KATHERINE B. FORREST, District Judge:
On July 9, 2014, plaintiff Ruben Juarez ("plaintiff' or "Juarez") filed this action, individually and on behalf of all others similarly situated, against The Northwestern Mutual Life Insurance Company, Inc. ("defendant" or "Northwestern Mutual"), alleging alienage discrimination in violation of 42 U.S.C. § 1981. (ECF No. 2 ("Compl.").) Plaintiff alleges that he was legally authorized to work in the United States, applied for a position at Northwestern Mutual, and was rejected pursuant to a policy that denies employment to all persons who are not U.S. citizens or legal permanent residents ("LPRs"). On September 4, 2014, defendant filed a motion to dismiss the Complaint for failure to state a claim. (ECF No. 22.) The motion became fully briefed on October 10, 2014 (ECF No. 40) and the Court heard oral argument on the motion on November 3, 2014. For the reasons set forth below, the motion is DENIED.
The Complaint alleges the following facts.
On October 26, 2012, Juarez submitted a resume to a Northwestern Mutual representative who was recruiting college students to become interns. (Id. ¶ 22.) On December 11, 2013, Juarez interviewed at Northwestern Mutual with Susan Lewandowski ("Lewandowski"). (Id. ¶ 25.) After the interview, Lewandowski requested Juarez's employment documents. (Id. ¶¶ 26.) Juarez provided his valid Social Security number. (Id.) Lewandowski then asked Juarez whether he was a U.S. citizen or a green-card holder. (Id. ¶ 27.) Juarez explained that he had DACA status and an EAD and that he was legally authorized to work in the United States. (Id.) On December 17, 2013, Juarez e-mailed Lewandowski and informed her that, based on his research, "he could legally work for Northwestern Mutual regardless of whether he was a citizen or had a visa." (Id. ¶ 29.) Later that day, Lewandowski replied, "[s]orry but you have to be a U.S. citizen or have a green card." (Id. ¶ 30 (internal quotation marks omitted).) According to the Complaint, "Northwestern Mutual advertises its blanket ban against hiring anyone who is not a U.S. citizen or U.S. permanent resident on its website."
On July 9, 2014, Juarez filed this putative class action against Northwestern Mutual, alleging alienage discrimination in violation of 42 U.S.C. § 1981. (ECF No. 2.) On September 4, 2014, defendant filed a motion to dismiss the Complaint for failure to state a claim. (ECF No. 22.) That motion is the subject of this Opinion & Order.
To survive a Rule 12(b)(6) motion to dismiss, a complaint must allege "enough facts to state a claim to relief that is plausible on its face." Bell Atl. Corp. v. Twombly, 550 U.S. 544, 570, 127 S.Ct. 1955, 167 L.Ed.2d 929 (2007). "A claim has facial plausibility when the plaintiff pleads factual content that allows the court to draw the reasonable inference that the defendant is liable for the misconduct alleged." Ashcroft v. Iqbal, 556 U.S. 662, 678, 129 S.Ct. 1937, 173 L.Ed.2d 868 (2009) (citing Twombly, 550 U.S. at 556, 127 S.Ct. 1955). In applying that standard, the court accepts as true all well-pleaded factual allegations and draws all reasonable inferences in plaintiff's favor, but does not credit "mere conclusory statements" or "[t]hreadbare recitals of the elements of a cause of action." Id. (citing Twombly, 550 U.S. at 555, 127 S.Ct. 1955).
