The federal government is taking the position that transgender individuals are legally protected from employment discrimination. U.S. Attorney General Eric Holder made the announcementlast week. This isn’t a law change, but rather an evolving interpretation.
Title VII is part of the Civil Rights Act of 1964 and it prohibits employment discrimination on the basis of sex. For decades transgender individuals who believe they have been discriminated against at work have filed lawsuits under this federal law. But judges have been inconsistent about whether gender identity is protected under the law.
“Title VII claims are done in federal court and the main thing for people to understand about it is that it’s a federal law and it provides protection that applies against the state government and against private employers," said Lambda Legal attorney Jennifer Pizer.
Pizer thinks the final word will come from the U.S. Supreme Court in the near future. Arizona employment discrimination laws don’t include gender identity as a protected class.