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The next champion of LGBT workplace rights?

Shiu would enforce ENDA-like executive order for federal contractors

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Patricia Shiu (Photo courtesy the Labor Department)

The Obama administration official who would be responsible for enforcing a proposed federal ban on discrimination against LGBT workers by federal contractors boasts a long record of advocating for LGBT rights.

Patricia Shiu heads the Labor Department’s Office of Federal Contract Compliance Programs (OFCCP), which enforces contractual promises of equal employment opportunity for companies doing business with the federal government.

If, as advocates have been pushing him to do, President Obama issues an executive order requiring federal contractors to adopt non-discrimination policies inclusive of sexual orientation and gender identity, Shiu would be responsible for ensuring companies live up to that obligation.

Federal contractors that discriminate against LGBT employees would have to answer to Shiu — and potentially have to pay back wages and reinstate workers fired for discriminatory reasons.

Tico Almeida, president of Freedom to Work and one of the chief advocates calling for the order, called Shiu a “smart and talented attorney” and said she’s “demonstrated throughout her career a real passion and commitment to enforcing civil rights laws.”

“As the executive order has advanced through the slow bureaucratic process over the course of the last year, I have felt reassured knowing that we have strong straight allies like Director Shiu on the inside advocating for workplace fairness for LGBT Americans,” Almeida said. “She knows the legal issues backwards and forwards, in part because she has real world experience at the Employment Law Center representing LGBT Americans who have faced workplace discrimination just because of who they are or whom they love.”

Because the measure is similar in its goal to the Employment Non-Discrimination Act, the directive has sometimes been referred to as the “ENDA” executive order, although the order would be more limited in scope because it only affects federal contractors. Multiple sources have said the Labor and Justice Departments have cleared such a measure, but the White House hasn’t said whether Obama will issue the directive.

Almeida said he met with staffers from OFCCP to advocate for the executive order, and had two meetings with Shiu herself. Almeida wouldn’t comment on the substance of the meetings, and Shiu declined an interview for this article.

If Obama issues the order, Shiu would be responsible for drafting and implementing regulations, putting them through a 90-day public comment period, revising the regulations and then publishing final rules.

“That could take six, eight, 10 or even 12 months, which is why it is so critical that President Obama get the process started by signing the executive order as soon as possible,” Almeida said.

No federal law protects LGBT people from discrimination in the workplace, but observers say Shiu has distinguished herself by protecting civil rights for other groups using as tools protections already in place since she took over at OFCCP in 2009.

Executive Order 11246, signed in 1965 by President Johnson, prohibits federal contractors from discriminating on the basis of race, color, religion, sex or national origin.

Several statutes also prevent companies doing business with the federal government from discriminating against employees. Section 503 of the Rehabilitation Act of 1973 prohibits job bias based on disability and Section 4212 of the Vietnam Era Veterans’ Readjustment Assistance Act of 1974 prohibits job bias based on veteran status.

OFCCP’s work is focused on compliance evaluations of contractors who are scheduled for reviews, when compliance officers check to make sure contractors are meeting these obligations. According to the Labor Department, Shiu’s office investigated 356 complaints filed under Executive Order 11246, Section 503 of the Rehabilitation Act of 1973 and Section 4212 of the Vietnam Era Veterans’ Readjustment Assistance Act of 1974.

Under the Obama administration, OFCCP has recovered more than $30 million in financial remedies on behalf of nearly 50,000 victims of discrimination. In the past three years, the agency has evaluated more than 12,000 businesses that employ almost 5 million workers. In addition to back wages, interest and benefits, OFCCP has negotiated more than 4,800 potential job offers for workers who have been illegally subjected to discrimination.

Nancy Zirkin, executive vice president for policy at the Leadership Conference on Civil and Human Rights, had high praise for Shiu’s work in enforcing non-discrimination rules with federal contractors.

“Overall, her commitment to reinvigorate and ramp up the enforcement of the agency has been amazing, which is not surprising because she has dedicated her whole career to protecting workers and promoting diversity and enforcing the law,” Zirkin said. “In her previous role, she was always very well respected in the legal and policy advocacy community.”

Zirkin said the Employment Task Force of the Leadership Conference on Civil and Human Rights has worked with her on the National Equal Pay Enforcement Task Force, which was charged with cracking down on violations of equal pay laws affecting women.

