Austin Bar to Pay $42K Over Pregnancy Discrimination Lawsuit

Corner Bar, which operates on South Lamar Boulevard in Austin, Texas, will pay $42,000 and provide other equitable relief to settle a pregnancy discrimination lawsuit filed by the U.S. Equal Employment Opportunity Commission (EEOC), the federal agency announced. The lawsuit named three limited liability companies that operate Corner Bar and other Austin-area hospitality businesses.

The EEOC’s lawsuit alleged that soon after the bartender became visibly pregnant, Corner Bar reduced her work hours. EEOC alleged that when the employee was later hospitalized for a virus, her manager called her and terminated her employment. The EEOC’s complaint claims that this manager told the employee that she was becoming too much of a liability and that there was a fear that something bad was going to happen to her. According to the complaint, Corner Bar subsequently removed the bartender from the schedule and filled her shifts with other employees.

Such alleged conduct violated Title VII of the Civil Right Act of 1964, as amended by the Pregnancy Discrimination Act, which prohibits discrimination based on pregnancy, childbirth, or a related medical condition. The EEOC filed suit, Civil Action No. 1:23-cv-539, in the U.S. District Court for the Western District of Texas, Austin Division.

In addition to monetary relief, under the three-year consent decree resolving the lawsuit, entered by U.S. District Judge Alan D. Albright on May 20th, Corner Bar will adopt and implement a written anti-discrimination policy, provide training to all its employees, and post a notice affirming its obligations under federal employment discrimination laws. The consent decree also enjoins Corner Bar from engaging in, encouraging, or permitting unlawful conduct that discriminates against job applicants or employees on the basis of pregnancy.

Source: EEOC

Topics Lawsuits