The Modern Group and Dragon Rig Sales to Pay $35,000 to Settle EEOC Disability Discrimination Case

Background:

The Modern Group, Ltd. (TMG), headquartered in Beaumont, Texas, and its subsidiary, Dragon Rig Sales and Service, LLC, have agreed to a $35,000 settlement with the U.S. Equal Employment Opportunity Commission (EEOC) following allegations of disability discrimination. Dragon Rig Sales and Service, LLC specializes in manufacturing oilfield service equipment for energy and industrial companies.

Allegations:

The EEOC's lawsuit alleged that Dragon Rig and TMG discriminated against an applicant with anxiety and Opioid Use Disorder (OUD). In February 2019, the applicant was offered a job at Dragon Rig after passing the required drug screen with valid prescriptions for his medications. However, the companies rescinded the job offer based on the medical review officer's comments without assessing whether the applicant could perform the essential job functions with reasonable accommodation.

The lawsuit claimed that the companies did not engage in an interactive process or consider possible accommodations, violating the Americans with Disabilities Act (ADA). The ADA protects individuals with disabilities, including those using legally prescribed medications for OUD, provided they are not using drugs illegally.

Settlement:

The EEOC filed suit (Case No. 1:21-CV-451) in the U.S. District Court for the Eastern District of Texas after unsuccessful attempts at a pre-litigation settlement. The court denied the defendants' motion for summary judgment and ruled in favor of the EEOC on several key points, recognizing Dragon Rig and TMG as an integrated enterprise.

Under the consent decree, Dragon Rig and TMG will pay $35,000 to the applicant. The companies will also revise their policies, conduct management training, and implement measures to ensure ADA compliance, including regular training and policy changes to prevent future discrimination.

Conclusion:

This settlement underscores the necessity for employers to comply with ADA requirements and provide fair treatment for applicants and employees with disabilities. The Modern Group and Dragon Rig Sales have committed to improving their practices to prevent similar incidents, highlighting the importance of engaging in an interactive process and considering reasonable accommodations.