Federal Bureau of Prisons Discrimination Settlement: $7.9M

Veterans with a 30% or higher service-connected disability rating who, between Aug. 20, 2018, and June 18, 2025, experienced one of the following due to the Federal Bureau of Prisons' reliance on outdated or insufficient medical documentation:

• Had a conditional job offer withdrawn
• Were removed from consideration during the hiring process
• Were terminated from employment

Claimants may be required to submit:

• Documentation of their VA disability rating (e.g., rating decision letter)
• Medical records or letters from a medical provider
• Relevant employment or job application documentation

The U.S. Department of Justice has agreed to a $7.9 million class action settlement to resolve allegations that the Federal Bureau of Prisons (BOP) engaged in discriminatory hiring and employment practices against disabled veterans.

The case stems from findings by the Equal Employment Opportunity Commission (EEOC), which determined that the BOP violated federal law by failing to properly evaluate current medical information when reviewing disabled veterans’ job eligibility.

Instead, the agency often relied on outdated records or denied applicants who had not submitted additional documentation, allegedly disqualifying many veterans unfairly.

As a result, qualified applicants with service-connected disabilities were either rejected, had their job offers rescinded, or were let go after conditional hiring, despite meeting employment requirements and possessing a valid disability rating from the Department of Veterans Affairs.

This case represents a significant civil rights enforcement action involving veterans' employment protections under Section 501 of the Rehabilitation Act, which prohibits federal agencies from discriminating on the basis of disability.

While the BOP denies any wrongdoing, it agreed to the settlement to resolve the EEOC action and avoid prolonged litigation.

What Class Members Can Receive

Eligible veterans who submit a valid claim form may receive monetary compensation, with award amounts varying based on individual circumstances.

Veterans who were terminated from a position or had a formal job offer rescinded may qualify for a larger share of the settlement fund, while those who were removed from hiring consideration may receive lesser amounts.

Payments aim to reflect emotional, financial, or employment-related harm.