Beaumont Health to Pay $30,000 to Settle EEOC Race Discrimination Lawsuit

Background:

DEARBORN, Mich. – Beaumont Health, now known as Corewell Health, has agreed to pay $30,000 and provide other relief to settle a race discrimination lawsuit filed by the U.S. Equal Employment Opportunity Commission (EEOC). The lawsuit accused the healthcare system of terminating a Black employee due to her race.

Allegations:

The EEOC’s lawsuit alleged that Beaumont Health fired a Black home health aide following an unwitnessed verbal conflict with a white co-worker over a dishwasher. After the incident, both employees discussed the matter with their director. Despite Beaumont's progressive discipline policy, the director terminated the Black employee without disciplining the white employee involved in the conflict. The terminated employee had an exemplary work record with Beaumont, having served the organization for over 20 years.

The lawsuit further claimed that the decision to terminate the Black employee, while allowing the white employee to remain unpunished, was racially motivated. This conduct was alleged to be a violation of Title VII of the Civil Rights Act of 1964, which prohibits employment discrimination based on race.

Settlement:

The EEOC filed the lawsuit (Civil Action No. 2:24-cv-11783) in the U.S. District Court for the Eastern District of Michigan on July 10, following unsuccessful attempts to resolve the issue through administrative conciliation. Under the terms of the consent decree, Corewell Health will pay $7,837.96 in back pay and $22,162.04 in compensatory damages to the former employee, totaling $30,000. Additionally, Corewell Health is forbidden from engaging in race-based disparate treatment and is required to train managers, supervisors, and HR personnel on race discrimination.

Conclusion:

This settlement underscores the legal obligation of employers to ensure that disciplinary actions are free from racial bias. Corewell Health’s agreement to settle and implement corrective measures highlights the importance of adhering to federal laws that protect employees from race-based discrimination.