Workers Fired for Refusing COVID Shot Receive $4.25 Million Payout

On May 18, 2026, the U.S. Equal Employment Opportunity Commission (EEOC) announced that A G Equipment Company, (AG) a compressor packaging manufacturer in Broken Arrow, Oklahoma, will pay $4.25 million to 43 former employees to settle a religious and disability discrimination lawsuit.^{1 2}

In the fall of 2021, A G mandated that all employees receive COVID-19 shots. Workers were informed that there would be no exemptions granted for any reason. Several employees requested exemptions based on their religious beliefs. One worker submitted a doctor’s note requesting a medical exemption. The company refused to discuss any of the requests and denied all exemptions to vaccination.³

On Oct. 15, 2021, A G fired every employee who had not provided proof that they received the COVID-19 shot, including the employees who had requested religious or medical accommodations.⁴

Title VII of the Civil Rights Act of 1964 and the Americans with Disabilities Act Violations

The EEOC filed suit in U.S. District Court for the Northern District of Oklahoma after first attempting to reach a pre-litigation settlement through its conciliation process. According to the EEOC’s complaint, 10 employees submitted written requests for religious or medical exemptions after the mandate was announced. The company refused to discuss any of the requests or explore whether accommodations were possible. On Oct. 15, 2021, all 10 employees who sought an exemption along with dozens of other workers who had not received the shot were fired.^{5 6}

The EEOC alleged violations of Title VII of the Civil Rights Act of 1964 and the Americans with Disabilities Act. Both laws require employers to provide reasonable accommodation for sincerely held religious beliefs and qualifying disabilities unless doing so would cause undue hardship.⁷

Title VII prohibits employment discrimination on the basis of religion. The law requires an employer to accommodate an employee’s sincerely held religious beliefs, practices, and observances unless the employer can demonstrate that granting the accommodation would impose an undue hardship on the operation of the business. The statute defines religion broadly to include all aspects of religious observance, practice, and belief. The law prevents an employer from simply refusing to engage with a religious accommodation request. The employer is required to conduct an individualized assessment and explore whether accommodation is possible.⁸

The Americans with Disabilities Act of 1990 imposes a parallel obligation for employees with qualifying disabilities. An employer must assess each accommodation request on its own facts and may deny the request only by demonstrating that granting it would pose an undue hardship. A blanket policy that refuses all accommodation requests without individual review violates both statutes.⁹

Patrick J. Holman, EEOC’s attorney, explained:

When these workers asked for a simple religious accommodation, the company didn’t pause to listen or even consider the impact. It fired every one of them outright, without a conversation and without any real inquiry into whether granting an accommodation would have caused the business any hardship at all. This is unlawful as well as unfair.¹⁰

EEOC Chair Andrea R. Lucas further clarified:

Where an accommodation can be provided without undue hardship, the law requires it. The pandemic did not exempt employers from their legal obligations under Title VII and the ADA.¹¹

A G Agrees to Pay Compensation

The Settlement Agreement requires A G to pay $4.25 million in monetary relief to the 43 fired workers.¹² Under Title VII and the ADA, monetary relief in discrimination cases may include back pay and compensatory damages for losses suffered as a result of the unlawful conduct.^{13 14}

The Settlement Agreement also provides that the company will train managers on compliance with Title VII and the ADA, inform all employees of their right to request reasonable accommodation, and submit reports to the EEOC on how it handles future accommodation requests. A G is prohibited from discriminating on the basis of religion or disability going forward. The consent decree remains in effect for three years.¹⁵

A Pattern of Similar Cases

The A G case is part of a pattern of EEOC enforcement actions filed against employers who terminated workers for declining COVID shots without considering required exemptions.¹⁶

In March 2026, the EEOC secured a $15 million conciliation agreement from a global technology company operating in twelve states. Federal law prohibits the EEOC from identifying the company because the case was resolved before a lawsuit was filed.¹⁷

In August 2025, Mercyhealth, a health care system operating in Illinois and Wisconsin, paid more than $1 million after the EEOC found it denied employees the opportunity to request religious accommodations to its COVID shot policy and instead terminated their employment.¹⁸

In September 2025, UT-Battelle, the management contractor for Oak Ridge National Laboratory, paid more than $2.8 million after the EEOC found it placed employees who received religious exemptions on unpaid leave rather than providing accommodation.¹⁹

The EEOC has recovered more than $55 million from employers in COVID shot mandate-related discrimination cases since 2021.²⁰

EEOC Guidance

The EEOC published formal guidance in 2021 setting forth that COVID shot mandates did not alter employer obligations under Title VII and the ADA. The guidance stated that once an employer received notice that an employee’s sincerely held religious belief prevented them from receiving the shot, the employer was required to provide reasonable accommodation unless it would impose an undue hardship.²¹

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