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Pregnancy Discrimination Lands Employer in Hot Water

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Imagine Schools Inc., a nationwide operator of charter schools, will pay $570,000 to settle a pregnancy discrimination lawsuit filed by the United States Equal Employment Opportunity Commission (EEOC), the federal agency announced.

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The suit, filed in U.S. District Court for the Western District of Missouri (EEOC, et al. v. Imagine Schools, Inc., No. 4:08-cv-00731-SOW), charged Imagine Schools discriminated when it chose not to retain two pregnant employees after closing its charter middle school in Kansas City, Missouri and opening a private middle and high school, Renaissance Academy, at the same location. The lawsuit claimed the company did not rehire both women to work at the new school because they were pregnant.
Pregnancy discrimination violates Title VII of the Civil Rights Act of 1964, as amended by the Pregnancy Discrimination Act. The EEOC filed suit after first attempting to reach a pre-litigation settlement.
“Unfortunately, the EEOC keeps having to drive home the point that no woman should lose her means of earning a living simply because she is pregnant,” said EEOC Acting Chairman Stuart Ishimaru. “This significant settlement should serve as a reminder of that fact to other employers.”
In addition to requiring $570,000 in back pay, emotional distress damages, and attorneys’ fees, the two-year consent decree, subject to court approval, requires the nationwide charter school company to disseminate a policy on pregnancy discrimination, provide management training on such discrimination, report internal discrimination complaints to the EEOC, and prominently post a notice regarding employee rights under federal anti-discrimination laws enforced by the agency.
“There is no excuse for a company in the business of educating children to discriminate against pregnant women,” said EEOC Regional Attorney Barbara Seely. “We are pleased that Imagine Schools is now setting a good example for today’s youth by recognizing that working mothers deserve the same opportunities as all other employees.”

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Pregnancy discrimination charges filed with the EEOC and state and local Fair Employment Practices Agencies rose from 4,160 in Fiscal Year 2000 to 6,196 in FY 2009.

Author Robert Elliott, executive vice president, Amaxx Risks Solutions, Inc. has worked successfully for 20 years with many industries to reduce Workers’ Compensation costs, including airlines, health care, manufacturing, printing/publishing, pharmaceuticals, retail, hospitality and manufacturing. He can be contacted at: [email protected] or 860-553-6604.

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