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 look at an Arizona case that provides valuable insight.

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 Finance 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.

What else should be top-of-mind for the finance team if the company is considering a return-to-office mandate?

Understand Legal Obligations

Finance pros, here’s the deal: don’t go it alone. Partner up with HR and legal to make sure your company’s RTO policies comply with the ADA. That means having open, good-faith conversations with employees who request accommodations for disabilities. Skipping this step can be a big mistake – both legally and financially.

Assess the Potential Costs of Noncompliance

Let’s talk numbers. Ignoring ADA requirements could cost you big. Big O Tires shelled out $64,500 to settle this case. And that’s not counting other hidden costs like reputational damage from bad press and employee turnover. Noncompliance isn’t just a legal risk; it’s a financial headache.

Review Workplace Policies

When it comes to RTO mandates, one-size-fits-all isn’t a winning strategy. Employees have different needs, and rigid policies can backfire. Finance pros should push for flexible, inclusive policies that meet legal obligations and keep the business running smoothly.

Allocate Budget for Training and Policy Updates

Building training and policy updates into your budget can help your company stay out of legal trouble. For example, investing in periodic ADA policy updates and regular EEO training for managers now can help save your company from much bigger expenses later.

Track Compliance-Related Expenses

Keeping tabs on compliance spending is smart business. Make sure you’re tracking costs for things like ADA coordinators, employee accommodations and secure handling of medical records. By tracking these expenses, you can show leadership the financial value of compliance initiatives.

Weigh the Costs vs. Benefits of RTO Mandates

Some company leaders want a full return-to-office policy, likely thinking it will be a productivity booster. But there are risks to think about, too. Noncompliance can lead to hefty payouts, as this case shows. Plus, employee disengagement and turnover can hurt the company’s bottom line. Consider whether a hybrid work model might achieve the same goals with fewer headaches.