University of Michigan Health-West has agreed to a $410,000 settlement to resolve a lawsuit filed by a physician assistant who alleged she was terminated for refusing to comply with workplace policies regarding transgender patients due to her religious convictions.
Valerie Kloosterman initiated the lawsuit against the hospital in October 2022, after her termination in August 2021. Kloosterman, represented by the First Liberty Institute, stated that she consistently received positive performance reviews until she raised objections to mandatory gender identity training based on her Christian faith. The legal organization reported that Kloosterman was dismissed three weeks after requesting a religious accommodation to opt out of training that required her to affirm statements about gender identity that conflicted with her religious beliefs.
According to court filings and statements from the involved parties, the lawsuit alleged that hospital officials confronted Kloosterman, disparaged her religious beliefs, called her "evil" and a "liar," and stated she could not bring her Christian beliefs into the workplace. The suit also claimed she was 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 complies with federal law. The hospital is also required to inform and train all employees on this policy, provide reasonable religious accommodations without reprisal to those who request them, and pay the $410,000 in damages and fees to Kloosterman and her legal team.
"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."