Think Twice Before Replacing an Employee on Medical Leave: Avoiding Costly Discrimination Claims

When an employee goes out on medical leave, it can disrupt your operations—but rushing to fill that role can open the door to serious legal risks.

A recent case involving a healthcare practice is a cautionary tale. An employee took approved leave for carpal tunnel surgery and later requested a brief extension. Rather than accommodate the request, the employer chose to terminate her employment while her original leave was still active. The role was promptly filled by a significantly younger replacement.

The result? The employer faced both age discrimination and disability discrimination claims. The matter was ultimately resolved with a $50,000 settlement.

Key Takeaways for Employers:

1. Understand Your Obligations Under the ADA and FMLA
The Americans with Disabilities Act (ADA) requires employers to provide reasonable accommodations to qualified employees with disabilities—including extended leave when appropriate. Similarly, under the Family and Medical Leave Act (FMLA), eligible employees are entitled to job-protected leave for specified medical reasons.

2. Don’t Assume an Absence Means a Vacancy
Even if the absence feels long or disruptive, avoid immediately moving to terminate or permanently replace a worker who is on protected leave. Consult your HR team or legal counsel to ensure your actions align with federal, state, and local laws.

3. Treat Leave Extension Requests Seriously
An employee asking for a short extension may still be protected under disability laws. A good-faith effort to engage in the interactive process can go a long way in demonstrating compliance and avoiding claims.

4. Avoid Discriminatory Patterns
Replacing an older employee with a younger one—especially during or after medical leave—can create the appearance of age bias. Make sure your decisions are well documented and based on legitimate, nondiscriminatory reasons.

5. Train Managers on Leave Compliance
Your frontline supervisors often make or influence these decisions. Make sure they’re trained on FMLA, ADA, and other workplace protections, so costly mistakes don’t happen.

Final Thought:
Don’t let a temporary absence become a permanent legal issue. Review your leave policies, document your process, and consult with HR or legal advisors before making employment decisions involving medical leave.

Helpful Resources for Employers:

• EEOC: Disability Discrimination
• U.S. Department of Labor: FMLA Guidelines

✴️Have questions or need help with compliance ? Contact CTR Payroll | HR today!