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(November 1998)
State Supreme Court Rules
Disability Discrimination May Now Be
Brought Under Worker’s Comp and FEHA
Effective Date
Immediate
Applies to
Employers with 5 or more employees
Synopsis
Workers who are disabled on the job and denied reasonable accommodations can sue their employers for disability discrimination, the state Supreme Court ruled on August 18, 1998.
Background (Part 1)
Before the ruling, California workers claiming discrimination because of workplace disabilities were restricted to the workers’ compensation system; claims could not be brought in state court.
Background (Part 2)
Since 1990 they could also turn to federal court for up to $300,000 in damages under the Americans with Disabilities Act.
Discussion
Workers who are disabled by workplace injuries and denied reasonable accommodations can sue their employers for disability discrimination, the state Supreme Court ruled. Before the ruling, California workers claiming discrimination because of workplace disabilities were restricted to the workers’ compensation system, which offers quick decisions but limits damages to $10,000 plus wage losses. Since 1990 they could also turn to federal court for up to $300,000 in damages under the Americans with Disabilities Act.

There had been a debate among the Appellate Courts as to whether or not claims of discrimination based on work-related disabilities were restricted to the workers’ compensation system. But the Supreme Court ruling held that such workers may now file claims under both workers’ compensation and the Fair Employment and Housing Act. The FEHA places no limit on damages, and allows punitive damages and attorneys’ fees. It applies to employers of five or more workers.

In Dillon v. City of Moorpark, Theresa L. Dillon, a secretary for the city, suffered a knee injury on the job that required surgery. She said she was cleared by her doctor to return to work in February 1994, and suggested accommodations that would make up for limits in her movements, but was fired instead. She filed both a workers’ compensation claim against the city, which has since been settled, and a disability discrimination suit. This ruling upholds lower-court decisions allowing the suit to proceed and denying the city’s motion to dismiss.

The opinion by Justice Ming Chin said workers must rely solely on the no-fault compensation system for injuries caused by workplace conditions that are part of the “compensation bargain,” trading speedy resolution for limited benefits. But he said different rules apply to discrimination.

Discrimination based on disability “like sexual and racial discrimination, falls outside the compensation bargain, and workers’ compensation is not the exclusive remedy” Chin said. If a disabled employee can do the job as well as a nondisabled employee, he said, “discrimination based on disability, like sex and age discrimination, violates a substantial and fundamental public policy.”
What This Means
The ruling may mean higher costs for employers, slower workers’ compensation proceedings, and more and broader lawsuits. As a result of this ruling, terminating an employee with a recent work-related injury carries new and greater risks. Employers should review their Injury and Illness Prevention Programs and focus on how to prevent or reduce workplace injuries. When an injury does occur, emphasis should be placed on successfully returning the employee to work, with full consideration of any reasonable accommodations.

This bulletin is a general overview of the subject matter, and is not meant to provide professional opinions regarding any specific case, matter, or set of facts, or to substitute for the professional advice of Waag and Co. Instead, please contact Susan S. Waag, Esq. for additional information.
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December 2004: Government Rescinds Emergency Meal Regulation Changes
December 2004: Major Changes in Meal / Rest Break Regulations
August 2004: California’s Infamous “Bounty Hunter” Law Reformed
June 2002: Workers' Comp. Relief for Employers
April 2002: Supreme Court Favors Employers in FMLA Ruling
April 2002: Salary Basis Issue Finally Resolved
November 2001: New California Legislation (update)
November 2001: (2 Court Cases) What is Harassment?
October 2001: New Drug & Alcohol Testing Rules
October 2001: Tax Legislation: New Pension Laws
October 2001: Employers Must Explain Family Leave
March 2001: Rest and Meal Periods II
March 2001: Salary Basis Test Changes to Monthly
January 2001: AB 2509 (Wage & Hour Law)
December 2000: Rest and Meal Periods
Dec. 2000: New Calif. IWC Wage Order 16
Dec. 2000: New OSHA Ergonomics Standards
Nov. 2000: New Workplace Investigations Course
November 2000: Calif. Minimum Wage Increase
March 2000: AB60 Update
August 1999: Sick Pay Law
August 1999: Cal Poly Class and GMS
August 1999: Age Discrimination Law
November 1998: Susan Waag CCPA
November 1998: FEHA Liability Reduction
November 1998: Disability Discrimination
November 1998: COBRA
November 1998: CHP Drug Testing
July 1998: Sexual Harassment


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