“We think she has been throughout her career and continues to be a stellar point for the civil rights community,” Zirkin said.

If Obama were to issue the ENDA executive order, Zirkin predicted that Shiu would be an effective enforcer of that directive.

“Based on her entire life’s work, she would implement and enforce it, and as I said in the beginning, she has made a demonstrated commitment to reinvigorate and ramp up enforcement at the agency,” Zirkin said.

In June, Shiu secured one such major financial reward from a pharmaceutical giant and federal contractor as the result of allegations of gender discrimination in violation of Executive Order 11246.

AstraZeneca, among the largest pharmaceutical companies in the world, agreed to pay $250,000 to 124 women subjected to discrimination while working at the corporation’s Philadelphia Business Center in Wayne, Pa. The action resolved a lawsuit filed by the Labor Department in May 2010 alleging the company discriminated against female sales specialists by paying them salaries that were, on average, $1,700 less than their male co-workers.

OFCCP conducted a scheduled compliance review of the business center in 2002 and found AstraZeneca had violated Executive Order 11246 by failing to meet its obligations as a federal contractor to ensure employees were paid fairly. According to the Labor Department, the company holds a contract valued at more than $2 billion with the Department of Veterans Affairs to provide pharmaceutical products to hospitals and medical centers throughout the country.

Shiu is credited with being a stalwart supporter of civil rights and LGBT rights even before she came to the Labor Department. Prior to joining the Obama administration, Shiu was an attorney for 26 years at the San Francisco-based Legal Aid Society Employment Law Center and worked on employment discrimination cases, including LGBT-related cases.

Elizabeth Kristen, current director of the Employment Law Center’s Gender Equity and LGBT Rights Program, said Shiu was her mentor at the organization before she left and “an incredible champion for civil rights.”

“She is a tough litigator and she’s a passionate advocate and she’s incredibly smart and she really when she was here just went to bat for her clients,” Kristen said.

Kristen said Shiu worked on cases at the Legal Aid Society Employment Law Center affecting LGBT employees and said she “fully gets the issues and is a staunch, staunch ally to the LGBT community.” The Law Center wouldn’t reveal information about these cases, citing confidentiality agreements.

A lesbian who married her spouse in San Francisco in 2008, Kristen said Shiu in addition to her legal work was outspoken against Proposition 8, the ballot measure that ultimately eliminated marriage rights for gay couples in California.

“Many of our straight allies were working to get President Obama elected, which is great and wonderful but some of us also were fighting Prop 8 on Election Day, and Pat was also with us fighting Prop 8,” Kristen said.

Kristen added Shiu was involved in a Legal Aid Society Employment Law Center decision to gross up the pay for employees in same-sex marriages to offset the tax inequities faced by these individuals. Because of the Defense of Marriage Act, individuals in same-sex marriages have to pay a federal tax on health care benefits, unlike those in opposite-sex unions.

Should Obama issue the ENDA executive order, Kristen said Shiu “would do everything in her power to enforce it.”

“She would do everything she could to make sure that this order was fully effective because I know the rights of the LGBT community are near and dear to her heart,” Kristen said.

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National

United Methodist Church removes 40-year ban on gay clergy

Delegates also voted for other LGBTQ-inclusive measures

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Underground Railroad, Black History Month, gay news, Washington Blade
Mount Zion United Methodist Church is the oldest African-American church in Washington. (Washington Blade photo by Michael Key)

The United Methodist Church on Wednesday removed a ban on gay clergy that was in place for more than 40 years, voting to also allow LGBTQ weddings and end prohibitions on the use of United Methodist funds to “promote acceptance of homosexuality.” 

Overturning the policy forbidding the church from ordaining “self-avowed practicing homosexuals” effectively formalized a practice that had caused an estimated quarter of U.S. congregations to leave the church.

The New York Times notes additional votes “affirming L.G.B.T.Q. inclusion in the church are expected before the meeting adjourns on Friday.” Wednesday’s measures were passed overwhelmingly and without debate. Delegates met in Charlotte, N.C.

According to the church’s General Council on Finance and Administration, there were 5,424,175 members in the U.S. in 2022 with an estimated global membership approaching 10 million.

The Times notes that other matters of business last week included a “regionalization” plan, which gave autonomy to different regions such that they can establish their own rules on matters including issues of sexuality — about which international factions are likelier to have more conservative views.

