Employer use of third-party administrators to handle reasonable accommodations can be “inherently problematic,” a U.S. Equal Employment Opportunity Commission attorney cautioned Monday.
The warning came as the agency announced a settlement agreement with retailer JCPenney. EEOC had alleged in a lawsuit, EEOC v. Penney OpCo, LLC, that the employer failed to accommodate a warehouse worker with breast cancer.
The employee had submitted the required written accommodation request and medical documentation to the company’s third-party benefits administrator, according to the commission. The TPA “inexplicably” closed her request, EEOC alleged, and when she took time off for treatment and recovery, she exceeded the number of attendance points allowed and was fired. EEOC then sued on the employee’s behalf.
“Employers’ use of third-party administrators to handle reasonable accommodations can be inherently problematic, especially when not effectively monitored,” said Marcus Keegan, regional attorney for EEOC’s Atlanta district, in a statement.
JCPenney and EEOC agreed to settle the lawsuit for $99,000. The employer also must post a notice at logistics centers informing workers of the settlement and their rights; provide updates to EEOC on its handling of future requests; and train managers on their ADA responsibilities.
The company also agreed to institute and train its managers on a new process for monitoring how its TPA handles ADA accommodation requests and a review procedure before discharging employees who have pending requests.
JCPenney did not respond to a request for comment by press time.