What Small-Business Owners Need to Know about the SCOTUS Ruling on Protections for LGBT Workers

by Edgar R. Olivo

On Monday, June 15, 2020, the U.S. Supreme Court upheld that it is illegal for businesses across the country to fire employees based on their sexual orientation or gender identity.

But Title VII does not cover companies with fewer than 15 employees.

Nor did the decision address other civil rights questions, such as whether LGBTQ people can be refused access to housing or denied services from businesses, including restaurants or movie theaters, and whether discrimination is justified by religious beliefs.

Nonetheless, the decision was good news all around for workers who work in states where statutory protections for this kind of discrimination did not exist. After the Supreme Court’s 2015 decision that gave same-sex couples the constitutional right to marry, some worried that workers could be married on a Sunday and fired on a Monday — only because they had acknowledged being gay.

Workers are now protected by federal law and have legal options if they are fired or harassed for identifying as LGBTQ. This is especially great news for transgender workers, who suffer from workplace harassment at higher rates, according to a McKinsey & Company study released in June 2020.

Arizona is one of the many states that does not have statewide protections for LGTBQ workers, but there are many cities with protective ordinances, which include Phoenix, Tucson, Flagstaff, Tempe and Sedona. As a result of the Supreme Court’s decision, all Arizona employers subject to Title VII are now prohibited from discriminating against LGBTQ workers and the landmark decision now lays the groundwork for more inclusive protections under state law in the future.

But what about businesses with fewer than 15 employees?

The answer is less clear for small businesses in states that have no state law protections against this kind of discrimination. Title VII of the Civil Rights Act prohibits employment discrimination only by employers with 15 or more employees. The Small Business Administration estimates about 89 percent of small businesses have fewer than 20 workers and make up about 17 percent of the workforce in the U.S.

Whether small businesses know about this ruling or not, there are many ways to create a more inclusive work environment to prevent discrimination in the workplace.

  • Focus on a welcoming environment by addressing discrimination head on with your workers and lead by example.
  • Educate and empower your team leaders by providing diversity, leadership and communication skills training.
  • Review your current work policies and add anti-discrimination language that sets a standard of behavior for all team members.
  • Attend trainings on Equal Employment Opportunity laws and share resources with your employees.
  • Respect everyone you work with. Embracing diversity in the workplace has proven to improve the bottom line, so take advantage of the benefits.

What should workers do to protect themselves?

If you are fired on the basis of sexual orientation or gender identity, check with The U.S. Equal Employment Opportunity Commission. They have many resources on their web portal for you to submit a claim, find guidance for your particular situation, and locate the nearest office to you. With the current decision made by U.S. Supreme Court, employees across the country can file discrimination claims with the U.S. Equal Employment Opportunity Commission if they experience discrimination based on their sexual orientation or gender identity. The ruling now requires the commission to accept and enforce these complaints across the country to find protection for LGBTQ employees.

Overall, this decision is good news for small businesses that wish to promote diversity as a competitive advantage to attract talent, customers and a better foothold in the marketplace. For LGBTQ workers, this means no longer having to downplay their authentic selves or hiding personal relationships due to fears of being fired. This is a win-win situation for our humanity.

Edgar Rafael Olivo is a bilingual business educator, economic advisor and contributor for several media outlets. He’s a non-profit executive who is passionate about education. He is certified in finance and data analytics and holds a business degree from Arizona State University.

To see our Spanish-language version of this article, click here.

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