Section 1981 provides in relevant part, "All persons within the jurisdiction of the United States shall have the same right in every State and Territory to make and enforce contracts ... as is enjoyed by white citizens...." 42 U.S.C. § 1981(a). The statute, as amended by the Civil Rights Act of 1991, prohibits both public and private actors from discriminating on the basis of race or alienage in the making and enforcement of contracts, including employment contracts. See Anderson v. Conboy, 156 F.3d 167, 170, 180 (2d Cir. 1998). Alienage discrimination is discrimination on the basis of citizenship. See, e.g., Anderson, 156 F.3d at 171 (observing that § 1981's "juxtaposition of `persons' and `citizens' suggests that it prohibits alienage discrimination" (emphasis added)); see also 8 U.S.C. § 1101(a)(3) (defining "alien" as "any person not a citizen or national of the United States"). "Alienage discrimination is distinct from both national-origin and birthplace discrimination." Anderson, 156 F.3d at 171 n. 5 (citation omitted).
To state a claim under § 1981, a plaintiff must allege that (1) he or she is a member of a protected class, (2) the defendant intentionally discriminated against him or her on the basis of membership in that protected class; and (3) the discrimination concerned one of § 1981's enumerated activities. See Brown v. City of Oneonta, 221 F.3d 329, 339 (2d Cir.2000) (citation omitted).
There is a close relationship between § 1981 and the Fourteenth Amendment. Section 1981 is derived from Section 1 of the Civil Rights Act of 1866 and Section 16 of the Voting Rights Act of 1870. Anderson, 156 F.3d at 172. "Both of these laws, in turn, were legislative cousins of the Fourteenth Amendment":
Gen. Bldg. Contractors, 458 U.S. at 389, 102 S.Ct. 3141 (citations omitted). "In light of the close connection between these Acts and the Amendment, it would be incongruous to construe the principal object of their successor, § 1981, in a manner markedly different from that of the Amendment itself." Id. at 389-90, 102 S.Ct. 3141. In particular, "purposeful discrimination that violates the Equal Protection
Defendant does not dispute that the Complaint sufficiently alleges the first and third elements required to state a claim under § 1981-namely, that plaintiff was a member of a protected class and that the alleged discrimination concerned one of § 1981's enumerated activities. Rather, defendant argues that the Complaint fails because it does not (and cannot) plausibly allege that Northwestern Mutual engaged in intentional, purposeful discrimination on the basis of alienage. (See Defendant's Memorandum of Law in Support of Its Motion to Dismiss ("Def.'s Mem.") at 1, ECF No. 23.) Defendant cites Iqbal for the meaning of "discriminatory purpose":
Iqbal, 556 U.S. at 676-77, 129 S.Ct. 1937 (citations omitted). According to defendant, Northwestern Mutual's willingness to hire LPRs — "the single largest group of non-U.S. citizens who are authorized to work in the United States" — renders implausible any allegation that the company refused to hire Juarez "because of" his lack of U.S. citizenship. (Def.'s Mem. at 1; see also id. at 15 ("[The] Complaint acknowledges that if he had held a green card, Juarez would have been welcome to apply for a contract notwithstanding his lack of United States citizenship."); 11/3/14 Tr.
The policy alleged in the Complaint — essentially, "Legal aliens without green cards need not apply" — on its face discriminates against a subclass of lawfully present aliens. Juarez's allegations that he was denied employment pursuant this policy are sufficient to state a claim under § 1981. This conclusion follows directly from three premises, each of which is well supported in the law: (1) § 1981's protection against discrimination extends to all
The protection of § 1981, like that of the Fourteenth Amendment, extends to all lawfully present aliens, whether or not they have a green card. See 42 U.S.C. § 1981 ("All persons within the jurisdiction of the United States shall have the same right...." (emphasis added)); Anderson, 156 F.3d at 173-74 (explaining that "any prohibition against alienage discrimination [in § 1981] must be derived from Section 16 of the 1870 Act," id. at 173, and later concluding that "Section 16 was to apply to all aliens," id. at 174); see also Torao Takahashi v. Fish & Game Comm'n, 334 U.S. 410, 419-20, 68 S.Ct. 1138, 92 L.Ed. 1478 (1948) ("The protection of [§ 1981 (then codified at 8 U.S.C. § 41)] has been held to extend to aliens as well as to citizens.... The Fourteenth Amendment and the laws adopted under its authority thus embody a general policy that all persons lawfully in this country shall abide `in any state' on an equality of legal privileges with all citizens under non-discriminatory laws." (emphasis added) (footnote omitted)). Indeed, defendant does not dispute that all lawfully present aliens, including those who do not hold green cards, are protected under § 1981. (See 11/3/14 Tr. at 15.)
