Transgender Discrimination in Hotels: a Wake-Up Call for Hoteliers

As a Hotel HR Director and Human Resources Consultant, I’ve had countless conversations with operational leaders about compliance with employment law.

Law or Opinion?

Let me be clear: It doesn’t matter if you agree with the law or like the law—the law is the law.

Even if it challenges your views or complicates operations or you think it is annoying or stupid…you still have to comply.

EEOC Lawsuit against Hotel Company

Here’s a story from the EEOC that illustrates this point.

Recently, the EEOC filed a lawsuit against Boxwood Hotels, LLC and its associated franchises. Not only did an operational manager break the law by discriminating against a transgender employee, but when it was brought forward, the hotel chain (and possibly the Human Resources department) failed to address it.

Whether it was a lack of training, awareness, or oversight, the result is a lawsuit that could have been avoided. And this isn’t just a one-off case—it’s a reminder that these issues are cropping up in the hospitality industry more frequently than you might think.

Let’s dig into what happened in this particular case, and more importantly, what it means for you as a hospitality leader.

The Case: A Transgender Housekeeper’s Harrowing Experience

The EEOC’s lawsuit involves a transgender housekeeper who endured derogatory and offensive comments from a supervisor on their very first day at work. Referred to as a “transformer” and misgendered repeatedly, the employee filed complaints to both local management and corporate offices.

However, instead of taking action to stop the harassment, management suggested that the job “might not be a good fit” and terminated the employee the next day. This is not only unethical but a clear violation of Title VII of the Civil Rights Act, which protects transgender employees from discrimination based on sex.

EEOC Guidance on Misgendering and Harassment

Did you know that  the EEOC updated its standards on workplace harassment, including misgendering, just a few months ago? In case you missed it, the EEOC’s latest guidance clarifies that intentional or repeated misgendering—such as refusing to use an employee’s correct pronouns—constitutes a hostile work environment under Title VII. This isn’t just a “preference” or a “minor issue”; it’s a legal requirement, and failure to comply could result in lawsuits and damaged reputations​

The EEOC’s guidance also stresses that discomfort from co-workers or customers over an individual’s gender identity is not a valid defense. For hoteliers, this means that the law prioritizes creating a respectful and inclusive workplace for transgender employees, regardless of customer reactions​. The notion that accommodating transgender employees or addressing misgendering complaints will upset the guest experience is not a valid defense. Hoteliers must understand that non-compliance with EEOC guidance can lead to lawsuits, damage to reputation, and a toxic work culture.

Creating a Supportive and Compliant Workplace

To prevent issues like those seen in the Boxwood Hotels case, General Managers and Human Resource leaders should implement the following measures:

Update Anti-Discrimination Policies

Ensure your hotel’s policies explicitly protect against discrimination based on gender identity. Regularly review and update these policies to reflect the EEOC’s most recent guidance on harassment and misgendering.

Train Your Staff

Provide training that includes proper pronoun use and respectful behavior towards all employees, especially transgender individuals. Ensure that supervisors understand their role in fostering an inclusive environment.

Investigate Complaints Seriously

Take swift action to investigate and address any complaints of harassment or discrimination. The failure to act, as seen in the Boxwood case, can lead to severe legal consequences.

Create an Inclusive Culture

Develop an environment where all employees feel respected and valued. This will not only improve employee morale but will also contribute to a positive guest experience.

Zero Tolerance for Retaliation

Make it clear that retaliation against employees who report discrimination will not be tolerated. Retaliatory actions, like termination after a complaint, are clear violations of Title VII.

And most importantly….train your management staff!

Misgendering, derogatory comments, and retaliation not only violate the law but damage workplace culture. By understanding and complying with the EEOC’s updated guidelines, hoteliers can avoid litigation and build a more inclusive and welcoming environment for all employees, creating a workplace that benefits both staff and guests.

About the author

Chuck is an Expert HR Consultant & Trainer specializing in transformative HR strategies, interim leadership for hospitality, and comprehensive HR audits and policy development. His HR expertise covers the full HR lifecycle including specializing in HR audits for compliance, developing policies and systems for diverse business needs such as Policy Manuals and Employee Handbooks tailored for all states. He is adept in handling sensitive areas like sexual harassment, through training and investigations. As a SHRM Approved Recertification Trainer, Chuck designs and delivers training in HR and Employment Law, Supervisory Skills, and Management Leadership, using platforms like Zoom and Teams for both in-person and virtual sessions. Chuck’s approach is pragmatic, focused on practical solutions and fostering a culture of HR compliance and excellence. He is an active member of Cayuga Hospitality Consultants.