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Title VII to Protect LGBTQ Community

Client Alert

It is not every day that the United States Supreme Court issues a decision that dramatically changes the workplace, but it happened this week. In a landmark decision captioned as Bostock v. Clayton County, issued by the Court on June 15th, the Court ruled that federal law prohibiting discrimination on the basis of “sex” will now include protections for individuals on the basis of sexual orientation, transgender, and gender identity.

On its face, Title VII of the Civil Rights Act of 1964 provides, in pertinent part, that it is an “unlawful employment practice for an employer” to discriminate against an individual “because of such individual’s race, color, sex, or national origin” (emphasis added).

In the decades since its passing, courts across the country have grappled with the meaning of “sex” within the text of Title VII and the extent of its coverage; however, today, the Court clarified that “sex” includes sexual orientation, transgender, and gender identity, extending employment protections to these protected classes of people.

Justice Gorsuch delivered the opinion of the Court in which he writes:

In Title VII, Congress adopted broad language making it illegal for an employer to rely on an employee’s sex when deciding to fire that employee. We do not hesitate to recognize today a necessary consequence of that legislative choice: An employer who fires [or discriminates against] an individual merely for being gay or transgender defies the law.

This is a very important decision for all employers in America to recognize and follow as it will surely lead to liability and lawsuits for those employers that choose to ignore it. Practically, this decision prohibits an employer from considering an employee’s sexual orientation, transgender, or gender identification when making decisions concerning hiring, discipline, pay rate, job duties, and termination. As a result, employers should take this ruling as an opportunity to update employee handbooks and ensure provisions reflect the newly identified protected classes. As an additional measure, employers should use this decision as an opportunity to conduct re-trainings for all employees to ensure company-wide compliance with anti-discrimination and harassment policies, including the recent protections afforded to the LGBTQ community. Finally, this decision should spark employers to consider purchasing or reviewing their current Employment Practices Liability Insurance (“EPLI”) plan to ensure protection in the event of claims arising out of this decision.

Bryan Meek is a member of Brennan, Manna & Diamond’s Employment & Labor team and is available to assist you with responding to requests for information and/or appealing unfavorable unemployment decisions. Bryan can be reached at 330.253.5586, or bmeek@bmdllc.com


Valley National Bank/Trulieve Loan: A Big Step Out of the Shadows

In a late December press release, Trulieve announced that it had secured a $71.5 million commercial bank loan. In addition to the amount of the loan, which may be the largest commercial bank loan to date to a cannabis company, the release prominently identified Valley Bank and featured both a quote from Valley’s Senior Vice President, John Myers, and a description of the Bank’s service platform and commitment to the cannabis industry.

The End of Non-Competes? The Impact It Will Have on the Healthcare Industry

On January 5, 2023, the Federal Trade Commission (“FTC”) announced a proposed rule that, if enacted, will ban employers from entering into non-compete clauses with workers (the “Rule”), and the Rule would void existing non-compete agreements. In their Notice, the FTC stated that if the Rule were to go into effect, they estimate the overall earnings of employees in the United States could increase by $250 billion to $296 billion per year. The Rule would also require employers to rescind non-competes that they had already entered into with their workers. For purposes of the Rule, the FTC has defined “worker” to also include any employees, interns, volunteers, and contractors.”

2022 Healthcare Recap and 2023 Healthcare Check-Up

As the country begins to return to a new “normal” following the COVID-19 pandemic, there are many healthcare rules changing on both the federal and state levels as a result. Thus, it is important for healthcare providers and their employers to be aware of these changing rules, and any implications they may have on their practice. Look back on healthcare in 2022 and find a checklist for 2023.

Direct Support Professional Retention Payments

On December 15, the Ohio Senate and House passed House Bill 45, which authorizes the Department of Developmental Disabilities (DODD), in conjunction with the county boards of developmental disabilities, to launch their initiative to issue retention payments to Direct Support Professionals (DSPs). These retention payments will be distributed quarterly to participating home and community-based waiver providers to address the workforce crisis in the direct provider sector. Governor DeWine needs to sign the Bill to begin the payments, but he is expected to do so by the end of 2022.

Real Estate Investors Position for 2023 Opportunities

Real estate investors weathered another year in a post-pandemic world, with the year closing with yet another interest rate increase coupled with both uncertainty and heightened interest carrying into 2023. Just last Wednesday, the Federal Reserve raised its benchmark interest rate 0.50 percentage points, shifting the target range to 4.25% to 4.50%. The new level is the highest the fed funds rate has been since December 2007 and marks the seventh rate hike this year. So what does this mean to investors, brokers, lenders, and others in the real estate world? Read a few perspectives below from stakeholders familiar with our BMD clients and the markets in which they do business.