Labor & Employment Law Daily Wrap Up, EEOC NEWS—Employers settle disability claims as dealership faces retaliation suit, (Aug 27, 2026)

By George Basharis, J.D.

ADA settlements totaling $261,000 resolve claims involving inaccessible technology, medical testing, and accommodation requests, while a Wisconsin car dealership faces a separate Title VII retaliation lawsuit.

Disability claims by the Equal Employment Opportunity Commission involving different workplace obligations under the Americans with Disabilities Act have resulted in settlements. The claims concern access to workplace benefits and training, disability-related medical testing, and reasonable accommodation. The agency also sued a Wisconsin car dealership under Title VII, accusing management of retaliating against employees who reported racial harassment.

Inaccessible technology. Pearson Education, an educational publishing company, will pay $150,000 to settle allegations that it violated the ADA by failing to provide visually impaired employees equal access to online platforms used for benefits, leave, and training. Pearson required employees to use the platforms to obtain information about benefits and leave and to complete workplace training, but technical problems made the systems inaccessible to employees who relied on screen-reading software, the EEOC asserted. The company did not provide accommodations that would give those employees comparable access.

The ADA generally requires employers to provide reasonable accommodations that give employees with disabilities equal access to workplace benefits and training unless doing so would impose an undue hardship. EEOC New York Regional Attorney Kimberly A. Cruz said accessibility cannot be an afterthought when employers rely on online systems. Technology that excludes workers with disabilities, she said, denies them equal opportunities to succeed at work and access benefits they have earned.

A three-year consent decree requires Pearson to retain a web accessibility consultant to audit its employee benefit platforms and training modules and make changes needed to ensure access for employees with vision-related impairments. Pearson also must provide annual training to human resources personnel on web accessibility and accommodations, report its compliance to the EEOC, and post a workplace notice informing employees of the settlement and their federal discrimination rights.

The EEOC filed the lawsuit in the District of New Jersey after its conciliation efforts failed. The case is No. 2:25-cv-12214-CCC-JBC.

Agility test. Piedmont Cheerwine Bottling Company, a North Carolina-based soft drink company with a facility in Colfax, will pay $36,000 to resolve ADA claims arising from an agility test and the subsequent firing of an employee with a disability.

The employee took medication for multiple sclerosis that caused cartilage in her hip to deteriorate and left her walking with a limp. Cheerwine prematurely required her to take an agility test and asked impermissible questions about her health during the examination, the EEOC charged. Although she met the job’s physical requirements, the company placed her on unpaid leave until she obtained complete medical clearance. When the employee submitted a doctor’s note on March 30, 2023, clearing her to return to work, Cheerwine rejected the note and fired her. The EEOC maintained that the company subjected the employee to different terms and conditions of employment because of her disability in violation of the ADA. Regional Attorney Melinda C. Dugas of the agency’s Charlotte District emphasized that employers must ensure workplace testing complies with federal discrimination law.

Under a two-year consent decree, Cheerwine also must update and implement written policies prohibiting disability discrimination, train managers, supervisors, and human resources employees, post a notice addressing disability discrimination, and submit reports to the EEOC.

The agency filed the lawsuit in the Middle District of North Carolina after unsuccessful administrative conciliation. The case is No. 1:25-cv-00821.

Accommodation request. Kroger, a national grocery chain, will pay $75,000 to settle allegations that it violated the ADA by failing to accommodate an Atlanta cashier with a disability and retaliating against her after she complained about discrimination. The dispute began shortly after the cashier requested a workplace accommodation supported by medical documentation.

The cashier, a breast cancer survivor whose treatment caused permanent nerve damage to her lower extremities, requested permission to sit on a stool or chair during her shifts and provided supporting medical documentation. The Kroger store in Atlanta’s Edgewood retail district then stopped scheduling her and failed to respond to her repeated telephone calls, prompting her to file an internal complaint. Months passed without another scheduled shift. When the cashier informed Kroger in July 2023 that she had filed an EEOC charge, the company directed any further communications to its legal department and her attorney. Kroger did not contact her or schedule her for work after that, the agency asserted.

EEOC Atlanta Regional Attorney Marcus G. Keegan emphasized that employers cannot disregard accommodation requests or discrimination complaints. “When an employee requests reasonable accommodations for their disability or files a complaint of discrimination, their employer cannot simply ignore them,” he said.

Under a two-year consent decree, Kroger must update its complaint procedures and provide specialized training to store leaders and human resources personnel who receive and handle disability accommodation requests. The company also must post a workplace notice and periodically report to the EEOC on accommodation requests and how they were handled.

The EEOC filed the lawsuit in the Northern District of Georgia after its conciliation efforts failed; the case is No. 1:25-cv-00272.

Retaliation threats. The EEOC sued Kenosha Nissan, a Wisconsin car dealership, alleging that it violated Title VII by retaliating against black employees who reported racial harassment, including by firing one employee who complained about the conduct.

The alleged retaliation began after several employees reported racial harassment in 2024. Once management learned of the complaints, a manager warned employees that if they contacted human resources again, the manager would make their lives “a living hell” and told another employee who raised concerns to “shut up,” the lawsuit asserted. Management then changed office policies and work schedules and began heavily disciplining employees who had reported the harassment for minor infractions, some of which the EEOC contends were fabricated. Several employees resigned because they feared termination, while Kenosha Nissan fired another employee for complaining about the harassment, because of his race, or both, the agency charged.

Acting EEOC General Counsel Catherine Eschbach emphasized the broader effect retaliation can have in the workplace, saying punishment of employees who report or oppose discrimination can discourage others from coming forward. “Employees must be able to exercise their rights under Title VII without fear of punishment for doing so,” she said.

The EEOC filed the lawsuit in the Eastern District of Wisconsin after first attempting to resolve the matter through its administrative conciliation process. The case is No. 26-cv-01414.

Companies: Kenosha Nissan; Kroger Co.; Piedmont Cheerwine Bottling Company; Pearson Education, Inc.

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