Oregon School District Agrees to $650K Settlement After Firing Educators Over Gender-Policy Campaign

An Oregon school district has agreed to pay $650,000 to resolve a lawsuit brought by two former educators who were fired after launching a grassroots campaign proposing changes to school gender-identity policy.

In 2021, former North Middle School assistant principal Rachel Sager (formerly Rachel Damiano) and former health and science teacher Katie Medart sued Grants Pass School District 7, alleging they were disciplined for publicly sharing their views about handling gender-identity issues in schools. The educators said they organized a campaign called 'I Resolve,' creating a website and video that outlined policy proposals they described as 'reasonable, loving and tolerant' and intended to 'respect everyone’s rights.' Sager also used her school email to share the materials with colleagues, the complaint states.

Investigation, Termination and Legal Challenge

After complaints from staff or community members, the district commissioned an independent investigation that concluded the employees had violated district rules. Investigators found allegations that the educators used district resources in connection with what was deemed a political campaign, spent work time on campaign activities, failed to include a required viewpoint disclaimer, and used social media and public websites in ways that allegedly disrupted the school environment. Both educators were initially fired; the school board later reversed those terminations, reinstated them and reassigned them to positions with reduced duties.

Sager and Medart filed federal claims asserting violations of their First Amendment rights, equal protection and retaliation. A district court ruled against them, but the Ninth U.S. Circuit Court of Appeals partially vacated that decision and remanded parts of the case for further proceedings. Before a new trial took place, the parties reached a settlement.

Terms of the Settlement

Under the agreement announced on Nov. 14, Grants Pass School District 7 will pay $650,000 in damages and attorneys’ fees. The district also agreed to issue a public statement acknowledging that its handling of the matter 'fell short of its standards and responsibilities,' to provide positive letters of recommendation, to revise district policy GBG to ensure First Amendment compliance, and to remove negative references from the educators’ personnel files.

The settlement and related district actions also include expanding access to gender-neutral, single-occupant restroom facilities and reaffirming practices to protect employees’ religious freedoms. The Teachers Standards and Practice Commission (TSPC) and the Oregon Employment Department determined that Medart and Sager did not commit professional misconduct and remain educators in good standing with no TSPC discipline on their records.

Statements and Representation

In an opinion piece published previously, the educators said they had not named their school or district in their 'I Resolve' materials and had informed the superintendent and human-resources staff that their advocacy was a personal effort. They said their intent was to involve parents in discussions about gender identity in schools and to avoid situations where teachers might feel forced to act against their conscience or withhold information from parents and students.

'Our faith is the most important thing to us — and we must abide by our core religious beliefs whether at home, church or teaching at school,' the educators wrote. 'Our proposed solutions respected the rights of students and parents and allowed teachers to continue teaching without violating their conscience.'

The educators were represented by Alliance Defending Freedom and the Pacific Justice Institute. ADF legal counsel Mathew Hoffmann said the settlement underscores that educators retain First Amendment rights and that public schools cannot retaliate against speech on matters of public concern.

Aftermath

According to the settlement statement, Sager felt compelled to leave the district to protect her license and future employment prospects. Medart was reassigned to an online school and later to the high school before resigning as part of the resolution. The district described the agreement as a negotiated resolution and said it has revised relevant policies and practices to better align with federal and Oregon law.