Dillard's Inc., a national retail chain, will pay $2 million and commit to extensive, company-wide injunctive relief to settle a class action disability discrimination lawsuit filed by the U.S. Equal Employment Opportunity Commission (EEOC), the agency announced today. At issue was Dillard's longstanding national policy and practice of requiring all employees to disclose personal and confidential medical information in order to be approved for sick leave. The settlement also resolves claims that Dillard's terminated a class of employees nationwide for taking sick leave beyond the maximum amount of time allowed, in violation of the Americans with Disabilities Act (ADA).
The EEOC argued that the policy violated the ADA which prohibits employers from making inquiries into the disabilities of their employees unless it is job-related and necessary for the conduct of business. The District Court ruled that Dillard's medical disclosure policy was facially discriminatory under the ADA. The EEOC expects to identify thousands of victims across the U.S. through the claims notice process designed to distribute the class fund arising from this settlement.
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