EEOC Sues Eastern Shipbuilding Group for Disability Discrimination

MOBILE, Ala. — Eastern Shipbuilding Group, Inc. (ESG), a shipbuilding company located in Panama City, Florida, violated federal law when it rescinded an Army veteran’s job offer shortly after learning of his Veterans Administration disability rating, the U.S. Equal Employment Opportunity Commission (EEOC) charged in a lawsuit announced today.

According to the EEOC’s lawsuit, the company gave him a job offer as a machinist in November 2024, conditional upon passing a pre-employment/post-offer physical examination. Although the veteran successfully passed the examination, the examiner noted that the veteran referenced a past military injury. Following the examination, the applicant informed ESG that he is a veteran with a disability. The suit claims that ESG rescinded the veteran’s conditional offer in February 2025 because of his disability, even though he was qualified to perform the job.

“Retired veterans like this serviceman have great experience and skills to contribute to the private sector,” said Linda Sales-Long, acting director for the EEOC’s Birmingham District. “Like every American, these men and women who have served our nation have the right to equal employment opportunity regardless of disability.”

Such alleged conduct violates the Americans with Disabilities Act (ADA), which prohibits disability discrimination. The EEOC filed suit (EEOC v. Eastern Shipbuilding Group, Inc., Case No. 5:26-cv-00272-AW-MJF) in the U.S. District Court for the Northern District of Florida after first attempting to reach a pre-litigation settlement through its administrative conciliation process.

EEOC Birmingham District Regional Attorney Marsha Rucker said, “The EEOC stands ready to enforce the ADA’s protections for American workers — especially when it means acting on behalf of an American veteran who seeks to apply his skills in the private sector.”

For more information on disability discrimination, please visit https://www.eeoc.gov/disability-discrimination. Information for veterans and the ADA can be found at: https://www.eeoc.gov/publications/veterans.

The EEOC’s Birmingham District Office has jurisdiction over Alabama, Mississippi (except for 17 northern counties) and the Florida Panhandle.

The EEOC is the sole federal agency authorized to investigate and litigate against businesses and other private sector employers for violations of federal laws prohibiting employment discrimination. For public sector employers, the EEOC shares jurisdiction with the Department of Justice’s Civil Rights Division. The EEOC also is responsible for coordinating the federal government’s employment antidiscrimination effort. More information about the EEOC is available at www.eeoc.gov.