Lago Mar Settles for $100K Over Wrongful Termination of Pregnant Worker

In a significant development, the U.S. Equal Employment Opportunity Commission (EEOC) has settled a lawsuit with Lago Mar Beach Resort & Club in Fort Lauderdale, Florida, over allegations of wrongful termination and failure to accommodate a pregnant employee after she experienced a stillbirth. The case, which raises important questions about workplace accommodations and employers’ obligations under multiple federal laws, resulted in a $100,000 settlement. This amount covered both compensatory damages and back pay for the affected employee. Lago Mar also agreed to make substantial changes to its internal policies and procedures to ensure compliance with the Pregnant Workers Fairness Act (PWFA) and the Americans with Disabilities Act (ADA). According to the EEOC, this case not only highlights the necessity for workplace reforms but also underscores the evolving legal landscape surrounding pregnancy and disability accommodations.

Allegations and Employee’s Situation

The issue began when a line cook at Lago Mar encountered severe complications during her pregnancy, which ultimately resulted in a stillbirth at five months. In a state of emotional and physical distress, the employee notified her supervisors and provided a doctor’s note that recommended approximately six weeks of leave for her to recover and mourn the loss. Despite this clear communication, the employee was informed of her termination the very next day. Such a rapid response from the employer raised numerous red flags, not just for the aggrieved employee, but also for the EEOC, which quickly took notice.

The EEOC claimed that Lago Mar’s actions were in direct violation of both the PWFA and the ADA. The PWFA mandates that employers must provide reasonable accommodations to workers affected by pregnancy, childbirth, or related medical conditions unless doing so would impose an undue hardship. Similarly, the ADA protects employees from discrimination based on disabilities and requires accommodations for any conditions that fall under its definitions. In this case, the failure to comply with these laws resulted in swift action from the EEOC, leading to the lawsuit’s initiation. Lago Mar’s termination of the employee without considering her medical condition exemplified a blatant disregard for federal guidelines aimed at protecting vulnerable workers.

Legal Actions and Settlement

The legal battle culminated in a settlement in which Lago Mar agreed to pay $100,000 in compensatory damages and back pay. Beyond the financial remuneration, the resort also committed to amending its policies to adhere to the PWFA and ADA requirements accurately. Lago Mar is now obliged to provide specialized training for its staff to recognize and properly handle situations requiring pregnancy and disability accommodations. Furthermore, the resort must report biannually to the EEOC over the next three years to ensure ongoing compliance with relevant laws.

The EEOC lauded Lago Mar’s willingness to adopt proactive measures for bettering workplace conditions. This case has become a landmark, demonstrating the agency’s resolute stance on enforcing the PWFA. The EEOC disclosed that in the brief time since the PWFA took effect in 2023, this was already the fifth lawsuit filed under the new law. Through these actions, the EEOC aims to send a clear message to all employers about the necessity of providing reasonable accommodations and avoiding discriminatory practices.

EEOC’s Position and Legal Clarifications

The EEOC emphasized that the PWFA, much like the ADA, is an accommodation statute that necessitates employers to offer reasonable accommodations for conditions related to pregnancy, unless it causes undue hardship. Unlike the ADA, which typically covers disabilities, the PWFA also includes accommodations for normal, healthy pregnancies. The EEOC expects employers to engage in a transparent and interactive process with employees to identify reasonable accommodations and strictly prohibits any form of retaliation against workers seeking such accommodations.

In this context, the Lago Mar case serves as a poignant reminder to employers of their responsibilities under federal laws. Companies are mandated to engage actively with employees requesting accommodation and support them through an interactive process to determine the best course of action. Such legal requirements are not merely bureaucratic formalities but crucial steps for fostering an equitable and supportive workplace. Employers failing to respect these obligations risk not only legal repercussions but also detriment to their reputation and workforce morale.

Intersection of PWFA and ADA

The legal battle concluded with Lago Mar agreeing to pay $100,000 in compensatory damages and back pay. Beyond the financial settlement, the resort committed to revising its policies to align with the PWFA and ADA. Lago Mar is now required to provide specialized training to its staff, ensuring they can recognize and properly handle situations involving pregnancy and disability accommodations. Additionally, the resort must submit biannual reports to the EEOC over the next three years to confirm ongoing compliance with relevant laws.

The EEOC praised Lago Mar’s proactive measures to improve workplace conditions. This case is noteworthy, highlighting the agency’s firm stance on enforcing the PWFA. The EEOC revealed that since the PWFA took effect in 2023, this lawsuit marked the fifth of its kind under the new law. Through these actions, the EEOC aims to send a clear message to all employers about the importance of providing reasonable accommodations and avoiding discriminatory practices. This case serves as a significant example for other employers to follow, ensuring a fair and inclusive work environment.

Explore more