The issue with the statement may come with the full exclusion of the test portion:
...and exclude some or all of these steps...
Based on the link provided employers are under no obligation to omit a portion of the test but an applicant can ask (and employers are obligated to oblige within reason) for the test in a way such that their disability is not a factor.
An employer may have to provide testing materials in alternative
formats or make other adjustments to tests as an accommodation for
you. The format and manner in which a test is given may pose problems
for persons with impaired sensory, speaking, or manual skills, as well
as for those with certain learning disabilities. For example, an
applicant who is blind will not be able to read a written test, but
can take the test if it is provided in braille or the questions are
tape recorded. A deaf person will not understand oral instructions,
but these could be provided in a written format or through the use of
a sign language interpreter. A 30-minute timed written test may pose a
problem for a person whose learning disability requires additional
Unfortunately a lot of these things are subjective such as
- What if my disability prevents me from performing some job duties?
An employer does not have to hire you if you are unable to perform all
of the essential functions of the job, even with reasonable
accommodation. However, an employer cannot reject you only because the
disability prevents you from performing minor duties that are not
essential to the job.
This is where the employer has a fair bit of power. A case can be made that solving algorithm tasks, on a team or in a dynamic situation is the job and thus the inability to do so even with reasonable accommodation (more time etc.) would be disqualifying. They cannot however disqualify you for say, not being able to write on a whiteboard.
However, I can't find any information on the reasonable limits of such
I was involved in an ADA project some time ago at work. Regrettably a lot of the regs are somewhat ambiguous and many of the cases are handled on a case by case basis (as is commonplace with law for that matter).
As mentioned by others, you need to involve your companies legal team. I and many others here are not lawyers and can not provide legal interpretations for you.