Return-to-Office Mandate Triggers EEOC Lawsuit, $64K Payout

About a third of companies plan to follow Amazon’s lead and issue a return-to-office mandate that requires workers to be in the office five days a week in 2025, according to a recent report from Resume.org.

But before your company jumps on the forced RTO bandwagon, you might want to take a look at an Arizona case that provides valuable takeaways for HR.

Did Return-to-Office Mandate Go Too Far?

When Bell Road Tire and Auto LLC, doing business as Big O Tires, implemented a 100% return-to-office mandate, an employee with a disability sought an accommodation.

The employer refused to engage in the interactive process to discuss accommodations, the employee claimed. Instead, the employer enforced the 100% return-to-office mandate and engaged in retaliation.

The employee filed a complaint with the EEOC, and the agency conducted an investigation.

EEOC Weighs This RTO Mandate

In the EEOC’s view, the alleged conduct amounted to a violation of the Americans With Disabilities Act (ADA), which requires employers to have a good-faith conversation with employees to determine whether a reasonable accommodation can be made.

The investigation also found the employer failed to keep the employee’s medical records separate from their personnel file – a big no-no under the ADA’s recordkeeping requirements.

The parties reached an agreement to settle the matter.

“This resolution sends a clear message about the importance of ADA compliance,” said Melinda Caraballo, district director of the EEOC Phoenix District Office. “By addressing these violations and committing to systemic changes, Bell Road Tire and Auto has taken steps to foster a workplace that respects employees’ rights under federal law.”

100% RTO Mandate Price Tag: $64.5K — Plus Other Relief

In addition to paying $64,500 to the employee, Big O Tires also agreed to:  

• Appoint an ADA coordinator
• Update and distribute written ADA policies and practices to all employees
• Provide enhanced Equal Employment Opportunity (EEO) training for supervisors and HR personnel
• Implement a priority placement program for employees seeking reassignment
• Submit to regular reporting to the EEOC on ADA and retaliation complaints, and
• Post notices about employees’ rights under the ADA.

Key Takeaways for HR Pros

This Big O Tires settlement shows that enforcing rigid return-to-office mandates without considering the company’s legal obligations can turn into an expensive mistake.

Here are several important takeaways from this case to consider before implementing a return-to-office mandate at your company.

1. Engage in the Interactive Process

Don’t dismiss requests for accommodation out of hand. That’s exactly what the EEOC said Big O Tires did here. The ADA requires employers to take a hard look at whether a requested accommodation is workable – and to examine whether other feasible alternatives exist. This is what it means to engage in “the interactive process.”

Ignoring this obligation can lead to legal complaints, reputational damage and financial payouts.

2. Be Flexible With RTO Policies

Is remote work a reasonable accommodation? That’s something that has to be decided on a case-by-case basis. However, some courts have already refused to dismiss ADA lawsuits filed by employees who were denied their requests for remote work as a reasonable accommodation.

Here’s what employers need to keep in mind: Rigid, one-size-fits-all return-to-office mandates can alienate employees, especially those who need accommodations. A more flexible approach that allows for individual circumstances not only ensures compliance but also builds employee trust and loyalty.

3. Protect Employee Confidentiality

ADA compliance includes keeping employees’ medical information separate from their personnel records. Failing to do so, as Big O Tires did, can lead to compliance violations and employee mistrust.

For more help on recordkeeping obligations, check out:

• Record Retention Checklist: Best Practices for HR
• Important FMLA Recordkeeping Requirements HR Needs to Know

4. Prioritize Compliance Training

This past spring, we outlined six manager mistakes that can get your company sued. This current case involves mistake number four from the list: Being unaware of the law.

Provide regular training to help managers understand ADA requirements, including how to handle accommodation requests. Doing so can help prevent stray comments from turning into lawsuits.

The bottom line: Before rolling out a strict return-to-office mandate, HR teams should have an honest conversation with company leaders about the potential legal, financial and cultural ripple effects.