Employers Face Legal Risks Over Disability and Employment Discrimination Gaps

As more employees speak out about workplace barriers, US employers are facing renewed scrutiny over how they treat people with disabilities.

According to the US Equal Employment Opportunity Commission (EEOC), disability-related complaints have risen steadily in recent years. In 2024, for instance, the agency received 88, 531 new charges, reflecting a 9.2% increase from the previous year. Some USD$ 700 million was recovered on behalf of the 21,000 victims, the majority of whom experienced breaches of Title VII of the 1964 Civil Rights Act and the Americans with Disabilities Act (ADA). (1)     

Despite some progress, advocates insist that a significant gap remains between the legal protections and the employment practices of many organizations. Legal experts warn that companies failing to comply with disability discrimination laws could face investigations, lawsuits, and heavy penalties from federal and state authorities.

Persistent Gaps in Compliance

The employment rate of people with disabilities has reached an all-time high of 38% as of the second quarter of 2024. Still, people without such challenges are twice as likely to find jobs (75%), according to information from the Department of Labor. (2)

Beyond inequitable hiring opportunities, many employers continue to fall short in creating accommodating workplaces. Some companies fail to provide reasonable accommodation and other adjustments that allow qualified workers with disabilities to perform essential job functions.

Common issues include inaccessible facilities, refusal to provide sign language interpreters during meetings, and inflexible schedule modifications that overlook employees’ medical needs. Others lack proper training, accessibility, or disability etiquette and inclusion education, which can result in a hostile work environment or disability harassment.

Legal Knowledge is Power

Business owners often cite confusion about what counts as reasonable workplace changes. Some are unsure about how to manage disability disclosure and confidential medical records during a job application or job interview process. These knowledge gaps can easily lead to violations of state-specific laws, such as the disability discrimination laws in California, which closely align with federal protections but impose stricter obligations on employers.

Entrepreneurs must stay informed about relevant state laws and federal statutes. Together, these frameworks require fair employment opportunities for individuals with various disabilities, including those undergoing a drug rehabilitation program or managing a psychiatric condition. Additionally, they can hire legal experts specializing in workplace discrimination laws while crafting more inclusive employment policies.  

Federal Oversight and Broader Protections

Several federal agencies play a crucial role in enforcing disability rights. The Department of Labor monitors employer compliance under Section 188 of the Workforce Innovation and Opportunity Act, while the EEOC investigates complaints of workplace discrimination.

The Rehabilitation Act’s Section 501 and Section 504 require federal employers and federally funded programs to provide reasonable modifications for workers and applicants with disabilities. These can include accessible formats, job modifications, or access to disability tools such as adaptive software and ergonomic devices.

As with other states, the Department of Justice ensures that employees can file complaints if they face disability-based discrimination in hiring, firing, or employment practices.

Outside workplaces, the Department of Housing and Urban Development, alongside the DoJ, oversees accessibility and non-discrimination in public housing under the Fair Housing Act. For air travel, the Air Carriers Access Act—enforced by the Office of Aviation Consumer Protection—guarantees that passengers using mobility aids or accompanied by a service dog are treated fairly.

(Young adult businessman with Down syndrome taking selfie with multiethnic business team in bright inclusive workplace)

Key Responsibilities for Employers

To avoid potential lawsuits and right-to-sue letters, organizations must ensure all employment practices align with both federal and state disability laws.

Some of the simplest methods include:

• Provide interview accommodations such as extra time, live captioning, or materials in accessible formats, for candidates who require them.
• Proper interview processes, including disability-related questions, should only be conducted when necessary and in compliance with employment laws.
• Establishing clear policies for handling confidential medical records and responding to medical history inquiries.
• Offering flexible scheduling or remote work arrangements for individuals needing protected leave time for medical treatment.
• Accessible parking, building access, and telecommunications devices for employees with mobility or hearing impairments.

Many employers are under the impression that these changes require significant investments. However, the truth is that most are free or cost no more than USD$ 300, based on an ongoing study by the   Job Accommodation Network (JAN). Many other government and private organizations offer guidance on practical adjustments that promote inclusion while preventing undue hardship. (3)

Addressing Invisible Disabilities

A growing area of concern involves employees with invisible or psychological disabilities, such as post-traumatic stress disorder (PTSD). About six percent of Americans will experience this at some point in their lives, with LGBTQ+ members, non-Caucasian, and persons living with disabilities, among the most vulnerable populations. (4)

Workers living with PTSD may face stigma, subtle bias, or pressure to conceal their condition due to fear of retaliation. Employers must take steps to accommodate these individuals, ensuring that job demands don’t pose a high risk of serious harm to their well-being.

Inclusive policies should also cover those in drug rehabilitation programs or managing long-term psychiatric conditions, ensuring they have equal access to advancement and employment rights. It’s best to coordinate with a medical professional when evaluating a worker’s medical condition or ability to perform a major life activity safely.

Global and Local Lessons

While the United States continues to refine its approach to disability inclusion, other countries provide valuable models. Australia, for instance, has Disability Employment Services (DES), now known as the Inclusive Employment Australia program, for more inclusive opportunities. It helps individuals with disabilities find and maintain meaningful work through government-supported initiatives.

As the aging workforce expands and awareness of disability rights grows, companies worldwide are recognizing that compliance alone is not enough. Integrating disability etiquette and accessibility into daily operations is crucial to creating workplaces that are not only legally compliant but also genuinely inclusive.

Moving Toward Equal Opportunity

The path to full equality for people with disabilities remains challenging but achievable. Employers that proactively align with the ADA, the Rehabilitation Act, and related statutes can protect themselves from costly litigation while fostering trust and productivity.

By ensuring access to reasonable accommodations, job modifications, and accessible training, businesses not only meet their legal obligations but also strengthen their reputations as fair and forward-thinking employers.

As experts note, understanding the interconnected web of federal and state disability discrimination laws is not merely about compliance; it’s about commitment. In the long run, respecting disability rights is a testament to a company’s values, creating workplaces where every individual can contribute fully, regardless of their abilities.