Lowe’s settles disability bias claim with EEOC for $8.6M

National home-improvement chain Lowe’s has settled charges it violated the ADA when it terminated employees after they exhausted the amount of leave the company permitted. The EEOC sued the retailer arguing that it failed to engage in the interactive accommodation process the ADA requires.

Initially, the company terminated employees who had used 180 days of medical leave. That figure was later raised to 240 days.

The EEOC also alleged Lowe’s violated the ADA by terminating individuals who were “regarded as disabled, had a record of disability or were associated with someone with a disability.”

Employees who were fired after exhausting their leave from Jan. 1, 2004, to May 13, 2010, will share in the $8.6 million settlement.

Lowe’s agreed to a four-year consent decree under which it will retain a consultant with ADA experience to review and revise company policies and implement ADA training for both supervisors and staff. The agreement also requires Lowes to develop a centralized tracking system for employee accommodation and maintain an accommodation log.

The company must post a notice of the settlement and provide regular reports to the EEOC.

Note: Any rule that precludes the individualized assessment the ADA requires most likely violates the ADA. Have your attorney review all policies relating to medical leave and return-to-work to ensure they comply with all applicable laws.