Deluxe Financial Services, Inc. is a check printing company. Britney Austin used to work at their Phoenix call center. Then she informed her supervisors that she would be transitioning from male to female. Her managers and co-workers proceeded to shower her with harassment and offensive slurs. The company refused to let her use the women's restroom and refused to change her name and sex on employment records, saying she would have to complete gender confirmation surgery first.

Then Austin's attempts to utilize the company health plan for medically necessary health care were denied even though the company claimed it was a requirement before they would change the documents.

When the company laid off employees at that location, which has since closed, Austin argued, the company denied her severance pay and COBRA benefits.

Austin sued the company in federal court in Minnesota.

Represented by private attorneys, Austin was backed in federal court by the Equal Employment Opportunity Commission (EEOC), the federal agency charged with investigating complaints of employment discrimination. In their court filings, the EEOC and Austin argued Deluxe Financial Services, Inc. illegally discriminated against her in violation of Title VII of the Civil Rights Act of 1964.

Under the consent decree, Deluxe Financial Services, Inc. denies that it violated Title VII or that it treated Austin unlawfully, but has agreed to take several steps to improve the work climate for transgender employees, pay Ms. Austin $115,000 and issue her an apology.

We are extremely grateful to the EEOC for taking on this important case on behalf of our client and working side by side with us to achieve a settlement that marks yet another Title VII victory for transgender employees.

--Jillian Weiss, who represented Ms. Austin along with Ezra Young

In terms of the larger message, Weiss said, “Discrimination against transgender employees is illegal under federal law everywhere in the United States. This case adds to the growing number of EEOC victories with the same conclusion.”

Beyond a cash settlement, the Minnesota-based company provides other concessions in the agreement. Among them, Deluxe agreed to remove all transgender exclusions in its health care plan and let transgender employees to use restrooms “commensurate with their gender identity.”

The apology includes the following:

We want to ensure you that we have made changes to our internal policies, including how we treat transgender employees’ requests to change biographical information or use a restroom commensurate with their gender identity.

The company has changed its policies to ensure that transgender employees may use a restroom commensurate with their gender identity, that the company will promptly correct that employee’s sex designation and name in our internal records and systems, and that we will take hostile comments based on sex- stereotyping seriously, investigate them, and take prompt corrective and remedial action.

--Jilie Loosbrock, senior vice president for human resources

Here's a primer for how to treat transgender employees.:

#1: Draft employment policy sections specifically addressing transgender employees. Employees who are not transitioning may be unaware of what transitioning entails and what constitutes discrimination. For example, it may be considered harassment should an employee repeatedly refer to a transgender employee by the wrong pronoun.

#2: Be aware that the FMLA covers employees who take medical leave for transition-related needs for themselves or a family member. Never ask a transitioning employee for a medical record to prove the employee is, in fact, transitioning.

#3: Outline the benefits available for transitioning employees and their spouses. Even after transitioning, the status of an employee’s marriage and parental status does not change and the transitioning employee’s spouse and dependents are still covered by insurance.

#4: When hiring an individual, ask for previous names in a nonjudgmental way. Beware of unconscious biases such as placing a transitioning employee in a position with little to no client interaction.

#5: There are many ways to make employees feel more comfortable at work. These include holding diversity training sessions, having a consultant come in and answer questions about transitioning, and providing unisex, single restroom facilities if possible. Another way to ease the transition is to recognize a transitioning employee’s new name before the name is legally changed. Creating a culture of respect while listening and honoring an employee’s decision at work is instrumental to fostering a more inclusive workplace.