Denied Medical Leave? What California Employees Can Learn from Head v. Costco

Jun 30, 2025 | Disability Discrimination, Interactive Process, Reasonable Accommodation, Workplace Discrimination, Wrongful Termination

If you’re searching for a real-world disability discrimination case study, look no further than Head v. Costco Wholesale Corp. One former Costco employee was denied medical leave after exhausting his FMLA and CFRA time while caring for his wife with cancer and managing his own serious health condition. He was pushed to resign and later refused reinstatement. Then he sued.

I’m Matt Ruggles. I’ve practiced employment law in California for more than 30 years, and disability discrimination is one of the most common, and most misunderstood, issues I handle. Employers often talk a good game about supporting workers with medical issues, but behind the scenes, they deny accommodations, ignore legal obligations, and push employees out when they become “inconvenient.” Disability discrimination isn’t just about firing someone who’s sick. It also includes refusing medical leave, denying reasonable accommodations, or punishing someone for caring for a disabled family member.

I wrote this blog to help California employees recognize what disability discrimination actually looks like, especially when it’s dressed up as a neutral policy or business decision. If you’ve been pushed out after a medical leave, or denied a reasonable accommodation, this post is for you.

Disability Discrimination Case Study: Head v. Costco Wholesale Corp.

The disability discrimination case of Head v. Costco Wholesale Corp. began when Terry Head, an hourly sales employee at Costco, took continuous leave starting in March 2021 to care for his wife, who was battling cancer. He also faced his own health challenges during that time. Over the next year, he exhausted all available leave under the Family and Medical Leave Act (FMLA), the California Family Rights Act (CFRA), and Costco’s internal leave policies.

In February 2022, Costco informed him that his continuous leave had reached its 12-month cap under company policy. He requested a further extension through February 2023 to continue caring for his wife, providing a return-to-work date. Costco denied the request, claiming he hadn’t worked enough hours in the previous year to qualify again for protected leave.

They told him to return to work in July 2022. Rather than return under pressure, he resigned. After his wife passed away, he requested reinstatement. Costco refused.

Head sued under the California Fair Employment and Housing Act (FEHA), alleging disability discrimination, retaliation, failure to accommodate, and failure to engage in the interactive process.

What Did the Court Say About Denied Medical Leave?

The federal court dismissed some of Head’s claims but allowed key claims to move forward, especially those tied to Costco’s refusal to extend his leave and its handling of the accommodation request.

The District Court ruled that:

  • Head’s request for extended leave was time-limited and accompanied by a return date, making it a potentially reasonable accommodation under FEHA.
  • Costco may have failed to engage in the required interactive process, particularly because their communications suggested they were only willing to accommodate his own medical needs, not those tied to caring for his wife.
  • There was enough evidence of inconsistency and possible bias to send the case to a jury for trial.

That means the court found a dispute of material fact, something only a jury can resolve, on whether Costco fulfilled its legal duties.  As a result, the case will go to trial and will not be dismissed as the employer requested from the District Court.

Can California Employees Get Medical Leave After FMLA and CFRA Run Out?

Under California’s Fair Employment and Housing Act (FEHA), employers have a legal obligation to accommodate disabilities. And that obligation includes granting medical leave, not just under FMLA or CFRA, but also as a reasonable accommodation if the leave is necessary and doesn’t pose an undue hardship.

Importantly, although the federal FMLA and California’s CFRA both create a maximum benefit of 12-weeks of protected leave per year, the California FEHA creates a similar right to a reasonable accommodation but does not include any maximum amount of time – only what is “reasonable.”  However, whether or not a period of extended leave is “reasonable” is not just a matter of guesswork.  Instead, the employer has the burden of demonstrating that any finite period of requested leave would result in an “undue burden” on the employer, which normally is very difficult to prove.

And most important: if you request an accommodation, like more time off, your employer is legally required to engage in an interactive process. That means they can’t just say “no.” They have to have a real conversation with you about possible solutions.

The Employer’s Excuse to Deny Medical Leave: Policy Limits on Disability Leave

Costco claimed its leave policy capped all continuous leave at 12 months. That’s their common policy. However, corporate policies never override California law.

In this case, Head provided a specific return-to-work date, and the extension request was limited in duration, not open-ended. That’s exactly the kind of accommodation the law protects. The court recognized that just because FMLA or CFRA has been exhausted, that doesn’t mean the employer’s job is done and the FEHA does not apply; the FEHA always applies regardless of an employee’s ability to qualify for leave under the FMLA or CFRA.

