An Arkansas pain management clinic and a nonprofit hospital will pay $350,000 and provide other relief to settle a retaliation lawsuit filed by the US Equal Employment Opportunity Commission (EEOC), the agency announced on September 11, 2025.
According to the EEOC’s lawsuit, the clinic and hospital fired an employee in retaliation for opposing the sexual harassment of a co-worker.
In or around April 2019, a medical technician reported that she had been sexually harassed by a physician who also co-founded the clinic. The hospital’s human resources (HR) department launched an investigation. During the investigation, a physician assistant confirmed the medical technician’s allegations and described sexually explicit text messages that the technician had shown her. Following the investigation, the accused physician took a sabbatical.
Three years later, another clinic physician, who knew the physician assistant participated in the investigation of his colleague, asked her to resign. When she refused, the clinic and hospital fired her. The physician assistant had secretly recorded the conversation, capturing the physician admitting, among other things, that she was being asked to resign because she had responded to HR’s investigation rather than reporting the harassment directly to him.
The EEOC alleged this conduct violated Title VII of the Civil Rights Act of 1964, which prohibits retaliation against individuals who oppose sexual harassment or participate in a related investigation. The agency filed suit in US District Court for the Western District of Arkansas, Harrison Division, after first attempting to resolve the matter through its conciliation process.
On Jan. 29, US District Court Judge Timothy L. Brooks rejected the companies’ argument that they could not be considered a single employer for liability purposes. The court held that a jury should determine the issue based on the facts presented.
In addition to the monetary relief, the four-year consent decree requires both the clinic and hospital to revise their sexual harassment and retaliation policies and provide annual training to all employees and staff on unlawful retaliatory practices.
“In 2009, the Supreme Court held that Title VII protects an employee who opposes unlawful sexual harassment, but does not report the harassment herself,” said Faye Williams, regional attorney for the Memphis District Office. “This case sends a strong message to other employers that the EEOC remains committed to ensuring a workplace free of retaliation.”
Compliance Perspective
Issue
Employees have the right to participate in workplace investigations related to discrimination or harassment without fear of retaliation. When employees are disciplined or terminated for cooperating in such investigations, it may raise serious compliance concerns and violate federal civil rights laws. Ensuring protection against retaliation helps maintain a workplace culture where staff feel safe and supported in upholding legal and ethical standards.
Discussion Points
- Review and update anti-retaliation policies to clearly state that employees are protected when participating in investigations of workplace misconduct, including harassment and discrimination. Consider working with an external consultant to assess your policies, procedures, and investigation protocols to ensure they meet current compliance standards and reflect best practices.
- Train all employees, including supervisors and managers, on their rights and responsibilities during workplace investigations. Emphasize that participating in an investigation—whether as a witness or a complainant—is a protected activity, and retaliation of any kind is prohibited. Med-Net Academy offers relevant courses such as Fraud Module 5 – Understanding Harassment and Discrimination, which covers how to identify and report workplace harassment, and Fraud Module 13 – Enforcing Disciplinary Standards, which addresses disciplinary policy and the role of non-retaliation.
- Conduct periodic audits of investigation outcomes and related personnel actions to identify any patterns of potential retaliation. Anonymous staff surveys can help determine whether employees feel safe reporting concerns. Facilities may also benefit from partnering with an outside consultant to perform targeted compliance reviews or mock surveys that identify areas for improvement in handling complaints and investigations.
*This news alert has been prepared by Med-Net Concepts, Inc. for informational purposes only and is not intended to provide legal advice.*