Sex Discrimination v. Religious Freedom: Court Permits Transgender Employee’s Lawsuit to Proceed

by Michelle Galbraith, J.D.; Employment Law Adviser, CalChamber

State and federal laws protect workers from discrimination on the basis of certain characteristics, such as sex, race, ethnicity, religion and disability. However, when the opposing interests of two protected classes intersect, employers can face a complicated issue. 

A recent lawsuit in Virginia highlights exactly that conflict. In the case, Zinski v. Liberty Univ., 6:24-cv-00041 (W.D. Va. Feb. 21, 2025), a religious university terminated an employee for being transgender — a clear case of sex discrimination. However, the employer claimed that its doctrine of faith states that humans are biologically male or female only, so the termination was protected under religious freedom, and the complaint should be dismissed.

In a lengthy ruling, the trial judge denied the motion to dismiss the case, allowing the plaintiff to proceed to trial. He noted the difficulty in balancing the competing interests of eradicating employment discrimination while also permitting religious institutions the ability to cultivate a workforce that conforms to their principles. But he noted that permitting religious liberty to override all forms of employment discrimination could result in a complete dismantling of protections for disadvantaged workers and allowed the plaintiff to proceed on her claims.

Although the opinion is not binding on California courts, employers should still be aware of the underlying issues and develop policies that will avoid favoring the interests of one protected class above another.