U.S. COMMISSION ON CIVIL RIGHTS WORKING FOR INCLUSION TIME FOR CONGRESS TO ENACT FEDERAL LEGISLATION TO ADDRESS WORKPLACE DISCRIMINATION AGAINST LESBIAN, GAY, BISEXUAL, AND TRANSGENDER AMERICANS BRIEFING REPORT U.S. COMMISSION ON CIVIL RIGHTS Washington, DC 20425 Official Business NOVEMBER 2017 Penalty for Private Use $300 Visit us on the Web: www.usccr.gov U.S. COMMISSION ON CIVIL RIGHTS MEMBERS OF THE COMMISSION The U.S. Commission on Civil Rights is an independent, Catherine E. Lhamon, Chairperson bipartisan agency established by Congress in 1957. It is Patricia Timmons-Goodson, Vice Chairperson directed to: Debo P. Adegbile Gail L. Heriot • Investigate complaints alleging that citizens are Peter N. Kirsanow being deprived of their right to vote by reason of their David Kladney race, color, religion, sex, age, disability, or national Karen Narasaki origin, or by reason of fraudulent practices. Michael Yaki • Study and collect information relating to discrimination or a denial of equal protection of the laws under the Constitution Mauro Morales, Staff Director because of race, color, religion, sex, age, disability, or national origin, or in the administration of justice. • Appraise federal laws and policies with respect to U.S. Commission on Civil Rights discrimination or denial of equal protection of the laws 1331 Pennsylvania Avenue, NW because of race, color, religion, sex, age, disability, or Washington, DC 20425 national origin, or in the administration of justice. (202) 376-8128 voice • Serve as a national clearinghouse for information TTY Relay: 711 in respect to discrimination or denial of equal protection of the laws because of race, color, www.usccr.gov religion, sex, age, disability, or national origin. • Submit reports, findings, and recommendations to the President and Congress. • Issue public service announcements to discourage discrimination or denial of equal protection of the laws. Working for Inclusion: Time for Congress to Enact Federal Legislation to Address Workplace Discrimination Against Lesbian, Gay, Bisexual, and Transgender Americans Briefing Before The United States Commission on Civil Rights Held in Washington, DC Briefing Report [This page intentionally left blank] UNITED STATES COMMISSION ON CIVIL RIGHTS 1331 PENNSYLVANIA AVE., NW SUITE 1150 WASHINGTON, DC 20425 WWW.USCCR.GOV Letter of Transmittal President Donald J. Trump Vice President Mike Pence Speaker of the House Paul Ryan Senate Majority Leader Mitch McConnell On behalf of the United States Commission on Civil Rights (“the Commission”), I am pleased to transmit our briefing report, Working for Inclusion: Time for Congress to Enact Federal Legislation to Address Workplace Discrimination Against Lesbian, Gay, Bisexual, and Transgender Americans. The report is also available in full on the Commission’s website at www.usccr.gov. The report examines the main social and economic arguments made for and against enacting federal legislation to provide federal nondiscrimination workplace protections for lesbian, gay, bisexual, and transgender (LGBT) employees. The majority of the Commission voted for key findings including that LGBT workers have faced a long, serious, and pervasive history of official and unofficial employment discrimination by federal, state, and local governments and private employers. Such discrimination persists and has wide-ranging, damaging implications for the quality of life for many LGBT Americans, their children and families, and communities. An inconsistent and irreconcilable patchwork of state laws against LGBT workplace discrimination and federal court decisions interpreting existing federal law render LGBT employees insufficiently protected from workplace discrimination. Our primary recommendation is directed to Congress: In order to effectively and consistently protect LGBT employees from workplace discrimination, Congress should immediately enact a federal law explicitly banning discrimination in the workplace based on sexual orientation and gender identity. We also make particular recommendations that federal agencies should issue and —where relevant—reaffirm specific guidance for federal and private employers outlining protections for LGBT individuals in the workforce, including specifically enumerating protections for transgender persons; federal agencies should also collect workplace discrimination data about LGBT employees. We at the Commission are pleased to share our views, informed by careful research and investigation, to help ensure that all Americans enjoy civil rights protections to which we are entitled. For the Commission, Catherine E. Lhamon Chair TABLE OF CONTENTS i TABLE OF CONTENTS TABLE OF CONTENTS ................................................................................................................. i EXECUTIVE SUMMARY .............................................................................................................1 Chapter 1: Introduction to LGBT Employment in America ........................................................7 Number of Lesbian, Gay, Bisexual, and Transgender Employees ...............................................7 Extent of Discrimination Against LGBT Employees .................................................................11 Economic Impacts from Workplace Discrimination .............................................................14 Intensified Discrimination against Transgender Individuals .................................................17 Existing State Laws for LGBT Employees .................................................................................21 Failed Efforts to Enact Federal Legislation ................................................................................23 Chapter 2: Existing Federal Non-Discrimination Law ..............................................................28 Title VII of the Civil Rights Act and LGBT Employees ............................................................28 “Because of Sex” Court and Administrative Decisions ..............................................................29 Title VII and Sexual Orientation ...........................................................................................29 Title VII and Gender Identity ................................................................................................32 Non-Discrimination and Religious Beliefs ............................................................................35 Additional Legal Protections for LGBT Employees in the Federal Workplace .........................35 Presidential Executive Orders ................................................................................................36 Transgender Guidance for Federal Agencies ........................................................................38 Federal Agencies’ Employment Policies Inclusive of Gender Identity and Sexual Orientation ..........................................................................................................................................39 Private Workplace Protections for LGBT Employees ................................................................41 CHAPTER 3: Viewpoints in Favor and Against Federal Legislation .....................................44 Ensuring Equal Rights and the Normative Argument ................................................................45 What Does Existing Federal Law (Title VII) Mean for Additional Federal Legislation? ..............................................................................................................................52 Bona Fide Occupational Qualification Exception .................................................................53 Religious Liberty and Free Exercise Concerns .....................................................................54 Constitutionality of Federal Legislation .....................................................................................56 Are Existing Public Sector Protections Enough?........................................................................58 ii Working for Inclusion: Time for Congress to Enact Federal Legislation Are Private Sector Policies Enough? ..........................................................................................60 How Would Federal Legislation Impact the Economy? .............................................................61 Economic Support of Federal Legislation .............................................................................61 Economic Opposition to Federal Legislation ........................................................................64 New Developments in Federal Legislation .................................................................................66 Chapter 4: Findings and Recommendations ..................................................................................70 Findings and Recommendations .................................................................................................71 Findings .................................................................................................................................71 Recommendations ..................................................................................................................73 Commissioners’ Statements, Rebuttals, and Surrebuttals..............................................................75 Statement of Chair Catherine E. Lhamon, in which Vice-Chair Patricia Timmons- Goodson concurs ......................................................................................................................75