BlueCross BlueShield Of Tennessee Employees Fired Over Vaccine Mandate Reach Final Settlement Approval And Judgment Order

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PRESS RELEASE:

CHATTANOOGA, TN, December 18, 2025 – A group of employees terminated by BlueCross BlueShield of Tennessee (BCBST) in 2021 over a violation regarding religious discrimination pertaining to the COVID-19 vaccine mandate and filed a lawsuit in federal court, have reached a final settlement approval and judgment order.

Over four years later, according to most recent court documents, “This matter is before the Court for the final approval of a class action settlement.” The court documents also state:

·      “Accordingly, final approval of the class action settlement is GRANTED, the settlement of the class action is APPROVED…

·      The lawsuit is DISMISSED with prejudice…”

The lawsuit, now with the remaining plaintiffs representing et al, and “all others similarly situated” encompasses and represents all BlueCross BlueShield of Tennessee employees terminated due to the mandate (minus former lead plaintiff Matt Abernathy, dropped as a client and lead plaintiff by the attorney representing the entire class, having his case dismissed because “the terms and conditions of the resolution put forward are not acceptable to me as an individual.”). 

Between October and November 2021, BCBST terminated 41 of their employees after BCBST implemented a COVID-19 vaccine mandate for 900 “customer facing roles.” Many of these 900 employees who were NOT “customer facing” were full time telecommuters and had been working from home during the entire pandemic. The livelihoods of these 900 employees were threatened if they refused to comply with BCBST’s vaccine mandate. Out of the 900, 41 refused to comply with BCBST’s mandate and were fired from their positions.

In October 2021, nineteen employees were terminated. In November 2021, twenty-two additional employees were fired weeks ahead of a Tennessee law being passed to prevent BCBST from moving forward with the mandate. Many submitted requests for religious exemptions and reasonable accommodations. Rather than provide a reasonable accommodation such as a telecommuting option (an option that was currently in place and was continuing for the entire year) or a testing option, BCBST’s response was that you have 30 days to change your deeply held religious convictions and get the shot, find a new job, or be fired. Requests for religious exemptions were ultimately denied.

The court document states: “Neither this Final Settlement Approval Order nor the Settlement Agreement constitutes an admission by Defendant or any of the Related Parties of any liability or wrongdoing whatsoever.” The document concludes with: “There being no remaining issues, the Clerk is DIRECTED to CLOSE the case.”

A complete and comprehensive timeline of BlueCross BlueShield of Tennessee’s COVID-19 vaccine mandate and 2021 employee terminations can be found here.

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