Rev. Kipp Nelson of St. Johns’s on the Lake Methodist Church in Miami shared a statement praising the new developments:

“It is a glorious day in the United Methodist Church. As a worldwide denomination, we have now publicly proclaimed the boundless love of God and finally slung open the doors of our church so that all people, no matter their identities or orientations, may pursue the calling of their hearts.

“Truly, all are loved and belong here among us. I am honored to serve as a pastor in the United Methodist Church for such a time as this, for our future is bright and filled with hope. Praise be, praise be.”

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Federal Government

Republican state AGs challenge Biden administration’s revised Title IX policies

New rules protect LGBTQ students from discrimination

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U.S. Secretary of Education Miguel Cardona (Screen capture: AP/YouTube)

Four Republicans state attorneys general have sued the Biden-Harris administration over the U.S. Department of Education’s new Title IX policies that were finalized April 19 and carry anti-discrimination protections for LGBTQ students in public schools.

The lawsuit filed on Tuesday, which is led by the attorneys general of Kentucky and Tennessee, follows a pair of legal challenges from nine Republican states on Monday — all contesting the administration’s interpretation that sex-based discrimination under the statute also covers that which is based on the victim’s sexual orientation or gender identity.

The administration also rolled back Trump-era rules governing how schools must respond to allegations of sexual harassment and sexual assault, which were widely perceived as biased in favor of the interests of those who are accused.

“The U.S. Department of Education has no authority to let boys into girls’ locker rooms,” Tennessee Attorney General Jonathan Skrmetti said in a statement. “In the decades since its adoption, Title IX has been universally understood to protect the privacy and safety of women in private spaces like locker rooms and bathrooms.”

“Florida is suing the Biden administration over its unlawful Title IX changes,” Florida Gov. Ron DeSantis wrote on social media. “Biden is abusing his constitutional authority to push an ideological agenda that harms women and girls and conflicts with the truth.”

After announcing the finalization of the department’s new rules, Education Secretary Miguel Cardona told reporters, “These regulations make it crystal clear that everyone can access schools that are safe, welcoming and that respect their rights.”

The new rule does not provide guidance on whether schools must allow transgender students to play on sports teams corresponding with their gender identity to comply with Title IX, a question that is addressed in a separate rule proposed by the agency in April.

LGBTQ and civil rights advocacy groups praised the changes. Lambda Legal issued a statement arguing the new rule “protects LGBTQ+ students from discrimination and other abuse,” adding that it “appropriately underscores that Title IX’s civil rights protections clearly cover LGBTQ+ students, as well as survivors and pregnant and parenting students across race and gender identity.”

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Federal Government

4th Circuit rules gender identity is a protected characteristic

Ruling a response to N.C., W.Va. legal challenges

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Lewis F. Powell Jr. Courthouse in Richmond, Va. (Photo courtesy of the U.S. Courts/GSA)

BY ERIN REED | The 4th U.S. Circuit Court of Appeals ruled Monday that transgender people are a protected class and that Medicaid bans on trans care are unconstitutional.

Furthermore, the court ruled that discriminating based on a diagnosis of gender dysphoria is discrimination based on gender identity and sex. The ruling is in response to lower court challenges against state laws and policies in North Carolina and West Virginia that prevent trans people on state plans or Medicaid from obtaining coverage for gender-affirming care; those lower courts found such exclusions unconstitutional.

In issuing the final ruling, the 4th Circuit declared that trans exclusions were “obviously discriminatory” and were “in violation of the equal protection clause” of the Constitution, upholding lower court rulings that barred the discriminatory exclusions.

The 4th Circuit ruling focused on two cases in states within its jurisdiction: North Carolina and West Virginia. In North Carolina, trans state employees who rely on the State Health Plan were unable to use it to obtain gender-affirming care for gender dysphoria diagnoses.

In West Virginia, a similar exclusion applied to those on the state’s Medicaid plan for surgeries related to a diagnosis of gender dysphoria. Both exclusions were overturned by lower courts, and both states appealed to the 4th Circuit.

Attorneys for the states had argued that the policies were not discriminatory because the exclusions for gender affirming care “apply to everyone, not just transgender people.” The majority of the court, however, struck down such a claim, pointing to several other cases where such arguments break down, such as same-sex marriage bans “applying to straight, gay, lesbian, and bisexual people equally,” even though straight people would be entirely unaffected by such bans.

