Car Dealer to Pay $100,000 to Resolve EEOC Lawsuit Alleging Disability Discrimination

NEW ORLEANS. – Hollingsworth Richards, LLC, doing business as Honda of Covington, has agreed to pay a former sales representative $100,000 to settle a lawsuit brought by the U.S. Equal Employment Opportunity Commission (EEOC), the agency announced today. Hollingsworth Richards operates vehicle and equipment dealerships in Covington, Louisiana. The lawsuit was resolved through a consent decree, which U.S. District Judge Martin Feldman approved on January 4, 2022.

In its lawsuit, the EEOC alleged that Hollingsworth Richards discharged the sales representative after subjecting her to unlawful inquiries and to an unlawful medical examination in violation of the Americans with Disabilities Act (ADA). When Hollingsworth Richards hired her, the sales representative disclosed that she had Attention Deficit Hyperactivity Disorder (ADHD) and that she was taking medication to treat her ADHD under the supervision of a healthcare provider. The EEOC alleged that an operations manager later told her to stop taking her medication and then ordered her to take a drug test. It alleged that Hollingsworth Richards, LLC then discharged the sales representative before receiving the confirmed results from that test. 

The EEOC filed its suit (Civil Action No. 2:20-cv-02511) in the U.S. District Court for the Eastern District of Louisiana in 2020 after first attempting to reach a pre-litigation settlement through its voluntary conciliation process. Under the three-year consent decree, Hollingsworth Richards will pay the sales representative $100,000 in backpay and damages, and also conduct training, revise policies, provide regular reports to the EEOC, and post a notice that affirms its obligations under the ADA and states that employees can report violations to the EEOC.

“The EEOC is pleased with this resolution. This decree protects the rights of employees under the ADA,” said Rudy Sustaita, regional attorney for the EEOC’s Houston District Office.

Andrew Kingsley, senior trial attorney in the EEOC’s New Orleans Field Office, noted, “The decision to subject an employee to a disability-related inquiry or medical examination must be made based on evidence, rather than assumptions.” He added, “When making such a decision, an employer should seek guidance to ensure it is complying with the law.” 

For more information on the Americans with Disabilities Act and preventing disability discrimination, visit www.EEOC.gov/disability-discrimination. 

The lawsuit was commenced and resolved by the EEOC’s New Orleans Field Office, which is part of the Houston District Office, which has jurisdiction over Louisiana and parts of Texas.

The EEOC advances opportunity in the workplace by enforcing federal laws prohibiting employment discrimination. More information is available at www.eeoc.gov. Stay connected with the latest EEOC news by subscribing to our email updates.