A former University of Southern California employee who claimed she was fired while out on medical leave for work-related anxiety has tentatively settled her disability discrimination lawsuit against the school. Laural Lynn Gonzalez, who worked as a workforce management specialist, alleged USC terminated her in 2024 about a month into a medical leave rather than accommodating her condition.
USC lawyers filed court papers on October 29, 2026, notifying Judge Alison Mackenzie of a conditional resolution, according to MyNewsLA.com. The university's attorneys are expected to bring a request for dismissal by November 30, 2026, though neither side has disclosed the settlement's terms.
Gonzalez was hired by USC as a workforce management specialist in June 2023, per the same account. She began experiencing high anxiety tied to work demands a little more than a year after she was hired, and was later diagnosed with work-related stress.
Leave, Termination, and a Retaliation Claim
According to the lawsuit, Gonzalez was taken off work from August through November 2024. She alleged USC wrongfully terminated her during that medical leave rather than accommodating her anxiety disorder, which she said was caused by high work demands, and contended that USC management retaliated against her for taking time off to address her health.
Her lawsuit, filed in Los Angeles Superior Court, alleged her termination was substantially motivated by her actual or perceived medical condition. Gonzalez sought damages for lost wages and emotional distress, the outlet's report notes.
USC attorneys maintained that Gonzalez had signed an arbitration agreement in spring 2023. Judge Mackenzie ordered the case into binding arbitration in March 2025, and Gonzalez and USC agreed to forgo a jury trial; the judge asked attorneys to notify her of either an arbitration outcome or a settlement, the report states.
Part of a Pattern of USC Disability Cases
Gonzalez's case is not the only recent disability discrimination dispute involving USC. The university settled a separate lawsuit brought by former employee Alberto Lozano, who alleged USC failed to accommodate his medical condition and ended his employment, according to NLSLA. Lozano, who filed suit in March 2025 alleging disability discrimination, failure to accommodate, retaliation, and wrongful termination, will receive compensation for lost and unpaid wages, emotional distress, and other damages, though NLSLA's report does not specify an amount.
Earlier in 2026, USC and registered nurse Chou-Li Chu reached a conditional resolution of her own disability discrimination suit, with a dismissal request expected by July 31 and no terms divulged, MyNewsLA.com reported separately. Chu had alleged USC terminated her in March 2024 after she sought accommodations for a shoulder injury and took medical leave.
How Settlement Notices Work in LA Courts
Los Angeles Superior Court has said unlimited civil filings have increased by 48% since 2008, according to the Superior Court of Los Angeles County.
Under the court's settlement-notice procedure, a case may be dismissed without prejudice while the court retains jurisdiction to enforce a conditional settlement. The court generally sets an Order to Show Cause re Dismissal hearing roughly 60 calendar days after a Notice of Settlement is filed, per the same procedure. A hearing about 60 days after the October 29 filing would fall around December 28, 2026; the November 30 dismissal-request deadline is 32 days after the filing.
