NEW CASE: Employer Must Pay for Post-Offer Medical Exams

In a recently decided federal case ( EEOC v. BSNF Railway Company), the U.S. Court of Appeals for the Ninth Circuit held that employers are required to pay for an employer-required post-offer medical examination.

In this case, the company made an offer of employment to an individual and conditioned the offer of employment on the candidate successfully completing a medical examination.  This candidate had a history of back issues and was required to obtain an MRI as a part of the examination (which the candidate was going to have to pay for out-of-pocket).  The candidate told the company that he could not afford to pay for the MRI and the company rescinded the job offer.

The Court confirmed that ADA permits follow-up medical testing where such testing is “medically related to previously-obtained medical information.”  However, the ADA does not specify who should pay for the additional testing.  The Court determined that requiring the candidate to assume the costs of the additional testing could go against the anti-discrimination provisions and the policy purposes of the ADA, by forcing them “to face costly barriers to employment.”  As a result, the Court found that employers must bear the costs of any such testing.