United States of America v. HRB Tax Group, Inc., H&R Block Tax Services LLC and HRB Advance LLC - Settlement Agreement

Press Release

SETTLEMENT AGREEMENT AMONG

THE UNITED STATES OF AMERICA AND

HRB TAX GROUP, INC.

H&R BLOCK TAX SERVICES LLC

AND

HRB ADVANCE LLC 

UNDER THE AMERICANS WITH DISABILITIES ACT 

DEPARTMENT OF JUSTICE COMPLAINT NUMBER 202-76-97

THE PARTIES

1. The United States Department of Justice is the federal agency responsible for administering and enforcing title III of the Americans with Disabilities Act of 1990 ("ADA"), 42 U.S.C. § 12181 - 12189, on behalf of the United States of America ("United States").

2. HRB Tax Group, Inc. ("H&R Block") owns and operates more than 7,000 tax preparation offices nationwide and is the parent company of H&R Block Tax Services LLC ("H&R Block Tax Services"), franchisor of approximately 4,000 tax preparation franchises nationwide.

3. HRB Advance LLC ("HRB") is a limited liability company and subsidiary of H&R Block, and the purchaser of certain assets and liabilities of H&R Block, LLC ("Block LLC"), a former H&R Block franchise. 

4. The United States, H&R Block, H&R Block Tax Services, and HRB are the parties ("Parties") to this Settlement Agreement ("Agreement").

BACKGROUND

5. This matter was initiated by a complaint ("Complaint") filed under title III of the ADA, 42 U.S.C. §§12181-12189 ("title III"), with the United States with respect to an incident that allegedly occurred at an independent franchise office owned and operated by Block LLC, located at 5804 Walzen Road in San Antonio, Texas.

6. The complainant, who is deaf, alleged that in January 2005, Block LLC, failed to provide her with appropriate auxiliary aids and services required to ensure effective communication of its tax preparation services when it refused to provide her with qualified sign language interpreter services in connection with the preparation of an income tax return. 

7. Pursuant to title III of the ADA, public accommodations must furnish appropriate auxiliary aids and services where necessary to ensure effective communication with individuals with disabilities.  42 U.S.C. §12182(b)(2)(A)(iii); 28 C.F.R. § 36.303(c). 

JURISDICTION

8. At the time of the Complaint, Block LLC, an independent franchise operating under the trade name "H&R Block," operated approximately 150 retail tax offices within the State of Texas.  The offices are places of public accommodation pursuant to 28 C.F.R. § 36.104.  Block LLC, as operator of the offices, was a public accommodation and subject to the requirements of title III of the ADA.  42 U.S.C. § 12184(a); 28 C.F.R. § 36.104.  In November 2008, HRB acquired the assets and certain liabilities of Block LLC, including the Complaint, and therefore is now the proper party to this Agreement.

9. H&R Block is the owner and operator of offices providing tax services and training programs nationwide.  H&R Block Tax Services is a franchisor of offices providing tax services and training programs nationwide.  H&R Block's offices and H&R Block Tax Services franchised offices are places of public accommodation pursuant to 28 C.F.R. § 36.104.  As such, H&R Block and H&R Block Tax Services are public accommodations pursuant to 42 U.S.C. §§ 12181(7)(F), (J) and 28 C.F.R. § 36.104, and are therefore subject to the requirements of title III of the ADA. 

10. The Attorney General of the United States ("Attorney General") is authorized to investigate complaints and bring a civil action in federal district court under title III in any situation where a pattern or practice of discrimination is believed to exist or where discrimination involving a matter of general public importance is raised.  42 U.S.C. §12188. 

11. The United States conducted an investigation into the allegations of the Complaint.  H&R Block, H&R Block Tax Services, and HRB have cooperated fully in the United States's investigation.  The Parties have determined that the United States's Complaint 202-76-97 can be resolved without litigation and have prepared and agreed to resolve the matter pursuant to the terms of this Agreement. 

12. H&R Block, H&R Block Tax Services, HRB, and Block LLC do not admit liability for any wrongdoing by entering into this agreement.

13. In consideration of the terms of this Agreement, the Attorney General agrees to refrain from undertaking further investigation or filing a civil suit in this matter regarding the incident described in Paragraphs 5 and 6 of this Agreement, except as provided in the Enforcement and Implementation sections of the Agreement.

DEFINITIONS

14. The term "auxiliary aids and services" means: qualified sign language or oral interpreters, note takers, computer-assisted real time transcription services, written materials, telephone handset amplifiers, assistive listening devices, assistive listening systems, telephones compatible with hearing aids, closed caption decoders, open and closed captioning, TTYs, large print materials, acquisition or modification of equipment or devices, and other methods of delivering effective communication that may come into use or will come into existence in the future.

