University of Michigan Health-West has agreed to pay $410,000 to settle a lawsuit filed by a physician assistant who was fired in August 2021. The physician assistant, Valerie Kloosterman, alleged she was terminated for refusing to adhere to workplace policies concerning transgender patients, citing her religious convictions.
Kloosterman sued the hospital in October 2022, represented by the First Liberty Institute. According to her legal team, Kloosterman had consistently received positive performance reviews before she raised objections to mandatory gender identity training based on her Christian faith. The First Liberty Institute stated that Kloosterman was dismissed three weeks after requesting a religious accommodation to avoid completing training that required her to affirm statements about gender identity contrary to her beliefs.
The lawsuit claims that University of Michigan Health-West officials disparaged Kloosterman's religious beliefs during a meeting, referring to her as "evil" and a "liar," and stating she could not bring her Christian beliefs into the workplace. She was also accused of contributing to suicides among individuals with gender dysphoria.
The settlement includes provisions for University of Michigan Health-West to implement a religious accommodation policy that aligns with legal requirements. The hospital will also inform and train all employees on this policy, provide reasonable religious accommodations to those who request them without fear of retribution, and pay the $410,000 in damages and legal fees to Kloosterman and her attorneys.
"This new policy ensures that providers of faith and employees at UMHW will receive religious accommodations so that they can provide excellent care consistent with their medical judgment, because all patients are created in the image of God," Kloosterman said in a statement. Kayla Toney, counsel at First Liberty, added, "Title VII prohibits employers from discriminating against and punishing employees for their faith. Valerie is an exceptional physician assistant who cares for each of her patients. Employers cannot drive out people like Valerie just because of their sincere religious beliefs. We are grateful to have resolved this matter with University of Michigan Health-West."