Wyoming, Michigan — A Michigan hospital has agreed to pay $410,000 to resolve a lawsuit filed by a former physician assistant who claimed she lost her job after requesting a religious accommodation related to workplace policies involving transgender patients.
The settlement ends a legal dispute that began after Valerie Kloosterman was terminated from University of Michigan Health-West in August 2021. Court filings and statements from both sides confirm the agreement includes financial compensation as well as changes to the hospital’s religious accommodation policies.
Lawsuit Stemmed From Religious Accommodation Request
Kloosterman filed her lawsuit in October 2022, alleging she was dismissed after asking for a religious accommodation regarding mandatory workplace training on gender identity.
According to her legal team, First Liberty Institute, she had consistently received positive performance reviews before raising concerns that parts of the required training conflicted with her Christian beliefs.
In a statement, Kloosterman said she simply wanted to continue caring for patients without being forced to violate her religious convictions.
Her attorneys alleged that the hospital did not make a meaningful effort to accommodate her request before ending her employment.
Former Employee Claimed Religious Beliefs Were Criticized
The lawsuit also alleged that hospital officials called Kloosterman into a meeting where they criticized her religious beliefs.
According to the complaint, she was allegedly described as “evil” and a “liar,” told that her Christian beliefs did not belong in the workplace, and accused of contributing to harm experienced by individuals with gender dysphoria.
These allegations were made in the lawsuit and formed part of Kloosterman’s religious discrimination claims.
The case was ultimately resolved through a settlement, and the agreement does not constitute a court finding on the merits of those allegations.
Settlement Requires Policy Changes
According to First Liberty Institute, the settlement requires University of Michigan Health-West to implement a religious accommodation policy that complies with applicable law.
The agreement also calls for the hospital to:
- Provide employee training on the updated religious accommodation policy.
- Offer reasonable religious accommodations without retaliation against employees who request them.
- Pay $410,000 in damages and attorneys’ fees to Kloosterman and her legal team.
Kloosterman said the new policy would allow healthcare providers and employees of faith to continue delivering patient care while remaining consistent with their sincerely held religious beliefs.
Attorneys Call Settlement an Important Resolution
Kayla Toney, counsel for First Liberty Institute, said federal employment law protects workers from discrimination based on religion.
She described Kloosterman as an experienced physician assistant committed to caring for her patients, adding that employers cannot lawfully punish employees because of their sincerely held religious beliefs.
The settlement concludes the civil case without further litigation and establishes new procedures governing religious accommodation requests at the hospital.
Neither the settlement nor the available court filings indicate that the hospital admitted wrongdoing as part of the agreement.
What are your thoughts on balancing religious accommodations with workplace policies in healthcare? Share your perspective in the comments below.
