What Rights Do Former Employees Have Under the ADA?

The employer has a policy allowing former employees to receive free health insurance until age 65. However, after the employee, Karyn Stanley, retires, the employer changes its benefits plan in 2003, which impacts the post-employment health benefits. Specifically, disability retirees such as the employee can only receive the health insurance subsidy for twenty-four months after retiring. Thus, the employee will be responsible for her health insurance at age 50.

So, she sues (Stanley v. City of Sanford, Florida), claiming a violation of the Americans with Disabilities Act (ADA) for discrimination in post-employment distribution of fringe benefits. But does the ADA cover the former employee?

The Eleventh Circuit Court of Appeals concludes that it does NOT.

Title I of the ADA, as originally enacted, made it unlawful to "discriminate against a qualified individual with a disability because of the disability of such individual in regard to [...] employee compensation, [...] and other terms, conditions, and privileges of employment." The statute defined a "qualified individual with a disability" as someone "who, with or without reasonable accommodation, can perform the essential functions of the employment position that such individual holds or desires." (court's emphasis)

In other words, the original statute only covered current employees or those who seek to return to work.

When Congress passed the Americans with Disabilities Act Amendments Act (ADAAA), the definition of "qualified individual" did not change materially. Presently, it is someone who, "with or without reasonable accommodation," is able "to perform the essential functions of the employment position that such individual holds or desires." (emphasis added)

Therefore, because the disabled firefighter neither holds nor desires an employment position with the employer, the ADA does not cover her claim for post-employment benefits.

However, the answer to this question depends on where a case like this is litigated. The Sixth, Seventh, and Ninth Circuits agree with the Eleventh Circuit. The Second and Third Circuits do not.