Description: The South Madison Community School Corporation in Indiana fired school counselor Kathy McCord, a 37-year veteran in the education field, for speaking about the school district’s gender identity policy. In August 2021, the school district adopted a policy that required counselors and other employees to use names and pronouns for students that do not correspond with their sex, without requiring parental notification or consent. In some cases, it even required employees to hide these new names and pronouns from parents.
Indiana school district to pay nearly $200K after firing counselor who spoke about gender identity policy
ADF attorneys represent Kathy McCord in settlement of lawsuit against South Madison Community School Corporation
Wednesday, Apr 15, 2026
INDIANAPOLIS – Alliance Defending Freedom attorneys representing a school counselor fired after speaking to a journalist about a school district’s gender identity policy have settled a federal lawsuit she brought against the district. As part of the settlement, the school district will pay $195,000 for damages, attorneys’ fees, and costs.
In August 2021, the South Madison Community School Corporation issued a directive that required counselors and other employees to use, upon a student’s request, names and pronouns for the student that do not correspond with his or her sex—without notifying parents or seeking parental consent. In some cases, it even required employees to hide the new names and pronouns from parents. School counselor Kathy McCord, a 37-year veteran educator, objected to the directive, which required her to speak in ways that violate her sincerely held religious beliefs. When a reporter asked McCord about South Madison’s directive, she confirmed the accuracy of information about it that he had already gathered from other sources. Soon after the reporter published his story, the school district fired McCord.
“No American should be fired for expressing her beliefs, especially not an educator speaking in her personal capacity, on her own time, and out of concern for her students,” said ADF Senior Counsel Vincent Wagner. “Kathy knows that kids do best when schools and parents work together. But South Madison left parents in the dark. It’s regrettable that South Madison made Kathy endure three years of litigation to get to this point, but we are pleased with this result for Kathy.”
Shortly after ADF attorneys filed McCord’s lawsuit, a new Indiana law took effect that required South Madison to rescind its directive not to require parental notification. But when she worked for South Madison, it required counselors like McCord to use a form called a “Gender Support Plan” to document whenever the school decided to begin using cross-gender names or pronouns for a student and whether the school would notify a student’s parents. South Madison did not require parental consent, or even parental notification, to change a student’s name and pronouns. And it started using Gender Support Plans without consulting the school community or parents at a board meeting—in fact, without even posting it on the district’s website.
At the time, McCord explained to her supervisors that she objected to the directive that she not seek parental consent before using cross-gender names and pronouns for a student. But her supervisors told her she had no choice: If she wished to keep her job, then she had to follow South Madison’s directive.
Notwithstanding South Madison’s lack of disclosure, some in the community eventually heard about the directive and tipped off a journalist. The reporter received a copy of the Gender Support Plan and other information regarding the directive from sources other than McCord. Before publishing his article, the reporter approached McCord with the information he had received, and she confirmed its accuracy as a member of the community, not as a representative of South Madison. Shortly afterward, South Madison terminated McCord’s employment.
In light of the settlement, ADF attorneys filed a joint stipulation of dismissal Monday in the U.S. District Court for the Southern District of Indiana, Indianapolis Division, to bring the lawsuit, McCord v. South Madison Community School Corporation, to a close.
Alliance Defending Freedom is an alliance-building, non-profit legal organization committed to protecting religious freedom, free speech, parental rights, and the sanctity of life.
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