University of Michigan Health-West has agreed to pay $410,000 to settle a lawsuit filed by a former physician assistant who said she was fired after refusing to complete mandatory workplace training that conflicted with her Christian beliefs about gender identity. The settlement, announced by lawyers representing Valerie Kloosterman, resolves allegations that the hospital failed to accommodate her religious objections and then punished her for raising them.
The dispute began when University of Michigan Health-West introduced mandatory gender identity training for staff. Kloosterman asked to be excused from finishing the course because it required her to affirm statements about gender identity that she said violated her Christian faith. According to her attorneys at First Liberty Institute, she was dismissed about three weeks after requesting a religious accommodation.
Before the dispute, Kloosterman had received positive performance reviews throughout her employment, the legal group said. She filed her lawsuit against the hospital in October 2022. Her complaint alleged that hospital officials called her into a meeting where they disparaged her religious beliefs, called her «evil» and a «liar», told her she could not bring her Christian beliefs into the workplace and accused her of contributing to suicides among individuals with gender dysphoria. The lawsuit also said the hospital made no effort to accommodate her beliefs.
Under the settlement, University of Michigan Health-West must adopt a religious accommodation policy that complies with the law, inform and train all employees about the policy, and provide reasonable religious accommodations to workers who request them without retribution. The hospital also agreed to pay $410,000 in damages and attorneys' fees to Kloosterman and her legal team.
In a statement, Kloosterman said she had always tried to provide the best care possible to patients without being forced to violate her Christian beliefs. She welcomed the new policy, saying it would allow hospital employees of faith to receive accommodations while continuing to provide care consistent with their medical judgment.
«All I wanted to do was provide the best care possible to my patients without being forced to violate my Christian beliefs,» Kloosterman said. She added that the new policy ensures that providers of faith and employees at the hospital will receive religious accommodations so that they can provide excellent care consistent with their medical judgment.
Kayla Toney, counsel at First Liberty Institute, said federal law protects workers from religious discrimination. «Title VII prohibits employers from discriminating against and punishing employees for their faith,» Toney said. «Valerie is an exceptional physician assistant who cares for each of her patients. Employers cannot drive out people like Valerie just because of their sincere religious beliefs.»
Toney added that the legal organization was grateful to have resolved the matter with University of Michigan Health-West. The agreement is designed to ensure that health care providers do not have to choose between their professional obligations and their sincerely held faith, according to statements from Kloosterman and her legal team.



