Oklahoma-based compressor packaging manufacturer AG Equipment Company has agreed to pay $4.25 million to resolve a discrimination lawsuit involving 43 former employees who challenged the company’s COVID-19 vaccine mandate, according to a May 18 statement from the Equal Employment Opportunity Commission.
According to the EEOC, AG Equipment implemented a company-wide vaccine requirement in the fall of 2021 and informed workers that no exemptions would be permitted.
Despite that policy, several employees requested exemptions based on religious beliefs. One employee also submitted a doctor’s note seeking an exemption due to a medical condition.
The EEOC said the company declined to engage with those requests and terminated employees who failed to provide proof of vaccination on Oct. 15, 2021, including workers seeking accommodations.
The agency alleged that AG Equipment’s actions violated Title VII of the Civil Rights Act of 1964, which prohibits employment discrimination based on religion, race, sex, color, and national origin. The company was also accused of violating the Americans with Disabilities Act, which bars discrimination against individuals with disabilities.
The settlement resolves claims involving both religious and disability discrimination.
As part of the agreement, AG Equipment is prohibited from engaging in future discrimination based on religion or disability. The company must also train managers on compliance with Title VII and ADA requirements and inform employees of their rights regarding religious and disability accommodations.
The EEOC noted that Title VII requires employers to provide reasonable accommodations for sincerely held religious beliefs unless doing so creates an undue hardship for business operations.
Examples of accommodations can include flexible scheduling, job transfers, reassignments, or voluntary shift changes. Requests may be denied if they impose significant costs, create workplace safety concerns, reduce operational efficiency, or interfere with the rights of other employees.