Defendant also does not dispute that a plaintiff need not allege discrimination against all members of a protected class to state a claim under § 1981. (See Reply Brief in Support of Northwestern Mutual's Motion to Dismiss at 2-3 (acknowledging that the "observation that a principal cannot escape liability for unlawful discrimination against one member of a protected class merely by establishing that it did not discriminate against every member of that protected class" is "unremarkable" and "undisputed"), ECF No. 40.) In Brown v. Henderson, the Second Circuit explored this issue in the context of a Title VII claim of sex discrimination by virtue of a hostile work environment. See 257 F.3d 246, 252-55 (2d Cir.2001). Like Juarez, the plaintiff in Brown was required to show that the challenged conduct occurred "because of" her protected characteristic. Id. at 252. Although ultimately concluding that the plaintiff could not show that she was discriminated against because of her sex,
Finally, while defendant is correct that "§ 1981 reaches only purposeful discrimination," Gen. Bldg. Contractors, 458 U.S. at 389, 102 S.Ct. 3141, a plaintiff who alleges a policy that is discriminatory on its face is not required to make any further allegations of discriminatory intent or animus. The Second Circuit has explained that there are "several ways for a plaintiff to plead intentional discrimination that violates the Equal Protection Clause," Brown, 221 F.3d at 337, and that the same pleadings standards apply to § 1981 claims, id. at 339. One of the ways to plead intentional discrimination is to point to a law or policy that expressly classifies people on the basis of a protected characteristic. Id. at 337; see also Hazen Paper Co. v. Biggins, 507 U.S. 604, 610, 113 S.Ct. 1701, 123 L.Ed.2d 338 (1993) ("The employer may have relied upon a formal, facially discriminatory policy requiring adverse treatment of employees with [a protected] trait." (citations omitted)); Amini v. Oberlin Coll., 440 F.3d 350, 359 (6th Cir.2006) ("[P]roof of `a facially discriminatory employment policy ... to [avoid hiring] employees in the protected group is direct evidence of discriminatory intent.'" (citations omitted)). It follows that allegations that Juarez's application was rejected pursuant to a policy that expressly denies employment to lawfully present aliens without green cards — a protected subclass — suffice to state a claim under § 1981.
Defendant misinterprets the law when it argues that Northwestern Mutual's willingness to hire some lawfully present aliens renders implausible any allegation of intentional discrimination on the basis of alienage. Iqbal's statement that purposeful discrimination requires that the adverse action be taken "because of" rather than "in spite of" a protected characteristic, see 556 U.S. at 676-77, 129 S.Ct. 1937, is consistent with the principle that one of the ways to engage in purposeful discrimination is to apply a policy that is discriminatory on its face. Facial discrimination is discrimination "because of" a protected characteristic. An employer cannot implement a policy, "Members of protected class P need not apply," and then successfully argue that the policy was not motivated by any animus toward the protected class. Similarly, the employer cannot implement a policy that expressly discriminates against members of a protected class (here, lawfully present aliens) with characteristic X (here, lack of LPR status) and then, when a rejected candidate files a lawsuit, successfully argue that case should be dismissed because the discrimination was on the basis of X rather than the
Hazen Paper Co. v. Biggins, 507 U.S. 604, 113 S.Ct. 1701, 123 L.Ed.2d 338 (1993), does not support defendant's position. In Biggins, the Supreme Court held that an employer does not violate the Age Discrimination in Employment Act of 1967 ("ADEA") "just by interfering with an older employee's pension benefits that would have vested by virtue of the employee's years of service." Id., at 613, 113 S.Ct. 1701. The Court explained that discrimination on the basis of years of service does not run afoul of the ADEA because "an employee's age is analytically distinct from his years of service":
Id. at 611, 113 S.Ct. 1701. Unlike in Biggins, where the classification was on the basis of a characteristic (years of service) that was merely correlated with a protected trait (age), the classification alleged here is expressly based on a protected trait: the alleged policy singles out a subclass of aliens, namely those without green cards, and denies them employment. A Biggins-like analogue would be a policy that discriminates against employees over 50 with Y years of service.
