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An unnamed global tech company will pay $15 million and overhaul its workplace policies to settle federal discrimination charges tied to its COVID-19 vaccine mandate, the U.S. Equal Employment Opportunity Commission (EEOC) announced Tuesday.
The agreement — reached without a lawsuit — is the agency’s largest settlement involving a pandemic-era vaccine mandate.
The EEOC found “reasonable cause” to believe the company discriminated against employees by denying religious and disability exemption requests and firing workers who refused vaccination.
Federal law requires employers to accommodate sincerely held religious beliefs and disabilities unless doing so creates an undue hardship.
The company, which operates in 12 states and specializes in electronics and computing services, chose to resolve the case voluntarily and “without admission of liability,” avoiding a prolonged legal fight.
Under EEOC rules, companies that settle before a lawsuit is filed can remain unnamed. Still, it is rare for the agency to publicly announce such deals. Reuters reported only one similar case in the past decade, when an anonymous Colorado restaurant paid $50,000 in 2016.
An EEOC spokesperson declined to comment on why the company opted to remain anonymous, according to Reuters.
Kim Mack Rosenberg, general counsel for Children’s Health Defense, said the settlement comes too late for workers who were fired or felt pressured to comply. But she said it still signals a broader shift.
She pointed to “gross violations of rights” in workplaces during the pandemic.
“Too many workers had their sincere religious beliefs maligned and violated, or their disabilities treated dismissively in violation of the law, with employers furiously tipping the scales in favor of ill-supported claims of alleged ‘undue hardship,’” Mack Rosenberg said.
EEOC Chair Andrea Lucas agreed that Tuesday’s settlement sends a clear message.
“There was no pandemic exception to workers’ civil rights and liberties,” she said. The agency is focused on “accountability and delivering results for American workers.”
Pandemic shouldn’t be ‘excuse or pretext to suspend employee rights’
The charges were filed with the EEOC’s Phoenix District Office in December 2021.
As part of a three-year conciliation agreement, the company will pay $15 million to affected employees. It will also revise its policies and provide annual training on religious and disability accommodations.
The company also must track and report accommodation requests to the EEOC and post notices informing workers of their rights.
Melinda Caraballo, who leads the EEOC’s Phoenix office, said the changes are key to preventing future violations.
“The company’s agreement to review and revise its equal employment opportunity policies and report these changes to the EEOC are important steps in ensuring a workplace free of discrimination,” she said.
Mack Rosenberg agreed that the corrective steps matter.
“I am also glad to see that … the company will take corrective action steps, including training,” she said. “The pandemic should not have been an excuse or pretext to suspend employee rights.”
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COVID mandates sparked 600% increase in complaints to EEOC in 2022
The settlement stands out not just for its size, but for the surge of complaints tied to COVID-19 mandates. The EEOC received nearly 14,000 religious discrimination charges in fiscal year 2022 — up from 2,111 the year before, a more than 600% increase.
In many cases, disputes have led to smaller settlements or ongoing litigation.
Earlier this month, Rex Healthcare agreed to pay $150,000 to resolve a claim that it denied a religious exemption. In 2024, a research lab run by the University of Tennessee paid over $2.8 million to settle similar allegations affecting a larger group of employees.
And in 2025, Mercyhealth agreed to pay more than $1 million and offer reinstatement to workers terminated over its vaccine policy.
Other cases are still playing out in court. The EEOC sued Mayo Clinic in 2025, alleging it violated federal law by denying a security guard’s request for a religious exemption and pressuring him to get vaccinated or lose his job.
The discrimination cases hinge on two federal laws: Title VII of the Civil Rights Act of 1964 and the Americans with Disabilities Act. Both require employers to provide reasonable accommodations unless doing so creates an undue hardship.
When employers fail to comply, the EEOC can investigate, seek settlements or file lawsuits.
Before the latest agreement, the agency had recovered more than $4 million in COVID-19 vaccine mandate-related settlements since 2023, according to Reuters.
Related articles in The Defender
- United Airlines Must Face Class Action Lawsuit Over COVID Vaccine Religious Exemption Policy
- New Poll: Almost 90% of U.S. Voters Support Right to Refuse Medical Treatment
- Mayo Clinic Joins List of Employers Sued for Denying Religious Exemptions to COVID Vaccine Mandates
- Religious Liberty and Free Speech ‘Stand or Fall Together,’ Warns Doctor Fired Over Vaccine Mandate
