Michigan hospital pays $410K to settle lawsuit by physician assistant fired over transgender policy

A Michigan hospital reached a $410,000 settlement in a lawsuit filed by a former physician assistant. Valerie Kloosterman claimed the facility terminated her employment after she requested a religious accommodation regarding gender identity training policies.

Kloosterman, who worked at University of Michigan Health-West, stated that she sought to maintain care standards while holding onto her faith convictions. Legal counsel from the First Liberty Institute noted that Kloosterman held a record of positive performance before these objections were raised. The dispute centered on mandatory training requirements that she felt conflicted with her personal religious beliefs.

The settlement mandates that the hospital institute a new religious accommodation policy compliant with federal law. Additionally, the agreement requires the facility to provide training for staff to ensure employees who request religious accommodations receive them without fear of retribution. The $410,000 payment covers damages and legal fees associated with the case.

This outcome follows years of litigation that began when Kloosterman filed her suit in October 2022. The resolution marks a significant shift in internal policy for the health system, emphasizing the protection of employees who seek to balance workplace requirements with their sincerely held religious views.