Short-Term Disability & Termination: Legal Protections & Exceptions

General Rule

Employees on approved short-term disability (STD) leave are generally protected from termination under:

• FMLA (if eligible: 12 wks job-protected leave).
• ADA/ADAAA (disability as defined; reasonable accommodation required).
• State disability laws (CA, NY, NJ, RI, HI, PR, etc. – often broader than federal).
• ERISA-governed STD plans (prohibit retaliation for benefit claims).

Permissible Termination Scenarios (Narrow Exceptions)

Exception	Requirements
Gross Misconduct	Unrelated to disability; documented, investigated, consistent with policy (theft, violence, fraud).
Voluntary Resignation	Employee initiates; ensure not coerced.
Inability to Perform Essential Functions	After interactive process; no reasonable accommodation enables performance; consider reassignment.
Exhaustion of Protected Leave	FMLA/state leave expired; ADA accommodation analysis completed; no indefinite leave required.
Position Elimination (RIF)	Bona fide reduction-in-force; disability not factor; selection criteria neutral.

Employer Best Practices

• Document all interactions, accommodation discussions, medical certifications.
• Engage in good-faith interactive process (ADA).
• Consult employment counsel before adverse action.
• Maintain confidentiality of medical information (ADA, HIPAA).

Employee Rights

• File complaint with EEOC, state fair employment agency, or DOL (FMLA).
• Request written reason for termination.
• COBRA continuation of health benefits.