Some courts have ruled that even a multi-week or multi-month extension can still be reasonable under FEHA, depending on the facts. It depends on how long the extension is, how firm the return date is, and whether the employer is truly burdened by keeping the job open.

The takeaway: Employers often act like their internal policies are the final word. They’re not. If the accommodation is reasonable and time-limited, it deserves to be considered, regardless of what limiting language is set out in the employer’s policy.

To understand how employers get into legal trouble under California’s discrimination laws, read my blog: Wrongful Termination Lawsuits Under FEHA: A Costly Gamble for Employers.

Does My Employer Have to Discuss My Medical Leave Extension?

In this case, Costco allegedly drew a line: they were open to working with the employee if the leave was for his own health condition, but not if it was for his wife’s illness. That kind of inconsistency can get a company into legal trouble.

FEHA requires employers to engage in a good faith interactive process. If they don’t respond to your accommodation request, or if they reject it out of hand without discussion, they may have broken the law.

Even the judge acknowledged that Costco might argue it tried to cooperate. But ultimately, that question will go to a jury. Why? Because there’s evidence suggesting they treated the employee differently based on who the leave was for and that’s not a valid reason under California law.

How Should California Employees Respond to Disability Discrimination?

If you’ve been denied leave, refused accommodations, or pressured to resign after disclosing a medical condition, don’t assume your employer is within their rights. Under FEHA, employers have a legal duty to accommodate disabilities and engage in a good faith interactive process. Most don’t do this well, and some don’t even try.

Here’s what I advise if you face disability discrimination in California, step by step:

Step #1: Put Your Disability Accommodation Request in Writing

If you need a leave of absence or any other accommodation due to a disability or medical condition, you need two things:
(1) a written request from you, and
(2) a doctor’s note that supports it.

Don’t just tell your manager in the hallway. Send an email like this:

“My doctor recommends I take medical leave from June 10 through July 15 due to a serious health condition. I’ve attached a doctor’s note confirming the need for leave and estimating my return-to-work date.”

That doctor’s note should:

  • Confirm that you have a medical condition or disability,
  • Recommend the leave or other accommodation,
  • Always include a proposed return-to-work date (even if tentative); not including a proposed or anticipated return-to-work date may allow your employer to automatically deny your requested accommodation.

Without a doctor’s note, your employer may claim they didn’t know the request was legitimate or protected by California law. With it, you’ve created a paper trail that triggers their legal duty to engage in the interactive process and protects your rights under the Fair Employment and Housing Act (FEHA).

For practical guidance on how to protect your job while on leave, read my blog: California Leave of Absence: Advice to Employees.

Step #2: If You Are a Disabled Employee, Expressly Ask the Employer to Engage in the Interactive Process

California law requires your employer to engage in an “interactive process” when you request an accommodation for a disability. That means they have to talk with you, ideally in writing, about what you need and whether they can provide it.

Ask directly:
“I’d like to initiate the interactive process under California’s disability accommodation law to explore possible accommodations.”

If they ignore that request, it’s a violation of FEHA, even if they claim your accommodation would have been unreasonable.

Step #3: Always Include a Return-To-Work Date on Your Doctor’s Note

If you’re requesting medical leave, your doctor’s note must include a return-to-work date even if it’s tentative. Why? Because under California law, employers are not required to accommodate indefinite leave. Courts consistently hold that a leave request without a clear end date is not a reasonable accommodation.

And here’s the part most employees miss:
If your leave needs to be extended, and you’re submitting a new doctor’s note, that new note must also include a return-to-work date. Each note is treated as a new request for accommodation. Your employer has a duty to evaluate each one under the law, but only if it contains the basic information they need including when you’re expected to come back.

For example:

“My doctor has extended my medical leave. I’m now expected to return to work on or around September 30. I will provide an update if that changes.”

This keeps your accommodation request within legal bounds and gives your employer the chance to evaluate whether holding your job open continues to be reasonable. Leaving out a return-to-work date, even just once, can give your employer cover to deny the request or terminate your employment.

Bottom line: No return date, no protection.

To learn more about how indefinite leave requests can impact your job, read my blog: Indefinite Medical Leave: Can My Employer Terminate Me?

Step #4: Document Every Interaction and Stay in Regular Contact with the Employer

Don’t assume anything is “on record” unless you create the record. Every conversation with HR or your manager, whether by phone, video, or in person, should be followed up with a confirming email. For example:

“Thanks for the call today. To confirm, you stated that [insert their position or response]. Please let me know if I misunderstood anything.”

