The case centers on a female server who worked at Cosmos Restaurant for less than a week before being terminated in November 2023, immediately after management discovered she was pregnant. According to the Equal Employment Opportunity Commission's lawsuit, the timing of the firing — occurring just one day after the company learned of the employee's pregnancy — formed the basis for the federal discrimination claim.
The settlement resolves allegations that Cosmos violated Title VII of the Civil Rights Act of 1964 by engaging in pregnancy-based discrimination. 'Employers cannot dismiss pregnant workers because of their pregnancy,' said Marsha Rucker, regional attorney for the EEOC's Birmingham District. 'Federal law is clear: Title VII prohibits pregnancy-based discrimination in the workplace.'
The EEOC emphasized that the case demonstrates the agency's commitment to protecting pregnant workers from discriminatory practices. As EEOC Birmingham District Director Bradley Anderson explained, 'The injunctive relief in this decree, including its mandatory training requirements, policy changes, and reporting obligations, underscores the EEOC's commitment to enforcing federal protections for pregnant workers.'
The federal lawsuit was filed as EEOC v. Smoke BBQ LLC and Thorny Oyster LLC, Case No. 1:25-cv-00278, in the U.S. District Court for the Southern District of Mississippi. The EEOC pursued litigation only after first attempting to reach a pre-litigation settlement through its administrative conciliation process, which proved unsuccessful.
While the EEOC announced that the restaurant operators will pay 'significant monetary damages,' the agency did not disclose the specific settlement amount. The agreement also includes injunctive relief requiring the companies to implement mandatory training programs, policy changes, and ongoing reporting obligations to prevent future discrimination.
The settlement comes amid increased EEOC enforcement of pregnancy discrimination laws, with the Birmingham District Office handling similar cases across Alabama, Mississippi, and the Florida Panhandle. The case reflects broader workplace protections under Title VII, which prohibits employment discrimination based on pregnancy, childbirth, or related medical conditions.
The resolution demonstrates the EEOC's continued focus on protecting pregnant workers' rights in the hospitality industry, where temporary employment and rapid staffing changes can sometimes mask discriminatory practices. The mandatory training and policy changes required under the settlement are designed to prevent similar violations at Cosmos Restaurant in the future.