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Leave Policies: Why You Can’t Automatically Terminate A Disabled Employee Whose Leave Runs Out

Zenaida Garcia-Ayala was working as a secretary for drug manufacturer Lederle Parenterals Inc. when she was diagnosed with breast cancer. Lederle held her job open during several disability leaves while she underwent multiple surgeries, chemotherapy and ultimately a bone marrow transplant. But when Garcia-Ayala’s leave finally ran out, the company fired her. She then filed a lawsuit accusing Lederle of violating the Americans with Disabilities Act.

We’ll explain why you can’t rely on your established leave-limit policies when dealing with a disabled employee and offer suggestions to help determine when you may have to extend a disability leave.


Our HR Management & Compliance Report: How To Comply with California and Federal Leave Laws, covers everything you need to know to stay in compliance with both state and federal law in one of the trickiest areas of compliance for even the most experienced HR professional. Learn the rules for pregnancy and parental leaves, medical exams and certifications, intermittent leaves, required notices, and more.


Employee Requests More Leave

Garcia-Ayala took her leave under Lederle’s long-term disability policy, which allowed employees to be absent for up to one year. After her year was up, her doctor authorized her to return to work in another seven weeks. But Lederle refused her request for the extra time and terminated her.

In her suit, Garcia-Ayala charged the drug manufacturer acted illegally by denying her reasonable accommodation request—for additional leave—and then firing her. Lederle argued that extending the leave beyond the one year permitted under its policy was unreasonable because it was too long.

Extending Leave Not A Hardship

The federal First Circuit Court of Appeals disagreed. The court said extending Garcia-Ayala’s leave wouldn’t have been an undue hardship on Lederle because she didn’t ask for an open-ended amount of time off. Plus, there would have been no added cost to Lederle because the leave was unpaid. And temps could have satisfactorily handled Garcia-Ayala’s job functions while she was gone.

The court also noted that Lederle presented no evidence of a business necessity to replace Garcia-Ayala since her absences didn’t affect company operations or negatively impact the ability of other employees to do their jobs.

The case will now go back to the trial court to determine how much Lederle has to pay—including potential punitive damages.

Individual Assessment Required

Although the Garcia-Ayala case arose in Puerto Rico, the court’s analysis of the federal ADA would likely apply in California as well. So, when considering a disabled employee’s request for leave, it’s important not to simply rely on a company policy limiting the amount of time off without first carefully evaluating all the circumstances.

If temporary staffing or another arrangement would allow you to continue your operations during a disabled employee’s absence, holding the person’s slot open for a longer period than your policy calls for may be a reasonable accommodation required by the ADA.

But you don’t have to allow an extended leave if you can show an undue hardship—such as an excessive financial burden or proof that the requested leave would be substantially disruptive or significantly alter the nature or operation of your business.

4 Useful Strategies

Here are some pointers on how to approach these issues:

     

  1. Consider size. The larger your organization, the more likely a court would find that extending an employee’s leave is a reasonable accommodation and not unduly burdensome.

     

  2. Evaluate employee’s special skills. In this case, there was no problem having temps perform the worker’s job. But if the employee has specialized knowledge or skills, this may not be possible. The greater the difficulty in finding a temporary replacement, the more burdensome an extended leave would be.

     

  3. Determine return date. Require workers to give you an estimated return date—verified by a doctor. If the requested leave is open-ended or extremely long, it may not be a reasonable accommodation.

     

  4. Get advice before terminating to avoid ADA disputes. To avoid ADA disputes, get professional advice before terminating someone who has exceeded the time allowed under your leave policy.

 

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