Other cases cited included literacy tests, a tax on wearing kippot for Jewish people, and interracial marriage in Loving v. Virginia.

See this portion of the court analysis here:

4th Circuit rules against legal argument that trans treatment bans do not discriminate against trans people because ‘they apply to everyone.’

Of particular note in the majority opinion was a section on Geduldig v. Aiello that seemed laser-targeted toward an eventual U.S. Supreme Court decision on discriminatory policies targeting trans people. Geduldig v. Aiello, a 1974 ruling, determined that pregnancy discrimination is not inherently sex discrimination because it does not “classify on sex,” but rather, on pregnancy status.

Using similar arguments, the states claimed that gender affirming care exclusions did not classify or discriminate based on trans status or sex, but rather, on a diagnosis of gender dysphoria and treatments to alleviate that dysphoria.

The majority was unconvinced, ruling, “gender dysphoria is so intimately related to transgender status as to be virtually indistinguishable from it. The excluded treatments aim at addressing incongruity between sex assigned at birth and gender identity, the very heart of transgender status.” In doing so, the majority cited several cases, many from after Geduldig was decided.

Notably, Geduldig was cited in both the 6th and 11th Circuit decisions upholding gender affirming care bans in a handful of states.

The court also pointed to the potentially ridiculous conclusions that strict readings of what counts as proxy discrimination could lead to, such as if legislators attempted to use “XX chromosomes” and “XY chromosomes” to get around sex discrimination policies:

The 4th Circuit majority rebuts the state’s proxy discrimination argument.

Importantly, the court also rebutted recent arguments that Bostock applies only to “limited Title VII claims involving employers who fired” LGBTQ employees, and not to Title IX, which the Affordable Care Act’s anti-discrimination mandate references. The majority stated that this is not the case, and that there is “nothing in Bostock to suggest the holding was that narrow.”

Ultimately, the court ruled that the exclusions on trans care violate the Equal Protection Clause of the Constitution. The court also ruled that the West Virginia Medicaid Program violates the Medicaid Act and the anti-discrimination provisions of the Affordable Care Act.

Additionally, the court upheld the dismissal of anti-trans expert testimony for lacking relevant expertise. West Virginia and North Carolina must end trans care exclusions in line with earlier district court decisions.

The decision will likely have nationwide impacts on court cases in other districts. The case had become a major battleground for trans rights, with dozens of states filing amicus briefs in favor or against the protection of the equal process rights of trans people. Twenty-one Republican states filed an amicus brief in favor of denying trans people anti-discrimination protections in healthcare, and 17 Democratic states joined an amicus brief in support of the healthcare rights of trans individuals.

Many Republican states are defending anti-trans laws that discriminate against trans people by banning or limiting gender-affirming care. These laws could come under threat if the legal rationale used in this decision is adopted by other circuits. In the 4th Circuit’s jurisdiction, West Virginia and North Carolina already have gender-affirming care bans for trans youth in place, and South Carolina may consider a similar bill this week.

The decision could potentially be used as precedent to challenge all of those laws in the near future and to deter South Carolina’s bill from passing into law.

The decision is the latest in a web of legal battles concerning trans people. Earlier this month, the 4th Circuit also reversed a sports ban in West Virginia, ruling that Title IX protects trans student athletes. However, the Supreme Court recently narrowed a victory for trans healthcare from the 9th U.S. Circuit Court of Appeals and allowed Idaho to continue enforcing its ban on gender-affirming care for everyone except the two plaintiffs in the case.

Importantly, that decision was not about the constitutionality of gender-affirming care, but the limits of temporary injunctions in the early stages of a constitutional challenge to discriminatory state laws. It is likely that the Supreme Court will ultimately hear cases on this topic in the near future.

Celebrating the victory, Lambda Legal Counsel and Health Care Strategist Omar Gonzalez-Pagan said in a posted statement, “The court’s decision sends a clear message that gender-affirming care is critical medical care for transgender people and that denying it is harmful and unlawful … We hope this decision makes it clear to policy makers across the country that health care decisions belong to patients, their families, and their doctors, not to politicians.” 

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Erin Reed is a transgender woman (she/her pronouns) and researcher who tracks anti-LGBTQ+ legislation around the world and helps people become better advocates for their queer family, friends, colleagues, and community. Reed also is a social media consultant and public speaker.

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The preceding article was first published at Erin In The Morning and is republished with permission.

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