Pay Inequity in the Modern Workplace: Discrimination Against LGBTQ+

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Pay Inequity in the Modern Workplace: Discrimination Against LGBTQ+ Workers and Their Pockets

Diversity, Equity, Inclusion, and Belonging covers a broad range of issues mainly impacting marginalized groups of people. One community that is often overlooked when it pertains to DEIB initiatives in the workplace is the LGBTQ+ community. Recently, a Supreme Court ruling effectively opened the door for further discrimination against LGBTQ+ people in the workplace as a Christian web designer is now allowed to refuse to work with gay couples. Defending the ruling for the court's six conservative justices, Justice Neil Gorsuch wrote that the first amendment, “envisions the United States as a rich and complex place where all persons are free to think and speak as they wish, not as the government demands.” In a modern climate where LGBTQ+ people are legally discriminated against, it is important to question how this systemic mistreatment impacts pay equity and workplace experiences. There are steps employers can take to build safer and more equitable workplace environments for their LGBTQ+ employees.

Considerable Wage Gap Revealed

The Human Rights Campaign released a large report on the wage gap among LGBTQ+ workers in the country based on 2021 data from the LGBTQ Community Survey and the Bureau of Labor Statistics.

In general, LGBTQ+ workers earn about:

90 cents for every dollar a cis-hetero worker earns

However, when the demographics within the LGBTQ+ population are broken down we can observe larger differences like:

Asian/Pacific Islander workers earning $1.00
White workers earning 97 cents
Latinx workers earning 90 cents
Black workers earning 80 cents
Indigenous workers earning 70 cents

Wage disparities among racial demographics within the LGBTQ+ population reflect the country’s wider racial pay gap problem. They highlight how race factors into the equation, in combination with queer identity.

The pay gap by gender and gender identity are also important factors in uncovering pay inequity in the workplace. Revealing that:

Men earn 96 cents
Women earn 87 cents
Non-binary, gender-fluid, genderqueer, and two-spirit workers earn 70 cents
Trans men earn 70 cents
Trans women earn 60 cents

The wider pay gap data for trans people reflects their experiences in society and how a long history of neglect for trans human rights has greatly impacted their compensation and, by extension, standard of living. The Human Rights Campaign report highlights \that a majority of LGBTQ+ workers have experienced some form of discrimination in the workplace, combined with 37% of Black workers and more than half of transgender workers stating that this discrimination has had an overwhelming impact on their financial well-being. The Human Rights Campaign report brings to light the lack of pay equity in the workplace when it comes to LGBTQ+ workers.

Call to Action for Employers

The discrimination faced by LGBTQ+ workers is an issue that our society needs to address. Over a third of Black workers and most trans workers admit the discrimination they face at work negatively impacts their ability to build financial wealth. Employers and companies cannot truly be invested in combating pay inequity in the workplace until they are actively spotlighting the unique social, political, and economic challenges that LGBTQ+ workers face today. This calls attention to a fundamental need for Diversity, Equity, Inclusion, and Belonging initiatives that effectively create a safe workplace environment for all workers. So, how can employers fight back against discrimination targeting sexual orientation and gender identity?

5 Initiatives Employers Can Implement within their DEIB Strategy:

Create inclusive training sessions working to educate all employees on the nuances of sexual orientation and gender identity
Support the formation of LGBTQ+ employee resource groups so that LGBTQ+ employees may be properly heard and represented
Enact non-discrimination policies including sexual orientation and gender identity across all departments
Enact pay transparency policies to create a pathway to easily identify pay inequalities
Complete an annual assessment of pay data focusing on sexual orientation, gender, and gender identity

Discrimination against workers who fall under the LGBTQ+ umbrella is an inherent result of the othering performed against them by society. Discriminatory sentiments against LGBTQ+ people have strongly prevailed in modern society and will continue to spread to all areas of our communities unless we act. Employers must act to protect their LGBTQ+ workers from discrimination and in turn, create an equitable and inclusive workforce culture. Neglecting to take action ensures continued complacency with systemic and historical discriminatory practices against LGBTQ+ people everywhere, especially in the workplace.