Texas agency faces $1M ADA verdict over disability leave missteps, court rules

Court ruling exposes costly HR errors in disability leave and accommodation management

Texas agency faces $1M ADA verdict over disability leave missteps, court rules

A federal appeals court has partly upheld a $1 million verdict for a Texas correctional officer fired after a disability leave dispute with her employer. 

Kimberly Harmon spent about 18 years as a correctional officer with the Texas Department of Criminal Justice, managing diabetes, hypertension, and chronic lower-back pain. After taking leave for her health, Harmon was reassigned to a less desirable shift without explanation. She filed internal grievances and an equal employment opportunity complaint. Although she was eventually returned to her original shift, confusion over her remaining leave days led to her termination. Harmon was informed she had exhausted her leave, despite submitting a doctor’s note stating she could return to work “without restrictions.” The record shows that a human resources representative did not forward her doctor’s note to other officials, and the Director of Employee Services testified that this did not follow department policy. 

After her separation, Harmon reapplied for her job but was not rehired, even though the department was experiencing a shortage of correctional officers. In her application, she noted her prior termination was for “exhaustion of leave.” The recommendation to rehire her was ultimately denied by a regional director and a final decision-maker, with no clear reason provided for the denial, despite her significant experience and the department’s staffing shortage. 

Harmon filed suit in federal court, alleging that the Texas Department of Criminal Justice and its Executive Director had violated the Americans with Disabilities Act and the Rehabilitation Act by failing to accommodate her disability, retaliating against her, and refusing to rehire her. A jury found in Harmon’s favor and awarded her $1.8 million, which was later reduced to $1 million after the court determined that emotional distress damages were not recoverable under the Rehabilitation Act, in line with Supreme Court precedent. 

On October 14, 2025, the Fifth Circuit Court of Appeals affirmed the finding that the Texas Department of Criminal Justice failed to properly accommodate Harmon and retaliated against her. However, the court reversed some aspects of the monetary award, particularly regarding retirement benefits and the calculation of back pay versus front pay, and remanded the case for recalculation of damages. The appellate court also reversed the award of attorney’s fees against the Executive Director in his official capacity, as monetary relief was not available under the ADA claims due to sovereign immunity. 

The appellate decision emphasized the employer’s responsibility to engage in an interactive process for accommodations and clarified the standards for discrimination and retaliation under federal law. The court found that the department’s procedural errors, such as failing to communicate leave status accurately and not following established policies for accommodation requests, contributed to the liability. 

For HR professionals, this case underscores the importance of clear leave policies, accurate recordkeeping, and timely, individualized responses to accommodation requests. The outcome demonstrates the potential consequences of procedural missteps and highlights the importance of compliance with disability laws when managing employee leave and return-to-work situations. The case also illustrates the risks of not engaging in a good faith interactive process and the need for HR teams to ensure all steps are documented and in line with policy and law. 

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