When an employee’s medical leave is about to expire, many managers assume the next step is straightforward: either they return to work, or their job is no longer protected. But real-life cases show that failing to handle this correctly can cost businesses big time - just ask a Michigan elder care company, which recently faced a lawsuit from the EEOC over this very issue and ended up agreeing to pay a $170,000 settlement.

So, where do managers often go wrong? And what’s the role of HR in these situations? Let’s break it down. 

The Case: What Happened?

In EEOC v. Pace Southeast Michigan (ED Michigan 2:24-cv-12424; see more here), an employee had exhausted their Family and Medical Leave Act (FMLA) time but requested additional unpaid leave. Instead of considering whether the request should be accommodated, the company denied it outright - which led to a lawsuit.

The outcome? A six-figure payout (plus, legal bills... that can easily get into the six figures themselves!)

This case highlights a crucial but often misunderstood aspect of medical leave: FMLA isn’t the only law that applies. Once FMLA ends, the Americans with Disabilities Act (ADA) may come into play. If the employee’s condition qualifies as a disability, employers may be required to offer reasonable accommodations - including extended leave - unless doing so would cause an undue hardship.

HR vs. Manager Responsibilities in Medical Leave Situations

When it comes to handling medical leave, both HR and managers play a role - but their responsibilities are different.

HR’s Role

Ensure compliance: HR should know what's required - so why doesn't this happen? Just like there's no consistent training for managers, there's none for HR, either, so some just don't realize when policies are wrong. HR (along with employment counsel, especially with different laws in different cities, states and countries) needs to understand how to consider whether additional unpaid leave is a reasonable accommodation under the ADA, considering factors like job duties, business needs and whether the leave would cause "undue hardship" (and in the video, I talk about why the EEOC said additional unpaid leave should have been accommodated).

Train managers: Cases like this one often happen because managers don’t know what they don’t know. HR needs to make sure managers have the knowledge to escalate these situations instead of making legally risky decisions on their own (and if you're in HR and need help with that, don't miss the bottom section).

Document it: Recently I made a video about documentation and performance issues - and how "formal documentation" can feel odd (see it here) . But when handling accommodation requests, it’s important to make sure you have records of communications, the interactive process and any decisions made - to make sure you're following the processes in your policies. Just make sure those are limited to HR and not shared broadly - you have obligations of handling medical information appropriately.

A Manager’s Role

How you say it: This is (in my experience) the most important step as a manager. When an employee will be absent from work, especially if they've already been out for a while, your first thought might be about workloads and deadlines. But it's important to remember the human lens - and a perspective of "What can we do?" instead of "What do we have to do?" can matter most.

Know your role: Asking questions about your employee's medical condition isn't just excessively personal - it can be illegal under laws including the ADA (often people say "HIPAA" but that doesn't apply as often as you might think). This is where looping in HR is generally your best step, and explaining what you're doing, and why you're doing it: "I want to make sure you have the most up-to-date information and don't have to have the same conversation over and over, so I can ask HR to connect with you directly. You're always welcome to reach out to me yourself, but I can also ask HR to loop me in on what I need to know, like your return to work."

Avoid assumptions: Just because FMLA time is up does not mean an employee can’t request additional leave or accommodations. Whether they're eligible for anything else, and what they can get, is often an individual consideration. But there has to be a conversation - generally with HR. 

Key Takeaways for Employers

Train managers on handling sensitive employment situations. They don’t need to be legal or HR experts, but they need to know how to respond, and when to involve HR.

Don’t assume FMLA is the final word on medical leave. The ADA and other laws may require extended leave as an accommodation.

Every situation is different. Blanket policies, without individual consideration, can put your company at risk.

Want to Avoid This Mistake?

This case is just one example of why manager training is essential - not just for HR, but for every people manager who interacts with employees. If you want to equip your managers with the tools to handle situations like this, check out our training options, from scalable programs you can run in-house to live facilitation for hands-on learning.

Learn more here: https://www.managermethod.com/organizational-training

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