Michigan Hospital Settles $410K Lawsuit With Physician Assistant Over Religious Accommodation Dispute

University of Michigan Health-West has agreed to pay $410,000 to resolve a discrimination lawsuit filed by physician assistant Valerie Kloosterman, who claimed her employment was terminated due to her religious objections to workplace policies concerning transgender patients. The settlement concludes litigation that began in October 2022, months after Kloosterman’s August 2021 termination.

Kloosterman was dismissed three weeks after requesting religious accommodation to avoid mandatory gender identity training that conflicted with her Christian beliefs, according to court filings and statements from First Liberty Institute, the legal organization representing her. The hospital made no effort to accommodate her request, the lawsuit alleged.

During a termination meeting, hospital officials allegedly disparaged her faith, used derogatory language including calling her “evil” and a “liar,” and forbade her from bringing Christian beliefs to work. Officials also accused her of contributing to suicides among gender dysphoric individuals, the complaint states.

The settlement requires the hospital to establish a compliant religious accommodation policy, train all employees on the new guidelines, grant reasonable accommodations without retaliation, and provide $410,000 in damages and attorney fees. First Liberty Institute stated the agreement protects medical professionals’ rights to practice consistent with their faith and medical judgment.

“Employers cannot drive out people like Valerie just because of their sincere religious beliefs,” said Kayla Toney, counsel at First Liberty Institute. Title VII federal law prohibits employer discrimination based on religious beliefs, she noted.