An employee requests accommodation for a disability that would require purchasing a $12,000 piece of equipment for a company with 200 employees and annual revenue of $5 million. This accommodation would likely be considered:
Correct Answer
C) Reasonable given the company's size and resources
Reasonableness under the ADA is determined relative to the employer's size, resources, and the nature of the business. For a company with $5 million in revenue and 200 employees, a $12,000 accommodation would likely be considered reasonable.
Why This Is the Correct Answer
The ADA requires employers to provide reasonable accommodations unless they cause undue hardship. Reasonableness is determined by analyzing the cost relative to the employer's financial resources, size, and business operations. For a company with $5 million annual revenue and 200 employees, a $12,000 accommodation represents only 0.24% of annual revenue, which courts would likely find reasonable. The company's substantial size and resources make this accommodation financially feasible without causing undue hardship.
Why the Other Options Are Wrong
Option A: Unnecessary because it exceeds $10,000
This is wrong because there is no fixed dollar threshold like $10,000 in the ADA that automatically makes accommodations unreasonable. The determination is always based on the specific employer's circumstances and resources.
Option B: Unreasonable due to the high cost
This is incorrect because cost alone doesn't determine reasonableness - the ADA requires analysis of cost relative to the employer's resources. A $12,000 expense for a $5 million revenue company is proportionally small and manageable.
Memory Technique
Use 'RURU' - Reasonable accommodation is determined by Resources and Undue hardship, not Universal dollar limits
Reference Hint
ADA compliance section in construction law chapter, specifically reasonable accommodation and undue hardship provisions
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