UPS Settles Lawsuit over Its 12-Month Leave Policy for $1.7 Million

United Parcel Service (UPS) has settled for $1.7 million a lawsuit begun in 2009 over its 12-month leave policy, which on the surface sounds generous but which the Equal Employment Opportunity Commission (EEOC) found in violation of the Americans with Disabilities Act (ADA). The UPS policy allowed employees to take a full 12 months off without pay for medical leave, but if they failed to return after that period, they would be terminated. The EEOC contended that the termination clause violates the ADA because that law requires an "interactive process" to determine if there's a "reasonable accommodation" that would allow the employee to continue working. In 2016, the EEOC clarified its position by issuing guidance titled "Employer-Provided Leave and the Americans with Disabilities Act." To prevent similar issues and ensure compliance with the ADA, companies should consider implementing workplace diversity and inclusion training. This training helps employers understand the importance of reasonable accommodations and the interactive process, fostering an inclusive environment where employees with disabilities are supported and treated fairly.