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Governor Signs Bill Prohibiting Gender Identity Discrimination

On August 3, 2003, Gov. Gray Davis signed a bill outlawing discrimination on the basis of gender identity and thus revising the California Fair Employment and Housing Act (FEHA). AB 196 was introduced by Assemblyman Mark Leno D San Francisco, and was sponsored by Equality California.

California is now the fourth state to ban discrimination against transgender employees. The three other states that have enacted laws prohibiting discrimination on the basis of gender identity are Minnesota, Rhode Island, and New Mexico. Courts and administrative agencies in five additional states - Connecticut, Hawaii, Massachusetts, New Jersey and New York - and the District of Columbia have interpreted either their sex or disability discrimination statutes to protect transgender people in some circumstances.

The Department of Fair Employment and Housing was already accepting and investigating cases involving gender identity discrimination.

The legislation applies to employers with five or more employees. It does not apply to non-profit religious corporations.

There is no federal law that prohibits workplace discrimination based on gender identity. An organization called the Human Rights Campaign, the largest national lesbian and gay political organization, is working to develop a federal measure that would likewise prohibit discrimination based on gender identity.

AB 196 Includes Gender Identity In Definition of Sex

The bill extends FEHA's prohibition against discrimination to that based on perceptions of an individual's gender, regardless of whether the perceived gender characteristics are different from those traditionally associated with the individual's sex at birth.

Existing law under FEHA prohibits discrimination on the basis of sex. This bill provides that for purposes of FEHA the term "sex" shall include a persons gender as that term is defined in the Penal Code hate crimes statute. "Gender" for purposes of the hate crimes statute includes a person's identity, appearance, or behavior whether or not that identity, appearance or behavior is different from that traditionally associated with the person's sex at birth. It also covers the "perception" of a person's identity, appearance or behavior.

Employers Can Enforce Dress Code Standards

The bill permits employers to require employees to adhere to reasonable workplace appearance, grooming and dress standards consistent with state or federal law, provided that employees are allowed to appear or dress consistently with their gender identity.

This provision is a first-of-its-kind provision in a statewide transgender non-discrimination law.

Support for the Bill

The sponsors of the bill, Equality California, argued that discrimination in housing and employment based on gender identity and expression is a serious problem. They cite a recent survey by the San Francisco Department of Public Health that found that most transgender people have experienced "loss of employment, denial of employment, or underemployment." The unemployment rate for those surveyed was 70%.

Many transgender employees who are just coming out or who are in the process of transitioning from one gender to another quit their jobs because of harassment or fear of harassment, ignorance, and lack of employer and co-worker support.

Recently, the story of a local Sacramento teacher brought the issue to the limelight. Dana Rivers was teaching high school in Sacramento when she began her transition from male to female. Although she had the support of many students, colleagues and community members, she was suspended from teaching pending a hearing. Her case garnered nationwide attention, including appearances on The Oprah Winfrey Show and ABC News. Rivers ultimately accepted a settlement in exchange for her resignation, and is now a national spokesman for gender rights.

Many companies had already begun to address the issue of transgender employees even prior to the legislation. In 2002, the Human Rights Commission awarded 100 percent scores to 13 companies who included gender identity in their non-discrimination policies. These companies were: Aetna Inc.; American Airlines; Apple Computer, Inc.; Avaya Inc.; Eastman Kodak Co.; Intel Corp.; J.P. Morgan Chase & Co.; Lucent Technologies, Inc.; NCR Corp.; Nike Inc.; Replacements, Ltd.; Worldspan, L.P.; and Xerox Corp.

Concerns from Opposition

Opponents of the legislation were concerned regarding the definition's breadth. Opponents argued that AB 196 would establish that gender identity discrimination occurs when someone believes that a supervisor or co-worker is uncomfortable with or disapproves of the way the other person does or does not exhibit traits stereotypically associated with his or her sex. These traits may include a person's personality, clothing, hairstyle, speech, mannerisms, demeanor, or other characteristics such as vocal pitch, facial hair, or the size or shape of a person's body. Opponents also believed that regulating the workplace using a criminal definition designed for prosecution of hate crimes is inappropriate due to the differing thresholds of evidence in the Penal code (much more stringent) versus the state Government Code (much less stringent).

Opposition also came from traditional family value groups who argued that the bill would apply to schools districts and child care facilities and would have a detrimental affect on children.

Tips for Employers

Employers with five or more employees will need to comply with AB 196. The following are some tips:

  • Revise employee handbooks to include gender identity in the list of categories protected from discrimination;
  • Inform employees that discriminating against another employee because of perceptions regarding that employee's gender identity is unlawful.
  • Allow employees to appear or dress consistent with their gender identity, while at the same time enforcing professional standards of dress, appearance and grooming;
  • If directly facing the issue at work, educate employees by collaborating with organizations that train in this area. Also, meet with a transitioning employee to assess his or her needs and concerns;
  • Consider restroom access issues if there are transgender employees in the workplace. One solution is a "family" restroom often seen in amusement parks or airports. These are generally single stall restrooms that would provide privacy to the transgendered employee.