15. The terms "qualified sign language interpreter," "oral interpreter," or "interpreter" mean: an interpreter who is able to interpret competently, accurately and impartially, both receptively and expressively, using any specialized terminology necessary for effective communication in an office setting with an individual who is deaf or hard of hearing.  Someone who has only a rudimentary familiarity with sign language or finger spelling is not a "qualified sign language interpreter" under this Agreement.  Likewise, someone who is fluent in sign language but who does not possess the ability to process spoken communication into the proper signs or to observe someone signing and change their signed or finger spelled communication into spoken words is not a qualified sign language interpreter.

REMEDIAL ACTION

16. Consistent with the ADA, H&R Block, H&R Block Tax Services, and HRB affirm that they will not discriminate against any individual on the basis of disability in the full and equal enjoyment of their goods, services, facilities, privileges, advantages, or accommodations by excluding or providing unequal treatment to persons with disabilities.

17. Immediately as of the effective date of this Agreement, H&R Block, H&R Block Tax Services, and HRB will provide, upon request, at all H&R Block, H&R Block Tax Services, and HRB locations, to individuals who are deaf or hard of hearing, appropriate auxiliary aids and services, including qualified sign language interpreters, that may be necessary for effective communication in connection with their goods, services, facilities, privileges, advantages, and accommodations, unless a fundamental alteration would result.  For purposes of this paragraph, H&R Block's, H&R Block Tax Services's, and HRB's "goods, services, facilities, privileges, advantages, and accommodations" shall be construed broadly and include, but not be limited to tax preparation services and programs and courses for individuals interested in learning about tax preparation.

18. H&R Block, H&R Block Tax Services, and HRB will adopt, implement, enforce, and maintain, at all H&R Block, H&R Block Tax Services, and HRB locations, the "H&R Block Policy Regarding Effective Communication with Individuals who are Deaf or Hard of Hearing" attached hereto as Attachment A ("Policy"), within sixty (60) days of the effective date of this Agreement.

19. H&R Block, H&R Block Tax Services, and HRB will ensure that all employees and contractors of H&R Block, H&R Block Tax Services and its franchises, and HRB, whose duties involve interaction with the public receive a copy of the Policy within sixty (60) days of the effective date of this Agreement by incorporating it into H&R Block's Tax Office Policies & Procedures and H&R Block Tax Services's Franchise Operations Manual, distributing it to all District Managers and franchisees, and posting it on their internal and external websites.  Thereafter, H&R Block, H&R Block Tax Services, and HRB will distribute the Policy to all newly-hired employees and contractors of H&R Block, H&R Block Tax Services and its franchises, and HRB during their annual seasonal orientation curriculum for client-facing associates and to all other appropriate personnel on an annual basis for the life of this Agreement.  Within one hundred twenty (120) days of the effective date of this Agreement, H&R Block, H&R Block Tax Services, and HRB will provide documentation confirming compliance with this requirement.  

20. Within ninety (90) days of the effective date of this Agreement, H&R Block, H&R Block Tax Services, and HRB will establish and maintain lists of qualified sign language interpreters or sign language interpreter agencies that employ or arrange the services of qualified sign language interpreters and oral interpreters to ensure that qualified sign language interpreter services and oral interpreter services are available in each area served by one or more H&R Block, H&R Block Tax Services and its franchises, and HRB locations. Within one hundred twenty (120) days of the effective date of this Agreement, H&R Block, H&R Block Tax Services, and HRB will submit to the United States documentation confirming that each owned, operated, and/or franchise office maintains such a list.

21. Within ninety (90) days of the effective date of this Agreement, H&R Block, H&R Block Tax Services, and HRB will post and maintain a notice in a conspicuous location in all reception areas where the notice is readily visible to the public. The notice will be written in a bold black font at least 18 points in size on a contrasting background.  This notice will inform clients, potential clients, their companions, and other individuals who are deaf or hard of hearing of their right under the ADA to request a sign language or oral interpreter or other form of auxiliary aid or service if needed for effective communication while receiving services from H&R Block, H&R Block Tax Services or its franchises, or HRB.  Within one hundred and twenty (120) days, H&R Block, H&R Block Tax Services, and HRB each will provide to the United States documentation of compliance with this requirement.

