October 13, 2023

Are Your Company’s Return To Work Policies ADA Compliant? Let’s Review!

David Law

by David Law

On Wednesday, October 4, the U.S. Equal Employment Opportunity Commission (EEOC) announced that Public Service Company of New Mexico (PSCNM) and PNMR Services Co. agreed to pay $750,000 (among other terms) to settle a case alleging violations of the Americans with Disabilities Act (ADA).  This announcement is a good reminder for employers to review their policies and practices impacting employees who are returning from a medical leave of absence.

In the lawsuit, the EEOC alleged that PNM had a policy or practice of failing to accommodate qualified employees with disabilities.  Specifically, the EEOC alleged that employees were not allowed to return to work after a medical leave of absence unless they were released to “full duty” and could perform their job functions without medical restrictions.  Employers cannot, however, condition an employee’s return to work on his or her ability to work without restrictions.  Instead, when an employee is returning from some type of medical leave, employers should contact the employee to confirm the return to work date, and inform the employee that if accommodations are needed, the employee must inform the employer so that the parties can engage in the interactive process.

The EEOC also alleged that PSCNM and PNMR Services violated the ADA by firing employees who were not fully recovered within 90 days after going on leave.  Blanket policies that require employees to return from a leave within a specified time period – even very lengthy periods – are not allowed under the ADA.  If an employee has exhausted all available leave, an employer should engage in the interactive process to determine whether additional leave or another accommodation is appropriate.  Importantly, courts have routinely held that requests for indefinite leaves of absence are not reasonable under the ADA.  Therefore, if an employee has no idea of when he or she may be able to return to work, the employer might be in a position to terminate employment.

Although PSCNM and PNMR Services may and likely do strongly contest the EEOC’s allegations, the settlement provides good reminders for employers to review their return-from-leave policies and practices, and ensure they are ADA compliant.

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