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Exxon Mobil faces lawsuit over alleged anti-gay bias

Advocacy group sends fake resumes to shed light on hiring practices

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Exxon, Mobil, gay news, Washington Blade

Exxon Mobil is facing an employment discrimination lawsuit over alleged anti-gay hiring practices (photo courtesy wikimedai)

Exxon Mobil is facing an employment discrimination lawsuit based on a legal strategy of resume audit testing that revealed an apparent anti-gay bias in hiring practices.

On Wednesday, the LGBT group Freedom to Work filed a complaint with the Illinois Human Rights Commission contending Exxon Mobil violated a 2005 law in the state prohibiting discrimination against LGBT people.

The case, Freedom to Work v. Exxon Mobil Corp., is novel because the employment discrimination alleged is the result of resume audit testing. Under the strategy, fictitious resumes are sent for the same job opening in an attempt to reveal a candidate belonging to a minority group is unable to land a position.

Tico Almeida, president of Freedom to Work, said black and disability civil rights groups have employed the strategy with great success for decades, but his group’s lawsuit marks the first time an LGBT group has tried it.

“Although they went to the same high school, the LGBT candidate has a higher GPA,” Almeida said. “Although they went to the same college, the LGBT candidate has a higher GPA. Although they do the same kind of work, the LGBT person has longer work experience and better work experience. And then you see who they call back.”

In the test for anti-LGBT bias at Exxon Mobil — which has no non-discrimination policy protecting LGBT workers and has long been criticized by LGBT groups for alleged discrimination in hiring — Freedom to Work sent two applications in December from applicants for an administrative assistant position in Pataka, Ill.

One resume, written for “Jennifer Priston,” demonstrated a candidate who was well-qualified for the position, but outed her as LGBT because she had volunteer experience working for the Gay & Lesbian Victory Fund. The other resume, written for “Michelle Caland” was less qualified in terms of work experience and education, but offered no indication she was LGBT.

Even though Caland was less qualified, she received multiple call backs in response to her application. Priston never received a call back in response to her application even after Caland didn’t respond.

The results of the testing and the pending lawsuit, Almeida said, will force Exxon Mobil to  explain why the company “so desperately” wanted the less qualified non-LGBT candidate over the more qualified LGBT applicant.

“We know that they cannot credibly claim that they didn’t receive the LGBT resume and application because when they were submitted, they sent back to both applicants a receipt acknowledgement saying, ‘Thank you for your application from Exxon Mobil,'” Almeida said. “They can’t claim they didn’t see it.”

Further, Almeida said Exxon Mobil can’t say it didn’t want an employee who had activist experience because the non-LGBT candidate said she worked for a local feminist organization, nor can the organization purport to have engaged in political bias because the candidates have left-leaning resumes.

The result of the testing uncovering apparent anti-gay basis is consistent with a 2011 study at Harvard University that found LGBT applicants were 40 percent less likely to be granted an interview than a straight applicant.

The lawsuit was filed a week before the shareholders at Exxon Mobil are set to consider a resolution from New York State Comptroller Thomas DiNapoli, whose state owns considerable shares in the company, to put in place an LGBT non-discrimination policy. The resolution has come up repeatedly over the years and each time has failed, including last year, when it won support from only 20.6 percent of shareholders.

To reach a settlement in the case, Almeida said he’s asking Exxon Mobil to adopt a company-wide LGBT non-discrimination policy and train its workers across the country on implementation.

“We hope that we will shame them into settling this very quickly,” Almeida said. “If they agree to adopting and training HR people on it, we will settle the case as quickly as we can.”

But if Exxon Mobil chooses to fight the lawsuit, Almeida said the case will go into discovery, which means Freedom to Work will subpoena internal documents from the company and depose staffers to expose anti-gay bias in hiring practices.

“No one has ever gotten an inside look as to what their HR professionals think and why they were taught these policies and why they’re existing,” Almeida said. “As the litigation proceeds, we will get to subpoena those internal documents, and we will get to depose the HR professionals and ask them all these questions.”

Charlie Engelmann, an Exxon Mobil spokesperson, said in response to the complaint from Freedom to Work that the company already has policies protecting LGBT workers.

“Exxon Mobil’s global policies and processes prohibit all forms of discrimination, including those based on sexual orientation and gender identity, in any company workplace, anywhere in the world,” Engelmann said. “In fact, our policies go well beyond the law and prohibit any form of discrimination. We are reviewing the complaint filed with the Illinois Department of Human Rights by Freedom to Work, a non-profit organization.”

