.

Defense Digest

“Because of an Individual’s Sex”—The Supreme Court of the United States Holds that Sexual Orientation and Gender Identity Qualify for Protection Under Title VII

Defense Digest, Vol. 27, No. 1, January 2021

January 29, 2021

by Danielle M. Vugrinovich

Key Points:

  • Treat complaints of discrimination based upon sexual orientation and gender identity as you would with any other claim for sex discrimination based upon Title VII.
  • Employers should update and distribute all discrimination policies to include sexual orientation and gender identity as classes against whom discrimination will not be tolerated.
  • Apply policies and procedures consistently and fairly.

Title VII of the Civil Rights Act of 1964 was enacted to prohibit discrimination in the workplace because of an individual’s race, color, religion, sex or national origin. In June of 2020, the Supreme Court of the United States announced a decision on an issue that has garnered much attention throughout the entire legal community and the country. In Bostock v. Clayton County, Georgia, et. al., the High Court found that sexual orientation and gender identity qualify for Title VII’s protection because any such discrimination is “because of” the individual’s sex. In the Court’s opinion, the terms “sex,” “because of,” “discriminate” and “individual,” used in the statute, were examined in depth. The Court noted that when considering statutes that had unambiguous and clear terms, there was no reason to look any further than what the statute actually stated. Neither Congress’s intent nor the employer’s motivation or label for the discriminatory practice was relevant.

In Bostock, the Court consolidated three cases for decision on the same issue—two in which the employee was terminated due to his or her sexual orientation and one for the employee’s gender identity. The issue presented in these cases was “whether an employer can fire someone for being homosexual or transgender.” The Court held that the answer was clear. “An employer who fires an individual for being homosexual or transgender fires that person for traits or actions it would not have questioned in members of a different sex. Sex plays a necessary and undisguisable role in the decision, exactly what Title VII forbids.”

Justice Gorsuch, writing for the majority, explained that it was impossible to discriminate against a person for being homosexual or transgender without discriminating against them because of his or her sex. Consider a situation in which an employer had two employees who were “materially identical” in all respects, both of whom were attracted to men, but one is a woman and one is a man. If the employer fires the male employee for no other reason than he is attracted to men, the employer discriminated against him because of his sex. Similarly, consider a circumstance in which an employer has a female employee and an employee who at birth was identified as a male, but now identifies as a female. If the employer fires the transgender employee, but retains the employee who identified as female at birth for no other reason than their gender traits at birth, the employer discriminated against the transgender employee because of her sex. The employee’s sex does not have to be the primary reason for the adverse employment action in order for the employer to be liable under Title VII. The Court held that, even if there were other factors involved in the decision to terminate, if one factor was the employee’s sex, the employer would be liable under Title VII.

What does this opinion mean for employers? An employer must treat a complaint for discrimination based upon sexual orientation or gender identity exactly the same as it would treat a complaint of sex discrimination, or any other class that is protected by Title VII. Even if the employer does not have the requisite number of employees to fall under Title VII, it is a best practice to employ the same procedures and policies as if it did fall under Title VII. Some state laws may already specify that discrimination based upon sexual orientation or gender identity is unlawful. If states do not already have such laws, it is very likely that they will follow the Supreme Court’s lead in their own interpretation of liability for discrimination complaints based upon sexual orientation and gender identity. Discriminatory actions include failure to hire, failure to promote, pervasive inappropriate comments or actions, denying such individual conditions and/or privileges of employment, and termination. Employers must perform an investigation when they receive complaints regarding harassment or discrimination that in any way could relate to the sex of the individual complaining of such behavior. As always, policies and procedures must be applied consistently and fairly among all employees.

Additionally, employers should update their employee manuals and any other documentation that explains anti-discrimination and anti-harassment policies to reflect that the employer will not tolerate harassment or discrimination based upon sexual orientation or gender identity. The policies should also explain how to report complaints of discrimination or harassment of any type, including those based upon sexual orientation and gender identity. If the employer requires employees to sign an acknowledgement of anti-discrimination policies, those acknowledgments should be updated to include sexual orientation and gender identity.

