Nursing Home Company to Pay $400K to Settle Pregnancy Discrimination Suit

An Illinois nursing home company will pay $400,000 and furnish other relief to settle a pregnancy discrimination lawsuit brought by the US Equal Employment Opportunity Commission (EEOC) over conduct at one of its facilities, the federal agency announced on April 12, 2023. In its lawsuit, the EEOC charged that the skilled nursing and rehabilitation facility imple­mented a policy requiring employees to inform the company of any pregnancy and to obtain a note from their doctor releasing them to work without restrictions. The EEOC also alleged that the facility denied employees with pregnancy-related restrictions reasonable accommodations and terminated them though other employees with similar restrictions were provided accommodations.

Such conduct violates the Pregnancy Discrimination Act of Title VII, which prohibits employers from discrimination on the basis of pregnancy, and requires that employers treat pregnant employees the same as other employees who are similar in their ability or inability to work. Such conduct also violates the Americans with Disabilities Act, which prohibits employee medical examinations that are not job related or consistent with business necessity. The EEOC filed suit in US District Court for Northern District of Illinois after first attempting to reach a pre-litigation settlement through its conciliation process.

The consent decree settling the suit requires the facility to pay $400,000, which will be distributed among 11 affected employees. The two-and-a-half-year decree enjoins the facility from discrimination on the basis of pregnancy in the future, including denying pregnant workers job modifications available to other similar employees and requiring pregnant employees to obtain doctor’s notes stating that they can work without restriction.

In 2021, the nursing home company sold the facility to another company, who agreed for purposes of settlement to provide anti-discrimination training to all its employees at the facility, to post a notice about the resolution of the lawsuit, and to report to EEOC certain types of information during the decree’s term. The EEOC has not alleged that the new company engaged in any discrimination.

“It is established law that employers cannot require pregnant employees to subject themselves to medical exams simply to remain employed or treat them less favorably than similar non-pregnant employees,” said Gregory Gochanour, EEOC’s regional attorney in Chicago.

Compliance Perspective

Issue

Pregnancy discrimination is against the law. The EEOC enforces two federal laws that protect job applicants and employees who are pregnant. The first law is Title VII of the Civil Rights Act of 1964, as amended by the Pregnancy Discrimination Act, which is called “Title VII.” It prohibits sex discrimination, including pregnancy discrimination. The second law is the Americans with Disabilities Act (ADA). The ADA prohibits discrimination against an applicant or employee based on a disability, including a disability related to a pregnancy such as diabetes that develops during pregnancy. While pregnancy itself is not a disability under the ADA, some pregnant workers may have one or more impairments related to their pregnancy that qualify as a “disability” under the ADA. An employer may have to provide that worker with a reasonable accommodation for the pregnancy-related disability.

Discussion Points

    • Review the facility’s policies and procedures addressing prevention of discrimination, including pregnancy and disability discrimination. Ensure that any state-specific laws are included. Update the policies if needed.
    • Train human resources staff and facility leadership on ADA requirements, including reasonable accommodations. Document that these trainings occurred and file each signed document in the employee’s individual education file.
    • Periodically audit by anonymously polling staff to determine if they may be experiencing discrimination in the workplace. In addition, 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, LLC for informational purposes only and is not intended to provide legal advice.*

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