Discrimination because of sexual orientation or gender identity is discrimination because of sex under federal employment law, because it is impossible to discriminate on those grounds without taking sex into account.
Scope. Hiring, discharge, compensation, terms and conditions, and harassment.
Practical questions employers face. Names and pronouns in systems and in practice; dress and grooming standards, which should be applied without sex- based differentiation to the extent practicable; access to facilities; healthcare coverage in benefit plans; and privacy of employee information.
Harassment. Repeated intentional misgendering, hostile comments and exclusion are assessed under the ordinary severe or pervasive standard, with context mattering considerably.
Religious objections. Employers must consider accommodation of employees’ sincerely held religious beliefs, and the boundary where an accommodation would impose more than undue hardship — including where it would require another employee to be subjected to harassment — is contested and developing.
Religious organisations have exemptions of varying scope, including the ministerial exception for employees with religious duties.
State and local law frequently provides broader protections and specific obligations, including in benefits and records.
Policy hygiene. Update handbooks and training to reflect coverage, and ensure complaint channels handle these matters like any other.