October 23, 2025
A major ruling in a return-to-work policy lawsuit may hold dire implications regarding lawsuits between employers and employees.
A major ruling in a return-to-work policy lawsuit may hold dire implications for lawsuits between employers and employees, HR Dive reports.
The U.S. District Court for the District of Oregon ruled in favor of a train conductor employed by the Union Pacific Railroad Co., who, after injuring his shoulder, was permitted to return to work by his medical team without restrictions following physical therapy sessions. However, Union Pacific blocked his return amid concerns of the possibility of injuring himself again–all without a specialized company evaluation.
The conductor sued Union Pacific for disability discrimination under both the Americans with Disabilities Act (ADA) and Oregon’s disability discrimination law due to the company’s “1% rule,” which prohibited his return to work. The policy prohibits employees from working in safety-sensitive jobs, in this case, the conductor having to climb ladders, if there is a one percent chance of “sudden incapacitation” each year.
Even with a green light from the employee’s medical team, the railroad company labeled any employee with a shoulder dislocation as having a permanent restriction, preventing them from performing job duties at full capacity.
His legal team argued that Union Pacific’s policies put their client in a bubble of being a disabled employee without an individual assessment of the employee’s ability to perform job duties. He accused the company of giving him automatic restrictions under the 1% rule, despite the doctor’s orders. A judge and jury sided with him, issuing a lucrative award: $952,863 in front and back pay, $1 million in non-economic damages, and $25 million in punitive damages, bringing the total to $26,952,863.
Union Pacific appealed the verdict but ultimately lost as the court ruled the massive award was supported by sufficient evidence.
Legal experts feel the case should serve as a warning for employers and human resources departments to pay attention if ever presented with a lawsuit under the ADA. It could be easy for an employee to obtain such large awards in similar lawsuits, as the court only needs evidence of intentional discrimination to award punitive damages. Given that Union Pacific is earning $18.5 million per day in profit, the court felt $25 million in punitive damages shouldn’t be much of an issue for the company.
Employers have faced a labyrinth of legal issues in navigating return-to-office policies after years of remote work, especially regarding discrimination claims. Ramifications of violating the Americans with Disabilities Act require employers to host “reasonable accommodations,” which include “modifying workplace policies,” resulting in some employers being forced to “waive certain eligibility requirements” or simply modify remote work for employees with a disability who are required to work remotely. However, some challenges come with ADA claims.
According to Forbes, the challenge is identifying what constitutes a reasonable accommodation, especially in today’s new work culture. However, federal agencies and legal experts have stepped in with advice on how employers can navigate through those challenges. After the U.S. Equal Employment Opportunity Commission (EEOC) settled a few ADA discrimination complaints and released data on how return-to-office policies affect demographics such as working mothers and employees over 50, the agency updated its guidelines with helpful tips.
It’s recommended that employers provide updated training programs that include relevant examples and scenarios for navigating remote and hybrid work environments in an effort to guarantee that employees understand their rights. Given the prevalence of online harassment, the EEOC asks employers to provide additional training. This training should also cover how to report harassment in remote work settings and the resources available to employees who experience or witness such behavior.
Under the law, eligible employees must have a disability or impairment that limits a majority of life activities and be qualified to perform the essential functions of the job, with or without a reasonable accommodation.
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