On June 15, 2020, the U.S. Supreme Court handed down a landmark ruling that shields workers from discrimination based on gender identity and sexual orientation. The high court’s decision states that a business who fires an individual simply for being transgender or homosexual violates Title VII of the 1964 Civil Rights Act. This ruling has ramifications for human resource departments nationwide, as it has been made clear that such discrimination is sex-based and illegal. This ruling affects businesses in everything from training to benefits packages to obtaining staffing liability insurance.
What is Title VII?
Title VII of the 1964 Civil Rights Act prohibits companies with 15 or more employees from discriminating based on color, race, religion, sex, or national origin. This applies to hiring, firing, disciplinary decisions, and the terms and conditions of employment, including promotion, training, leaves of absence, and other matters related to the job. Title VII also prohibits harassment of or retaliation against anyone with the protected characteristics.
What is the Court’s Definition of Sex?
The Supreme Court stated the assumption that in 1964 when Title VII was enacted, “sex” referred to gender: male or female. In examining the intent behind the original legislation, the Court noted that Congress made it illegal for an employer to fire an employee strictly on the basis of sex. This recent ruling effectively broadened the definition of the term “sex” to include protection against LGBTQ+ job discrimination.
What Has Changed?
Twenty-two states and Washington D.C. had pre-existing laws prohibiting discrimination based on sexual orientation and/or gender identity. Employees in those states will have the option of filing lawsuits in federal court where there are broader damages available than in the state courts. For employers with at least 15 employees in states without pre-existing legislation, workers now have federal protection.
What Should Employers Do?
There are several important steps that employers should take to ensure they are prepared to comply with Title VII:
- Review policies, both written and implied, to ensure compliance with Title VII legislation.
- Amend all sexual harassment, discrimination, and retaliation policies to ensure they are current and appropriate.
- Train business executives, supervisors, hiring managers, human resources staff and appropriate others to ensure understanding of the ramifications of the changes to Title VII.
- Enroll in a staffing liability insurance plan to ensure protection.
- Review benefit plans to ensure they are appropriate for Title VII, including the following:
- Coverage for transgender-related medical expenses
- Eligibility for same-sex spouse/partner coverage
- Employee Assistance Program for LGBTQ members
- Benefit administration and claim forms for sex discrimination concerns
- Health plan providers to ensure LGBTQ-friendly healthcare
- Family-planning benefits to include LGBTQ needs
- Consult with third parties including legal advisors to ensure policies are at minimum compliant.
While most companies have already audited their procedures to ensure fair treatment of LGBTQ+ employees, this Supreme Court ruling is significant because of the legal ramifications. Employers need to be vigilant to ensure their business practices fall within the law.
About World Wide Specialty Programs
For the last 50 years, World Wide Specialty Programs has dedicated itself to providing the optimal products and solutions for the staffing industry. As the only insurance firm to be an ASA commercial liability partner, we are committed to that partnership and committed to using our knowledge of the industry to provide staffing firms with the best possible coverage. For more information about Staffing Professional Liability Insurance or any other coverage, we have available to protect your staffing business, give us a call at (877) 256-0468 to speak with one of our representatives.