A federal court has ruled that a former KPMG manager who worked remotely from Georgia during the pandemic can move forward with a discrimination lawsuit under New York state and city laws. The case centers on a Black business development and consulting manager hired by KPMG to work in its New York City office. Due to COVID-19 restrictions, she worked from Georgia for six months, with the understanding that she would later relocate to New York. But before she ever made the move, she was terminated.
She claims KPMG denied her business opportunities because of her race and didn’t want her representing projects as an African-American face. After raising these concerns internally, including with KPMG’s ethics office, she was fired. KPMG cited her rejection of assignments as the reason, but she believes her termination was retaliation for speaking up. Among the assignments was a proposed project in St. Louis, which she declined due to safety concerns following social unrest. Despite voicing these concerns, she said KPMG introduced her to the project team anyway.
In its decision, the court leaned on a recent clarification from New York’s top court, which said state and city discrimination laws also apply to nonresidents who were hired for jobs based in New York. Even if someone isn’t physically working in the state yet, they’re still protected if they were hired for a New York role. The court found that the manager’s claims, including her expectation to eventually work in-person in New York and the fact that her work impacted the state, meant that the discrimination she experienced could be tied to New York jurisdiction.
Other details strengthened her connection to New York: her work number was tied to the city, she physically reported to the office twice, her paychecks were taxed by New York, and she later received unemployment benefits from the state. While her lawsuit also includes a federal claim under Title VII of the Civil Rights Act, the court has not ruled on that yet.
This case is a clear reminder for companies: the location of a remote employee doesn’t always define the legal boundaries of employment laws. As hybrid and remote work arrangements continue, employers need to keep state and local regulations in mind—especially when workers operate across state lines. Even if someone isn’t in the office every day, the law might still treat them like they are.
