Former UM Health-West PA Secures $410K Settlement Over Religious-Freedom Dispute

Physician assistant Valerie Kloosterman, dismissed for refusing transgender pronouns at University of Michigan Health-West, settled for $410,000 and the hospital will adopt a religious-accommodation policy.

Valerie Kloosterman, a physician assistant with 17 years at University of Michigan Health-West, was terminated in 2021 after refusing to use transgender-affirming pronouns and to assist with gender-reassignment care, arguing that such actions conflicted with her Christian faith. She filed a lawsuit alleging hostile treatment, including being labeled “evil” by DEI director Thomas Pierce, and claims the hospital forced her to affirm statements contrary to her religion.

The dispute was resolved when the university agreed to pay Kloosterman $410,000, establish a religious-accommodation policy, and prohibit requiring staff to act against sincerely held beliefs. Following the agreement, the presiding judge dismissed the case. First Liberty attorney Kayla Toney highlighted that Title VII bars employers from punishing employees for their faith. The new policy now states employees will not be compelled to affirm gender-identity statements or participate in sex-rejecting procedures.