A national class action has been filed in Nebraska against shipping giant Union Pacific Railroad Company on behalf of all female employees who at any time after December 5, 1999, used prescription contraceptives or would have done so if prescription contraceptives had not been excluded from Union Pacific's employee health care plan. The employees claim that by excluding prescription contraceptives from the health plan, the railroad has violated their civil rights and discriminated against them. Specifically, the employees claim that Union Pacific has violated two federal laws, the Civil Rights Act of 1964 and the Pregnancy Discrimination Act. The employees are seeking compensatory and statutory damages, declaratory relief, and a permanent injunction against Union Pacific.

Union Pacific provides a very comprehensive healthcare benefits package--including preventative treatments--to employees. The package covers sexual disorders in men, such as treating impotency with Viagra. However, it does not cover any form of contraception for female employees. Female employees who wish to use contraception of any variety are forced to shoulder the expense on their own.

The Civil Rights Act of 1964 makes it unlawful to discriminate against anyone based on his or her sex. The Pregnancy Discrimination Act expands this definition by making it unlawful to discriminate against women on the basis of childbirth, pregnancy or related medical conditions. Additionally, the Pregnancy Discrimination Act specifically states that female employees "shall be treated the same [as men] for all employment-related purposes, including receipt of benefits under fringe benefit programs..." The employees in this class action allege that by excluding prescription contraceptives from their benefit plan, Union Pacific is violating the Pregnancy Discrimination Act because the company is treating women differently based on their potential to become pregnant. Accordingly, the employees claim that this policy is sex discrimination "on its face" and a violation of federal law.

Employees also allege that this exclusion has an adverse, disparate impact on women because it forces them to either bear the burden of paying for prescription contraceptives out of pocket, or bear the physical, emotional and financial burdens of an unplanned pregnancy. The employees additionally assert that this policy cannot be justified as job-related or consistent with business necessity. This action covers all female employees of Union Pacific. It was originally filed in Oregon, but was transferred to Nebraska on the railroad's motion.