The conclusion that Juarez has stated a plausible claim under § 1981 is supported by a long line of precedent interpreting the Equal Protection Clause.
Since Graham, the Court has repeatedly applied strict scrutiny to statutes discriminating on the basis of alienage.
Id. at 3-4, 97 S.Ct. 2120. The district court held that this provision violated the Equal Protection Clause by discriminating against resident aliens. Id. at 5-6. On appeal, the defendants argued, inter alia, that the provision should not be subjected to strict scrutiny, id. at 7, 97 S.Ct. 2120, because it distinguished "only within the `heterogeneous' class of aliens," not "between citizens and aliens velnon": "[a]liens who have applied for citizenship, or, if not qualified for it, who have filed a statement of intent to apply as soon as they are eligible, are allowed to participate in the assistance programs," id. at 8, 97 S.Ct. 2120 (internal quotation marks omitted). The Supreme Court, citing Graham, squarely rejected this argument, explaining that "[t]he important points are that [the provision] is directed at aliens and that only aliens are harmed by it. The fact that the statute is not an absolute bar does not mean that it does not discriminate against the class." Id. at 9, 97 S.Ct. 2120 (citations omitted). The Court struck down the provision as unconstitutional. Id. at 12, 97 S.Ct. 2120.
The Second Circuit also has affirmed the principle that discrimination against a subclass of aliens is subject to strict scrutiny. In Dandamudi, nonimmigrant aliens
In these cases, statutes that discriminated against a subclass of lawfully present aliens were subjected to strict scrutiny and struck down as violating the Equal Protection Clause. As in these cases, the policy alleged here is "is directed at aliens and that only aliens are harmed by it," Nyquist, 432 U.S. at 9, 97 S.Ct. 2120. Given the close connection between § 1981 and the Equal Protection Clause, Gen. Bldg. Contractors, 458 U.S. at 389-90, 102 S.Ct. 3141, these cases suggest that Juarez's allegations, if proven, would establish a violation of § 1981. See Gratz, 539 U.S.
For the reasons set forth above, defendant's motion to dismiss is DENIED. The Clerk of Court is directed to terminate the motion at ECF No. 22.
SO ORDERED.
(Compl. ¶ 31.) For simplicity, the Court will describe the policy as requiring U.S. citizenship or legal permanent residency. For purposes of resolving the instant motion, the only important feature of the policy is that it denies employment opportunities to (and only to) a subclass of aliens.
Finally, Talwar v. Staten Island Univ. Hosp., No. 12-CV-0033 (CBA)(JMA), 2014 WL 5784626 (E.D.N.Y. Mar. 31, 2014), which is currently on appeal before the Second Circuit, is distinguishable from this case. In Talwar, the plaintiff argued that her employer violated § 1981 by insisting that she obtain an unlimited medical license, which was available only to citizens and LPRs. See id. at *7. Importantly, the employer did not impose this requirement on Dr. Talwar until after she complained about her salary. The district court found that the plaintiff's own testimony on this point undercut any inference that her employer discriminated against her because she was an alien:
Id. (citations omitted). Unlike the employer in Talwar, Northwestern Mutual allegedly rejected plaintiff's application pursuant to a policy that expressly denied employment to a subset of aliens. As explained above, the allegation of a facially discriminatory policy — an allegation not made in Talwar — obviates the need for additional allegations of discriminatory intent or animus behind the alleged adverse action.