22. Within ninety (90) days of the effective date of this Agreement, H&R Block, H&R Block Tax Services, and HRB will provide to all current employees and contractors of H&R Block, H&R Block Tax Services, and HRB whose duties involve interaction with the public training regarding their responsibilities and duties under the ADA and this Agreement to ensure that all people with disabilities are treated in a nondiscriminatory manner and are afforded the same service and courtesy as that afforded to other customers.  The training shall include instruction on the Policy.  Thereafter, for the duration of this Agreement, H&R Block, H&R Block Tax Services, and HRB will include ADA training, including instruction on the Policy, in their orientation training for new employees and contractors of H&R Block, H&R Block Tax Services, and HRB.  Within 120 days of the effective date of this Agreement, H&R Block, H&R Block Tax Services, and HRB each will submit documentation confirming that training has been completed.

23. Immediately, as of the effective date of this Agreement, H&R Block, H&R Block Tax Services, and HRB will maintain at each office of H&R Block, H&R Block Tax Services, and HRB a log of each request for any auxiliary aids and services, the time and date the request is made, the name of the individual who made the request, the time and date of the scheduled appointment (if a scheduled appointment was made), the time and date the requested auxiliary aids and services were provided, or a statement that the requested auxiliary aids and services were not provided. 

24. H&R Block and H&R Block Tax Services will require H&R Block Tax Services's franchisees to comply with Paragraphs 16-18, and 21-23 of this agreement with respect to the franchisees's respective franchised offices.  For purposes of this paragraph, the term "require" means that H&R Block and H&R Block Tax Services will monitor H&R Block Tax Services's franchisees' compliance with this requirement as they would monitor compliance with the franchise agreements, federal, state, or local laws. This shall include, but not be limited to, investigation of complaints of non-compliance, appropriate action to resolve each such complaint, including appropriate disciplinary action for franchisees involved and appropriate relief for the customer, and maintenance of records of such complaints, investigations, and actions taken. Disciplinary action taken against franchisees involved in a violation of this requirement shall be consistent with disciplinary actions that H&R Block or H&R Block Tax Services ordinarily take for violation of a franchise agreement, federal, state, or local law. Should H&R Block and H&R Block Tax Services be unable to secure compliance from any franchisee with this requirement, H&R Block and H&R Block Tax Services will report promptly to the Department all non-privileged information and records regarding the alleged non-compliance.

MONETARY RELIEF FOR THE COMPLAINANT

25. The ADA authorizes the Attorney General to seek a court award of compensatory damages on behalf of individuals aggrieved as the result of violations of title III of the ADA.  42 U.S.C. § 12188(b)(2)(B); 28 C.F.R. § 36.504(a)(2).

26. HRB will compensate the complainant by sending the complainant a certified check made payable to the order of the complainant in the amount of five thousand dollars ($5,000.00), via common carrier Federal Express, delivery prepaid, to the address provided by the United States and will simultaneously send a copy of the check and the accompanying letter to the United States.  The United States will obtain the complainant's signature on a copy of the Waiver and Release of Claims Form attached hereto as Attachment B and will notify HRB that it has done so.  HRB will send the complainant the certified check made payable to that individual within ten (10) days of receipt of such notification by the United States.  The United States will send HRB an original of the release signed by the complainant promptly after confirming receipt of the certified check by that complainant.  

CIVIL PENALTY

27. The ADA authorizes the Attorney General to seek a civil penalty as a result of violations of the ADA.  42 U.S.C. § 12188(b)(2)(C); 28 C.F.R. § 36.504(a)(3). 

28. Within thirty (30) days of the effective date of this Agreement, HRB will issue a check or money order in the amount of twenty-five thousand dollars ($25,000) payable to the order of the United States Treasury as a civil penalty and deliver it to counsel for the United States.

ENFORCEMENT

29. Effective immediately, H&R Block, H&R Block Tax Services, and HRB shall maintain records relating to compliance with this Agreement, which shall be available for inspection and copying by the United States upon reasonable notice.  One hundred  twenty (120) days after the effective date of this Agreement, and annually thereafter during the term of this Agreement, H&R Block, H&R Block Tax Services, and HRB will each provide written reports ("Reports") to the United States regarding their efforts to comply with this Agreement.  In the event that H&R Block, H&R Block Tax Services, or HRB does not provide auxiliary aids and services requested by an individual who is deaf or hard of hearing, the respective Report must state (1) the name and contact information of the person making the request; (2) the address of the H&R Block, H&R Block Tax Services, or HRB office where the request was made; (3) the requested auxiliary aid or service, (4) any auxiliary aid or service provided, and (5) all facts related to and all non-privileged bases for the decision not to provide the requested auxiliary aid or service or to provide an auxiliary aid or service other than what was requested.

