Wang v. Phoenix Satellite Television US, Inc.
976 F. Supp. 2d 527
S.D.N.Y.2013Background
- Plaintiff Lihuan Wang was an unpaid intern at Phoenix’s New York bureau; she sues under NYSHRL and NYCHRL as diversity jurisdiction claims, alleging hostile environment, quid pro quo harassment, retaliation, and failure to hire.
- Zhengzhu Liu, Phoenix’s Washington D.C. bureau chief, supervised the New York and D.C. bureaus and had hiring/termination authority over interns and employees.
- Wang alleges that during internship Liu made explicit sexual advances in a hotel room after a lunch meeting, and that she objected but the incident impacted future employment opportunities.
- Wang contends that after the incident Liu diminished prospects of permanent hire, instead citing visa sponsorship issues and a visa quota.
- Phoenix moves to dismiss the SAC under Rule 12(b)(6), arguing unpaid interns lack NYCHRL/NYSHRL protection and that Wang cannot allege a viable failure-to-hire claim without a posted position.
- The court, applying the Restoration Act, holds unpaid interns are not employees under the NYCHRL, and grants dismissal of the hostile environment claim while leaving failure-to-hire claims viable.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether unpaid intern Wang may plead NYCHRL hostile environment claim | Wang argues Restoration Act broad construction extends protections to interns | Phoenix argues interns are not employees under NYCHRL | Hostile environment claim under NYCHRL dismissed |
| Whether unpaid intern can state NYSHRL/NYCHRL failure-to-hire claims | Wang alleges unposted vacancy and informal application; discrimination inferred | Phoenix contends lack of posted position and failure to apply negate claim | Failure-to-hire claims survive |
| Whether NYCHRL protections are independent of NYSHRL/Title VII after Restoration Act | Restoration Act requires liberal independent construction aiding discrimination plaintiffs | Statutes have related interpretations but NYCHRL remains separate with its own coverage | Court adopts independent NYCHRL construction; NYCHRL does not cover unpaid interns |
Key Cases Cited
- O’Connor v. Davis, 126 F.3d 112 (2d Cir. 1997) (remuneration threshold to establish employment relationship)
- State Div. of Human Rights v. Bd. of Coop. Educ. Servs., 98 A.D.2d 958, 470 N.Y.S.2d 209 (4th Dep’t 1983) (touchstone is mutually beneficial economic substance)
- Robins v. Max Mara, U.S.A., Inc., 923 F. Supp. 460 (S.D.N.Y. 1996) (compensation matters for employer-employee determination under NYCHRL)
- Loeffler v. Staten Island Univ. Hosp., 582 F.3d 268 (2d Cir. 2009) (Restoration Act requires independent liberal construction of NYCHRL)
- Zakrzewska v. New Sch., 14 N.Y.3d 469, 902 N.Y.S.2d 838, 928 N.E.2d 1035 (2010) (NYCHRL interpreted independently; consistent with federal precedent when similar)
- Sweeney v. Bd. of Educ. of Rocky Point Union Free Sch. Dist., 112 A.D.2d 240, 491 N.Y.S.2d 455 (2d Dep’t 1985) (NYSHRL not extending to unpaid positions absent mutual economic substance)