2:15 am - Monday May 20, 2013

$3.2 Million Reasons to Evaluate Your Companies Disability Management Policy

Once again, another employer fails to understand and have clear policies to help employees returning to work after a disability. This case highlights the importance of having  appropriate ADA  accommodation policies, evaluating job descriptions and understanding how to conduct the interactive conversation with disabled employees. Most employers think the ADA does not apply to workers compensation injuries – think again, if the employee has a disability they are covered under the ADA, if you company is subject to ADA regulations.

The EEOC issued the following Press Release regarding their $3.2 Million settlement with Supervalu.

Press Release From EEOC.gov – A federal judge today signed a consent decree for $3,200,000 and extensive remedial relief resolving the U.S. Equal Employment Opportunity Commission’s (EEOC) disability discrimination lawsuit against supermarket giants SUPERVALU INC., American Drug Stores LLC, and Jewel Food Stores, Inc. (collectively referred to as “Jewel-Osco”).

According to the EEOC, Jewel-Osco had a policy and practice of terminating employees with disabilities at the end of medical leaves of absence rather than bringing them back to work with reasonable accommodations. Approximately 1,000 employees of the defendants’ Jewel-Osco stores in the greater Chicago area were allegedly terminated under this policy since 2003, the EEOC said. Not all of these former employees wished to participate in the suit or were found eligible by the EEOC.

Such alleged conduct violates the Americans With Disabilities Act (ADA). The EEOC filed suit in U.S. District Court for the Northern District of Illinois (Case No. 09-cv-5637) after first attempting to reach a pre-litigation settlement through its conciliation process.

The consent decree resolving the case, signed this morning by Federal District Chief Judge Ronald Guzman, provides for a fund in which 110 individuals will share, bringing the average award to approximately $29,000 per claimant. In addition to the monetary relief, Jewel-Osco is required to ensure that its employees involved in making accommodation decisions undergo training on the requirements of the ADA and on the types of accommodations that are available to return their employees to the workplace.

Jewel-Osco will also hire consultants to review and recommend changes to its current job descriptions, ensure that the descriptions of the physical requirements of the job are accurate and provide recommendations on possible accommodations to common work restrictions in various positions in the stores. The company will have to report regularly to the EEOC on its efforts to accommodate employees with disabilities who are attempting to return from medical leaves of absence. Furthermore, Jewel-Osco will revise its communications with such employees to assure them that they need not be 100% healed in order to be considered for a return to work, and to inform them of some of the types of accommodations that may be available to them if they are considering returning to work with medical restrictions.

“This very important settlement underscores the EEOC’s commitment to vigorous enforcement of the Americans With Disabilities Act and to ensuring that all workers receive fair and equal treatment in the workplace,” said EEOC Chair Jacqueline A. Berrien.

Regional Attorney John Hendrickson of the EEOC’s Chicago District Office said, “It is vital that employers understand that the primary goal of the ADA is to allow people with disabilities to be active and productive members of the work force,” “Sending them home, with reduced or no pay, and without the ability to advance, thwarts that purpose. I am concerned that some employers believe that keeping an employee who is able to work off the job and on a leave of absence is a reasonable accommodation relieving them of further obligations under the ADA. Such a belief could lead to costly mistakes.”

EEOC Supervisory Trial Attorney Gregory Gochanour added, “We are very pleased with the resolution of this case. Not only have we obtained significant financial relief for a large number of former Jewel and Osco employees, the employment practices that these stores use will be greatly improved. This is a win for the employees and a win for the company as well–it will retain employees who would have been discharged in the past, and so will continue to receive their productive and valuable services.”

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  1. Numbers of Unemployed and Disabled On the Rise | HREOnline's The Leader Board - January 27, 2011

    [...] Do your due diligence, of course. Know the rules of the ADA and the Family and Medial Leave Act as they apply to returning to work after a disability. Companies continually seem to be getting into trouble around this, the latest on my radar screen being a $3.2 million settlement between the Equal Employment Opportuity Commission and supermarket giant Sup…. [...]

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