30. During the term of this Agreement, H&R Block, H&R Block Tax Services, and HRB will notify the United States if any individual brings any lawsuit, complaint, charge, or grievance alleging that H&R Block, H&R Block Tax Services, or HRB failed to provide auxiliary aids and services requested for any individual(s).  Such notification must be provided in writing via certified mail within thirty (30) days of the date that H&R Block, H&R Block Tax Services, or HRB receives notice of the allegation and will include, at a minimum, the nature of the allegation, the name of the individual making the allegation, and all documentation possessed by H&R Block, H&R Block Tax Services, and HRB relevant to the allegation.

31. Any violation of this Agreement by H&R Block, H&R Block Tax Services, or HRB will be deemed a subsequent violation of title III as set forth in 28 C.F.R. §36.504(a)(3)(ii).

32. If at any time H&R Block, H&R Block Tax Services, or HRB desires to modify any portion of this Agreement because of changed conditions making performance impossible or impractical or for any other reason, it will promptly notify the United States in writing, setting forth the facts and circumstances thought to justify modification and the substance of the proposed modification.  Until there is written agreement by the United States to the proposed modification, the proposed modification will not take effect.  These actions must receive the prior written approval of the United States, which approval shall not be unreasonably withheld or delayed.

33. The United States may review compliance with this Agreement at any time.  If the United States believes that H&R Block, H&R Block Tax Services, and/or HRB failed to comply in a timely manner with any requirement of this Agreement without obtaining sufficient advance written agreement with the United States for a modification of the relevant terms, the United States will so notify H&R Block, H&R Block Tax Services, and/or HRB in writing, and it will attempt to resolve the issue or issues in good faith.  If the United States is unable to reach a satisfactory resolution of the issue or issues raised within thirty (30) days of the date it provides notice to H&R Block, H&R Block Tax Services, and/or HRB, it may institute a civil action in federal district court to enforce the terms of this Agreement or title III and may, in such action, seek any relief available under law.

34. For purposes of the immediately preceding paragraph, it is a violation of this Agreement for H&R Block, H&R Block Tax Services, or HRB to fail to comply in a timely manner with any of its requirements without obtaining sufficient advance written Agreement with the United States for an extension of the relevant time frame imposed by the Agreement.

35. Failure by the United States to enforce this entire Agreement or any provision thereof with regard to any deadline or any other provision herein shall not be construed as a waiver of the United States's right to enforce other deadlines and provisions of this Agreement.

36. This Agreement shall be binding on H&R Block, its subsidiaries, and its agents, employees, and contractors.  In the event H&R Block seeks to transfer or assign all or part of its interest in any entity covered by this Agreement, and the successor or assignee intends on carrying on the same or similar use of the entity, as a condition of sale H&R Block shall obtain the written accession of the successor or assignee to any obligations remaining under this Agreement for the remaining term of this Agreement.

37. This Agreement shall be binding on H&R Block Tax Services, its subsidiaries, and its agents, employees, and contractors.  In the event H&R Block Tax Services seeks to transfer or assign all or part of its interest in any entity covered by this Agreement, and the successor or assignee intends on carrying on the same or similar use of the entity, as a condition of sale H&R Block Tax Services shall obtain the written accession of the successor or assignee to any obligations remaining under this Agreement for the remaining term of this Agreement.

38. This Agreement shall be binding on HRB, its subsidiaries, and its agents, employees, and contractors.  In the event HRB seeks to transfer or assign all or part of its interest in any entity covered by this Agreement, and the successor or assignee intends on carrying on the same or similar use of the entity, as a condition of sale HRB shall obtain the written accession of the successor or assignee to any obligations remaining under this Agreement for the remaining term of this Agreement.

IMPLEMENTATION

39. A copy of this document or any information contained in it will be made available to any person by H&R Block, H&R Block Tax Services, HRB, or the United States on request.

40. This Agreement, including Attachments A and B, constitutes the entire Agreement among the Parties on the matters raised herein, and no other statement, promise, or agreement, either written or oral, made by any party or agents of either party, that is not contained in this written Agreement (including its Attachments), shall be enforceable.  This Agreement does not purport to remedy any other potential violations of the ADA or any other federal law.  This Agreement does not affect H&R Block, H&R Block Tax Services, or HRB's continuing responsibility to comply with all aspects of the ADA.

41. This Agreement will remain in effect for three (3) years from the effective date of this Agreement, or until the Parties agree that full compliance with this Agreement has been achieved, whichever is later.

42. The person signing this Agreement for H&R Block represents that he/she is authorized to bind H&R Block to this Agreement.

43. The person signing this Agreement for H&R Block Tax Services represents that he/she is authorized to bind H&R Block Tax Services to this Agreement.

