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Top Questions of Employers - Sexual Orientation and Gender Identity Law

Client Alert

One month ago, the United States Supreme Court, in Bostock v. Clayton County, determined that federal law (Title VII of the Civil Rights Act of 1964) protects employees on the basis of sexual orientation or gender identity.  Our earlier post discussed the full decision.  The purpose of this article is to share and address the Top Questions of Employers since that decision was rendered.

Q:  What do we tell our employees?

In strictest terms, the Bostock decision evaluated Title VII, which generally means it only applies to employers who have 15+ employees working 20+ weeks per year.  Also, Bostock only prohibits terminations because of sexual orientation or gender identity.

In practice, however, federal, state, and local courts, laws and agencies have broadly been protecting individuals on the basis of sexual orientation or gender identity for decades.  Remind your employees that the Anti-Discrimination Policy in your handbook prohibits any harassment or discriminatory conduct on the basis of sexual orientation or gender identity.  This includes hiring, firing, promotions, discipline, raises, bonuses, and other terms and conditions of employment.  It’s the same strict prohibition against conduct relating to race, creed, color, alienage or national origin, ancestry, citizenship status, religion, marital status, veteran or military status, age, sex, pregnancy, disability, or genetic information.

The final recommendation is to remind employees that “I was joking” is not a defense to a harassment claim.  Jokes regarding sexual orientation or gender identity are prohibited in the workplace.

Q:  What do we do about bathrooms and changing rooms?

As everyone knows, the main reason I decided to attend law school was to concentrate on the complexities of bathroom law.  Now, after practicing law for 20 years, it’s finally my time to shine.

The general recommendation is that employees should be permitted to use the restrooms consistent with their gender identities.  The Bostock decision specifically avoided this question, but it has been addressed elsewhere.  The Occupational Safety and Health Administration’s (OSHA’s) Guide to Restroom Access for Transgender Workers includes, as a Core Principle, that all employees, including transgender employees, should have access to restrooms that correspond to their gender identity.

Likewise, the Equal Employment Opportunity Commission (EEOC) has regularly guided employers to allow employees to use restrooms and locker rooms based upon the employee’s gender identity, regardless of sex at birth and regardless of the status of any sex-reaffirmation procedures.

Finally, over a dozen states and cities already have laws/codes requiring gender-neutral restrooms.

Exceptions from the general recommendation may exist based upon unique circumstances (i.e., religion or protective gear), but they are limited and require analysis of the totality of the circumstances.   

Q:  What do we do about dress codes?

We generally begin answering this question with our own question: Do you enforce a dress code policy, let alone a sex-specific dress code policy?  Usually, the answer is “no.” Employers can implement gender-specific dress codes if they are not arbitrarily enforced and do not favor one gender over another.  Employers are permitted to maintain sex-specific dress codes and grooming standards when they involve a bona fide occupational qualification (BFOQ) reasonably necessary to the regular operation of the business.  The real question is what to do about dress codes based on gender identity and expression.   

Again, the Bostock decision did not address dress codes, even though one of the underlying cases included an issue of an employer refusing to allow an employee to dress according to her gender identity and expression.  However, the EEOC and state and local courts and laws have initiated the trend to protect employees’ rights to dress according to their gender identity and expression.

Our recommendation is to implement a gender-neutral dress code. A concise policy requiring employees to “appear for work dressed professionally in clean attire or risk being sent home to change” can be enough.  If an employer implements a detailed policy, then we offer the same general recommendation: employees should be permitted to dress consistent with their gender identities and gender expression.

Q:  Anything else we need to know?

The protections for employees on sexual orientation and gender identity will continue to expand, and that expansion is expected to be at the state and local levels.  The protections are unique to each jurisdiction and subject employers to a variety of requirements.  For example, the New York City Human Rights Law requires employers to use the name, pronouns, and titles with which an employee identifies, regardless of the person’s sex assigned at birth, anatomy, gender, medical history, appearance, or the sex indicated on the person’s identification.  It is important for all employers to review their federal, state, and local obligations on a regular basis for each of their locations.

For additional information, please contact Jeffrey C. Miller, jcmiller@bmdllc.com 216.658.2323, or any member of the Labor and Employment Team of Brennan Manna & Diamond LLC.


Vacating, Modifying or Correcting an Arbitration Award Under R.C. 2711.13: Three-Month Limitation Maximum; Not Guaranteed Amount of Time

In a recent decision, the Supreme Court of Ohio held that neither R.C. 2711.09 nor R.C. 2711.13 requires a court to wait three months after an arbitration award is issued before confirming the award. R.C. 2711.13 provides that “after an award in an arbitration proceeding is made, any party to the arbitration may file a motion in the court of common pleas for an order vacating, modifying, or correcting the award.” Any such motion to vacate, modify, or correct an award “must be served upon the adverse party or his attorney within three months after the award is delivered to the parties in interest.” In BST Ohio Corporation et al. v. Wolgang, the Court held the three-month period set forth in R.C. 2711.13 is not a guaranteed time period in which to file a motion to vacate, modify, or correct an arbitration award. 2021-Ohio-1785.

EEOC Provides Updated Guidance Regarding Employer COVID-19 Vaccine Policies

On May 28, 2021, the U.S. Equal Employment Opportunity Commission updated its guidance regarding employer COVID-19 vaccination policies. The new guidance provides much-needed clarification of expectations for employers seeking to promote workplace safety and prevent the spread of COVID-19, including discussion of mandatory vaccination policies, voluntary vaccination incentives, and accommodation of employees based on disability or sincerely held religious beliefs. The full text of the update is found in Section K of the EEOC’s COVID Q&A document. You can also learn more about these and other developments from BMD's Bryan Meek and Monica Andress through the Employment Law After Hours YouTube channel, available here.

What Telemedical Barriers Practices Face and How They Can Manage Them

The onset of the COVID-19 pandemic has led to many businesses and industries having to rapidly adapt new practices in order to stay profitable, and the healthcare industry is no exception. Although telehealth tools and practices have existed and been used since the Vietnam War, the pandemic has caused many individual healthcare practices to heavily rely on telehealth as a large portion of their service mix in order to continue to provide care for patients. Because of this rapid adoption of telehealth practices in order to combat the restrictions of COVID-19, the telemedicine industry’s revenue has exploded in the last year. Experts predict that telehealth will continue to grow in use beyond the current pandemic, estimating the industry’s worth to be $25 billion by 2025. However, this rapid adoption of telehealth was prompted out of need and has not been without its own barriers that practices now face.

Which Entity Should I Form When Starting a New Business?

As a tax law attorney, friends and acquaintances ask me this question all the time: what type of entity should I form when starting a new business? With many business options available it can be confusing determining which business structure would be appropriate. Below is a general overview of each business structure and the tax responsibilities of each.

IMPORTANT UPDATE: IRS Opens Portals for Advanced Child Tax Credit Payments 2021

The American Rescue Plan Act (the “Act”) expands the Child Tax Credit for tax year 2021. In addition to expanding the Child Tax Credit, the Act provides for advance payments of the 2021 Child Tax Credit. Beginning in July, the IRS will automatically send Advanced Child Tax Credit payments to eligible taxpayers based on their 2020 tax return (or 2019 tax return if the 2020 tax return has not been filed and processed yet). The amount of the advanced payment will be up to $300 each month for each qualifying child under 6 years old at the end of 2021 and $250 each month for each qualifying child between 6 and 17 years old at the end of 2021. For example, if you have 2 qualifying children, one 4 years old and one 8 years old, you may receive up to $550 each month in advance child tax credit payments.