---
title: "Union Pacific $27M Disability Verdict | ADA Blanket Policies"
description: "A federal judge upheld a $27M verdict against Union Pacific over its \"one percent\" disability policy. Discover why blanket exclusions fail the ADA's individualized assessment test and how statutory caps impacted a recent EEOC win in Florida."
url: "https://wimlaw.com/publications/newsletters/union-pacific-disability-discrimination-verdict"
date: "2026-06-10T18:12:16+00:00"
language: "en-US"
---

#  $27 Million Verdict against Employer on Disability Discrimination over Refusal to Return Employee to Work

Written on February 06, 2026.

*Tag(s):* [EEOC (Equal Employment Opportunity Commission)](https://wimlaw.com/index.php?option=com_tags&view=tag&id%5B0%5D=18:eeoc), [Discrimination](https://wimlaw.com/index.php?option=com_tags&view=tag&id%5B0%5D=52:discrimination), [ADAAA (Americans with Disabilities Act)](https://wimlaw.com/index.php?option=com_tags&view=tag&id%5B0%5D=118:adaaa), [February 2026 Newsletter](https://wimlaw.com/index.php?option=com_tags&view=tag&id%5B0%5D=212:february-2026-newsletter)

In December of 2025, an Oregon federal judge refused Union Pacific’s effort to set aside a $27 million verdict in a suit from the worker alleging he was discriminated against for an injury. Granas v. Union Pacific Railroad Co., Case No. 1:21-cv-00116 (D. Ore. 2025). After the plaintiff dislocated his right shoulder, he was cleared to return to work without restrictions. The railroad had concerns of re-injury while climbing ladders, which was an essential function of his position, and he was allegedly given permanent work restrictions that cost him his position. Although the employer argued that the plaintiff was not a “qualified individual” because the injury made him incapable of performing essential job functions, the federal judge credited evidence that he was qualified, from the plaintiff’s medical providers and expert witnesses who testified that he was ready to work and climb ladders, and that there was no evidence he was at risk for re-dislocation. The judge also found that the employer had improperly used its “one percent” policy, in which employees are not allowed to return to their jobs if they face injuries that left them with a one percent or greater chance of incapacitation. The judge found that the treatment of the plaintiff was not the result of careful evaluation, but it was due to a strict, blanket policy that automatically disqualified any employees with a shoulder dislocation, and thus discriminates against anyone who discloses that injury or disability.

A jury had sided with the plaintiff and awarded him about $500,000 in past wages, $440,000 in future pay, $1 million in non-economic damages, and $25 million in punitive damages.

> Editor’s Note: Under the federal Americans with Disabilities Act (ADA), there are limits on punitive and compensatory damages, but some state laws may not have such limitations. The judge and jury apparently found the one percent policy not consistent with the disability laws that generally require individual assessment.
>
> In a related development, in January of this year, a jury in a Florida district court found that an employer failed to accommodate a job applicant’s disability during pre-hiring drug testing in connection with their use of prescription medications. EEOC v. The Princess Martha LLC, No. 8:22-cv-02182 (N.D. Fla. 1/12/26). The court upheld the jury finding that indicated that the employer had not engaged in an interactive process for disability accommodation. The jury’s award of $400,000 total and compensatory and punitive damages wasn’t grossly excessive, according to the judge, but the award was subject to a $50,000 statutory cap for those type damages based on the size of the employer, and the judge reduced the jury award accordingly.

This article is part of our February 2026 Newsletter.

[View the newsletter online](https://wimlaw.com/tags/february-2026-newsletter)[
  ](https://wimlaw.com/contact)[Download the newsletter as a PDF](https://wimlaw.com/images/2026/02/2026-02-newsletter.pdf)

- [](https://x.com/intent/post?url=https%3A%2F%2Fwimlaw.com%2Fpublications%2Fnewsletters%2Funion-pacific-disability-discrimination-verdict.md&text=)
- [](https://www.facebook.com/sharer/sharer.php?u=https%3A%2F%2Fwimlaw.com%2Fpublications%2Fnewsletters%2Funion-pacific-disability-discrimination-verdict.md)
- [](https://www.linkedin.com/sharing/share-offsite/?url=https%3A%2F%2Fwimlaw.com%2Fpublications%2Fnewsletters%2Funion-pacific-disability-discrimination-verdict.md)
- [](mailto:?subject=%2427%20Million%20Verdict%20against%20Employer%20on%20Disability%20Discrimination%20over%20Refusal%20to%20Return%20Employee%20to%20Work)

