On October 11, 2024, a Florida federal court approved a consent decree between the U.S. Equal Employment Opportunity Commission (EEOC) and Lago Mar Properties Inc. This settlement marks one of the first cases under the newly enforced Pregnant Workers Fairness Act (PWFA). 

The case stemmed from an incident in July 2023 where an employee of Lago Mar, a line cook who was then five months pregnant, was admitted to the hospital due to complications that ultimately resulted in a stillbirth. She requested six weeks of leave to recover from the physical and emotional toll, backed by a doctor’s note. However, the day after submitting the note, Lago Mar’s management terminated her employment. The employee filed a grievance with the EEOC, citing violations of the PWFA and Americans with Disabilities Act (ADA).

The EEOC eventually filed suit on the employee’s behalf and alleged that Lago Mar failed to provide reasonable accommodations, which is required under both the PWFA and the ADA. The PWFA, which took full effect in 2024, mandates that employers with 15 or more employees must provide reasonable accommodations to workers affected by pregnancy, childbirth, or related medical conditions, unless doing so would cause undue hardship.

Consent Decree Terms 

Without admitting wrongdoing, Lago Mar agreed to a settlement. The consent decree requires the company to pay $100,000 in damages to the employee, including $92,080 in non-wage compensatory damages and $7,920 in back pay.

Additionally, Lago Mar must implement several measures over the next three years, including:

• Appointing an Equal Employment Opportunity Commission coordinator to ensure compliance with federal laws.
   
• Revising company policies to ensure that employees receive reasonable accommodations for pregnancy or disability-related conditions.
   
• Providing anti-discrimination and anti-retaliation training to both managerial and non-managerial employees.

The consent decree also includes an injunction prohibiting Lago Mar from retaliating against employees who request reasonable accommodations for pregnancy or disability.

Significance of the Settlement 

This case is one of the first under the PWFA, which has also become an area of emphasis for EEOC enforcement. The settlement highlights the protections the PWFA, in conjunction with the ADA, provides to pregnant workers, requiring employers to engage in an interactive process to determine whether a reasonable accommodation exists.

Key Takeaways for Employers:

• The PWFA requires employers to provide reasonable accommodations to workers affected by pregnancy, childbirth, or related medical conditions.
   
• Employers must engage in an interactive process to determine reasonable accommodations and cannot terminate or retaliate against workers for making such requests.
   
• Policies should be regularly reviewed and updated to comply with federal anti-discrimination laws, including the ADA and PWFA.

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