This simple step does three things:

  1. Forces your employer to either confirm or correct their position in writing,
  2. Creates a paper trail that locks in their responses, and
  3. Exposes contradictions later if they change their story.

But documentation doesn’t stop there.

If you’re out on leave, you need to stay in contact with your employer. When you submit a new doctor’s note extending your leave, don’t just upload it to a portal or hand it to HR and assume it’s handled. Follow up with a clear, written confirmation:

“I’m following up to confirm that you received my doctor’s note dated July 10, extending my medical leave through August 15. Please confirm receipt and let me know if you need anything further.”

No confirmation? Follow up until you get one. Silence is not your friend.

Finally, when you’re cleared to return to work, even if your original return date hasn’t changed, you must notify your employer in writing. Your email should be simple:

“I’ve been released to return to work effective August 15. Please confirm the next steps for my return.”

This helps prevent employers from claiming you abandoned your job or failed to communicate. It also reinforces that you were ready and willing to return, which can be critical if you’re later denied reinstatement.

Step #5 If You Were Denied Medical Leave, Talk to an Employment Lawyer Immediately

Don’t wait until you’ve already been fired. If something feels off, your accommodation is delayed, your boss is suddenly critical, HR is going quiet – that’s the time to call an employment lawyer. The earlier you get legal guidance, the more likely you are to protect your job, or build a strong case if you lose it.

FREQUENTLY ASKED QUESTIONS ABOUT DISABILITY LEAVE

Can my employer deny medical leave if I’ve already used FMLA or CFRA?

Yes, but not always legally. Even if you’ve exhausted your FMLA or CFRA leave, your employer may still have a legal obligation under California’s Fair Employment and Housing Act (FEHA) to grant additional leave as a reasonable accommodation. If you provide a doctor’s note with a return-to-work date and the leave extension doesn’t cause undue hardship, the employer may be required to approve it even if their internal policy says otherwise.

What should I do if my employer ignores my request for extended medical leave?

Put your request in writing and attach a doctor’s note that includes a specific return-to-work date. Then follow up and confirm receipt. If your employer doesn’t respond or refuses to engage in a discussion about your request, they may be violating FEHA’s requirement to engage in a good faith interactive process. You should speak to a California employment lawyer right away.

Is caring for a disabled family member protected under California disability laws?

Yes. Under FEHA, discrimination based on association with a person who has a disability, like a spouse, child, or parent, is illegal. If your employer treats you unfairly, denies leave, or retaliates against you because you’re caring for a disabled loved one, you may have a valid claim for disability discrimination.

Final Thoughts from Matt Ruggles Denied Medical Leave

Costco may have had a written policy, but written policies don’t trump the law. When an employee asks for more time to care for a family member with cancer, or manage their own serious health issues, employers have to do more than shrug and say, “Policy says no.”

The court in this case understood that. That’s why several of this employee’s claims are still heading for trial.

If your employer is denying your medical leave extension, refusing to engage with you, or trying to push you out after a long absence, don’t wait to see how it ends. Talk to a lawyer who knows how to hold California employers accountable.

Contact the Ruggles Law Firm at 916-758-8058 to Evaluate Your Potential Lawsuit

Matt Ruggles has a thorough understanding of California employment laws and decades of practical experience litigating employment law claims in California state and federal courts. Using all of his knowledge and experience, Matt and his team can quickly evaluate your potential claim and give you realistic advice on what you can expect if you sue your former employer.

Contact the Ruggles Law Firm at 916-758-8058 for a free, no-obligation consultation.

Blog posts are not legal advice and are for information purposes only. Contact the Ruggles Law Firm for consideration of your individual circumstances.

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Matt Ruggles of Ruggles Law Firm

About The Author

I’m Matt Ruggles, founder of the Ruggles Law Firm. For over 30 years, I’ve represented employees throughout California in employment law matters, including wrongful termination, harassment, discrimination, retaliation, and unpaid wages. My practice is dedicated exclusively to protecting the rights of employees who have been wronged by corporate employers.

I genuinely enjoy what I do because it enables me to make a meaningful difference in the outcome for each of my clients.

If you believe your employer has treated you unfairly, contact the Ruggles Law Firm at (916) 758-8058 or visit www.ruggleslawfirm.com to learn how we can help.

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