Corner Bar on South Lamar Boulevard in Austin, Texas, will pay $42,000 and implement new anti-discrimination policies to settle a federal lawsuit alleging the establishment fired a bartender after she became pregnant.
The U.S. Equal Employment Opportunity Commission filed the lawsuit against three limited liability companies that operate Corner Bar and other Austin-area hospitality businesses. The settlement was finalized May 20 by U.S. District Judge Alan D. Albright in the Western District of Texas.
According to the EEOC’s complaint, Corner Bar reduced the bartender’s work hours soon after she became visibly pregnant. When the employee was later hospitalized for a virus, her manager called and terminated her employment, allegedly telling her she was becoming “too much of a liability” and expressing fear that “something bad was going to happen to her.”
The bar then removed the bartender from the schedule and filled her shifts with other employees, the complaint stated.
Settlement requires policy changes and training
Under the three-year consent decree, Corner Bar must adopt a written anti-discrimination policy and provide training to all employees. The establishment also must post a notice affirming its obligations under federal employment discrimination laws.
The decree prohibits Corner Bar from engaging in or permitting unlawful conduct that discriminates against job applicants or employees based on pregnancy.
“EEOC is pleased with the resolution of this case, which includes compensation for the former employee who was working to provide for her growing family,” said Philip Moss, a trial attorney in the EEOC’s San Antonio office. “Unilaterally reducing an employee’s hours because of pregnancy is unlawful.”
Multiple laws protect pregnant workers
The conduct violated Title VII of the Civil Rights Act of 1964, as amended by the Pregnancy Discrimination Act, which prohibits discrimination based on pregnancy, childbirth or related medical conditions.
Travis Nicholson, EEOC’s Dallas District director, noted that employers face protections under multiple federal laws. “Employers must be aware they cannot discriminate against employees on the basis of pregnancy, childbirth, or related medical conditions under Title VII, the Pregnant Workers Fairness Act, and the Americans with Disabilities Act and can face serious consequences for doing so,” Nicholson said.
Implications for hospitality employers
The case highlights common pregnancy discrimination issues in the hospitality industry, where employers may worry about pregnant employees’ ability to perform physical tasks or work around alcohol. However, federal law requires employers to treat pregnant employees the same as other temporarily disabled workers.
Employers cannot reduce hours, change job duties or terminate employees simply because they are pregnant unless they would take the same actions for other employees with similar limitations.
The settlement serves as a reminder that pregnancy discrimination can be costly, both in terms of monetary damages and the requirement to implement new policies and training programs.
The San Antonio Field Office handles discrimination charges and litigation in Texas and parts of New Mexico as part of the EEOC’s Dallas District.
