$325,000 Settlement Concludes EEOC’s ADA Suit Against Calif. Assisted Living Facilities Operator

Let us count the ways that Magnolia Health Corporation allegedly violated the Americans With Disabilities Act.

According to the Equal Employment Opportunity Commission, the Visalia, Calif.-based company that operates health care and assisted living facilities throughout California’s Central Valley, did the following:

  • discriminated against a class of applicants and employees on the basis of their disability, having a record of a disability, or being perceived as having one.
  • denied employees accommodations for their disabilities, and refused to hire, or fired, applicants and employees who had disabilities or were regarded as such.
  • rescinded employment offers when applicants’ post-offer medical examinations indicated that they had a record of a disability or had current medical restrictions.
  • required employees be completely free of medical restrictions to work.

No wonder it agreed to pay $325,000 to settle what the EEOC called this “class disability discrimination case.” The company apparently had it out for anyone with a disability.

In addition to the monetary relief, Magnolia agreed to retain an ADA and equal employment opportunity consultant to revise the company’s policies and procedures with respect to disability discrimination, provide discrimination training to the company’s workforce with a focus on disability discrimination, and maintain a centralized system to track all accommodation requests and complaints. EEOC will monitor compliance with a two-year consent decree.

“The EEOC continues to see employers failing to properly engage in the interactive process or implementing policies that undermine the purpose of the ADA, particularly in the health care industry. We encourage employers to reexamine their leave and attendance policies to ensure compliance with the ADA,” said Anna Y. Park, regional attorney for EEOC’s Los Angeles District.

Here’s today’s announcement of the settlement.


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