Navitas Systems to Pay $95,000 Over Disability Discrimination for Firing Employee After Medical Leave

Background

Navitas Systems, LLC, a battery manufacturer based in Ann Arbor, Michigan, faced legal action after allegedly terminating an employee who returned from medical leave with temporary restrictions due to an arm injury. The case centered around the company's policy requiring employees to be completely restriction-free before returning to work.

Incident Details

An employee at Navitas suffered a severe injury to his left arm. His physician cleared him to resume work with a temporary restriction—avoiding use of his injured arm. Despite his ability to perform his job using only his other arm, Navitas refused his return under its blanket policy that mandated all returning workers be "100% restriction free." As a result, the company terminated the employee.

Legal Background

The Americans with Disabilities Act (ADA) prohibits discrimination based on disability and requires employers to provide reasonable accommodations unless doing so would cause undue hardship. Blanket return-to-work policies that fail to consider individual circumstances or potential accommodations can violate the ADA.

The EEOC filed the lawsuit in the U.S. District Court for the Eastern District of Michigan (Case No. 2:24-cv-12478) after failing to reach a resolution through conciliation.

Settlement and Compliance Measures

As part of a three-year consent decree, Navitas Systems agreed to:

• Pay $95,000 in damages to the affected employee.
• Eliminate its former “100% restriction-free” return-to-work policy.
• Provide ADA training to all managers, supervisors, and HR staff annually.
• Submit yearly reports to the EEOC documenting accommodation requests and return-to-work cases.

Key Takeaways

1. Blanket policies for returning employees can be discriminatory under the ADA.
2. Employers must assess whether employees with restrictions can still perform their essential job duties.
3. ADA compliance requires an individualized, interactive approach to workplace accommodations.

Conclusion

The settlement between Navitas Systems and the EEOC reinforces that policies requiring employees to be completely restriction-free after medical leave may violate federal disability law. Employers are expected to engage in an interactive process and determine whether reasonable accommodations can be made to support returning workers. This case highlights the importance of flexible, compliant return-to-work practices that uphold the rights of employees with temporary or permanent disabilities.