When Can an Employer Terminate a Disabled Employee After Leave is Exhausted?

As the Federal District Court stated in the case Garcia-Ayala v. Lederle Parenterals, Inc., an employer under certain circumstances can terminate a disabled employee after legal and/or company policy leaves expire.  The factors that will be taken into consideration are:

1.  Whether the time allowed for leave under the law or company policy has expired and prior extensions have been exhausted (the more extensions granted, likely the more legitimate the termination);

2.  Whether the employee has given a definite date for return (generally, termination in the face of a return date certain will be less reasonable than termination in the face of an uncertain return date);

3.  The length of that anticipated return date beyond the original or extended date of leave expiration (if the anticipated return date is a short time vs. a longer time, then there will be heavier burden on the employer to justify a termination);

4.  Whether the length of additional leave requested, or the absence of the disabled employee, will cause undue hardship on the employer based on statutory factors.

The general rule is that the employer cannot have blanket termination policy after leave is exhausted but must consider each case on an individualized, interactive basis.