UNC Rex Healthcare settles lawsuit that claimed religious discrimination over COVID vaccine

Richard Stradling, The News & Observer (Raleigh) on Mar 2, 2026

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RALEIGH, N.C. — Rex Healthcare has agreed to pay $150,000 to settle a federal lawsuit that claimed it discriminated against an employee who refused to get vaccinated against COVID-19 for religious reasons.

Rex had granted the employee a religious exemption for the flu vaccine in 2019 and 2020, according to the lawsuit filed by the U.S. Equal Employment Opportunity Commission. But Rex denied four requests for an exemption for COVID-19, according to the EEOC, “rejecting her sincerely held religious belief that receiving vaccines is inconsistent with God’s will.”

Rex fired the employee, Heather Goeller, in 2021 for refusing to get vaccinated, according to the EEOC’s lawsuit. Goeller was working remotely during the pandemic and did not have direct contact with patients, according to the lawsuit.

The EEOC sued Rex in late 2024 after failing to reach a settlement with the nonprofit, which is part of the UNC Health system.

“Even when faced with unique challenges such as the COVID-19 pandemic, employers must comply with federal civil rights law,” Melinda Dugas, regional attorney for the EEOC’s Charlotte District, said in a statement. “The EEOC will continue to take action when an employee’s right to religious freedom has been unnecessarily restricted.”

UNC Health Rex complies with federal law related to religious accommodations and granted many exemptions during the pandemic, said spokesman Alan Wolf.

“As with many hospitals and health systems across the country, we had to make difficult decisions during the worst of the pandemic in the interest of protecting our patients and teammates,” Wolf wrote in an email. “Although we dispute the allegations in the lawsuit, we are happy to resolve this matter and move forward.”

Wolf added that Rex has “a robust process for reviewing exemption requests and strives to provide a supportive environment for all of our more than 6,500 teammates.”

As COVID-19 vaccines became available, hospitals across the country required employees to receive the shots or apply for exemptions. In 2020 and 2021, hospitals were overwhelmed at times with COVID-19 patients and required the vaccines to try to protect their employees and other patients.

In addition to awarding damages to Goeller, the EEOC says Rex also agreed to update its policy on religious accommodation and provide training on the policy to human resources employees as well as all managers and supervisors.

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