Largest ADA Settlement in EEOC History Illustrates Hazard of Following Traditional Workers’ Compensation Practices

By Ted Olsen

In past newsletters, we have warned that - with the expansion of the definition of "disability" in the 2008 Amendments to the Americans with Disabilities Act - employees who experience on-the-job injuries will often be protected by the ADA. We have also warned that many common employer practices with respect to workers' compensation claimants may now be unlawful under the ADA. One example is the traditional employer practice of terminating the employment of a workers' compensation claimant who is unable to return to his or her former position after reaching maximum medical improvement. Under the new ADA, such an employee may be "disabled." Therefore, such an automatic practice will likely be unlawfully discriminatory and a failure to make reasonable accommodation. A well-known employer recently entered into the largest ADA settlement in EEOC history in a case challenging this type of practice.

On September 29, 2009, the U.S. District Court for the Northern District of Illinois approved a consent decree settling a lawsuit filed by the EEOC against Sears Roebuck & Co. In that suit, the EEOC claimed that Sears had an "inflexible" policy of firing employees when they exhausted their workers' compensation leaves, and failing to offer accommodations to enable them to work in other positions. Under the settlement, Sears will pay $6.2 million. Moreover, it will revise its policies so that injured employees will be informed of reasonable accommodation opportunities, and so that no injured worker will be fired without the matter being reviewed by a so-called "centralized leave management team."

Sherman & Howard has prepared this advisory to provide general information on recent legal developments that may be of interest. This advisory does not provide legal advice for any specific situation. This does not create an attorney-client relationship between any reader and the Firm. If you want legal advice on a specific situation, you must speak with one of our lawyers and reach an express agreement for legal representation.

© 2009 Sherman & Howard L.L.C. October 12, 2009

	Contact Us Services Attorneys News and Events Publications About the Firm Inclusiveness Careers In the Media Events and Registration Press Releases Speaking Engagements Articles Client Advisories Subscriptions History Offices Pro Bono Interlaw Contact Us Culture Legal Opportunities Summer Associates Support Staff Publications Client Advisories Home > Publications > Client Advisories > View Largest ADA Settlement in EEOC History Illustrates Hazard of Following Traditional Workers’ Compensation Practices By Ted Olsen In past newsletters, we have warned that - with the expansion of the definition of "disability" in the 2008 Amendments to the Americans with Disabilities Act - employees who experience on-the-job injuries will often be protected by the ADA. We have also warned that many common employer practices with respect to workers' compensation claimants may now be unlawful under the ADA. One example is the traditional employer practice of terminating the employment of a workers' compensation claimant who is unable to return to his or her former position after reaching maximum medical improvement. Under the new ADA, such an employee may be "disabled." Therefore, such an automatic practice will likely be unlawfully discriminatory and a failure to make reasonable accommodation. A well-known employer recently entered into the largest ADA settlement in EEOC history in a case challenging this type of practice. On September 29, 2009, the U.S. District Court for the Northern District of Illinois approved a consent decree settling a lawsuit filed by the EEOC against Sears Roebuck & Co. In that suit, the EEOC claimed that Sears had an "inflexible" policy of firing employees when they exhausted their workers' compensation leaves, and failing to offer accommodations to enable them to work in other positions. Under the settlement, Sears will pay $6.2 million. Moreover, it will revise its policies so that injured employees will be informed of reasonable accommodation opportunities, and so that no injured worker will be fired without the matter being reviewed by a so-called "centralized leave management team." Sherman & Howard has prepared this advisory to provide general information on recent legal developments that may be of interest. This advisory does not provide legal advice for any specific situation. This does not create an attorney-client relationship between any reader and the Firm. If you want legal advice on a specific situation, you must speak with one of our lawyers and reach an express agreement for legal representation. © 2009 Sherman & Howard L.L.C. October 12, 2009 Copyright 2000-2010 Sherman & Howard L.L.C. All rights reserved. Privacy Policy \| Terms of Use