Idaho engineering company agrees to $5M settlement over alleged religious discrimination tied to COVID-19 vaccine mandate

An Idaho engineering company agreed to pay $5 million and provide other relief to resolve federal charges alleging it denied religious and disability accommodations to employees under its COVID-19 vaccine policy, the U.S. Equal Employment Opportunity Commission (EEOC) announced in an emailed press release July 22.

Battelle Energy Alliance, an Idaho Falls-based research company that manages the Idaho National Laboratory, reached the agreement following an EEOC investigation into allegations that the company unlawfully denied accommodation requests based on employees' sincerely held religious beliefs, according to the release. 

The EEOC said its systemic investigation found reasonable cause to believe Battelle discriminated against a class of more than 100 employees under the company's mandatory COVID-19 vaccination policy. 

According to the agency, the alleged discrimination included unlawful medical inquiries, denial of religious and disability accommodations, and, in some cases, termination.

Under Title VII of the Civil Rights Act of 1964, employers generally must provide reasonable accommodations for employees' sincerely held religious beliefs unless doing so would impose an undue hardship. The Americans with Disabilities Act similarly requires reasonable accommodations for qualified employees with disabilities absent undue hardship.

"There was no pandemic exception to workers' civil rights and liberties," EEOC Chair Andrea Lucas said in a statement. "Absent undue hardship, employers are required to provide reasonable accommodation for sincerely held religious beliefs and qualifying disabilities."

Lucas said the agency would continue enforcing federal civil rights laws in cases involving COVID-19 vaccine-related discrimination.

"America's workplaces must remain open to employees of faith, and to workers with disabilities, regardless of circumstance," she said.

The settlement resolves a 2021 commissioner charge filed by Lucas, along with 15 individual discrimination charges filed by employees who worked at Battelle Energy Alliance facilities in Idaho Falls.

As part of the three-year agreement, the company will provide back pay and compensatory damages to affected employees and train human resources personnel on handling religious and disability accommodation requests.

The EEOC said Battelle voluntarily entered into the agreement without admitting liability in order to avoid prolonged litigation.