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Supreme Court Rules ADA Doesn’t Cover Retirees

The U.S. Supreme Court has ruled that the ADA does not apply to retirees, giving employers more flexibility in retiree benefit design, but other laws like ERISA still apply.

On June 20, 2025, the U.S. Supreme Court ruled in Stanley v. City of Sanford, Florida that the Americans with Disabilities Act (ADA) does not protect former employees who are no longer working or seeking work.

The case involved a firefighter who retired due to disability and received less generous health benefits than other retirees. The Court found that the ADA’s protections apply only to “qualified individuals” who currently hold or are applying for a job—not to retirees.

For employers, this means more flexibility in designing retiree benefit plans. However, other laws like ERISA still apply, so legal review is important before making changes.

Read the full article here: Benefitting You – August 2025

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