In a win for employers, the California Court of Appeals recently held that an employer is not charged with knowledge of an employee’s undisclosed disability and was not liable for claims of failure to provide a reasonable accommodation or failure to engage in the interactive process. (Husband v. Target Corp., 2026 WL 1430244 (Cal. Ct. App. 2026)).
It is well known that California law (FEHA) expressly prohibits unlawful employment practices, including discriminating against a person because of their physical or mental disability, for failing to provide a reasonable accommodation for a known physical or mental disability and for failing to engage in a timely, good faith, interactive process to determine effective reasonable accommodations.
In this case, the question presented to the court was under what circumstances will an employer be charged with knowledge of an employee’s undisclosed disability and potentially face liability under FEHA for failure to comply with FEHA.
The Plaintiff (Daniel Husband) worked for Target Corp. After several incidents of “threats of violence against coworkers” he was terminated for violation of company policy and then sued for disability discrimination and related claims. During the litigation, the Plaintiff admitted in deposition testimony he never expressly informed Target he had been diagnosed with bipolar I disorder but in a subsequent declaration, he asserted he “mentioned” his diagnosis to human resources during orientation.
For purposes of a FEHA claim for discrimination, an employer’s knowledge of a disability will be inferred only when the fact of disability is the only reasonable interpretation of the known facts.
Additionally, for purposes of FEHA claims for failure to make a reasonable accommodation or failure to engage in the interactive process, an employer’s knowledge of a disability will be inferred only if the disability is obvious or its observed symptoms “are so obviously manifestations of an underlying disability” that the existence of a disability “always follow[s]” from the observed symptoms.
Based on these theories, knowledge of the employee’s disability is a prerequisite to FEHA liability.
Target sought summary judgment (pre-trial dismissal) of the claims arguing that it had no knowledge of the Plaintiff’s alleged mental disability and because the Plaintiff never sought an accommodation. The trial court granted the motion and the Court of Appeal affirmed the ruling in favor of Target, holding an employer will not be charged with knowing an employee has a disability unless the facts known to the employer make the existence of a disability “the only reasonable interpretation” of those facts.
The court of appeal found that while the employee’s erratic and irrational behavior potentially was consistent with a manic episode, it did not make a mental disability the only reasonable interpretation of the facts known to the employer. The court explained that, absent disclosure by the employee or another source, knowledge of a disability may be imputed only when the disability is obvious, or the observed conduct necessarily indicates the existence of a disability. Because the employee’s conduct could reasonably have been attributed to other causes, including substance use, medication effects, or sleep deprivation, the employer was not charged with knowledge of his bipolar disorder. Without that knowledge, the employee could not establish liability for disability discrimination, failure to accommodate, or failure to engage in the interactive process under FEHA.
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