Arbitrator Says West Texas Mental Health Provider Violated Sex and Pregnancy Discrimination Laws

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MIDLAND, Texas--(BUSINESS WIRE)--Feb 24, 2026--

An independent arbitrator has found regional behavioral and developmental health provider PermiaCare engaged in a pattern of sex and pregnancy discrimination and harassment that caused a former accounting supervisor to resign.

The arbitrator concluded that PermiaCare violated the Pregnant Worker Fairness Act and Title VII of the Civil Rights Act of 1964. The decision is believed to be the first award of damages under PWFA, which went into effect in 2023. Under the law employers are required to provide “reasonable accommodations” to qualified employees’ known limitations related to pregnancy, childbirth or related medical conditions unless such accommodations create an “undue hardship” for the employer.

Jacqueline Tarango joined PermiaCare in 2019 as a staff accountant before being promoted to accounting supervisor in 2021. During her first pregnancy in 2020, she alleged that her immediate supervisor subjected her to a hostile work environment. He left the agency but later returned in the same role. When she again became pregnant, his treatment of Ms. Tarango progressively worsened.

The arbitrator found that the supervisor subjected Ms. Tarango to a hostile work environment by constantly questioning her time, publicly humiliating, belittling and gaslighting her, making inappropriate sexualized comments and dismissing her pregnancy-related health concerns, including denying a request to wear tennis shoes to work to help alleviate her pregnancy-related sciatica pain.

The pattern culminated when the supervisor questioned Ms. Tarango about why she had only worked 1.7 hours on the day she had an emergency ultrasound and learned of her unborn son’s potential heart abnormality, according to her attorney, Holly Williams of Williams Law Firm, P.C., in Midland.

“On the day she resigned, she attempted to talk to the HR Manager and PermiaCare’s CEO about the intolerable work environment. When her attempts were ignored, she had no choice but to resign for her own health as well as that of her unborn child,” said Ms. Williams. “She had been down the same road before with her first pregnancy and knew she could not endure that again.”

Under the arbitration award, Ms. Tarango will receive approximately $23,000 in back pay, lost medical benefits and other expenses and $150,000 in compensatory damages, plus attorney fees.

“For Jacque, this case was not about the money,” said Ms. Williams. “She knew the law had changed with the PWFA. She knew her rights had been violated. Women should never be forced to choose between their health and family and a job. The PWFA is an important advancement for women in the workforce.”

The case is Jacqueline Tarango v. Permian Basin Community Centers for MHMR dba PermiaCare case No. 7:24-CV-124-DC-RCG (in arbitration.) Kyla Cole, Cole Legler PLLC in Dallas, represented Ms. Tarango as trial counsel.

About Williams Law Firm, P.C.

Williams Law Firm, P.C., is a boutique law firm in Midland, Texas, dedicated to representing individuals and companies in the Permian Basin who want to prevent and resolve workplace issues. Holly Williams is Board Certified in Labor and Employment Law by the Texas Board of Legal Specialization. For more information, visit http://www.williamslawpc.com.

About Cole Legler PLLC

Cole Legler PLLC is a boutique law firm in Dallas, Texas, dedicated to representing employees to resolve workplace issues. Kyla Cole is Board Certified in Civil Trial Law by the Texas Board of Legal Specialization. For more information, visit https://dallasemployeelaw.com/

View source version on businesswire.com:https://www.businesswire.com/news/home/20260224909967/en/

CONTACT: Media Contact:

Rhonda Reddick

800.559.4534

[email protected]

KEYWORD: TEXAS UNITED STATES NORTH AMERICA

INDUSTRY KEYWORD: PROFESSIONAL SERVICES CONSUMER LEGAL WOMEN HUMAN RESOURCES BABY/MATERNITY

SOURCE: Williams Law Firm, P.C.

Copyright Business Wire 2026.

PUB: 02/24/2026 12:28 PM/DISC: 02/24/2026 12:28 PM

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