1st Franklin Financial Corporation routinely denied reasonable accommodations to employees with disabilities and fired workers who requested medical leave, federal regulators alleged in a lawsuit filed this month.
The U.S. Equal Employment Opportunity Commission claims the consumer lender, which operates more than 370 branches across the southeastern United States, violated the Americans with Disabilities Act by systematically rejecting accommodation requests since 2022.
The lawsuit centers on a former customer service representative with multiple medical conditions that caused heart attacks requiring hospitalization. When he requested a short leave of absence until his expected hospital release, the company denied the request and terminated him, according to the EEOC complaint.
Pattern of accommodation denials alleged
The federal agency alleges 1st Franklin has consistently denied reasonable accommodations to disabled employees and offered no alternative arrangements, even for basic medical leave requests.
The EEOC filed the lawsuit in U.S. District Court for the Northern District of Georgia after conciliation efforts failed to resolve the dispute. The agency seeks back pay, front pay, compensatory and punitive damages for affected former employees, plus injunctive relief to prevent future discrimination.
“The ADA requires that employers accommodate disabled employees, which includes granting a leave of absence even if an employer’s policies do not permit such leave,” said Marcus G. Keegan, regional attorney for the EEOC’s Atlanta District Office. “In this case, 1st Franklin routinely denied reasonable accommodations to its employees, typically citing its own leave policies or other federal laws as the reason.”
Legal standard under scrutiny
The case highlights common employer misunderstandings about ADA requirements. Federal law requires companies to provide reasonable accommodations unless they would cause undue hardship to business operations.
“The ADA requires providing a reasonable accommodation unless it would cause an undue hardship to the employer,” said Darrell Graham, district director of the Atlanta office. “Here, 1st Franklin ignored federal law and summarily denied accommodations without considering whether or how it would affect its business.”
Financial services industry implications
The lawsuit against 1st Franklin reflects broader EEOC enforcement efforts targeting systematic discrimination in consumer lending. The company’s 370-branch network spans multiple southeastern states, making the case significant for regional employment practices.
Employment attorneys say the case demonstrates the importance of individualized accommodation assessments rather than blanket policy applications. Companies must evaluate each request based on specific circumstances and business impact.
Accommodation process requirements
The ADA requires employers to engage in an interactive process with disabled employees to identify potential accommodations. This includes considering modifications to work schedules, job duties, workplace policies or providing unpaid leave when other accommodations aren’t feasible.
The EEOC’s Atlanta District Office covers Georgia and 12 South Carolina counties. The agency investigates and litigates employment discrimination cases against private sector employers nationwide.