44. The person signing this Agreement for HRB represents that he is authorized to bind HRB to this Agreement.

45. This Agreement shall constitute a full and final resolution of any and all claims related to Department of Justice Complaint 202-76-97 and Department of Justice Compliance Review 202-43-131, which was limited to policies, procedures, and practices relating to effective communication with persons who are deaf or hard of hearing, against H&R Block, H&R Block Tax Services, and HRB, and their agents, subsidiaries, franchisees, related companies, affiliates, partnerships, joint ventures, predecessors, successors, and assigns.

46. The effective date of this Agreement is the date of the last signature below.

FOR HRB TAX GROUP, INC., H&R
BLOCK TAX SERVICES LLC, and HRB
ADVANCE LLC:

___________________________________
AMY McANARNEY,
Senior Vice President of Operations Support and Development
1 H&R Block Way
Kansas City, MO 64105-1905

Dated: December. 22, 2010

FOR THE UNITED STATES:

THOMAS E. PEREZ
Assistant Attorney General
SAMUEL R. BAGENSTOS
Principal Deputy Assistant Attorney General
Civil Rights Division

JOHN L. WODATCH, Chief
PHILIP L. BREEN, Special Legal Counsel

____________________________________
JEANINE WORDEN, Deputy Chief
DOV LUTZKER, Special Counsel
JENNIFER K. McDANNELL, Supervisory Attorney

____________________________________
SUSAN H. CRAWFORD, Investigator
Disability Rights Section - NYA
Civil Rights Division
U.S. Department of Justice
950 Pennsylvania Ave., NW
Washington, DC 20530
(202) 307-1378 (phone)
(202) 514-7821 (fax)

Dated: January 31, 2011 

ATTACHMENT A

  H&R BLOCK
POLICY REGARDING EFFECTIVE COMMUNICATION
FOR INDIVIDUALS WHO ARE DEAF OR HARD OF HEARING

Clients who are deaf or hard of hearing, or with other communication disabilities, are to be informed that H&R Block, H&R Block Tax Services, or its franchisees will arrange for appropriate auxiliary aids and services necessary for effective communication when requested by the client or on the client's behalf.  H&R Block, H&R Block Tax Services, and its franchisees agree to provide all appropriate auxiliary aids and services, including qualified sign language interpreters, required under the Americans with Disabilities Act of 1990 free of charge to their clients.

General Assessment Criteria. The determination of which appropriate auxiliary aids and services are necessary, and the timing, duration and frequency with which they will be provided, will be made by H&R Block, H&R Block Tax Services, or its franchisees personnel who are otherwise primarily responsible for coordinating and/or providing client services, in consultation with the client where possible.  The assessment will take into account all relevant facts and circumstances, including without limitation the following:

            (a)        The nature, length and importance of the communication at issue;

            (b)       The individual's communication skills and knowledge;

            (c)        The individual's request or statement of need for an interpreter;

            (d)       The availability at the required times of appropriate auxiliary aids and services, including qualified sign language interpreters.

Time for Assessment. The determination of which appropriate auxiliary aids and services are necessary must be made at the time H&R Block, H&R Block Tax Services, or its franchisees services are requested or an appointment is scheduled, whichever occurs first.  H&R Block, H&R Block Tax Services, or its franchisees personnel will perform and document in the customer's file a communication assessment as part of each initial assessment.  H&R Block, H&R Block Tax Services, or its franchisees personnel shall reassess which appropriate auxiliary aids and services are necessary, in consultation with the client where possible, in the event that communication is not effective.

ATTACHMENT B

WAIVER AND RELEASE OF CLAIMS

I, _________________________, hereby agree that in consideration of the terms set forth in the Settlement Agreement among the United States of America, HRB Tax Group, Inc., H&R Block Tax Services LLC, and HRB Advance LLC I hereby release HRB Tax Group, Inc., H&R Block Tax Services LLC, and HRB Advance LLC and all of their agents, employees, and contractors, as well as any affiliated entities, franchises, successors, and assigns, without limitation from any and all legal claims arising from or related to the facts and circumstances described in the Settlement Agreement resolving Department of Justice complaint number 202-76-97 under title III of the Americans with Disabilities Act. This includes, but is not limited to, all claims for monetary or equitable relief that I may have under federal, state, or local law.  I have been advised that, before signing this release, I have the right to consult a private attorney regarding its contents.  I have read this release and understand its contents, and choose to sign it of my own free will and not under duress.

AGREED TO AND SIGNED this _________ day of _________, 2010.

________________________________________
Signature