$150,000 National Car Dealers Settlement to Resolve EEOC Discrimination Lawsuit

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National Car Dealers to pay $150,000 settlement after worker allegedly fired after disclosing a potential cancer diagnosis filed an EEOC Discrimination Lawsuit.

The Case: U.S. Equal Employment Opportunity Commission v. Cappo Management XXIX, Inc.

The Court: U.S. District Court for the Eastern District of California

The Case No.: 2:20-cv-02245-MCE-KJN

The Allegations: U.S. Equal Employment Opportunity Commission v. Cappo Management XXIX, Inc.

According to the allegations in the case, the employers terminated one of their title clerks in a Sacramento dealership over a possible cancer diagnosis. The employee was suddenly ill and missed several days of work. Following the missed days, she informed management that she was hospitalized and diagnostic testing was being completed to search for signs of cancer. According to the suit, the company fired the title clerk one day before her planned return - despite a medical release that allowed her to continue working. In the termination letter the company stated that they advised her to “focus on her health,” and noted it was not a performance-related termination.

The Defendant: U.S. Equal Employment Opportunity Commission v. Cappo Management XXIX, Inc.

The alleged conduct on the part of the employer in the case violates the Americans with Disabilities Act (ADA). The ADA prohibits employers from discriminating against employees based on a disability or a perceived disability. The lawsuit was filed on Nov. 10, 2020 in U.S. District Court for the Eastern District of California (Case No. 2:20-cv-02245-MCE-KJN). Before filling, the EEOC attempted to reach a pre-litigation settlement.

Case Details: U.S. Equal Employment Opportunity Commission v. Cappo Management XXIX, Inc.

Defendant will pay $150,000 as well as hire a consultant to assist in facilitating positive change to current policies and training practices. Doing so enables them to settle the disability discrimination lawsuit as per settlement negotiations. In the consent decree settling the disability discrimination lawsuit, the $150,000 is designated as lost wages and emotional distress damages for workers. The companies are required to put new policies and procedures (or updated, revised policies and procedures) in place to offer reasonable accommodations for employees with disabilities. Doing so requires them to retain an ADA consultant. Additionally, leave-based terminations will now require secondary reviews, and the company will begin to offer annual training to management and human resources personnel. Finally, the company will also start submitting reports to the EEOC during the three-year term of the settlement decree.

If you have questions about California employment law or if you need to file a discrimination lawsuit, please get in touch with Blumenthal Nordrehaug Bhowmik DeBlouw LLP. Experienced employment law attorneys are ready to assist you in various law firm offices located in San Diego, San Francisco, Sacramento, Los Angeles, Riverside, and Chicago.