Despite the response, Almeida pointed out the company made the same assertion last year prior to the failed vote on the non-discrimination policy — only to have it rejected by the U.S. Securities & Exchange Commission.

“Prior to the vote on the resolution, Exxon asked the U.S. Securities & Exchange Commission for permission to stop shareholders from voting on the resolution, based on Exxon’s view that it had already complied with the proposal,” Almeida said. “However, the SEC rejected Exxon’s request, explaining that ‘it appears that ExxonMobil’s policies, practices, and procedures do not compare favorably with the guidelines of the proposal and that ExxonMobil has not, therefore, substantially implemented the proposal.'”

Illinois was one of two states in which Freedom to Work uncovered apparent anti-gay bias in hiring practices. Almeida did the same paired resume testing in Texas and uncovered similar results at Exxon Mobil.

But Texas doesn’t have a statewide LGBT workplace non-discrimination law on which to base a lawsuit, and no federal non-discrimination protections are in place to help LGBT people. The Employment Non-Discrimination Act isn’t law, nor is an executive order in place prohibiting anti-LGBT bias among federal contractors.

Over the past 10 years, Exxon Mobil received more than $1 billion in federal contracts. If President Obama issued a much-sought executive order prohibiting anti-LGBT job bias among federal contractors, Freedom of Work could have asked the Labor Department to take action against the company.

Almeida emphasized that executive order would have provided Freedom to Work the opportunity to take action against the oil company in Texas as well as Illinois.

“If the president had signed the order, we would have filed the testing results from Texas with the Department of Labor and asked them to do an investigation, and asked them to order Exxon-Mobil to adopt an LGBT non-discrimination policy,” Almeida said. “This is an example of how the president’s delay is slowing down civil rights.”

The White House has said it prefers a legislative approach to addressing LGBT workplace discrimination. Shin Inouye, a White House spokesperson, reiterated in response to the lawsuit on Wednesday that he has nothing to say about the executive order.

“Regarding a hypothetical Executive Order on LGBT non-discrimination for federal contractors, I have no updates for you on that issue,” Inouye said.

The lawsuit is novel in another way because with no real persons suffering discrimination, the named plaintiff in the lawsuit is Freedom to Work itself. Most LGBT legal groups, like Lambda Legal, file complaints that name LGBT people who’ve faced discrimination as the plaintiff.

Almeida said organizational plaintiffs are acceptable under Illinois state law as well as alleged discrimination in response to paired resume testing. In the 2000 decision of Kyles v. J.K. Guardian Security Services, the U.S. Seventh Circuit Court of Appeals in Illinois upheld the right of testers to bring these claims after two black testers brought a race discrimination action to federal court. They were allowed to proceed to a trial and later settled their claims with the employer.

Additionally, the U.S. Supreme Court has previously validated lawsuits on the basis of paired resume audit testing in its decisions on earlier litigation. In the 1982 case of Havens Realty Corp. v. Coleman, the court held testers can sue to challenge housing discrimination and that groups conducting the testing can also file a lawsuit to remedy discrimination.

Also working with Freedom to Work on the testing was the Equal Rights Center, a D.C.-based advocacy organization, which has experience with resume testing for minority groups.

Donald Kahl, executive director of the Equal Rights Center, explained in a statement the validity of filing employment discrimination lawsuits based on testing and their applicability to LGBT people.

“Based on the Equal Rights Center’s 30 years of testing experience, and nearly 2,000 tests conducted in the last year, our testing methodologies are recognized and accepted by the civil rights community, government agencies, and the courts,” Kahl said. “The type of testing we conducted with Freedom to Work is a critical part of objectively demonstrating why our LGBT community needs and deserves anti-discrimination protections.”

The legal team representing Freedom to Work in the lawsuit is Cohen Milstein Sellers & Toll PLLC, a group that has experience representing women who alleged gender discrimination in employment at the retail giant Walmart Stores, Inc.

As the lawsuit proceeds, Almeida said Freedom to Work will continue testing for anti-LGBT workplace bias at other companies and take action as necessary.

“Our work is not completed,” Almeida said. “We’re going to test other companies, and if we find out about discrimination, we’re going to file additional lawsuits.”

Fred Sainz, vice president of communications for the Human Rights Campaign, said the nation’s largest LGBT group also supports the lawsuit.

“HRC supports efforts to ensure that all LGBT Americans are judged at work based on how they perform, not on who they are,” Sainz said. “Those efforts include advocating for corporate policies, seeking recourse under state and local laws, and of course working to pass ENDA and a federal executive order.”

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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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