Conduent State and Local Solutions, Inc., the operator of the New York E-ZPass toll collection system, and Broadleaf Results, Inc., an employment agency, have reached a settlement agreement of $120,000 and other relief in a disability discrimination lawsuit filed by the U.S. Equal Employment Opportunity Commission (EEOC). The case not only highlights the issue of disability discrimination but also raises important questions about joint employment and the responsibilities of client employers and staffing agencies under the Americans with Disabilities Act (ADA). The settlement aims to rectify the alleged violations and includes both monetary and non-monetary provisions to prevent future discrimination.

The Lawsuit

The lawsuit, filed by the EEOC in the U.S. District Court for the Eastern District of New York (EEOC v. Broadleaf Results, Inc. and Conduent State and Local Solutions, Inc., Civil Action No. 1:22-cv-4557-PKC-LB), revolves around an employee who was terminated after requesting an accommodation for her hearing-related condition. The employee was placed by Broadleaf to work as a customer service representative at Conduent's E-ZPass Customer Service Center in Staten Island, N.Y. When she experienced difficulties hearing customer calls, she promptly informed both Broadleaf and Conduent supervisors and requested a reasonable accommodation. Additionally, she sought a meeting with management to discuss the status of her accommodation request. Unfortunately, a Broadleaf manager responded by stating, "If you cannot hear, then you can't do the job," resulting in immediate termination. Conduent, as the client employer, failed to take appropriate corrective action to address the discriminatory decision made by Broadleaf, despite being aware of the situation.

Joint Employment and ADA Violations

This case not only sheds light on disability discrimination but also raises the issue of joint employment. In an economy where staffing agencies are increasingly utilized by companies to source workers for essential business functions, it becomes crucial for both client employers and staffing agencies to establish processes that allow workers with disabilities to request accommodations to perform their job's essential functions. The ADA mandates that employers engage with applicants and employees to provide reasonable accommodations for disabilities and prohibits adverse actions against qualified employees based on their disability. Client employers cannot simply hide behind staffing agencies as the employer-of-record to evade their obligations under the ADA.

The EEOC's Legal Action: The EEOC filed the lawsuit after attempting to reach a pre-litigation settlement through the conciliation process. EEOC Trial Attorneys Edumin Corrales and Anastasia Doherty led the litigation, with supervision from EEOC Assistant Regional Attorney Kimberly A. Cruz. By taking legal action, the EEOC aims to ensure that individuals with disabilities are protected from discrimination and that employers fulfill their responsibilities under the ADA.

Settlement Details

The settlement agreement consists of two consent decrees, providing a total payment of $120,000, including compensation for lost wages and other damages suffered by the employee. In addition to the monetary relief, the agreement includes significant non-monetary provisions designed to prevent further discrimination. These provisions encompass injunctive measures that prohibit both Broadleaf and Conduent from discriminating against employees and contingent workers based on disability. Moreover, the settlement requires updates to each company's internal policies to ensure compliance with federal anti-disability discrimination laws. Additionally, mandatory training for management employees about disability accommodation and discrimination laws is part of the settlement to foster awareness and prevent future violations.

Summing it Up

The settlement reached between Conduent and Broadleaf not only resolves the specific disability discrimination case but also highlights the importance of addressing joint employment issues in employment cases. Employers are not allowed to hide discriminatory actions through their use of a staffing company.

Read the EEOC’s Press Release