Laura Lorek
March 4, 2026
New Teeth? Pregnancy Discrimination Law Tested
2 min
AI-made summary
- • An independent arbitrator found PermiaCare discriminated against and harassed Jacqueline Tarango, a pregnant employee, leading to her resignation. • This is the first reported case where damages were awarded under the Pregnant Workers Fairness Act, which took effect in 2023. • The arbitrator determined PermiaCare violated both the Pregnant Workers Fairness Act and Title VII of the Civil Rights Act of 1964. • Tarango was awarded a total of $375,835.43, including damages, attorney fees, costs, and prejudgment interest. • The case was resolved through arbitration due to an employee agreement, with the final judgment entered by U.S
- District Judge David Counts.
An independent arbitrator found PermiaCare, a regional provider of behavioral and developmental health services, discriminated against and harassed a pregnant employee, which led to her resignation. Legal experts say this is the first case where damages were awarded under the Pregnant Workers Fairness Act, a federal law that took effect in 2023. Tarango's attorney, Holly Williams of Williams Law Firm in Midland, said the Pregnant Workers Fairness Act helps fill an important gap for women in the workplace. The case went to arbitration instead of a jury trial because PermiaCare required all employees to sign an arbitration agreement. Arbitration usually moves faster than jury trials, which is why this case was resolved before others under the new law, Williams explained. Joel Geary, the attorney for PermiaCare at Waddell Serafino Geary Rechner Jenevein, did not respond to a request for comment on Thursday. Jacqueline Tarango, the plaintiff, started working at PermiaCare in 2019 as a staff accountant, and became an accounting supervisor in 2021. She reported an allegedly hostile work environment from her supervisor during her first pregnancy in 2020. The supervisor left but later returned to the same job. When Tarango became pregnant again, she alleged his negative behavior got worse. The arbitrator found the supervisor continued to treat Tarango poorly. For instance, the manager often questioned her work hours, humiliated her in front of others, belittled her, made inappropriate sexual comments, and ignored her health concerns related to pregnancy. He also refused her request to wear tennis shoes at work to help with sciatica pain caused by pregnancy. The situation worsened when the supervisor questioned Tarango about working only 1.7 hours on the day she had an emergency ultrasound. That day, she found out her unborn son might have a heart problem. "On the day she resigned, she attempted to talk to the HR Manager and PermiaCare's CEO about the intolerable work environment," Williams claimed. "When her attempts were ignored, she had no choice but to resign for her own health as well as that of her unborn child. She had been down the same road before with her first pregnancy and knew she could not endure that again." The arbitrator ruled Midland-based PermiaCare's actions violated both the Pregnant Workers Fairness Act and Title VII of the Civil Rights Act of 1964. The Pregnant Workers Fairness Act requires employers to offer "reasonable accommodations" for known limitations related to pregnancy, childbirth, or associated medical conditions, unless such accommodations would impose an "undue hardship" on the employer. The hearing took place last August before arbitrator Fernando M. Bustos. After both sides submitted their briefs, Bustos gave an interim award on Dec. 3, 2025, and a final award Jan. 19. U.S. District Judge David Counts for the Western District of Texas entered the final judgment. Tarango was awarded $172,804.00 in damages, $179,769.00 in attorney fees, $10,383.80 in costs, and $12,878.63 in prejudgment interest, for a total of $375,835.43. "I think she just wanted closure, that was her word," Williams said. "She brought the claim because she wanted some accountability. She knew what they'd done was wrong. At the hearing, they tried to make it look like she was out for the money. I can tell you, I don't think she cared about the money at all."
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Laura Lorek
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