Back to Blog
Compliance and LegalJanuary 10, 20232 min read

January 6th, 2023: Hiland Dairy Settles EEOC Disability Discrimination Suit

Employers can avoid disability discrimination lawsuits by effectively addressing reasonable accommodation with clear documentation.

January 6th, 2023: Hiland Dairy Settles EEOC Disability Discrimination Suit featured image

Why this case matters

Reasonable accommodation decisions often hinge on whether the employer evaluated the person’s actual ability to do the job, with or without accommodation. This EEOC settlement is a clear reminder that assumptions and shortcuts create avoidable legal risk.

Disability discrimination case summary

Hiland Dairy offered an individual a job and sent the individual for a standard pre-employment medical exam. After receiving the results, the company rescinded the job offer. A physician reported that the individual was legally blind and characterized this as a safety issue, and the company relied on that statement alone without further investigation or a discussion with the individual.

That approach led to a disability discrimination lawsuit and a settlement cost of $140,000, plus the additional time and expense involved in defending the decision.

The EEOC’s regional attorney in St. Louis emphasized a key standard for employers: “The ADA requires employers to evaluate workers with disabilities based on their actual ability to perform a job, with or without reasonable accommodation…”

For the full EEOC news release, see: Hiland Dairy to pay $140,000 to settle EEOC disability discrimination suit.

DSI Work Solutions perspective on reasonable accommodation

There is an important takeaway from this settlement: when an offer of hire is withdrawn based on an examination or test, the decision must be based on findings that are job-specific and consistent with business necessity.

Equally important is the interactive process. Employers need to engage the individual in a documented conversation that explores reasonable accommodation possibilities instead of relying on generalized conclusions.

This case can apply to many situations where an individual either has, or is perceived to have, a disability. When physical demands are involved, the EEOC’s expectation remains the same: decisions should be grounded in job requirements, measurable evidence, and a clear record of what was considered.

A practical way to reduce risk: job-specific physical demands and documented discussion

The Job Function Matching System provides physical demands testing that is job-specific and consistent with business necessity. The Job Function Match feature helps direct what needs discussion and consideration related to reasonable accommodation.

Employer representatives and physicians often do not have enough job-specific information to support a thorough, well-documented interactive process. When the discussion is missing depth (or missing entirely), organizations are left vulnerable to misunderstandings and a lack of job-related evidence.

To learn more about this approach, visit the Job Function Matching page.

Related Articles

How to avoid EEOC disability discrimination lawsuits featured image

How to Avoid EEOC Disability Discrimination Lawsuits

February 9, 20263 min read

Understand how employers can lower disability discrimination lawsuit risk with clearer standards, accommodations, and defensible workflows.