The “100% Healed” Policy that Led to a $250,000 Settlement

A group of Massachusetts Dunkin’ franchisees had a return-to-work policy that may have sounded straightforward:

Employees with medical restrictions could not return to work until they were fully healed.

According to the U.S. Equal Employment Opportunity Commission, however, that policy created a much bigger problem.

The EEOC alleged that, beginning around 2013, the franchisees refused to provide reasonable accommodations to employees with actual or perceived medical restrictions.

Instead, employees with restrictions were placed on unpaid, indefinite leave—even when those restrictions did not prevent them from performing the essential functions of their jobs.

In some cases, employees who could not provide a doctor’s note clearing them to return with no restrictions were allegedly forced to resign or were terminated.

On paper, the process may have looked consistent:

An employee had a medical restriction.
The policy required them to be fully healed.
They could not return until the restriction was gone.

But the issue wasn’t simply whether the company followed its policy consistently.

The issue was whether the policy allowed for the individualized accommodation process required under the ADA.

The result was a $250,000 EEOC settlement and a four-year consent decree requiring the franchisees to eliminate the no-medical-restrictions requirement, individually assess reasonable accommodations and provide annual ADA training.

The policy identified the issue.

It should not have made the final call.

THE REAL LESSON FOR EMPLOYERS

This story isn’t about getting rid of return-to-work policies.

Clear policies matter.

Consistent processes matter.

Documentation matters.

But a policy can create risk when managers treat it as an automatic decision instead of recognizing when an employee’s circumstances may require an individualized review.

An employee may not walk into a manager’s office and say:

  • “I am requesting a reasonable accommodation under the ADA.”

  • “Please begin the interactive process.”

They may simply say:

  • “My doctor gave me restrictions.”

  • “I can come back, but I can’t lift as much right now.”

  • “I need a modified schedule for a while.”

  • “My medical condition is affecting what I can do.”

  • “Is there another way I can perform this part of my job?”

Those statements should be enough to make a manager stop and ask whether HR needs to become involved.

The problem isn’t always the policy.

The problem is allowing the policy to move faster than the review process.

In this case, the EEOC alleged that a blanket “100% healed” requirement replaced the individualized assessment the ADA requires.

That’s the distinction employers need to watch.

3 DISABILITY ACCOMMODATION TAKEAWAYS FOR EMPLOYERS

1. A MEDICAL RESTRICTION SHOULDN’T AUTOMATICALLY END THE CONVERSATION.

An employee does not necessarily need to be restriction-free to return to work.

The better question is whether the employee can perform the essential functions of the position—with or without a reasonable accommodation.

When medical restrictions come up, managers should know when to pause the normal return-to-work process and involve HR.

2. WATCH FOR “ABSOLUTE” LANGUAGE IN YOUR POLICIES.

Policies containing words like “must,” “always,” “never,” “no restrictions” or “100% healed” deserve a second look when disability or accommodation issues are involved.

Consistency is important.

But consistency does not mean every situation can be handled identically.

Ask whether your policy leaves room for the individualized assessment required by law.

3. TRAIN MANAGERS TO RECOGNIZE THE HANDOFF.

Managers don’t need to become ADA experts.

They do need to recognize when a routine staffing, attendance or return-to-work conversation may actually involve a potential accommodation.

Give managers a simple rule:

When a medical condition or restriction enters the conversation, slow the process down and involve HR before making the final decision.

That one handoff can make the difference between consistently applying a policy—and consistently applying the wrong one.

THE BOTTOM LINE

A policy can flag the issue.

It shouldn’t automatically make the final call.

Before Q4, take another look at the policies your managers rely on every day.

Ask yourself:

Does this policy tell us when to stop following the checklist and start looking at the individual situation?

If the answer isn’t clear, that may be one of the first things worth cleaning up in your fall HR reset.

Source: U.S. Equal Employment Opportunity Commission, June 5, 2026.

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The Attendance Point That Led to a $99,000 Settlement