon learning that its initial conduct would likely cause harm; and (4) The duration of the conduct or any concealment of it by the defendant." N.J.S.A. § 2A:15-5.12(b).
The record indicates, despite Mr. Nelson's denial otherwise, that he was made aware via Mr. Pupo of Mr. Kherha's religious precept to maintain an untampered beard and the conflict with the company's no-beard policy. Indeed the record suggests that Mr. Nelson directed Mr. Pupo to ask Mr. Kherha if he would be willing to conform to the company's policy as a condition of employment, despite his religious belief. No reasonable accommodation was pursued. Of note, Defendant provides training to its managers on an annual basis regarding the company's policy on discrimination and harassment. Reading the facts in the light most favorable to the non-moving party, Mr. Kherha was not invited to return the following day to continue the hiring process, unlike seven of the other candidates who were invited. A genuine issue of material fact is evident as to whether Defendant acted in reckless disregard to Mr. Kherha's protected rights. Therefore, the motion for summary judgment must be denied.
For the foregoing reasons, Defendant's motion for summary judgment is DENIED in full. The Court will enter an order implementing this opinion.