Walmart Will Pay $60,000 to Settle Disability Discrimination Claim in New York

In January of 2026, the Equal Employment Opportunity Commission (EEOC) announced that a Walmart location in New York has agreed to settle a workplace disability discrimination claim. The employer will pay $60,000 in damages for revoking a disabled worker’s reasonable accommodation abruptly and without good cause. Here, our New York City disability discrimination lawyer provides an overview of the case.

Settlement Reached: Disability Discrimination Claim in New York 

As confirmed by the EEOC, the large multi-national retailer Walmart reached a settlement in a disability discrimination related to a New York-based location. The case is related to an employee of Walmart who was granted a reasonable accommodation for a disability back in 2017. While that reasonable accommodation was in place, the employee was able to perform the job. Indeed, she had positive performance ratings from her direct manager. However, without warning or good reason, that reasonable accommodation was suddenly revoked by a new manager. A conflict arose and the employee was eventually terminated on the grounds that the revocation of the reasonable accommodation was disability discrimination. An employment lawsuit was filed. Before litigation, Walmart agreed to a $60,000 settlement and it agreed to revise its workplace practices.

What to Know About the Revocation of an Existing Reasonable Accommodation (ADA)

While employers are not required by law to keep all reasonable accommodations indefinitely, there should be a strong process in place for altering and/or revoking them. Indeed, an employer does not have the complete discretion to revoke an existing reasonable accommodation that was working well for all parties. Under the Americans with Disabilities Act (ADA), once an accommodation allows an employee to perform the essential functions of the job, the employer must maintain it unless circumstances materially change. Some of the most common examples of legitimate reasons include undue hardship, safety concerns supported by evidence, or a change in job duties that makes the accommodation ineffective. Managerial preference and/or cost-cutting do not alone justify revocation. Abrupt withdrawal without reassessment can itself constitute disability discrimination.

These can be complicated legal claims. Disability discrimination cases on the basis of revocation cases often turn on process rather than intent. Employers must communicate with the employee, reassess medical documentation if needed, and explore alternatives before ending an accommodation. A unilateral decision (particularly a sudden one by a new supervisor) can be a big deal. Beyond that, termination that follows a revoked accommodation raises additional red flags. If the employee previously performed well with the accommodation in place, the employer must explain why continued accommodation was no longer reasonable.

Speak to Our New York City Disability Discrimination Lawyer Today

At Poulos LoPiccolo PC, our New York City employment attorney has the skills and experience to handle disability discrimination cases. If your rights were violated under the ADA and/or New York law, please do not hesitate to contact us today for a completely confidential, no obligation case review. With an office in New York City, we handle disability discrimination throughout New York City, including Manhattan, Brooklyn, The Bronx, Queens, and Staten Island.

Source:

eeoc.gov/newsroom/walmart-pay-60000-eeoc-disability-discrimination-lawsuit