ADA Discrimination Remedies Exclude Retirees Who Are Not “Qualified Individuals”
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APPLIES TO All Employers with 15+ Employees |
EFFECTIVE June 20, 2025 |
QUESTIONS? Contact HR On-Call |
Quick Look
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Discussion
In Stanley v. City of Sanford, Florida, the U.S. Supreme Court said that employment discrimination under the Americans with Disabilities Act (ADA) does not apply when discrimination occurs after retirement and the individual no longer holds or seeks a job with the employer.
There, a city offered firefighters health insurance until age 65 for those retiring with 25 years of service; those who retire earlier due to disability receive only 24 months of coverage. A firefighter retired due to disability before achieving a 25-year tenure. She claimed that the benefits coverage distinction violated the ADA because it turned on whether someone retired due to disability.
The Court said that, under the ADA, a person must prove that they held or desired a job and could perform its essential functions with or without reasonable accommodation at the time of an employer’s alleged act of disability-based discrimination. Failure to meet this requirement means that the person is not a “qualified individual” eligible for ADA’s employment protections. The Court based its analysis, in part, on the present tense form of the ADA’s statutory language defining a “qualified individual.” Ultimately, the language suggests that the statute does not reach “retirees who neither hold nor desire a job at the time of an alleged act of discrimination.”
Notably, the Court recognized that employment discrimination against retirees may still be prohibited by other statutes not at issue in this case. Additionally, this case did not address discrimination against retirees occurring while they were previously employed or when they held or desired a job at the time of discrimination. Employers must still be cautious to refrain from engaging in discrimination against those with qualified disabilities. Best practice is to seek legal counsel before taking any adverse employment action.
Action Items
- Have adverse employment actions against disabled individuals reviewed by legal counsel before taking action.
Disclaimer: This document is designed to provide general information and guidance concerning employment-related issues. It is presented with the understanding that ManagEase is not engaged in rendering any legal opinions. If a legal opinion is needed, please contact the services of your own legal adviser. © 2025 ManagEase