Question: If an employee is no longer capable of performing his/her essential job functions due to a disability, does the employer need to reassign this employee a new position (which he or she is qualified for) ahead of better-qualified employees?

Answer: Yes…Well, sometimes.

The Seventh Circuit Court of Appeals made the ultimate ruling that if a disabled employee needs a transfer in order to keep working, an available position for which they are qualified has to go to that employee. This remains true unless the employer can prove that offering the person the job over another candidate would amount to an unreasonable accommodation.

The ruling came from a lawsuit filed by the EEOC against United Airlines. The agency claimed the airline illegally required workers with disabilities to compete for vacant positions that they were qualified to obtain. The EEOC claimed that this requirement violated the ADA. United refuted the statements and initially won the suit.

Unfortunately for United Airlines, when the decision was further reviewed by the Seventh Circuit Court of Appeals it was overturned. The Seventh Circuit Court felt that United’s requirement for disabled employees to compete for positions worked against the ADA’s requirement to provide reasonable accommodations.

The airline did petition the Supreme Court to review the case, but the request was denied. This allowed the EEOC to pursue its case against United.

Instead of waiting for the EEOC, United decided to settle the lawsuit to the tune of $1 million. The money will be paid out to a class of former United employees with disabilities. United also agreed, as part of the settlement, to revise its reassignment policy, train employees and management on the changes and provide reports to the EEOC on disabled individuals who are denied reassignment.