ADA Job Reassignments: What Healthcare Employers Should Consider To Avoid Liability

William Beaumont Hospital, now operating as Corewell Health East, agreed to pay $30,000 and provide injunctive relief to resolve a disability discrimination lawsuit brought by the U.S. Equal Employment Opportunity Commission under the Americans with Disabilities Act (ADA). 

The EEOC alleged that a nurse at the hospital's Wayne, Michigan facility was a qualified individual with a disability who had medical restrictions limiting her to working fewer than 32 hours per week, and that the hospital refused to place her into certain available part-time vacancies, for which she was qualified, as a reasonable accommodation.

The nurse sought reassignment to several vacant positions she believed she could perform within her hours restriction and asked to be placed into any such role, but in April 2019 the hospital declined to transfer her and instead required her to apply for, and compete for, openings.

After several months of submitting applications, she eventually obtained a different position without being reassigned as an accommodation, and the EEOC contended that this conduct violated the ADA's requirement that employers provide reasonable accommodations, which can include reassignment to an existing vacant position for which the employee is qualified.

The EEOC filed suit in the U.S. District Court for the Eastern District of Michigan (EEOC v. William Beaumont Hospital, d/b/a Beaumont Health System, Civil Action No. 4:23-cv-11560) after conciliation efforts did not resolve the dispute.

A consent decree approved in February 2026 requires the hospital not only to pay compensatory damages to the affected nurse but also to undertake compliance measures, including reporting to the EEOC, training managers and human resources staff on ADA obligations and reasonable accommodation requirements, and posting notices in the workplace advising employees of their rights and the prohibition against disability discrimination.

Source: https://www.eeoc.gov/newsroom/william-beaumont-hospital-pay-30000-eeoc-disability-discrimination-lawsuit

Commentary

Healthcare employers continue to face enforcement risk under the ADA when they treat employees with disabilities seeking reassignment like any other applicant in an open competition for vacancies.

When a qualified employee can no longer perform the essential functions of their current job because of a disability, the ADA may require reassignment to an existing vacant position as a reasonable accommodation, not simply the opportunity to apply for the position.

Courts and enforcement agencies have emphasized that the ability to submit applications and interview alongside external candidates does not satisfy this duty; reassignment, where appropriate, is an accommodation obligation rather than a hiring preference.

For loss prevention in healthcare settings, this means leaders must identify suitable vacant positions for employees with disabilities and engage in a documented interactive process focused on placement, while also ensuring that policies requiring "standard competition" for jobs are modified when reassignment is necessary.

Compliance failures can lead to litigation, monetary relief, and mandated injunctive measures.

The final takeaway is that reassignment liability is preventable and a distinct ADA requirement.

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