Dillard’s, Inc. Settles Equal Employment Opportunity Commission Issues

Dillard’s, Inc. (NYSE: DDS) (“Dillard’s” or “the Company”) settled matters pending with the Equal Employment Opportunity Commission (“EEOC”) concerning two policies that the EEOC alleged to violate the Americans with Disabilities Act (the “ADA”). One policy, which was abandoned in 2007, required associates to provide a doctor’s note identifying the nature of their medical condition in order to have a medical absence excused. The second policy prescribed a maximum leave period for medical related absences. Neither policy remains in effect. Further, the Company denies that either policy violated the ADA.

However, in order to avoid further protracted litigation with the EEOC over policies that are no longer in effect, Dillard’s determined that the most efficient resolution was to settle with the EEOC. Under the settlement the Company agreed to not reinstate the policies at issue as well as to other injunctive relief, and to establish a Class Fund from which current and former associates who believe they were adversely affected by the policies can make a claim.

Dillard’s will attempt to notify associates who have been identified as potential claimants pursuant to the absence policy through mailings of Claim Forms to their residential addresses. Those associates can also access Claim Forms electronically at www.dillardeeocsettlement.com.

Associates who may be potential claimants pursuant to the maximum leave policy must have been terminated pursuant to that policy in the period from May 28, 2008 until the date the Decree is entered by the Court. Those associates should access Claim Forms electronically at www.dillardeeocsettlement.com as they will only receive notice through mailings of Claims Forms to their residential addresses if they are also potential claimants pursuant to the absence policy.

Copyright Business Wire 2010

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