Dillard's Settles with EEOC Over ADA Claim

Dillard's Inc. of Little Rock said Tuesday that it had settled with the Equal Employment Opportunity Commission over two company policies the EEOC said violated the Americans with Disabilities Act.

In a news release, the department store chain said one policy, abandoned in 2007, required employees to provide "a doctor's note identifying the nature of their medical condition in order to have a medical absence excused."

The other policy called for "a maximum leave period for medical related absences."

Dillard's denied that either policy violated the ADA but said it settled with the EEOC to avoid "further protracted litigation" over "policies that are no longer in effect."

Under the settlement, Dillard's (NYSE: DDS) agreed to not reinstate the policies, to establish a fund to compensate employees who believe they were "adversely affected by the policies," and other injunctive relief. 

The company said it will try to notify potential claimants about the claim fund. The form to apply for claims is available here.