A Michigan hospital will pay $30,000 in compensatory damages and provide other relief to settle a disability discrimination suit filed by the US Equal Employment Opportunity Commission (EEOC), the federal agency announced on February 23, 2026.
The EEOC’s lawsuit alleged that the hospital refused to place a qualified nurse at its Wayne, Michigan, location into certain part-time vacancies as a reasonable accommodation for her disability. According to the suit, the hospital determined that she could not work fewer than 32 hours per week in her position as an accommodation for her medical restriction. The nurse expressed interest in several positions she believed she could perform within her hour limitations and asked to be placed in one of them. However, in April 2019, the hospital allegedly refused to transfer her to a vacant position for which she was qualified and instead required her to apply and compete for openings. After several months of submitting applications, the employee ultimately secured a position on her own.
Such alleged conduct violates the Americans with Disabilities Act (ADA), which requires employers to provide reasonable accommodations to qualified employees with disabilities and includes reassignment to a vacant position as a possible accommodation.
In addition to monetary relief, the consent decree signed on Feb. 12 resolving the lawsuit requires compliance-related reporting to the EEOC, training for human resources employees and managers on the ADA and reasonable accommodations, and the posting of a workplace notice informing employees of their rights and the prohibition against disability discrimination.
“Federal law is clear that employers must make reasonable accommodations for an employee with a disability,” said Kenneth Bird, regional attorney for the EEOC’s Indianapolis District Office. “In some cases, federal law requires employers to reassign a qualified employee with a disability to a vacant position as a reasonable accommodation. Simply offering the employee an opportunity to compete for a vacant position does not meet employer obligations under federal law.”
Compliance Perspective
Issue
Federal law prohibits disability discrimination in the workplace and requires employers to provide reasonable accommodations to qualified employees with disabilities, unless doing so would create an undue hardship. Reasonable accommodation may include modification of 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 may result in regulatory enforcement actions, monetary liability, and reputational harm.
Discussion Points
- Review policies and procedures related to disability discrimination and reasonable accommodation. Ensure policies clearly 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 by an experienced compliance consultant to confirm alignment with current legal standards and best practices.
- Provide regular training to 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 procedure for doing so. Med-Net Academy offers the course Key Information for Compliance with the Americans with Disabilities Act (ADA), which defines disability and reasonable accommodation. Successful completion enables learners to identify major life activities that may require accommodation, explain ADA coverage, and understand employer responsibilities in the hiring process and ongoing employment.
- Periodically audit accommodation requests and employment actions to ensure consistent handling and proper documentation. This may include reviewing personnel files, transfer decisions, denials of accommodation, and timelines for response. Facilities may also consider engaging an external reviewer to conduct targeted assessments or mock reviews to identify potential compliance gaps and strengthen internal processes before issues result in complaints or enforcement actions.
*This news alert has been prepared by Med-Net Concepts, Inc. for informational purposes only and is not intended to provide legal advice.*