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EEOC Sues New Mexico Medical Facility for Disability Discrimination

A medical facility in New Mexico violated federal law by failing to accommodate an employee with a disability and firing her because of her disability, the US Equal Employment Opportunity Commission (EEOC) charged in a lawsuit announced on March 31, 2026.

According to the EEOC’s lawsuit, around 2021, a long-term employee of the facility fractured her foot and tore tendons in her ankle. After returning from medical leave and working light duty in a patient care position for months, the employee requested reassignment as a reasonable accommodation. Although a vacant receptionist position that she could perform within her restrictions existed, the facility did not reassign her. Instead, the facility fired the employee and stated in its termination letter that she would not be eligible for rehire until she was “fully recovered” or had “a release for full duty.”

Such alleged conduct violates the Americans with Disabilities Act (ADA), which requires employers to reasonably accommodate qualified employees with disabilities and includes reassignment to a vacant position as a possible accommodation. The EEOC filed suit after first attempting to reach a pre-litigation settlement through its administrative conciliation process.

“Policies or practices requiring an employee with a disability to be fully recovered or to return to work at full duty levels violate the ADA,” said Mary Jo O’Neill, regional attorney for the EEOC’s Phoenix District Office. “Employers are required to make reasonable accommodations for employees with disabilities, absent undue hardship, including reassignment to an open position.”

Compliance Perspective

Issue

Disability discrimination is prohibited in the workplace under federal law, and employees must be provided reasonable accommodations unless doing so creates an undue hardship. Reasonable accommodations may include modified schedules, reassignment to a vacant position, or other adjustments that enable an employee to perform the essential functions of the job. Employers must engage in an interactive process when an accommodation is requested and must apply policies consistently and without retaliation. Failure to properly evaluate and implement accommodation requests can lead to regulatory enforcement actions, monetary liability, and reputational harm.

Discussion Points

  • Review policies to ensure they clearly prohibit disability discrimination and outline procedures for evaluating accommodation requests. Policies should define the interactive process, documentation requirements, reassignment to vacant positions, and the responsibilities of supervisors and human resources personnel. Facilities may consider periodic review of these policies in consultation with an experienced compliance consultant to confirm alignment with current legal standards and best practices.
  • Provide regular training for supervisors, managers, and human resources staff on recognizing accommodation requests, engaging in the interactive process, evaluating essential job functions, and avoiding retaliation. Educate all employees on their right to request reasonable accommodation and the procedures for doing so. Med-Net Academy offers the course Key Information for Compliance with the Americans with Disabilities Act (ADA). This program defines disability and reasonable accommodation, enabling learners to identify major life activities that may require accommodation, understand coverage under the ADA, and explain employer responsibilities related to the hiring process and ongoing compliance.
  • Periodically audit accommodation requests and employment actions to ensure proper handling and documentation. This includes reviewing personnel files, transfer decisions, denials of accommodation, and timelines for response. Facilities may also consider engaging an external reviewer or consultant to perform targeted assessments, mock reviews, or compliance evaluations to identify potential gaps and strengthen internal processes before issues escalate. Contact Med-Net Healthcare Consulting or info@mednetconcepts.com for more information.

*This news alert has been prepared by Med-Net Concepts, Inc. for informational purposes only and is not intended to provide legal advice.*