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Minnesota Assisted Living Facility to Pay $73K in EEOC Pregnancy Discrimination Case

A Minnesota assisted living facility (ALF) has agreed to pay $73,000 and provide other equitable relief to settle a pregnancy discrimination and retaliation lawsuit filed by the US Equal Employment Opportunity Commission (EEOC), the federal agency announced on April 14.

According to the EEOC’s lawsuit, the ALF promoted a female employee but, after learning of her pregnancy, threatened to demote her and launched a campaign of excessive and heightened scrutiny of her work. When the employee opposed the discriminatory treatment and filed a charge with the EEOC, the facility’s manager retaliated by giving her negative performance reviews that threatened her job. The ALF finally caused the employee to quit by insisting that it must hire a replacement for her because it assumed the pregnant employee would not be reliable.

This conduct violates Title VII of the Civil Rights Act of 1964, which prohibits employers from discriminating against employees on the basis of sex, including pregnancy. After first attempting to reach a pre-litigation settlement through its conciliation process, the EEOC filed the lawsuit in US District Court for the District of Minneapolis.

Under the consent decree resolving the case, the ALF must pay $73,000 in lost wages and other monetary relief to the former employee. It also must revise its anti-discrimination policies, allow the EEOC to monitor complaints of pregnancy discrimination, and conduct training designed to prevent future Title VII violations based on pregnancy discrimination and retaliation.

Compliance Perspective

Issue

The EEOC enforces three federal laws that protect job applicants and employees who are pregnant:

1. Title VII of the Civil Rights Act of 1964, as amended by the Pregnancy Discrimination Act (PDA), prohibits discrimination on the basis of sex, including pregnancy, childbirth, or related medical conditions.

2. The Pregnant Workers Fairness Act (PWFA) requires covered employers to provide reasonable accommodations to workers with known limitations related to pregnancy, childbirth, or related medical conditions, unless doing so would cause an undue hardship.

3. The Americans with Disabilities Act (ADA) prohibits discrimination against individuals with disabilities, including certain pregnancy-related conditions. While pregnancy itself is not considered a disability under the ADA, pregnancy-related impairments—such as gestational diabetes or preeclampsia—may qualify as disabilities, requiring reasonable accommodation.

Employers must also ensure that employees are not retaliated against for requesting accommodations or reporting pregnancy-related discrimination.

Discussion Points

    • Review the facility’s policies and procedures related to discrimination prevention, including those addressing pregnancy and disability discrimination for both employees and job applicants. Ensure policies reflect both federal and state-specific requirements. Also review and update nonretaliation policies as needed.
    • Provide training for human resources personnel and facility leadership on the requirements of Title VII, the PWFA, and the ADA. Stress the importance of nonretaliation.
    • Conduct periodic anonymous staff surveys or audits to assess whether employees are experiencing or witnessing discrimination or harassment. Include questions to gauge whether staff feel safe reporting concerns without fear of retaliation. Ensure that staff are aware of how to report any concerns of discrimination they may observe or experience to their immediate supervisor or through the facility’s hotline.

*This news alert has been prepared by Med-Net Concepts, Inc. for informational purposes only and is not intended to provide legal advice.*