Michigan Insurer in Talks to Settle Lawsuits Over Fired Workers and COVID-19 Vaccine Mandate

February 18, 2025 | JacobiJournal.com — Lawsuits Over Fired Workers: Blue Cross Blue Shield of Michigan is negotiating a potential settlement for over 100 lawsuits filed by former employees who were terminated for refusing COVID-19 vaccinations, according to recent court records.

Major Legal Battle Over Vaccine Policy

The settlement discussions follow a $12 million jury award to Lisa Domski, a former IT specialist at Blue Cross. She had worked at the company for over 30 years before her termination.

Lawsuits Over Fired Workers: Domski sued the insurer in 2021, claiming she was a victim of religious discrimination after being denied an exemption from the company’s vaccine mandate. She argued that the vaccine conflicted with her Catholic beliefs, while Blue Cross countered that her religious stance was not sincere.

In November 2024, a jury ruled in her favor, awarding:

$1.7 million for lost wages
$1 million in non-economic damages
$10 million in punitive damages

Settlement Talks and Legal Implications

Due to legal caps on punitive damages, the $10 million award is expected to be reduced to $300,000. U.S. District Judge David Lawson has yet to rule on the final amount.

Court filings indicate that Blue Cross and Domski’s attorney, Noah Hurwitz, are now working with a mediator to reach a global resolution for similar lawsuits. Both parties declined to provide additional comments on Friday.

A Precedent for Workplace Vaccine Mandates?

The outcome of these lawsuits could set a precedent for how employers handle religious exemption requests related to vaccine mandates.

Read the full court filing details here.

New Update: Blue Cross Resolves Michigan Vaccine Discrimination Lawsuit Following $12.7 Million Jury Verdict

The employment discrimination lawsuit involving Blue Cross Blue Shield of Michigan and former information technology specialist Lisa Domski reached a significant resolution on April 28, 2025, approximately two months after reports that the insurer was pursuing settlement discussions involving more than 100 former employees.

According to a report published by Bloomberg Law, Blue Cross and Domski agreed to dismiss her federal lawsuit with prejudice, bringing the individual case to an end following a jury verdict of approximately $12.7 million in November 2024. Domski, who had worked for the insurer for more than three decades, alleged that the company unlawfully denied her request for a religious accommodation to its COVID-19 vaccination requirement and subsequently terminated her employment. A federal jury in Detroit found in her favor and awarded approximately $1.69 million in lost wages and future earnings, $1 million in noneconomic damages, and $10 million in punitive damages.

Blue Cross disputed the allegations during the litigation and maintained that it had legitimate grounds for questioning the sincerity of Domski’s religious objection. The April 2025 dismissal confirmed that the parties had resolved their dispute, but the financial terms were not publicly disclosed. Consequently, the original jury award should not be interpreted as the amount ultimately paid to Domski.

The resolution followed months of legal uncertainty surrounding the substantial damages awarded by the jury. After the November 2024 verdict, Blue Cross challenged the size of the award, particularly the $10 million punitive damages component. Attorneys for Domski acknowledged that federal statutory limitations could substantially reduce the recoverable damages, with the punitive damages subject to a $300,000 cap under the applicable federal employment discrimination framework. U.S. District Judge David Lawson considered arguments concerning the damages before the parties requested additional time to pursue settlement negotiations.

In February 2025, court filings indicated that the insurer and attorneys representing former employees were working with a mediator toward a potential broader resolution of similar lawsuits. The subsequent dismissal of Domski’s case with prejudice means that her claims cannot ordinarily be refiled in the same form. However, a settlement-based dismissal is not equivalent to an appellate court affirming the full jury award, nor does it establish that every other employee lawsuit was resolved on identical terms. The available reporting confirms the settlement of Domski’s individual lawsuit but does not establish a comprehensive final settlement amount covering all of the more than 100 related cases.

The dispute continues to carry implications for employers evaluating requests for religious accommodations under Title VII of the Civil Rights Act of 1964. Federal employment discrimination law generally requires covered employers to consider reasonable accommodations for employees whose sincerely held religious beliefs conflict with workplace requirements, unless the employer can demonstrate that providing the accommodation would impose an undue hardship on its business.

In its 2023 decision in Groff v. DeJoy, the U.S. Supreme Court clarified that undue hardship under Title VII requires substantial increased costs in relation to the conduct of the employer’s particular business, rather than a minimal inconvenience. Employers must therefore evaluate accommodation requests based on their specific circumstances, including the employee’s duties, workplace conditions, operational needs, and available alternatives.

The Domski litigation illustrates the potential financial exposure associated with employment decisions involving disputed religious accommodations, particularly when an employee has a lengthy work history and substantial claimed wage losses. At the same time, the resolution does not establish that every religious objection to a workplace vaccination policy must be granted or that every termination involving such a policy constitutes unlawful discrimination.

As of October 2026, the confirmed development is that Domski’s individual lawsuit was resolved in April 2025, while the ultimate financial terms and disposition of all related employee claims have not been established by the publicly available reporting reviewed.

For additional information, read Bloomberg Law’s April 28, 2025 report on the resolution of Lisa Domski’s lawsuit against Blue Cross Blue Shield of Michigan.

FAQs: Lawsuits Over Fired Workers

What sparked the lawsuits over fired workers at Blue Cross Blue Shield of Michigan?

The lawsuits over fired workers began after employees were terminated for refusing COVID-19 vaccinations, with many citing denied religious exemptions.

What was the outcome of the first major trial in the lawsuits over fired workers?

In one case, a jury awarded former employee Lisa Domski $12 million, though legal caps on punitive damages are expected to significantly reduce the payout.

How could lawsuits over fired workers impact vaccine mandate policies nationwide?

Lawsuits over fired workers could set a precedent for how employers evaluate religious exemption requests tied to workplace vaccine mandates.

Are settlement talks underway in the lawsuits over fired workers against Blue Cross?

Yes. Court filings show Blue Cross is working with a mediator to reach a potential global settlement covering more than 100 lawsuits over fired workers.

Are vaccines mandatory in Michigan?

Vaccines are not mandatory for all Michigan residents, but employers can set their own workplace vaccination policies. Some employers, including health systems and large corporations, adopted COVID-19 vaccine requirements during the pandemic. These mandates often became the basis for disputes when employees sought exemptions or refused vaccination.

What is Michigan’s stance on vaccines?

Michigan encourages vaccination through public health guidance but leaves many decisions to individuals and employers. The state promotes vaccines as a key tool for preventing disease outbreaks but also recognizes exemption processes in certain settings. Workplace policies, however, are largely determined by employers rather than state law.

Should health care workers get the COVID vaccine?

Health care workers are strongly encouraged to get the COVID vaccine because they interact with vulnerable patients and high-risk environments. Many health systems implemented mandates to reduce transmission and maintain safe staffing. Disputes typically arise when workers request religious or medical exemptions and feel those requests weren’t handled fairly.

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