Michigan Care Provider Resolves Disability Discrimination Lawsuit for $170K

A Michigan company providing all-inclusive care for the elderly will pay $170,000 and provide other relief to resolve a disability discrimination lawsuit filed by the US Equal Employment Opportunity Commission (EEOC), the agency announced on January 17.

The EEOC’s lawsuit alleged the company had a policy that treated any employee unable to return to work after the expiration of Family and Medical Leave Act (FMLA) leave as having “voluntarily resigned,” resulting in termination. Two employees who requested brief leave extensions—three weeks or less—and provided medical documentation were instead fired. Replacements were not hired until after the employees would have been able to return to work.

This conduct violated the Americans with Disabilities Act (ADA), which prohibits discrimination based on disability. The EEOC filed suit in the US District Court for the Eastern District of Michigan after unsuccessful attempts to reach a settlement through conciliation.

Under a three-year consent decree resolving the lawsuit, the company will pay $60,000 in damages to each of the two employees, train HR staff on ADA compliance, create a reasonable accommodation policy that includes leave extensions, and submit annual reports on leave requests. The company will also provide a list of additional employees terminated at the conclusion of FMLA leave since the EEOC’s investigation began. An additional $50,000 will be distributed among individuals who qualify for reasonable accommodations.

“A brief leave extension can qualify as a reasonable accommodation under the ADA,” said Miles Uhlar, senior trial attorney for the EEOC’s Detroit Field Office. “Employers must engage in an interactive process and carefully evaluate whether such an extension can be granted without undue hardship.”

Compliance Perspective

Issue

The Family and Medical Leave Act (FMLA) provides eligible employees with unpaid, job-protected leave for specified family and medical reasons, with the continuation of group health insurance. Employees are entitled to return to the same or a virtually identical position after their leave ends. Employers cannot take adverse actions, such as discrimination or termination, against employees who request or take FMLA leave. Violations may include altering job responsibilities, reducing hours, changing job locations, denying promotions, or penalizing employees for absences due to FMLA leave.

Discussion Points

    • Review and, if necessary, update your policies and procedures related to FMLA leave. This includes ensuring that policies align with current legal standards and are clearly communicated to all employees. Updates should address how requests for leave extensions are handled, including those related to disabilities, and how the facility ensures compliance with both FMLA and the ADA.
    • Provide ongoing training for human resources staff and facility leadership on FMLA requirements and best practices. This should include educating leadership about employees’ rights under the FMLA, recognizing potential discrimination or retaliation, and ensuring that staff can effectively manage requests for leave and accommodations.
    • Audit FMLA posting requirements and review employee handbooks to verify that the necessary FMLA information is included. Additionally, conduct audits to confirm that no employees who requested FMLA leave faced discrimination or retaliation.

*This news alert has been prepared by Med-Net Concepts, Inc. for informational purposes only and is not intended to provide legal advice.*

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