A Sherwood company will pay $20,000 to settle a pregnancy discrimination lawsuit brought by the U.S. Equal Employment Opportunity Commission (EEOC), the agency announced Friday.

The EEOC's suit charged that ABC Financial Services fired Reshma Bandaru because she was pregnant.

According to the EEOC, Bandaru was hired as a data entry clerk and placed into a four-week training program at the company's Sherwood facility.

After the training, employees were required to take a test. Approximately one week after she began the training, Bandaru was hospitalized for a condition unrelated to her pregnancy and missed a day and a half from the training.

The company then fired her because she had missed work and would need further leave to have her baby. Such alleged conduct violates Title VII of the Civil Rights Act of 1964, which prohibits employment discrimination based on race, color, religion, sex (including pregnancy discrimination). The EEOC filed suit after first attempting to reach a voluntary settlement.

In addition to the monetary relief, the consent decree, approved by U.S. District Judge Brian Miller, enjoins ABC from discriminating on the bases of pregnancy and retaliation. Further, the decree requires the company to provide training to its supervisory and management personnel on pregnancy discrimination; to submit two reports to the EEOC on the training and any complaints of pregnancy discrimination; and to post a notice reinforcing the company's policies on Title VII.

"Women should not be penalized for choosing to have a family," said Regional Attorney Faye A. Williams of the EEOC's Memphis District Office, which has jurisdiction over Arkansas, Tennessee and certain counties in Mississippi. "This case demonstrates the EEOC's commitment to combating discrimination that prevents women from advancing in the workplace."

According to its website, ABC Financial does billing and other services for health clubs throughout the United States.

Pregnancy discrimination charge filings with the EEOC have increased substantially over the last ten years from 4,219 in fiscal year 1998 to 6,285 in fiscal year 2008. The EEOC enforces federal laws prohibiting employment discrimination.