DETROIT – PACE Southeast Michigan, a company providing all-inclusive care for the elderly, will pay $170,000 and furnish other relief to resolve a disability discrimination lawsuit filed by the U.S. Equal Opportunity Commission (EEOC), the federal agency announced today. According to the EEOC’s lawsuit, PACE maintained a policy which treated any employee unable to return to work following the expiration of Family and Medical Leave Act (FMLA)-allowed leave as a “voluntary resignation,” resulting in termination. Two employees requested a brief leave extension of three weeks or less to return to work following the expiration of FMLA leave and provided supporting medical documentation for the extensions. PACE refused to consider the requests and instead fired the employees. Replacements for the employees were not hired until well after the employees would have been able to return to work.Such alleged conduct violated the American Disabilities Act of 1990 (ADA), which prohibits discrimination based on disability. The EEOC filed suit (Case No. 2:24-cv-12424) in U.S. District Court for the Eastern District of Michigan after first attempting to reach a pre-litigation settlement through its conciliation process. Under the three-year consent decree resolving the lawsuit, PACE will pay $60,000 in monetary damages to each of the two former employees, train human resources employees on compliance with the ADA, develop a reasonable accommodation policy which includes examples of additional leave as a reasonable accommodation, and submit annual reports regarding any requests for leave extensions. PACE will also provide a list of additional employees who were terminated at the conclusion of FMLA leave since the EEOC concluded its investigation. An additional $50,000 will be distributed among any of those individuals who would have qualified for a reasonable accommodation.“A brief, finite leave extension can qualify as a reasonable accommodation under the ADA,” said Miles Uhlar, senior trial attorney for the EEOC’s Detroit Field Office. “When such a request is made, employers must engage in an interactive process and carefully evaluate whether such an extension can be granted without undue hardship to the employer.”For more information on disability discrimination, please visit www.eeoc.gov/disability-discrimination-and-employment-decisions. For more information on reasonable accommodations, please visit https://www.eeoc.gov/eeoc-disability-related-resources/reasonable-accommodation. The EEOC’s Detroit Field Office is part of the Indianapolis District Office, which oversees Michigan, Indiana, Kentucky and parts of Ohio.The EEOC prevents and remedies unlawful employment discrimination and advances equal opportunity for all. More information is available at www.eeoc.gov. Stay connected with the latest EEOC news by subscribing to our email updates.
Brief
On May 24, PACE Southeast Michigan agreed to pay $170,000 and provide relief to resolve a disability discrimination lawsuit. Two employees were fired after requesting brief leave extensions to return to work following Family and Medical Leave Act (FMLA)-allowed leave, in violation of the Americans with Disabilities Act (ADA).
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Purpose
The primary purpose of this update is to inform about a significant settlement agreement reached between PACE Southeast Michigan, a company providing all-inclusive care for the elderly, and the U.S. Equal Opportunity Commission (EEOC). The settlement resolves a disability discrimination lawsuit filed by the EEOC against PACE.
Effects on Industry
The resolution of this case has far-reaching implications for the healthcare industry, particularly for companies that provide elderly care services. This settlement serves as a warning to employers in similar sectors that they must adhere to disability rights laws, specifically those related to reasonable accommodations and the Family and Medical Leave Act (FMLA). The industry can expect increased scrutiny from regulatory bodies regarding their compliance with ADA regulations.
Relevant Stakeholders
The stakeholders affected by this update include:
- Companies providing elderly care services
- Employees working in these companies who may require leave extensions due to medical reasons
- Employers operating in similar sectors, such as healthcare and social services, who must ensure they comply with disability rights laws
- The general public, particularly older adults who rely on these services for their well-being
Next Steps
To comply with this update, employers in the affected industries should:
- Review their policies regarding leave extensions to ensure compliance with ADA regulations.
- Develop and implement reasonable accommodation policies that include examples of additional leave as a reasonable accommodation.
- Train human resources employees on compliance with the ADA and provide them with guidance on handling requests for brief, finite leave extensions.
- Submit annual reports regarding any requests for leave extensions and consider providing monetary damages to affected employees.
Any Other Relevant Information
This settlement highlights the importance of complying with disability rights laws in the workplace. Employers must engage in an interactive process when evaluating requests for reasonable accommodations, including brief, finite leave extensions. The EEOC will continue to monitor compliance with these regulations and take action against companies that fail to adhere to them.
