HRBenefitsAlert.com » How innocent ‘jokes’ turn into costly lawsuits

How innocent ‘jokes’ turn into costly lawsuits

June 4, 2008 by Bill Meltzer
Posted in: Compliance, Employee Assistance Programs (EAPs), Special Report

Benefits and HR managers are used to handling accommodation requests for an array of medical issues. But handling mental health issues are especially tricky — and filled with legal pitfalls.

As employees have become more aware that mental health issues like depression and anxiety are considered medical conditions, accommodation requests have shot up dramatically. How far does your organization need to go to honor such requests?

As long as the employee’s anxiety can be documented medically and unless honoring the request would create extreme economic hardship for your organization, you must honor the request. It’s also crucial to look at the employee’s job description. The key issue to look at is whether the employee can still perform essential job functions.

Also, the employee may not need a permanent accommodation. Example: He or she has started taking a new type of anti-anxiety medication.

Courts have ruled that ADA permits employers to obtain enough information from employees’ mental health provider (psychiatrist, psychologist, licenced clinical social worker, etc.) to determine whether an accommodation is needed and, if so, for how long.

Keep in mind: The purpose of ADA is to provide equal – not preferential – treatment to employees with physical or mental disabilities.

Reasonable vs. unreasonable requests

Legally speaking, mental health conditions are protected under the Americans with Disabilities Act (ADA). That means your organization must honor any reasonable accommodation request tied to a mental health issue. But what’s considered reasonable and unreasonable?

A reasonable request would be something like, “I have an anxiety disorder and my therapist says that I need to limit my work travel.”

An unreasonable accommodation request: “My therapist says my boss is the cause of my depression. I need a new supervisor.”

Even if the accommodation request is unreasonable, you may still have additional legal obligations. In the example above,  you may have a discrimination – rather than accommodation – case on your hands.

Key question to answer: Did the supervisor single the employee out for abuse or ridicule due to his or her mental-health condition? 

MHPA compliance

The Mental Health Parity Act (MHPA) also protects employees in most organizations. MHPA requires that your annual or lifetime dollar limits on mental health benefits (including through your EAP) be no lower than the limits for medical benefits offered through your firm’s health plan.

Even so, you still have discretion regarding the extent and scope of the mental health benefits you offer to employees and their families. This includes sharing the cost of premiums, limits on numbers of visits or days of coverage, and requirements related to proving medical necessity.

Supervisor training is crucial

In many cases, supervisors’ level of education and training in handling the challenges of mental health issues is your best defense – or biggest risk – in avoiding lawsuits. Experts recommend making it a top priority to train supervisors to follow three basic rules:

  • Refer employees to the EAP program. Don’t play amateur psychologist if you suspect an employee has a problem.
  • Direct employees’ accommodation requests and benefits-related problems (e.g., scheduled therapist appointments clash with work schedule) to HR/Benefits, and
  • Avoid making – and don’t tolerate – inappropriate jokes or comments at the affected employee’s expense.

The last issue may be a sore spot with supervisors. But it’s critical. Employers have lost or been forced to settle multi-million dollar mental health discrimination lawsuits because of someone’s “innocent joke.”

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3 Responses to “How innocent ‘jokes’ turn into costly lawsuits”

  1. Paula Says:

    Where can I visit online to find out more about the issue of mental health/ADA?

    Thanking you in advance for any info you can share with me.

  2. Fran Wessel Says:

    Dorothy recently relayed to Marge in a business-related email that ‘Jane was out sick today….her Crohn’s is acting up’. Jane was copied in on the email, and was very upset that her medical condition was disclosed in an email that could eventually make its way around company-wide. Jane had confided in Dorothy about her disease assuming that Dorothy who works closely with Jane would keep it confidential. Jane brought the email disclosure to the attention of the HR Dept and was basically told to take the matter into her own hands as it did not fall within HIPAA.

    Did the HR Dept respond appropriately to Jane?

    How should Jane have handled this situation?

    Should a company provide formal training to employees on the need to keep other employees’ personal information confidential & not to openly discuss in the workplace? Particularly health-related issues.

    Thank you.
    Fran Wessel

  3. Ward Near Says:

    HIPAA was established to keep information about illness or injury used for treatment, billing, and payment from being disclosed or to prohibit employers who have access to such information from using it improperly in personnel decisions. HR was correct in that information disclosed by an individual to another individual is not covered by the HIPAA regs. However, even though her actions were not illegal, Dorothy was unethical to disclose this information. The policy that HR should adopt is that the employer takes the minimum personal medical information in all cases that is needed to satisfy personnel functions. Any disclosure of such information is on a strict need to know basis and information disseminated would be (once again) the minimum needed for the purpose at hand. Thus, the note for Jane would have properly read, “Jane is out sick today.”

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