Can you fire an employee who is unable to return to work due to a medical impairment if that individual has exhausted all of his available leave? What if the employee has been on an extended leave of absence, and has exhausted his Family and Medical Leave Act (FMLA) leave and short-term disability benefits, but still has some restrictions on his ability to work? The answer: maybe, but only if you have engaged in an individualized inquiry under the Americans with Disabilities Act (ADA) before doing so.
Some companies provide generous amounts of leave for employees with health or medical issues. Still, a company should not have a policy by which it automatically terminates employees who cannot return to work when they have exhausted available leave, or if they are unable to return without restrictions. Such policies likely violate the ADA, which generally requires an individualized approach to working with individuals with disabilities. Automatically discharging an employee just because that person has exhausted available leave is not consistent with the ADA's individualized inquiry. Similarly, demanding that individuals be 100% recovered from an injury or impairment before returning to work typically violates the ADA's requirement to accommodate disabled employees who are qualified, but unable to perform the essential job functions without an accommodation.
The Equal Employment Opportunity Commission (EEOC) has challenged a number of companies that maintained these blanket policies, and it continues to do so. On November 9, the EEOC announced that it entered into a consent decree (which is essentially a public settlement agreement) with a nationwide trucking company that supposedly discharged employees automatically upon exhausting their leave or when they were unable to return to work without restrictions. Although the company admitted no wrongdoing, to resolve the lawsuit it agreed to pay $4.85 million, revise its policies to comply with the ADA, provide mandatory periodic training to employees on the ADA, report particular employee complaints about the ADA to the EEOC, post a notice about the settlement, and appoint an internal monitor to ensure compliance with the consent decree.
To avoid these issues or a potential ADA violation due to your leave policies, consider the following tips:
- If you have a policy that requires an employee to be able to work without restrictions, or if you discharge employees as soon as they exhaust available leave, you should work with counsel to revise those policies.
- When an employee is nearing the end of his available leave, send a letter or call the employee to remind him that his leave is about to expire. If the employee is unable to return when the leave expires, set a time to meet with the employee to determine whether you can accommodate the employee, either with more leave (potentially) or with some other type of accommodation. While you are not required to provide indefinite leave, you may be required to grant some additional time off, or consider another accommodation, if the employee qualifies for protection under the ADA.
- Follow-up in writing with the employee after the interactive meeting, to confirm the discussion and avoid any disputes down the road about what was said or agreed upon in terms of the employee's status and ability to return to work.
Managing employee leaves is not easy, and it often requires navigating a variety of statutory rights, including the FMLA, the ADA, and workers' compensation. But taking an individual approach is far better than relying on a "one-size-fits-all" policy, which may very well result in a lawsuit or enforcement action.
