On Tuesday, the U.S. Equal Employment Opportunity Commission announced that it has settled a class action disability discrimination lawsuit earlier filed against retailer Dillard's (NYSE:DDS). The EEOC had accused the company of two separate violations of the Americans with Disabilities Act, first by requiring employees to disclose personal and confidential medical information to be approved for sick leave, and second, by terminating employees who took sick leave beyond the maximum amount of time allowed.

The settlement of the first complaint covers Dillard's employees who worked for the company during the period from Aug. 16, 2005, to Aug. 15, 2009. The latter settlement relates to employees terminated for taking too much sick leave at any time after May 28, 2008.

Dillard's has agreed to pay $2 million into a fund to compensate workers injured by its actions, and to abide by a three-year consent decree, during which period it will not repeat the actions that led to the EEOC complaints.

Shares of Dillard's appeared unaffected by the news, up just $0.02 on Tuesday.

Fool contributor Rich Smith has no positions in the stocks mentioned above. The Motley Fool owns shares of Dillard's. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.