USC Tentatively Settles Disability Discrimination Suit
The University of Southern California has reached a conditional resolution in a lawsuit brought by a former employee who alleged her termination was tied to her medical condition.
Updated on Nov. 2, 2026 in Special Education
USC filed court papers notifying a judge of a conditional settlement of a disability discrimination lawsuit brought by former work force management specialist Laural Lynn Gonzalez. No settlement terms were disclosed.
Why it matters
The case reflects how disability discrimination claims tied to medical leave can be pursued under arbitration agreements rather than in open court. For Los Angeles-area employees and employers, the outcome highlights the role arbitration plays in resolving workplace disputes.
Gonzalez was hired in June 2023 and placed on medical leave from August to November 2024 for an anxiety disorder. The settlement amount and terms have not been made public, and a dismissal request is expected by November 30.
The players
University of Southern California
A private research university in Los Angeles that is among the largest and oldest in the western United States.
Alison Mackenzie
The Los Angeles Superior Court judge who ordered the case into binding arbitration and received USC's notice of conditional resolution.
The details
Gonzalez alleges USC fired her about a month into her leave because of her medical condition or perceived condition. In March 2025, Judge Alison Mackenzie ordered the case into binding arbitration after both sides agreed to forgo a jury trial, and USC maintains Gonzalez signed an arbitration agreement in spring 2023.
Timeline
June 2023: Gonzalez hired by USC as a work force management specialist.
August to November 2024: Gonzalez on medical leave.
March 2025: Judge orders case into binding arbitration.
October 30, 2026: USC files notice of conditional resolution.
Legal Context
The case falls under the Americans with Disabilities Act's employment protections against discrimination based on disability. Its movement into binding arbitration shows how many such claims are increasingly resolved outside public courtrooms.
Employees who face medical-leave terminations may be bound by arbitration clauses signed at hiring, limiting their ability to pursue claims in court. Workers in Los Angeles should review any arbitration agreements before assuming a public lawsuit is available.
The takeaway
Arbitration agreements signed at hire can determine where and how a disability claim is resolved, so employees should understand what they are agreeing to. Reviewing workplace policies on medical leave and disability accommodation can help protect your rights.
What happens next
A request for dismissal is expected to be filed by November 30, 2026, which would formally close the case.
Further reading
For related coverage of disability rights and access, explore Special Education in Los Angeles.
Source note: This article includes information reported by My News LA.
