Corner Bar to Pay $42,000 in EEOC Pregnancy Discrimination Lawsuit

AUSTIN, Texas – Corner Bar, which operates on South Lamar Boulevard in Austin, Texas, will pay $42,000 and provide other equitable relief to settle a pregnancy discrimination lawsuit filed by the U.S. Equal Employment Opportunity Commission (EEOC), the federal agency announced today. The lawsuit named three limited liability companies that operate Corner Bar and other Austin-area hospitality businesses.

The EEOC’s lawsuit alleged that soon after the bartender became visibly pregnant, Corner Bar reduced her work hours. EEOC alleged that when the employee was later hospitalized for a virus, her manager called her and terminated her employment. The EEOC’s complaint claims that this manager told the employee that she was becoming too much of a liability and that there was a fear that something bad was going to happen to her. According to the complaint, Corner Bar subsequently removed the bartender from the schedule and filled her shifts with other employees.

Such alleged conduct violated Title VII of the Civil Right Act of 1964, as amended by the Pregnancy Discrimination Act, which prohibits discrimination based on pregnancy, childbirth, or a related medical condition. The EEOC filed suit, Civil Action No. 1:23-cv-539, in the U.S. District Court for the Western District of Texas, Austin Division.

In addition to monetary relief, under the three-year consent decree resolving the lawsuit, entered by U.S. District Judge Alan D. Albright on May 20th, Corner Bar will adopt and implement a written anti-discrimination policy, provide training to all its employees, and post a notice affirming its obligations under federal employment discrimination laws. The consent decree also enjoins Corner Bar from engaging in, encouraging, or permitting unlawful conduct that discriminates against job applicants or employees on the basis of pregnancy.

“EEOC is pleased with the resolution of this case, which includes compensation for the former employee who was working to provide for her growing family,” said Philip Moss, a trial attorney in the EEOC’s San Antonio office. “Unilaterally reducing an employee’s hours because of pregnancy is unlawful.”

EEOC’s Dallas District Director, Travis Nicholson, said, “Employers must be aware they cannot discriminate against employees on the basis of pregnancy, childbirth, or related medical conditions under Title VII, the Pregnant Workers Fairness Act, and the Americans with Disabilities Act and can face serious consequences for doing so.”

For more information on pregnancy discrimination, please visit https://www.eeoc.gov/pregnancy-discrimination.

The San Antonio Field Office is part of the EEOC’s Dallas District, which is responsible for addressing discrimination charges and conducting agency litigation in Texas and parts of New Mexico.  

The EEOC prevents and remedies unlawful employment discrimination and advances equal opportunity for all. More information is available at www.eeoc.gov. Stay connected with the latest EEOC news by subscribing to our email updates.