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Employer settles '100% recovery' lawsuit brought by EEOC

    Client Alerts
  • October 16, 2026

Despite decades of counseling and warnings to employers, we still occasionally see situations where a company advises an ill or injured employee that they need to provide medical information that shows a complete recovery without restrictions as a condition of reinstatement from medical leave. These "100% recovery" requirements are a per se violation of the Americans with Disabilities Act as evidenced by a recent $112,500 settlement between the Equal Employment Opportunity Commission and a Florida automobile dealership.

In its complaint, the EEOC alleged that an employee had surgery following a cancer diagnosis. Her doctor released her to return to work with temporary restrictions on lifting and repetitive motions. Although the employee worked a desk job that did not involve these limitations, the employer declined to reinstate her, citing its policy requiring an unconditional release to return to work without restrictions. The EEOC stated that this policy violates the Americans with Disabilities Act because it is not job-related or consistent with business necessity.

The ADA prohibits employers from discriminating against qualified disabled individuals who are capable of performing the essential functions of the job. If the employee has medical restrictions, the employer must determine whether those restrictions prohibit the employee from performing such functions, and whether there are reasonable accommodations that allow the employee to perform such work despite the limitations.

A 100% recovery policy ignores these requirements and closes the door to discussion of potential ways the company can assist the employee to return to work. Employers should review policies and train supervisors to avoid any inference that employees must demonstrate a complete recovery before they will be allowed to return to work following a medical absence.

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