##  Related Content

[ ![ai, human reach out](https://wimlaw.com/media/yootheme/cache/f1/igor-omilaev-FHgWFzDDAOs-unsplash-f12346e8.jpg) ](https://wimlaw.com/index.php?option=com_content&view=article&id=1582:fcra-litigation-challenges-employers-ai-hiring&catid=53)

###  [FCRA Litigation Challenges Employers’ Use of AI Hiring Platforms](https://wimlaw.com/index.php?option=com_content&view=article&id=1582:fcra-litigation-challenges-employers-ai-hiring&catid=53)

[Employment Law Newsletter: A Monthly Report On Labor Law Issues](https://wimlaw.com/index.php?option=com_content&view=category&id=53)

[Read more](https://wimlaw.com/index.php?option=com_content&view=article&id=1582:fcra-litigation-challenges-employers-ai-hiring&catid=53)

[ ![Disparate Impact Theory webinar promo graphic](https://wimlaw.com/media/yootheme/cache/78/WimLaw-Webinar-Promo-Slide-7890eebf.jpg) ](https://wimlaw.com/index.php?option=com_content&view=article&id=1581:disparate-impact-theory-discrimination&catid=221)

###  [Status of Disparate Impact Theory of Discrimination – Hiring Procedures Disproportionately Affecting One Racial or Sexual Group Over Another](https://wimlaw.com/index.php?option=com_content&view=article&id=1581:disparate-impact-theory-discrimination&catid=221)

[Webinars: Employment Law "Hot Topics"](https://wimlaw.com/index.php?option=com_content&view=category&id=221)

[Read more](https://wimlaw.com/index.php?option=com_content&view=article&id=1581:disparate-impact-theory-discrimination&catid=221)

[ ![staff](https://wimlaw.com/media/yootheme/cache/4e/duonguyen-RlakZ84ex2g-unsplash-4e75c670.jpg) ](https://wimlaw.com/index.php?option=com_content&view=article&id=1576:developments-indemnity-staffing-agencies&catid=53)

###  [Developments in Use of Indemnity Agreements with Staffing Agencies](https://wimlaw.com/index.php?option=com_content&view=article&id=1576:developments-indemnity-staffing-agencies&catid=53)

[Employment Law Newsletter: A Monthly Report On Labor Law Issues](https://wimlaw.com/index.php?option=com_content&view=category&id=53)

[Read more](https://wimlaw.com/index.php?option=com_content&view=article&id=1576:developments-indemnity-staffing-agencies&catid=53)

##  Get Email Updates

Receive newsletters and alerts directly in your email inbox. Sign up below.

##  Recent Content

 [ Employment Law Newsletter: A Monthly Report On Labor Law Issues ](https://wimlaw.com/index.php?option=com_content&view=category&id=53)

 [ ![ai, human reach out](https://wimlaw.com/media/yootheme/cache/f1/igor-omilaev-FHgWFzDDAOs-unsplash-f12346e8.jpg) ](https://wimlaw.com/index.php?option=com_content&view=article&id=1582:fcra-litigation-challenges-employers-ai-hiring&catid=53)###  [FCRA Litigation Challenges Employers’ Use of AI Hiring Platforms](https://wimlaw.com/index.php?option=com_content&view=article&id=1582:fcra-litigation-challenges-employers-ai-hiring&catid=53)

[Employment Law Newsletter: A Monthly Report On Labor Law Issues](https://wimlaw.com/index.php?option=com_content&view=category&id=53)

A January 20, 2026, class action filed against Eightfold AI, Inc. in California is sending shockwaves through the employer and AI community…

[Read more](https://wimlaw.com/index.php?option=com_content&view=article&id=1582:fcra-litigation-challenges-employers-ai-hiring&catid=53)

 [ ![danger sign, skull](https://wimlaw.com/media/yootheme/cache/01/mikael-seegen-jX6WXNkvsPs-unsplash-01c1ebef.jpg) ](https://wimlaw.com/index.php?option=com_content&view=article&id=1584:ai-research-discovery-requests-dangers&catid=53)###  [The Dangers of Employers Using AI Research Tools as to Discovery Requests from Plaintiffs](https://wimlaw.com/index.php?option=com_content&view=article&id=1584:ai-research-discovery-requests-dangers&catid=53)

[Employment Law Newsletter: A Monthly Report On Labor Law Issues](https://wimlaw.com/index.php?option=com_content&view=category&id=53)

A second “bombshell” affecting HR pertaining to AI is a federal court ruling in New York, that a defendant’s use of AI in researching and p…

[Read more](https://wimlaw.com/index.php?option=com_content&view=article&id=1584:ai-research-discovery-requests-dangers&catid=53)

