US appeals court supports EEOC victory against Walmart in disability discrimination case

Aug 27 (Reuters) – A U.S. appeals court on Tuesday upheld $300,000 in compensation for a former Walmart employee with Down syndrome who was fired because of her disability after 15 years with the company, according to the Equal Employment Opportunity Commission.

The Seventh Circuit rejected several of Walmart’s objections, including its claim that the depression Spaeth experienced after losing her job in 2014 was just as likely a result of her mother’s death around the same time.

“Emotional injuries can often have multiple causes, but the jury was entitled to conclude that Wal-Mart’s decision to fire Spaeth was an important, if not the primary, cause of her depression,” District Judge Ilana Rovner wrote for the court.

The court also asked a federal judge in Wisconsin to reconsider his denial of the EEOC’s request for an order requiring Walmart, the largest private employer in the United States, to make nationwide changes to its policies regarding accommodations for workers with disabilities.

The EEOC did not immediately respond to a request for comment.

In a statement provided by a spokesperson, Walmart, based in Bentonville, Arkansas, said: “We do not tolerate discrimination of any kind and accommodate thousands of associates each year. We are evaluating our options.”

Spaeth worked as a sales clerk at Walmart in Manitowoc, Wisconsin, and regularly worked from noon to 4 p.m., three to four days a week for 15 years, according to court documents. In late 2014, Walmart implemented a computerized scheduling system that changed Spaeth’s work hours.

Spaeth and her family members informed her supervisors that her condition required her to maintain a strict schedule and that she was unable to work the new hours. For example, the time she ate dinner had changed, which made her sick, according to the EEOC.

Walmart eventually fired Spaeth and later refused to rehire her in violation of the ADA, the commission alleged in a 2017 lawsuit. The company claimed Spaeth was fired after she left work early or failed to show up more than a dozen times.

In addition to confirming the $300,000 award, the Seventh Circuit also ruled Tuesday that U.S. District Judge William Griesbach erred in denying the EEOC’s motion for a preliminary injunction.

The Commission’s goal is to prevent Walmart from denying workplace accommodations on the grounds that they are permanent or indefinite, and to make clear in written policies that these accommodations are available.

Griesbach ruled that the requested order would simply compel Walmart to comply with existing laws and was unnecessary. However, he improperly required the commission to prove that Walmart’s conduct was likely to recur, rather than placing the burden on the company to prove it was not, Rovner wrote.

The panel included District Judges Frank Easterbrook and Doris Pryor.

The case is Equal Employment Opportunity Commission v. Wal-Mart Stores East LP, 7th U.S. Circuit Court of Appeals, No. 22-3202

For the EEOC: Chelsea Sharon

For Walmart: Misha Tseytlin of Troutman Pepper Hamilton Sanders

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Dan Wiessner (@danwiessner) covers labor and immigration law, including litigation and policymaking. He can be reached at [email protected].