The Workers’ Compensation - ADA Overlap: Common Employer Pitfalls and Best Practices

Two Laws, One Workforce
Workers' compensation and the ADA create different frameworks for physical ailments that may coincide in the workplace.  Workers' compensation is addressed by state law; the ADA is federal. When the two conflict, the ADA governs, and state law cannot permit or require discriminatory conduct against a person who qualifies as disabled under the ADA. Critically, workers' compensation exclusivity provisions do not shield employers from ADA obligations.

A Workers' Compensation Claim Is Not an ADA Disability, Necessarily
The ADA has a three-pronged definition of disability: a physical or mental impairment that substantially limits a major life activity, a record of such impairment or being regarded as having one. Filing a workers' compensation claim alone does not create a record of such an impairment. Once a claim progresses to a long-term or permanent impact, claim filings may constitute such a record.

Permanent Disability Under Workers’ Compensation Does Not Replace the Interactive Process
An employee deemed permanently and totally disabled under a state workers' compensation act may be presumed disabled by statute or meet the definition of workers’ compensation disability based on vocational factors related to earning capacity.  This determination does not eliminate the obligation to engage in the ADA's interactive process for assessing the benefit of a reasonable accommodation.

Medical Inquiries: Know Your State Law First
The EEOC guidance confirms that the ADA does not prohibit disability-related questions or medical examinations tied to determining workers' compensation liability, provided those inquiries are job-related, consistent with state law and not overly broad or frequent. Importantly, asking about past workers' compensation claims before a conditional employment offer is disallowed. Each state handles unrelated health conditions differently, and employers should confirm their state's requirements to ensure inquiries follow EEOC guidance.

Return to Work Triggers Real ADA Obligations
Stakeholders in a workers' compensation claim, including adjusters, case managers, treating physicians and attorneys, may seek to influence employers’ decisions about return to work. EEOC guidance emphasizes that employers bear the ultimate responsibility for determining whether an employee can perform essential job functions with or without reasonable accommodation. Requiring a full-duty release before allowing return to work skips the interactive process entirely and is not permitted under the ADA.

Settlements Do Not Resolve ADA Claims
A workers' compensation settlement resolves the workers' compensation claim. It does not resolve ADA exposure. Employers looking for broader protection should pursue a separate voluntary resignation and general release that includes express ADA language, separate consideration and is clearly documented as voluntary.
 
For questions about a specific situation or to review release language for ADA compliance, contact Matt Blake or a member of the firm’s Employment Law Team. To view the webinar recording, please click here.