 [ ![CHAT GPT](https://wimlaw.com/media/yootheme/cache/64/emiliano-vittoriosi-fvxNerA8uk0-unsplash-64a16be4.jpg) ](https://wimlaw.com/index.php?option=com_content&view=article&id=1585:ai-employer-protection&catid=53)###  [Two Subsequent Cases Protect Defendant’s Use of AI as Subject to Work-product Protection](https://wimlaw.com/index.php?option=com_content&view=article&id=1585:ai-employer-protection&catid=53)

[Employment Law Newsletter: A Monthly Report On Labor Law Issues](https://wimlaw.com/index.php?option=com_content&view=category&id=53)

Soon after the deciding of the above-discussed case on February 17, 2026, in U.S. v. Heppner, a criminal case in the District Court for the…

[Read more](https://wimlaw.com/index.php?option=com_content&view=article&id=1585:ai-employer-protection&catid=53)

 [ ![avoid, wave away](https://wimlaw.com/media/yootheme/cache/6f/priscilla-du-preez-NQTphr4Pr60-unsplash-6fb4df83.jpg) ](https://wimlaw.com/index.php?option=com_content&view=article&id=1586:employer-avoid-waiving-privileges-ai-research&catid=53)###  [Is There Anything an Employer Can Do to Avoid Waiving Privileges in Using AI Research Tools?](https://wimlaw.com/index.php?option=com_content&view=article&id=1586:employer-avoid-waiving-privileges-ai-research&catid=53)

[Employment Law Newsletter: A Monthly Report On Labor Law Issues](https://wimlaw.com/index.php?option=com_content&view=category&id=53)

There are no easy answers to the above question, but some general observations will nevertheless be made. First, the New York district cou…

[Read more](https://wimlaw.com/index.php?option=com_content&view=article&id=1586:employer-avoid-waiving-privileges-ai-research&catid=53)

 [ ![ai visualization](https://wimlaw.com/media/yootheme/cache/45/milad-fakurian-5yWtM3M3JKM-unsplash-45306e6d.jpg) ](https://wimlaw.com/index.php?option=com_content&view=article&id=1587:ai-legal-recommendations&catid=53)###  [Suggestions on Use of AI](https://wimlaw.com/index.php?option=com_content&view=article&id=1587:ai-legal-recommendations&catid=53)

[Employment Law Newsletter: A Monthly Report On Labor Law Issues](https://wimlaw.com/index.php?option=com_content&view=category&id=53)

Perhaps the starting point is to look at the type of AI platforms generally available. At a recent conference about AI use for HR, speaker…

[Read more](https://wimlaw.com/index.php?option=com_content&view=article&id=1587:ai-legal-recommendations&catid=53)

 [ ![june 2026 legal immigration webinar promo graphic](https://wimlaw.com/media/yootheme/cache/45/june-2026-webinar-immigration-453d45bc.jpg) ](https://wimlaw.com/index.php?option=com_content&view=article&id=1583:worksite-enforcement-tps-parole&catid=221)###  [Worksite Enforcement and TPS and Parole Status Update](https://wimlaw.com/index.php?option=com_content&view=article&id=1583:worksite-enforcement-tps-parole&catid=221)

[Webinars: Employment Law "Hot Topics"](https://wimlaw.com/index.php?option=com_content&view=category&id=221)

The webinar covers how to deal with a worksite enforcement action and various types of immigration enforcement activities. The webinar also…

[Read more](https://wimlaw.com/index.php?option=com_content&view=article&id=1583:worksite-enforcement-tps-parole&catid=221)

### Additional Legal Resources

[### Newsletter

Explore

 ](https://wimlaw.com/publications/newsletters)

[### Books

Explore

 ](https://wimlaw.com/publications/books)

[### Alerts

Explore

 ](https://wimlaw.com/alerts)

[### Articles

Explore

 ](https://wimlaw.com/articles)

[### Audits

Explore

 ](https://wimlaw.com/audits)

[### Events

Explore

 ](https://wimlaw.com/events)

## Schema

```json
{ "@context": "https://schema.org", "@type": "BreadcrumbList", "itemListElement": [ { "@type": "ListItem", "position": 1, "name": "Home", "item": "https://wimlaw.com" }, { "@type": "ListItem", "position": 2, "name": "Publications", "item": "https://wimlaw.com/publications" }, { "@type": "ListItem", "position": 3, "name": "Newsletters", "item": "https://wimlaw.com/publications/newsletters" }, { "@type": "ListItem", "position": 4, "name": "$27 Million Verdict against Employer on Disability Discrimination over Refusal to Return Employee to Work", "item": "https://wimlaw.com/publications/newsletters/union-pacific-disability-discrimination-verdict" } ] }
```
