Labor & Employment Law Daily Wrap Up, EEOC NEWS—Employers agree to pay $605K for disability and pregnancy discrimination, sexual harassment, (Jan 15, 2026)

By Jonathan Anderson

Fast-food restaurant KFC agreed to pay $200,000 after subjecting two female employees to a sexually hostile work environment and retaliation.

Four employers entered into settlements totaling $605,000 to resolve allegations by the Equal Employment Opportunity Commission (EEOC) that the employers violated the Americans with Disabilities Act (ADA), Title VII, and the Pregnancy Discrimination Act (PDA). In addition to providing monetary relief to affected employees, the employers agreed to make changes to their policies, procedures, and training to avoid future discrimination.

Disability discrimination. Walmart agreed to pay a former employee $60,000 and provide other relief to settle an EEOC lawsuit alleging disability discrimination in violation of the ADA. The suit alleged that new managers of a store in Farmingdale, New York, discontinued accommodations designed to help an employee with hearing, speech, and cognitive impairments understand her daily assignments. After the accommodations were revoked, a conflict arose about the employee’s tasks, which prompted Walmart to fire her for insubordination, according to the suit. The employee’s previous managers had given her positive performance ratings, describing her as “very dedicated to her position” and providing “valued performance.” In addition to monetary relief, a consent decree requires training for managers and human resources employees on the ADA and reasonable accommodations, compliance-related reporting to the EEOC, and posting of a notice in the workplace informing employees of the settlement and of their rights against discrimination.

The EEOC filed its lawsuit in the Eastern District of New York; the case is No. 1:23-cv-06902.

Disability discrimination. St. Vincent de Paul Rehabilitation Services of Texas, Inc., dba Peak Performers, agreed to pay $160,000 to a former employee and provide other relief to settle an EEOC lawsuit alleging disability discrimination under the ADA. The suit alleged that the employer denied an employee’s request for approximately four to six weeks of unpaid leave to receive treatment for mental health-related disabilities. Instead of granting the request, the employer fired the employee. The leave request came after a suicide attempt resulting from mental health conditions, according to the suit. In addition to paying $160,000 to the former employee, a consent decree prohibits Peak Performers from engaging in disability discrimination, requires the organization to adopt and implement an ADA compliance policy with extensive procedures designed to protect rights of disabled workers, and mandates detailed ADA compliance training to human resources personnel and various decision-making officials. The consent decree also requires reporting to the EEOC of any future disability discrimination complaints by employees or job applicants, as well as information concerning certain decisions to deny medical leave requested by employees.

The EEOC filed its lawsuit in the Western District of Texas, Austin Division; the case is No. 1:25-cv-1551.

Pregnancy discrimination. TEG Staffing, Inc., dba Eastridge Workforce Solutions, agreed to pay $185,000 and provide other relief to settle an EEOC lawsuit alleging pregnancy discrimination in violation of Title VII as amended by the Pregnancy Discrimination Act (PDA). According to the suit, a female employee assigned by the company to work at Feit Electric’s warehouse in Pico Rivera, California, was subjected to discrimination when she was discharged by Eastridge and Feit because of her pregnancy. The lawsuit further charged that other female employees handled by Eastridge were discriminated against in violation of federal law because of their pregnancies since at least 2019. In addition to the monetary relief, a three-year consent decree requires TEG to expunge personnel records, provide neutral references, and consider reinstatement of affected former employees identified as part of this case. The company must also review its anti-discrimination policies and procedures to ensure its policies conform with federal law. Any updated policy must be distributed to all temporary and permanent employees. The company is also required to publish a statement on its website noting its status as an equal opportunity employer; provide training on federal law prohibiting pregnancy discrimination; establish a toll-free phone number and an email address for employees to report discrimination; and maintain appropriate recordkeeping. In addition, the consent decree provides for a claims process for employees who worked for the company to file claims to share in the distribution of the $185,000 settlement.

The EEOC filed its lawsuit in the Central District of California; the case is No. 2:25-cv-09314.

Sexual harassment, retaliation. Kentucky Fried Chicken Corporation (KFC) entered into a $200,000 conciliation agreement with the EEOC, which had alleged that the employer subjected two employees to a sexually hostile work environment and retaliation in violation of Title VII. The agency said it had found reasonable cause to believe the employer subjected a female employee to a sexually hostile work environment at an Orlando KFC location and then fired her in retaliation for objecting to the sexual harassment. The investigation also identified a second affected employee. As part of the resolution, KFC agreed to pay $100,000 to each employee for compensatory and punitive damages. In addition, KFC must implement annual training on sex discrimination for employees, human resources, and management staff. The company is also required to revise its employment policies to explicitly prohibit discrimination based on sex, and report on any future complaints of sex discrimination for a period of three years.

Companies: Walmart; St. Vincent de Paul Rehabilitation Services of Texas, Inc.; Peak Performers; TEG Staffing, Inc.; Eastridge Workforce Solutions; Feit Electric; Kentucky Fried Chicken Corporation; KFC

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