Independent Contractors can Sue Businesses for Disability Discrimination Under the Rehabilitation Act

What is the Rehabilitation Act?

The Rehabilitation Act prohibits discrimination on the basis of disability in programs run by federal agencies; programs that receive financial assistance; in federal employment; and in the employment practices of federal contractors.

Fifth Circuit Opinion – Flynn v. Distinctive Home Care, Inc.

In February 2016, the Fifth Circuit (Covering Louisiana) held that independent contractors may file discrimination lawsuits against entities which receive federal funds or have contracts with the government. In Flynn, the plaintiff was a pediatrician with Asperger’s Syndrome. She worked as an independent contractor with Distinctive Home Care, which contracted with the United States Air Force. Dr. Flynn received some bad reviews that she attributed to her disability, and she requested an accommodation for her disability. Distinctive Home Care refused relying on the fact that she was not an employee of Distinctive Home Care.

The Fifth Circuit determined that Flynn could bring the suit against Distinctive Home care because the bad evaluations were related to a disability that was covered under the Rehabilitation Act, and the Rehabilitation Act is not limited to employee actions.

Key Points

Businesses that receive federal funds or perform work on projects that are federally funded must be cautious when dealing with individuals with disabilities. When federal funds are involved, businesses should assume that the Rehabilitation Act will apply to them, and now under this new ruling, businesses must assume that they can be held liable by individuals who are not their employees if the business makes decisions based on the individual’s disability.