Following the EEOC’s pursuit of a disability discrimination lawsuit, a chain of Dunkin’ Donuts franchisees has agreed to pay out a $250,000 settlement. In a new update released by the US Equal Employment Opportunity Commission (EEOC), the Daly/Kenney Group, LLC, and 15 related companies, owners, and operators of Dunkin’ Donuts restaurants in New Bedford and Fairhaven in Massachusetts, have agreed to put an end to what has been referred to as a “100% healed” policy.
The policy restrictions were found to limit employees’ access to continued employment following medical concerns, which was seen as a violation of the Americans with Disabilities Act (ADA), a critical labor law in the US. The settlement is set to benefit not only the class of affected employees who brought on the case, but scores of others who will see an update to these employment practices.
Dunkin’ franchisees agree to settle disability discrimination allegations for $250,000 with updates to the existing medical leave policy. (Image: Pexels)
Dunkin’ Donuts Franchise Owners Agree to Settle a Disability Discrimination Lawsuit
To understand the outcome of this lawsuit, it’s important to explore the allegations levied against several Dunkin’ Donuts companies. According to the EEOC, since March 2013, multiple Dunkin’ Donuts franchisees had a version of a “100% healed” policy that did not provide accommodations to employees with actual or perceived medical restrictions. Instead, employees were placed on unpaid, indefinite leave, even if they were capable of performing the essentials of the role they were hired for.
Employees were allegedly denied any assistance or an opportunity to return, some even being fired, unless they were able to bring a doctor’s note or other documentation that certified that they were fully fit and free of medical limitations to perform their jobs. Two of the franchisees were also accused of mixing employees’ medical records with their personnel files.
The Americans with Disabilities Act Requires Employers to Make Reasonable Accommodations
The Dunkin’ Donuts franchisees’ 100% healed policy may have allowed employers to ensure that workers came into work without any medical concerns holding them back from performing their jobs as necessary, but such policies can be deemed as unlawful. As the disability discrimination lawsuit suggests, employers are required to review each case of medical accommodation requested by an employee to determine whether any adjustments can be made without undue hardship to the business.
Medical issues and disabilities, whether temporary or permanent, do not bar workers from seeking employment, as their right to earn a living is protected by the labor laws in the region. A blanket policy to address accommodations and the need for certification from medical professionals to allow workers back into the workplace can be seen as a violation of their rights and should be avoided to ensure compliance with anti-discrimination laws.
“We appreciate the defendant’s willingness to enter into an early resolution of this case, eliminating the unlawful policy and appropriately compensating those harmed by it,” Kimberly Cruz, Regional Attorney of the EEOC’s New York District Office, offered in a statement. “100%-healed policies are rooted in outdated prejudices about workers with disabilities and do not belong in the modern workplace.”
What Does the Dunkin’ Donuts Franchisees’ Settlement with the EEOC Entail?
With the Dunkin’ Donuts franchisees agreeing to settle the allegations of disability discrimination, a $250,000 payout is in order. Additionally, the companies have 30 days to eliminate any existing limitations that could be interpreted as a 100% healed policy. They will have to update their employee handbooks accordingly to alert employees to the change. The companies can no longer require employees to recover or mandate such documentation with abandon. The employers must not only change the policy but also inform employees of their disability accommodation rights to ensure that they have a clear contact available to report any discrimination or retaliation for requesting accommodations.
Within the next 60 days, these employers will be required to distribute the updated handbook electronically to all employees at every location and ensure that a physical copy is also available at each location, accessible without requiring a manager’s assistance. Alongside this, supervisors and HR workers will also have to receive detailed training on ADA accommodations so they can navigate their way around future requests. All employees must similarly receive annual training on requesting accommodations. These sessions must be recorded for newer recruits or absent workers to access the information.
For the next four years, the EEOC can also be expected to keep a close watch on the Dunkin’ Donuts franchisees over the course of this decree. Every six months, the companies must report every accommodation request and their response to the agency. The EEOC may also conduct reviews independently, with the allowance of a five-day notice before doing so. These changes aren’t just a matter of enforcing the consequences of a lawsuit, but ensuring that the franchisees accused in the lawsuit build a more structured system around ADA compliance.
Auditing Internal Operations Regularly to Ensure ADA Compliance Is Good for Any Business
The disability discrimination lawsuit may have been settled, but for the Dunkin’ Donuts franchisees, this now means years of additional scrutiny to ensure they stay on track with the recommended changes. This case isn’t just a lesson in labor law compliance for the defendants, but for US businesses at large. Overarching, single-solution policies that are inflexible and do not make room for accommodations can be harmful to operations, as employees may require varying support on the basis of their specific circumstances.
One way to avoid such pitfalls is to ensure that organizations annually review their policies to ensure that they are compliant with federal and local regulations. Ensuring that management staff are trained to respond appropriately to requests is equally beneficial, where cases like this can serve as a basis for updating internal policy and retraining workers to ensure they are aware of how to respond. Avoiding penalties is certainly a preferable outcome, but the goal must be to maintain workplace standards of the highest order and ensure that they regularly adapt to reflect the dictates of the law.
Subscribe to The HR Digest for more insights on workplace trends, layoffs, and what to expect with the advent of AI.
