Owens v. PricewaterhouseCoopers LLC
786 F.Supp.3d 831
S.D.N.Y.2025Background
- Plaintiff Nina Owens, a 55-year-old Asian-American woman, joined PwC as a principal in 2019 with the task of developing its credit card consulting practice.
- Owens alleges she was subjected to age, race, and gender discrimination, including hostile treatment and being deprived of opportunities and credit for her work.
- After reporting alleged discrimination and filing a formal ethics complaint, Owens was forced by PwC to withdraw the day before her five-year anniversary, when certain benefits would vest.
- Owens filed suit alleging discrimination, retaliation, and violation of ERISA; PwC subsequently initiated arbitration based on breach of her partnership agreement.
- PwC moved to compel arbitration of Owens's claims; Owens sought to stay the ongoing arbitration.
- The court’s decision revolves around whether Owens’s claims (particularly under the NYCHRL) fall under the scope of the Ending Forced Arbitration of Sexual Assault and Sexual Harassment Act (EFAA), making the arbitration clause unenforceable.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether forced arbitration is valid for Owens’s claims under EFAA and NYCHRL | EFAA makes arbitration clause unenforceable for sexual harassment claims under NYCHRL | Claims do not amount to sexual harassment and must be arbitrated | EFAA applies; arbitration clause unenforceable as to Owens’s claims |
| Definition of "sexual harassment" under NYCHRL and if Plaintiff’s pleading meets it | "Sexual harassment" includes unwelcome, gender-based conduct, not just sexual/lewd acts | Only lewd, sexual, or romantic conduct is sexual harassment | Unwelcome gender-based conduct (not necessarily lewd) suffices under NYCHRL |
| Whether Owens was an "employee" covered by NYCHRL | Despite "principal" title, functionally an employee under relevant factors | She was a partner, not an employee | Owens plausibly alleged employee status, so NYCHRL applies |
| Whether court should stay PwC’s separate arbitration proceeding | EFAA should void arbitration of related counterclaims in AAA proceeding | Arbitration provision still applies to non-judicial AAA claims | No stay; EFAA invalidates arbitration only for case in court, not AAA action |
Key Cases Cited
- Mihalik v. Credit Agricole Cheuvreux N.A., Inc., 715 F.3d 102 (2d Cir. 2013) (sets the low pleading standard for NYCHRL discrimination and distinction between discrimination and sexual harassment)
- Nicosia v. Amazon.com, Inc., 834 F.3d 220 (2d Cir. 2016) (courts' role in determining if valid arbitration agreement exists)
- Griffin v. Sirva, Inc., 29 N.Y.3d 174 (N.Y. 2017) (factors for determining employer-employee relationship under NY law)
- Williams v. New York City Hous. Auth., 872 N.Y.S.2d 27 (N.Y. App. Div. 1st Dep’t 2009) (NYCHRL protects against both discrimination and sexual harassment; sexual harassment is a subset)
- Gregory v. Daly, 243 F.3d 687 (2d Cir. 2001) (hostile work environment harassment does not require lewd/sexual conduct)