Oklahoma employer A.G. Equipment is settling a lawsuit with the EEOC over a COVID vaccine mandate in 2021 that came with no exceptions to policy. The compressor packaging manufacturer is set to pay a noteworthy $4,250,000 to settle allegations that it violated the rights of workers by enforcing the vaccine mandate and refusing to provide any exceptions to the rule, whether over disability claims or under religious accommodations. A.G. Equipment’s vaccine mandate was considerably standard during the period of time when concerns around the pandemic remained elevated, however, the lawsuit and hefty settlement are examples of how the lack of accommodations or exceptions can often cause trouble for employers later down the line.

AG Equipment has agreed to a settlement over COVID vaccine mandates after the EEOC interpreted the lack of accommodations as discriminatory. (Image: Pexels)
A COVID Vaccine Mandate Lands Employer In Hot Water With the EEOC
A.G. Equipment Company, a Broken Arrow, Oklahoma compressor packaging manufacturer, is set to pay $4,250,000 to over 40 workers and provide additional relief as compensation for its allegedly strict COVID vaccine mandate. According to the EEOC, in 2021, the Oklahoma-based manufacturer enforced a new policy that required all employees to receive the COVID-19 vaccine in order to maintain their employment status at the organization.
Some employees tried to seek an exception to A.G. Equipment’s vaccine mandate by citing religious beliefs that prevented them from getting the vaccine. Others reported medical conditions that made it hard for them to receive the vaccine. The lawsuit states that one employee also supplemented the health-related accommodation request with a doctor’s note, but the company did not discuss any of the requests with the employees. According to the allegations, A.G. Equipment fired all employees who did not provide proof of their vaccination on October 15, 2021, with no exceptions.
“When these workers asked for a simple religious accommodation, the company didn’t pause to listen or even consider the impact,” Patrick J. Holman, trial attorney for the EEOC’s Oklahoma City Area Office, said in a statement regarding the settlement. “It fired every one of them outright — without a conversation and without any real inquiry into whether granting an accommodation would have caused the business any hardship at all. This is unlawful as well as unfair.”
The Lack of Reasonable Accommodations Was Seen as Religious and Disability Discrimination
COVID-19 vaccine mandates were a part of standard procedure during the years when the pandemic unfolded, but the lack of exceptions during the period now has employers navigating legal landmines. Despite the assumption that across-the-board policies were essential during that time, the EEOC states that employers were still expected to provide accommodation that could be offered without undue hardship to them. “The pandemic did not exempt employers from their legal obligations under Title VII and the ADA,” EEOC Chair Andrea R. Lucas stated in the EEOC’s newsroom release.
A.G. Equipment’s enforcement of its vaccine mandate without exceptions was seen as a violation of the employees’ religious rights under Title VII of the Civil Rights Act of 1964 and disability discrimination as per the guidelines set by the Americans with Disabilities Act of 1990.
What Does the Settlement over the Vaccine Mandate Entail?
Rather than continue to fight the claims in court, A.G. Equipment has agreed to a settlement of $4,250,000, which will be paid out to 43 former workers. In addition to this, A G Equipment has to take additional precautions to ensure it does not discriminate based on religion or disability in the future, including training its managers on compliance guidelines as laid out by Title VII and the ADA.
The manufacturer now has to inform employees about their rights in relation to accommodations on matters of religion or disability, as well as report to the EEOC on its handling of future requests. These considerations ensure that the organization remains in tune with current employment regulations and the policies that dictate workforce management today.
A.G. Equipment’s settlement over its COVID vaccine mandates also serves as a reminder that every workplace policy requires extensive evaluations and considerations to understand its full impact. Identifying potential conflict areas that may be interpreted as a violation of regulation can help determine exceptions and allowances to ensure that these issues don’t complicate matters in the long run.
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