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Court rejects policy against rehire of terminated employees

The 9th Circuit Court of Appeals has ruled that a blanket prohibition on reemployment of workers terminated for violating company policy may violate the Americans with Disabilities Act (ADA). The ADA protects job applicants who have recovered from drug and alcohol dependencies, including former employees who were terminated for alcohol or drug abuse.

Hernandez had a positive drug test and an alcohol problem. Hughes Missile Systems allowed him to resign in lieu of termination, and documented only that explanation in his personnel record. He applied for rehire three years later, and included a letter from a substance abuse counselor attesting to his recovery. Bockmiller, an employee in the labor relations department, reviewed the application and the personnel record. She decided Hernandez was ineligible for rehire because of the company's policy prohibiting rehire of terminated employees.

The appeals court reversed the trial court's summary judgment in favor of the company, ruling that Hernandez' rejection was unlawful and the policy invalid as applied to recovered drug or alcohol abusers.

The decision also underlines the importance of a carefully drafted position statement to the Equal Employment Opportunity Commission (EEOC) during a discrimination investigation. Bockmiller testified that she only knew the prior employment ended because of misconduct. However, a written position statement to the EEOC prepared by another company representative said, "Hernandez was rejected based on his demonstrated drug use when previously employed and complete lack of evidence indicating successful rehabilitation." Hughes argued that the position statement should be ignored because the writer did not make the decision. The appeals court cited this conflict among the reasons it reversed the summary judgment. Hernandez v. Hughes Missile Systems Company No. 01-5512 (June 11, 2002).