HR Director Barbara Mann was fired by Sunbury Medical Associates in Bangor, Maine in September of 2011.
Mann claimed in a complaint, filed with the Maine Human Rights Commission, that Sunbury CEO David Savell told her to only hire "young women with big boobs" in June 2010.
Mann says she suffered sexual and age discrimination, and was fired for complaining about Savell’s behavior.
An investigation by the Maine Human Rights Commission found this week that Mann had reasonable grounds for complaint.
Mann said in her complaint that Savell made other comments about "big boobs" and praised her on past female hires who were "cute and had big boobs."
Mann also claimed that Savell bet his personal assistant how big her breasts would get when she was pregnant.
The Maine Human Rights Commission spoke to Savell, who denies ever saying "big boobs."
Mann also said that female employees wore revealing clothes if they were out of favor with Savell. Mann also claims that she noticed Savell "looking at their breasts" and "this situation made her uncomfortable."
Sunbury claims Mann was eventually fired because of "lack of fit" and "negative interactions with employees."
Sunbury’s lawyer Robert Brooks said in a statement: "Sunbury has consistently denied Mann’s allegations. Sunbury presented the Commission’s investigator with ample evidence to show that Mann’s claim is without merit."
"Unfortunately, the investigator chose to discount this evidence and conclude simply that there is an 'even chance' that there are reasonable grounds to believe Sunbury violated the Maine Human Rights Act."
"However, if necessary, Sunbury will continue to defend itself against Mann’s allegation of illegal discrimination, which is untrue."
In 2013, Maine Human Rights Commission will invite Mann and Sunbury to meet in order to reach a settlement. If that fails, Mann may file a civil lawsuit in Maine Superior Court.