As with all employment-relations activities, it is of the upmost importance to apply policies consistently and fairly, promulgate written anti-discrimination and harassment policies, and ensure that all employees understand the policies.

*Danielle is a shareholder in the Pittsburgh, Pennsylvania office and can be reached at (412) 803-1185 or dmvugrinovich@mdwcg.com.

Defense Digest, Vol. 27, No. 1, January 2021 is prepared by Marshall Dennehey Warner Coleman & Goggin to provide information on recent legal developments of interest to our readers. This publication is not intended to provide legal advice for a specific situation or to create an attorney-client relationship. ATTORNEY ADVERTISING pursuant to New York RPC 7.1. © 2021 Marshall Dennehey Warner Coleman & Goggin. All Rights Reserved. This article may not be reprinted without the express written permission of our firm. For reprints, contact tamontemuro@mdwcg.com.

Firm Highlights

Result

No-Cause Jury Verdict Secured in Wrongful Death Trial

We successfully obtained a no-cause jury verdict in a 13-day wrongful death trial. The decedent, a 59-year-old man, was admitted to the emergency room on February 15, 2019, with complaints of abdominal pain, decreased appetite, and constipation, despite the use of laxatives. The patient did not complain of any nausea, vomiting, or diarrhea. He had a significant medical history including diabetes, hypertension, prior coronary artery stenting, morbid obesity (with past gastric bypass surgery), longstanding ventral hernia, and back pain. A CT scan revealed multiple hernias and a potential closed-loop bowel obstruction, leading to a surgery consultation. Our client, an emergency general surgeon, interpreted that the patient did not have a closed loop or any significant obstruction and recommended non-surgical management. The patient was approved to have clear liquids, and had a vomiting incident shortly after, but our client was not notified. The patient was returned to NPO status, and after improving overnight, he was returned to “clears” and additional medical and renal consults were ordered. Our client did not receive any communications from the residents/nurses of any changes in the patient’s condition. On February 18, 2019, two rapid responses were called due to increased heart rate and vomiting. It is believed that the vomiting resulted in aspiration, causing sepsis, ultimately leading to the patient’s death. During the trial, the plaintiff’s sole medical expert highlighted imaging on the wrong hernia, which called into question all of his opinions in the case. We made key objections related to the expert testimony, limiting what the allegations were, and preventing new allegations from being made. After approximately two and a half hours of deliberating, the jury returned a no-cause verdict. 

Thought Leadership

U.S. Supreme Court Decides Key Issue Regarding Interstate Freight Broker Liability

