Few areas of the law are evolving as rapidly as the law surrounding LGBTQ rights. Neither federal employment statutes nor Texas state employment statutes explicitly recognize sexual orientation or gender identity as classifications protected from discrimination (although local ordinances in certain cities, such as Austin and Dallas, may provide more protection for employees than federal or state laws). These statutes do, however, prohibit discrimination “because of sex.” The question being analyzed by courts across the country is whether “sex” should be interpreted to include sexual orientation and gender identity.

On March 7, the U.S. Court of Appeals for the Sixth Circuit ruled that terminating an employee because of her transgender status violated Title VII of the Civil Rights Act of 1964 (the federal law that prohibits discrimination “because of sex”). The case, EEOC v. R.G. & G.R. Harris Funeral Homes, involved a woman named Aimee Stephens, who worked as a funeral home director in Michigan. Stephens was born biologically male and had lived and presented as a male during her six years of employment with the funeral home. In July 2013, Stephens informed Thomas Rost, the funeral home owner, that she was a transgender woman, that she intended to transition from male to female, and that, moving forward, she planned to represent herself and dress as a woman at work. Within two weeks, Rost fired Stephens. He testified that he fired her because she was no longer going to represent herself as a man and intended to dress as a woman. He based the decision on his religious beliefs.