Gerdau Macsteel Inc. has agreed to settle a paternity leave case that could cost the steel manufacturer as much as $5 million. After Gerdau denied Nicholas Johnson, a non-union employee, six weeks of paid paternity leave after the birth of his child, Johnson sued the company under Title VII of the Civil Rights Act and Michigan’s Elliot-Larsen Civil Rights Act. He alleged that he and other male employees were denied paid parental leave solely because they were fathers rather than mothers and that Gerdau further discouraged and deterred them from applying for leave.
Gerdau offered non-union employee mothers who had given birth 12 to 40 weeks of paid maternity leave, including six weeks of paid leave for bonding with the baby and dealing with any medical issues. In the contract, Gerdau gave Johnson the option of 30 days of unpaid leave.
The case is Johnson v. Gerdau Macsteel Inc., Case Number 2:23-cv-10719, U.S. District Court for the Eastern District of Michigan.
Under the terms of the deal, Gerdau will pay $6,000 to each non-union male employee who could not take paid parental leave after the birth of their child between August 30, 2019, and December 31, 2022. Although the settlement amount is unknown, notices will go out to approximately 800 men who may qualify as class members.
Gerdau also agreed to maintain its gender-neutral parental leave policy, which it adopted as of January 1, 2023.
HBL has experience in all areas of benefits and employment law, offering a comprehensive solution to all your business benefits and HR/employment needs. We help ensure you are in compliance with the complex requirements of ERISA and the IRS code, as well as those laws that impact you and your employees. Together, we reduce your exposure to potential legal or financial penalties. Learn more by calling 470-571-1007.
Hall Benefits Law, LLC
Latest posts by Hall Benefits Law, LLC (see all)
- Colorado First State to Place Price Cap on Prescription Drug - November 27, 2025
