What to Do When an Employee Requests FMLA Leave
You’re running a small retail store when a trusted employee approaches you, requesting leave under the Family and Medical Leave Act (FMLA) for a...
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You run a small retail store, and an employee’s chronic underperformance—missed shifts, customer complaints—is dragging down your team. You’re ready to terminate them, but they recently filed a disability claim under the Americans with Disabilities Act (ADA), requesting accommodations. Firing them now feels like walking into a legal minefield: one wrong move could spark a discrimination lawsuit, costing thousands. Yet, keeping an underperformer isn’t sustainable either.
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This guide walks you through how to legally and fairly terminate an employee with a recent disability claim, offering a clear, actionable plan to stay ADA-compliant and avoid lawsuits. From reviewing records to strengthening HR policies, we’ll cover five key steps, packed with real-world examples and practical “Pro Tips” to protect your business. Whether you’re a startup founder, small business owner, or freelancer with staff, let’s navigate this challenge with care.
Step 1: Review the Disability Claim and Employment Records
Before acting, thoroughly assess the employee’s disability claim and performance history to ensure your termination is lawful and unrelated to their disability.
Review the claim: Did they request accommodations, like modified hours or equipment? Check if you’ve provided reasonable accommodations, as required by the ADA (e.g., $200 for an ergonomic chair). Use HR software like BambooHR ($6/employee/month) to access their claim form and medical documentation. Confirm the disability’s status—temporary or permanent—and any approved accommodations.
Examine employment records: performance reviews, disciplinary warnings, and attendance logs. Ensure termination grounds, like “missed 10 shifts in 3 months,” predate the claim and are well-documented. If issues began after the disability, verify they’re unrelated (e.g., poor customer service, not mobility limitations). The EEOC explains ADA requirements for terminations.
Example – Mike’s Retail: Documenting Performance Issues
Mike, a retail manager, planned to fire an employee for repeated tardiness and customer complaints. The employee filed an ADA claim for a back injury, requesting a standing desk. Mike’s records showed warnings issued 6 months before the claim, unrelated to the disability. His documentation justified the termination as performance-based.
Clear records, like Mike’s, prove the termination isn’t retaliatory, reducing legal risks and ensuring fairness.
Step 2: Consult a Lawyer for Compliance
Terminating an employee with a disability claim is legally complex, so consult an employment lawyer to avoid ADA violations and minimize risks.
Find a lawyer via state bar associations or USA.gov. Share the employee’s records, claim details, and termination grounds. The lawyer will verify compliance with ADA and state laws, ensuring you’ve provided reasonable accommodations and that the termination isn’t tied to the disability. They’ll assess risks of retaliation or discrimination claims, which can cost $10,000–$100,000 in settlements or legal fees.
Expect $200–$500 for a consultation or $1,000–$5,000 for full case support. A lawyer’s guidance ensures your process is airtight, especially for high-risk terminations.
Pro Tip – Request a Flat-Fee Consultation
Ask lawyers for a fixed-fee consultation ($200–$400) to review your termination plan, covering ADA compliance and risk assessment. Get a written quote and scope (e.g., “1-hour review, written summary”). This keeps costs predictable and provides clear guidance, saving money on complex cases.
Legal advice gives you confidence to proceed while protecting your business from costly mistakes.
Step 3: Document the Termination Process
A well-documented termination process is your shield against lawsuits. Create a clear, professional record that justifies the decision and shows compliance.
Draft a termination letter citing specific performance issues, like “failure to meet sales targets for 3 months,” avoiding any mention of the disability or claim. Reference prior warnings and attach relevant records (e.g., performance reviews). Conduct an exit meeting with a witness, like an HR rep, explaining the decision calmly and providing the letter. Offer the employee a chance to ask questions but keep it brief—10–15 minutes.
Save all documents—letter, meeting notes, and records—in a secure Google Drive folder. Record the meeting’s date and key points in BambooHR for compliance.
Example – Laura’s Startup: A Clean Termination
Laura, a startup founder, fired an employee for missing deadlines, documented over 4 months. The employee had an ADA claim for anxiety, requesting flexible hours, which Laura provided. She drafted a termination letter citing performance, held a 10-minute exit meeting with her COO present, and saved all records. Laura’s documentation avoided a discrimination claim.
Thorough documentation, like Laura’s, ensures your termination is defensible, protecting your business from legal challenges.
Step 4: Provide Required Accommodations and Notices
Even during termination, you must meet ADA and other legal obligations to avoid violations and ensure a fair process.
Honor reasonable accommodations until the termination date—continue providing the standing desk or flexible hours if approved. Provide mandated notices, like COBRA for health benefits continuation (forms cost $10–$50 via Gusto), within 14 days. Check state laws for additional requirements, like final paycheck deadlines (e.g., within 7 days in California).
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Consider offering severance, like 2 weeks’ pay ($1,000–$2,000), in exchange for a release agreement waiving claims, drafted by a lawyer ($300–$500). This can reduce lawsuit risks but isn’t required.
Pro Tip – Use a Termination Checklist
Create a Google Sheets checklist: “Provide COBRA notice, issue final paycheck, honor accommodations, offer severance.” Check off each step to ensure compliance with ADA and state laws, reducing the risk of oversight that could lead to fines or lawsuits.
Meeting obligations during termination shows good faith, minimizing legal exposure and supporting the employee’s transition.
Step 5: Strengthen HR Policies for Future Cases
A tricky termination highlights the need for robust HR practices. Updating policies ensures you’re prepared for future disability claims and terminations.
Revise performance reviews to be consistent, quarterly, and documented in BambooHR. Train managers on ADA compliance—use SHRM courses ($200–$500)—covering accommodations and non-discriminatory terminations. Develop a clear disability accommodation policy, like “Submit requests in writing; reviewed within 5 days,” and share it with staff.
Conduct annual HR audits to ensure compliance with ADA and state laws, using SBA resources. These steps reduce risks and build a fair workplace.
Pro Tip – Implement an Accommodation Request Form
Create a Google Forms accommodation request form: “Describe disability, requested accommodation, duration.” Require employees to submit it for all ADA claims. This standardizes requests, tracks compliance, and provides documentation, simplifying future terminations.
Conclusion
Firing an employee with a recent disability claim is a delicate task, but with careful planning, you can stay ADA-compliant and protect your business. By reviewing records, consulting a lawyer, documenting the process, providing accommodations, and strengthening HR policies, you’ll terminate fairly and avoid legal pitfalls. Start today by reviewing your HR policies for ADA readiness—proactivity is your best defense.
Have you faced a termination with a disability claim or have concerns? Share your story in the comments or reach out. Your business deserves legal confidence—let’s keep it strong.
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