Can Company Fire Employee for Misconduct Tied to a Disability?

When an employee ties misconduct to a disability, HR has to weigh ADA compliance against policy enforcement. One misstep can trigger a lawsuit.

A recent Fourth Circuit ruling clarifies that the ADA does not shield dishonesty or policy violations, even if linked to a medical condition.

ADA Case Study: Misconduct During Pre-Employment Physical Exam

This ADA compliance case began during hiring, when a job applicant lied on a pre-employment physical exam.

In August of 2021, John Sigley applied for a job as a material handler with ND Fairmont LLC, a paper product manufacturer in West Virginia. The job involves lifting, pushing, stooping and standing.

Fairmont extended Sigley a job offer that was contingent on his ability to pass a physical exam. It outsourced the physical to a third party that was very careful to make sure Sigley knew it was unacceptable to lie about his health history.

More specifically, it had him initial a statement acknowledging that he would be fired if he provided any “false, incomplete, incorrect or misleading” information.

It also specifically asked on a questionnaire if he had any prior back issues. Sigley responded with a definitive “never.” When it asked him if he had ever seen a chiropractor or doctor about his back, he again answered “never.”

For good measure, the clinician then had Sigley review the questionnaire again and initial it.

When Disability Is Disclosed After Hiring: Managing Misconduct

Sigley passed the physical and was hired. He began working in mid-September of 2021.

Things went well, but only for a few weeks. Near the end of October, Sigley called out of work. The next day, he dropped a bomb on the company’s HR manager, telling her he had undergone three back surgeries in the past two years and had a metal rod in his back.

He also disclosed that he sometimes experienced back spasms and said that was why he had missed work the day before.

After confirming that Sigley had lied about his health history in connection with the exam, Fairmont terminated his employment.

Employee Discipline vs ADA: Legal Boundaries and HR Implications

Sigley sued Fairmont, alleging unlawful disability discrimination under the ADA.

He later added claims that the HR manager breached confidentiality rules when she asked about the physical and that Fairmont did not accommodate his disability.

A lower court ruled against him, and he filed an appeal.

Court Ruling: Disability Doesn’t Protect Against Misconduct Discipline

The U.S. Court of Appeals for the Fourth Circuit upheld the lower court’s decision in favor of the employer. The circumstances of Sigley’s discharge did not permit a reasonable inference of unlawful disability discrimination, the appeals court said.

Sigley conceded that he lied about his history of back injury, the appeals court noted, and the employer said that was why his employment was terminated.

The only reasonable inference permitted by the evidence was that Fairmont terminated Sigley’s employment because he was dishonest, the court explained.

Sigley argued that his disclosure of his disability barred Fairmont from taking any adverse action against him. But misconduct and disability are two different things, the court said, and employers can discipline employees for engaging in misconduct – even if the misconduct is disability-related.

“Sigley admits that he was dishonest, and dishonesty is misconduct worthy of termination, even if it is connected to a disability,” the court said.

The appeals court also ruled that Sigley’s remaining claims relating to confidentiality and accommodation were untimely.

The lower court’s decision was affirmed.

HR Guide: Balancing ADA Accommodation with Misconduct Discipline

When it comes to the duty to accommodate employee disabilities under the ADA, employers can take some comfort in knowing that the duty does not extend so far as to excuse disability-related job misconduct.

The EEOC has made it clear that employers can discipline employees for disability-related misconduct, while cautioning employers to make sure that conduct rules are legitimate and that all employees are required to follow them.

Consider these important points when handling disability-related misconduct:

• Employers are not required to excuse misconduct – even if it’s related to a disability.
• Apply disciplinary rules consistently – and document enforcement across all employees.
• During physical exams, obtain signed disclosures that dishonesty is grounds for termination – then securely file them.

Sigley v. ND Fairmont LLC, 129 F.4th 256 (4th Cir. 2025).