A first-of-its-kind settlement was reached last week on a lawsuit alleging "sex" discrimination based on sexual orientation under Title VII of the Civil Rights Act of 1964. The Equal Employment Opportunity Commission (EEOC) said this was the first time such a lawsuit had been resolved, which raises the possibility that "sexual orientation" could increasingly be viewed as protected by federal employment law. The AP reports:
The EEOC said in a statement that Pallet Companies, doing business as IFCO Systems, will pay just over $182,000 to Yolanda Boone, who alleged she was fired after complaining that her supervisor made comments regarding her sexual orientation and appearance. The EEOC said in its lawsuit filed earlier this year in Baltimore that Boone's supervisor made comments including "I want to turn you back into a woman" and "You would look good in a dress." [...]
In a court document explaining the settlement, IFCO Systems denies that it discriminated against Boone but agrees to the settlement terms. In a statement released through a lawyer, the company noted it did not admit to any discrimination, harassment or retaliation. The statement says that the company's core values and corporate code of conduct have "long recognized the value of preventing sexual orientation discrimination and the benefit of ensuring diversity in the workplace."
The Pallet lawsuit was one of the first discrimination claims the EEOC has brought based on sexual orientation. In recent years, the agency has held that discrimination based on “gender identity” and “sexual orientation” are both covered by the prohibition against "sex" discrimination in the Civil Rights Act of 1964.