Sears has resolved a long-running dispute with the EEOC over reasonable accommodations for employees with workers’ compensation claims by agreeing to pay $6.2 million, the largest ADA settlement in a single lawsuit in EEOC history.

The named plaintiff, John Bava, was injured on the job and took workers’compensation leave.  While still disabled by those injuries, he repeatedly attempted to return to work.   In Sears’ view, returning Bava to work was not a reasonable accommodation; instead, it discharged him when his leave expired. 

The EEOC alleged that Sears maintained an inflexible workers’ compensation leave exhaustion policy and terminated employees instead of providing them with reasonable accommodations for their disabilities, in violation of the ADA.   The federal agency also claimed that pre-trial discovery in the lawsuit revealed that hundreds of other employees who had taken workers’ compensation leave were terminated by Sears without seriously considering reasonable accommodations to return them to work while they were on leave, or seriously considering whether a brief extension of their leave would make their return possible.

This settlement is a good reminder of a couple of points for employers.  First, avoid blanket (i.e. “inflexible”) policies regarding disabled employees.  Second, carefully consider — and document — whether an injured employee might be able to return to work with some reasonable accommodation.  Finally,  when an employee’s leave of absence ends, consider whether a reasonable extension of that leave to allow the employee to further recover might be possible.