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Home » Employer to pay $4.25M to settle claims it failed to consider vaccine exemptions
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Employer to pay $4.25M to settle claims it failed to consider vaccine exemptions

Business Circle TeamBy Business Circle TeamMay 20, 2026No Comments3 Mins Read
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Employer to pay .25M to settle claims it failed to consider vaccine exemptions
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Dive Transient:

  • A.G. Gear Co., a compressor packaging producer situated in Damaged Arrow, Oklahoma, can pay $4,250,000 to settle U.S. Equal Employment Alternative Fee costs that it violated Title VII of the Civil Rights Act of 1964 when it fired all people who didn’t present proof of COVID-19 vaccination in October 2021 (EEOC v. AG Gear Co.).
  • The corporate allegedly instructed workers that no exemptions can be offered for any cause. Some employees nonetheless submitted non secular and incapacity lodging requests, however the firm refused to debate them, EEOC mentioned.  
  • Along with offering the financial cost to 43 fired employees, the three-year consent decree requires the corporate to coach managers in compliance with Title VII and the People with Disabilities Act, report back to the EEOC about future lodging requests, and inform workers of their proper to affordable lodging underneath each legal guidelines.

Dive Perception:

Whereas most of lawsuits associated to the COVID-19 vaccine contain occasions from 2021-2022, the consequences nonetheless reverberate immediately as EEOC continues to litigate and settle circumstances with employers.

In March, in a really comparable case, an unnamed “main international expertise firm” agreed to pay $15 million to resolve the company’s costs that it discriminated in opposition to a category of workers on the idea of faith and incapacity when it denied their COVID-19 vaccine exemption requests and fired them in 2021. 

Additionally in March, EEOC sued an Illinois hospital for allegedly denying a Christian surgical technologist’s non secular vaccine lodging request in August 2021 and firing her a couple of months later.  

The latest enforcement seems to go hand in hand with the administration’s broader prioritization of Christian points. In April, EEOC critiqued the Biden administration’s response on COVID-19 vaccine costs as “anemic” in a press release launched alongside a multiagency “anti-Christian bias” report. 

“The company estimates it obtained over 10,000 costs of discrimination associated to COVID-19 since January 2021, and virtually all of these (9,800) alleged a violation of Title VII for failure to accommodate faith,” EEOC famous in April. “Out of those hundreds of Title VII costs, the Biden EEOC solely discovered trigger in roughly 400 (lower than 4%) and from that set, the Biden EEOC solely introduced 4, small lawsuits in opposition to personal employers.”

In a press release to HR Dive, AG Gear Co. confirmed the settlement and pointed to numerous enhancements it mentioned it made lately.

“We have now taken significant steps to strengthen our office, insurance policies, and tradition. These steps embody including an worker hotline, implementing a behavior-based security program, establishing extra structured pay practices, and constructing a management group grounded in accountability, communication, and respect,” the corporate mentioned. “We’re dedicated to a office the place workers are heard, handled pretty, and supported in doing their finest work.”



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4.25M claims Employer exemptions failed pay Settle vaccine
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