In the case of Consolidated Rail Corporation v. Darrone, 1983, the U.S Supreme Court ruled that individuals could sue for employment discrimination under section 504 of the Rehabilitation Act of 1973. The plaintiff was an employee who had been fired due to a heart condition and sued his employer (Consolidated Rail Corporation) alleging violation of Section 504 which prohibits discrimination against disabled people by programs receiving federal financial assistance. The lower courts dismissed his claim on grounds that this provision only applied to "program-specific" discrimination - i.e., discriminatory practices directly related to the use or distribution of federal funds within a specific program or activity funded by Federal government. However, upon appeal, the Supreme Court reversed these decisions stating that Section 504's prohibition on disability-based discrimination is not limited solely to federally-funded activities but extends broadly across all operations at entities receiving federal funding.

The dissenting opinion in the Consolidated Rail Corporation v. Darrone case argued that Section 504 of the Rehabilitation Act of 1973 should be interpreted broadly to prohibit discrimination against disabled individuals by any program or activity receiving federal financial assistance, including private sector employment. The dissenters believed that Congress intended for this provision to apply not only to public entities but also to private employers who receive federal funding. They pointed out that other sections within the same act applied specifically and exclusively to federally funded programs, suggesting a broader interpretation for Section 504 was warranted. Furthermore, they noted that limiting its application would undermine Congressional intent and leave many victims of disability discrimination without recourse under law.