Freight brokers are intermediaries.  They connect shippers of goods with trucking companies that transport those goods.  Freight brokers match a load of freight with a trucking company and oversee the logistics of the transportation. For a number of years there has been a division among the Federal Circuits regarding the potential liability of freight brokers when the trucking companies that they retain for interstate loads are involved in accidents.  At the center of this division was the Federal Aviation Administration Authorization Act of 1994 (FAAAA).  Some Federal Circuit Courts have held that state law negligent hiring claims against freight brokers were preempted by the FAAAA .  Other Federal Circuits Courts have held that even if preemption applied, the “safety exception” in the FAAAA saved state law negligent hiring claims from federal preemption.  On May 14, 2026, the U.S. Supreme Court addressed the conflict in Montgomery v. Caribe Transport II, LLC, et al, No24-1238. In that case freight broker C.H. Robinson selected Caribe Transport to haul an interstate load. The commercial truck driver employed by Caribe Transport allegedly caused an accident and the plaintiff, Montgomery, was seriously injured. Montgomery brought an action against the driver, Caribe Transport and C.H. Robinson. The allegation against C.H. Robinson was that it negligently retained Caribe Transport when it knew, or should have known, that it was an unsafe company. The Seventh Circuit Court of Appeals held that Montgomery’s claims against C.H. Robinson were preempted by the FAAAA. The plaintiff appealed to the U.S. Supreme Court.  The U.S. Supreme Court’s decision focused primarily on the safety exception in the FAAAA.  That provision provides that the FAAAA preemption “…shall not restrict the safety regulatory authority of a State with respect to motor vehicles.” C.H. Robinson argued, as freight brokers historically have, that their function was not “with respect to motor vehicles” because they do not own trucks or employ drivers. They are merely intermediaries, connecting entities who need freight moved with entities who can do that job. Therefore, C.H. Robinson argued that preemption applied, not the safety exception. The U.S. Supreme Court did not accept that argument. The Court focused on the meaning of the phrase “with respect to” in the safety exception. The Court held that it means “referring to”, “concerning” or “regarding”. Therefore, writing for a unanimous Court, Justice Barrett concluded that “[r]equiring C.H. Robinson to exercise ordinary care in selecting a carrier therefore “concerns” motor vehicles—most obviously, the trucks that will transport the goods. So, Montgomery’s negligent-hiring claim falls within the FAAAA’s safety exception, which saves it from preemption.” Justice Kavanaugh, in his concurring opinion, noted the effect this ruling may have on freight brokers and their insurers throughout the country: Importantly, the Court's decision today should not be read to mean that brokers will routinely be subject to state tort liability in the wake of truck accidents. As even plaintiff's counsel stressed, brokers should be able to successfully defend against state tort suits if the brokers have acted reasonably and arranged transportation with reputable trucking companies. Tr. of Oral Arg. 27-29. In plaintiff's counsel's words, the brokers "just have to hire carriers that actually have a reasonable policy," and "the broker is not going to have a problem if it's asking the hard questions of the carrier." Id., at 42, 45. In addition, the proximate-cause requirement in typical state tort law should help protect brokers from excessive liability. Id., at 25. That said, the brokers rightly caution against naivete. In the real world, as the brokers forcefully respond, state tort law can be unpredictable, and the costs to brokers of litigation and insurance may be significant even when brokers prevail in lawsuits. Moreover, the costs of litigation and insurance, as well as the costs of brokers' conducting more substantial inquiries into trucking companies, will cascade through the economy and be paid in part by American consumers in the form of higher prices. The concerns expressed by the brokers are legitimate and weighty. The key point here is that freight brokers can no longer claim they are protected from negligent retention claims by the FAAAA (in cases involving interstate transportation). The challenge will be to determine what is considered ”reasonable efforts” used by brokers when retaining transportation companies. 

Thought Leadership

PA Middle District Dismisses Claims Against School District and its Superintendent, Principal, Special Education Director, and Classroom Teacher

A five-year-old special education student was enrolled in the Wyoming Valley West School District and attended the State Street Elementary School during the 2024-2025 school year. The student refused to clean up classroom toys at dismissal. When his teacher allegedly grabbed him by the wrist to walk him back to his seat, the student dropped to the floor and began crying. The teacher then allegedly grabbed the student by the ankle and dragged him across the floor. Following an investigation, criminal charges were not advanced by the county DA, and the school permitted the teacher to return to the classroom. The student’s parents sued, lodging thirteen legal counts under both state and federal law, which sought monetary damages from the teacher, the school district, the superintendent, the principal, and the director of special education. The plaintiff’s 42 USC 1983 claims were dismissed as to the school district for failure to allege a policy or custom violation, and the failure to alleged deliberate indifference in the failure-to-train context. As to the superintendent, building principal, and special education director, the Section 1983 claims were also dismissed for failure to allege personal involvement on the part of the individuals. Regarding an equal protection claim asserted against all defendants, the motion to dismiss was also granted for a failure to advance a plausible equal protection claim, holding that “plaintiffs' single-act allegations do not include a factual basis to even infer that the act was motivated by discriminatory animus rather than some other non-discriminatory impulse.” The court further dismissed the plaintiff’s negligence-based claims including negligence against the teacher and district administrators, NIED, and vicarious liability under the Political Subdivision Tort Claims Act (PSTCA). The federal claims under the IDEA, Section 504, and the ADA were also dismissed in various respects. The IDEA claim was dismissed against all defendants with prejudice for failure to exhaust administrative remedies. The Section 504 claims against the individual defendants were also dismissed with prejudice, as districts, not individuals, are the recipients of federal funds under Section 504. However, the Section 504 and ADA claims were dismissed without prejudice as to defendant Wyoming Valley West, and the plaintiff was permitted leave to amend.