Under the terms of a formal settlement agreement reached between home improvement retailer Lowe’s Home Centers, LLC, and the Equal Employment Opportunity Commission (EEOC), the company will pay $8.6 million in monetary relief to employees who were denied extended leave to accommodate their disabilities.  The EEOC had sued the company alleging that its leave policy violated the Americans with Disabilities Act (ADA).

In addition to doling out $8.6 million in monetary relief, Lowe’s also has agreed to:

  • Hire a consultant with ADA expertise to review and revise company policies;
  • Conduct ADA training for both supervisors and staff;
  • Develop a centralized tracking system for employee requests for accommodation;
  • Maintain an accommodation log; and
  • Submit regular reports to the EEOC verifying compliance with the terms of the settlement.

The four-year consent decree underscores the EEOC’s intent to challenge the rigid application of employer maximum leave policies whenever the issue comes to the agency’s attention.  Although the company in this case made no admission of liability, the message from the EEOC to other employers is clear: enforce a maximum leave policy at your own risk.

Members of the Equal Employment Advisory Council (EEAC) can read more here.