Ex VP Sarah Hindlian sues Goldman Sachs for dismissal

High flying executives live by their performance often get dumped when disability impairs performance – does the law protect you

From Reuters – Former Goldman Sachs VP Sarah Hindlian is suing her employer for compensation under the Americans with Disabilities Act and for punitive damages.

Her case highlights the risk to executives whose performance is intrinsic to their job. Can the employer dismiss or demote them when performance changes due to disability?

Hindlian was a unit VP at Goldman Sach when her back gave her problems in 2004. After surgery she returned to work but could not perform the same tasks. She was transferred to another position but after more back problems found herself downsized out of the firm.

Brokerage firms are high pressure businesses where performance is generally the only criteria. Only the swift and the strong survive. The disabled need not apply.

US employment law is different in that employers, barring an employment contract, can usually fire people at will.

Canadian employment law says the employee is entitled to reasonable notice or payment in lieu of notice. Canadian legal precedents will generally hold the employer liable if the fire an employee when a medical condition becomes a long term disability.

Most long term disability policies state the employee must be fully employed when the disability occurs. This can be problematic for the employee if they say have a heart attack, come back to work but take time off due to recover. There have been cases where the employer used that period to fire the employee and disqualify them from long term disability benefits. Cases have gone against the employer enough that reputable firms don’t attempt that but there are always businesses that push the edge on ethical / legal behavior.

The Hindlian case will be interesting to see how the ADA impacts dismissal when performance and disability issues collide.