Drugmaker settles EEOC charge over remote work for Indian staff
- Novadoz Pharmaceuticals agreed to pay $116,666 to settle an EEOC charge.
- Indian nationals could work remotely from India; a U.S. employee could not, the charge said.
- EEOC cited the Americans with Disabilities Act and Title VII.
- The firms committed to a two-year reporting period with EEOC.
NEW JERSEY, UNITED STATES — A New Jersey drug manufacturer has agreed to pay $116,666 to resolve an American employee’s charge that it let Indian national employees work remotely from India for personal reasons but would not let her do the same.
The U.S. Equal Employment Opportunity Commission (EEOC) announced the settlement on Thursday.
Forced onto leave
The 2025 charge against Novadoz Pharmaceuticals claimed the employee was instead forced to take leave, HR Dive reported.
EEOC said its investigation found reasonable cause to believe the company retaliated against the employee in part by forcing her out of her job.
The agency said the conduct violated the Americans with Disabilities Act (ADA) and Title VII of the 1964 Civil Rights Act.
The parties settled through EEOC’s pre-litigation conciliation process.
Novadoz and MSN Pharmaceuticals agreed to revise their anti-discrimination and reasonable accommodation policies, adopt revised complaint procedures, conduct training and accept a two-year reporting period with EEOC.
Remote work decisions under scrutiny
Arlean Nieto, acting director of EEOC’s New York district, said employers cannot make decisions about remote work based on an employee’s race or national origin.
She also said forcing an employee with a disability to take leave is unlawful when an alternative reasonable accommodation would let the employee keep working.
Courts have increasingly accepted remote work as a reasonable accommodation under the ADA, a trend that grew after the COVID-19 pandemic.
But remote work is not always reasonable under the ADA, an attorney previously wrote for HR Dive, and allowing it during the pandemic does not mean an employer must continue it in every case.
Earlier this year, EEOC advised federal agencies that remote work may be the only effective accommodation for some employees with disabilities.
“We strongly caution agencies against revoking previously granted telework without first making an individualized determination in each case,” EEOC said in that guidance.
In April, FedEx agreed to pay $280,000 to settle an EEOC lawsuit claiming it revoked telework accommodations for dispatchers.
For employers running mixed onshore and offshore teams, the case shows that remote work rules must be applied consistently regardless of where staff come from.
Companies that use offshore outsourcing alongside in-house teams should document why each role can or cannot be done remotely.
Firms reviewing distributed workforce models can compare providers on the top BPO companies worldwide list.
Related news
- Federal workers report lower productivity after RTO · 7 Aug
- California state workers protest as 4-day RTO mandate takes effect · 9 Jul
- U.S. immigration agency tightens remote work rules for disabled staff · 18 Feb
Disclosure: Outsource Accelerator uses AI tools in the backend of its editorial workflow. Every article is reviewed and verified by a human editor before publication.
Stay ahead of the outsourcing industry. Join thousands of business leaders who rely on Outsource Accelerator for the news, trends, and expert insights that matter. Subscribe to our free newsletter and never miss an update.
