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McDonald’s Franchise to Pay $930K for Transgender Discrimination

A D.C. jury awarded $930,000 to Diana Portillo, a trans woman, in a discrimination case against a McDonald’s franchise. Portillo, who faced years of harassment for her gender identity, was fired after reporting the abuse. The case sets a landmark precedent for transgender rights under the D.C. Human Rights Act and highlights corporate hypocrisy in McDonald’s franchise practices versus its public pro-LGBTQ+ stance.

WASHINGTON, D.C. — A jury from the D.C. Superior Court has awarded $930,000 in damages to Diana Portillo, a transgender woman, following a lawsuit against her former employer, International Golden Foods, LLC, which operates a McDonald’s franchise in Washington, D.C. The jury found that Portillo was subjected to workplace harassment and retaliation due to her gender identity. The verdict was reached after an 11-year legal battle, marking a significant victory for transgender rights under the D.C. Human Rights Act.

Portillo’s ordeal began when she started working for McDonald’s in 2011, unaware of the discrimination she would face. Despite being promoted for good performance, her situation took a drastic turn after she began transitioning in 2013. According to court documents, her coworkers and managers repeatedly deadnamed her and referred to her with male pronouns, despite her requests for respect. By 2016, the harassment escalated to the point where a supervisor berated her for using the women’s restroom, publicly questioning her gender and insisting she was a man. When Portillo filed a formal discrimination complaint with the D.C. Office of Human Rights, she was terminated eight days later, supposedly due to her undocumented status.

Evidence presented at the trial, however, exposed the franchise’s hypocrisy. It was revealed that the McDonald’s franchise had employed other undocumented workers without using their immigration status as grounds for termination. “They never fired anyone for that reason at any of their stores except for Diana,” said Jonathan Puth, one of Portillo’s attorneys. “They were motivated to retaliate against her because she kept complaining about discrimination.”

This case is particularly notable because it is believed to be the first jury verdict in a transgender employment discrimination case under the D.C. Human Rights Act. The Act prohibits discrimination based on gender identity and protects employees from retaliation for filing complaints of discrimination. The verdict sends a powerful message about the legal consequences of violating these protections.

A Long Battle for Justice

Portillo’s fight for justice was long and difficult. After she was fired in 2016, her journey to the courtroom was fraught with legal challenges. She filed the lawsuit in 2021, alleging that she had endured “a barrage of taunts, laughter, ridicule, and harassment” because of her gender identity. The jury ultimately sided with Portillo, awarding her $230,000 for emotional distress and $700,000 in punitive damages.

The retaliation Portillo experienced is a stark contrast to McDonald’s public messaging about inclusivity and its commitment to LGBTQ+ employees. On its website, McDonald’s boasts about its support for the LGBTQ+ community and its dedication to creating inclusive work environments. The company has consistently received high rankings on the Human Rights Campaign’s Corporate Equality Index, which rates businesses on their support for LGBTQ+ equality. However, this case has exposed a glaring contradiction between McDonald’s public stance and the actions of one of its franchise owners.

McDonald’s website highlights numerous initiatives aimed at fostering inclusion. For example, the company states that it provides comprehensive healthcare support for transgender employees, including coverage for gender reassignment surgery, and touts its non-discrimination policies that apply to all employees, worldwide. Yet, the treatment of Portillo by her managers stands in sharp contrast to these claims. Despite its public commitment to inclusivity, the actions taken against Portillo suggest a much different reality for some employees, especially within its franchise-operated locations.

Portillo’s story reflects the broader struggle many transgender individuals face in the workplace. A 2021 survey from the National LGBTQ Task Force found that transgender people are significantly more likely to face harassment, discrimination, and wrongful termination compared to their cisgender counterparts. The D.C. Human Rights Act is one of the most comprehensive non-discrimination laws in the country, and Portillo’s case is a reminder that even with legal protections in place, transgender workers continue to face significant barriers to equality in the workplace.

Contradictions in Corporate Messaging

McDonald’s website paints a glowing picture of its support for the LGBTQ+ community. In its “Pride” section, the company lists several initiatives designed to uplift and support its LGBTQ+ employees. From sponsoring Pride events to offering comprehensive healthcare plans for transgender workers, the company claims to be at the forefront of workplace equality. These efforts are often lauded, with McDonald’s earning the “Best Places to Work for LGBTQ+ Equality” title from the Human Rights Campaign for seven consecutive years.

However, the discrepancy between McDonald’s corporate rhetoric and the actions of its franchise owners highlights a serious problem within the company’s structure. While corporate McDonald’s may strive for inclusion, the reality for employees at franchise-owned locations can differ dramatically. International Golden Foods, LLC, the franchise owner in question, was found to have fostered an environment of hostility and discrimination, ignoring Portillo’s repeated complaints of mistreatment.

This disconnect between corporate McDonald’s and its franchise operations is not unique to Portillo’s case. It raises questions about the extent to which the company is willing, or able, to enforce its values across its franchise network. While McDonald’s as a corporation may be committed to LGBTQ+ inclusion, it seems that its franchisees are not always held to the same standards of accountability.

Legal Precedent and Hope for the Future

Portillo’s victory is a landmark moment not only for her but also for other transgender individuals who have faced discrimination in the workplace. It demonstrates that the legal system can and does provide recourse for those who experience discrimination. Puth, her attorney, praised Portillo’s perseverance: “Diana is our hero. She stood up for her rights in the face of terrible harassment and kept fighting even after she was fired for doing so.”

Her story is a testament to the power of resilience. “When you are sure of what you have experienced, no matter how much time passes, the truth will come to light,” Portillo said after the verdict. “Our truth is our best weapon to achieve justice. It is truth, justice, and faith in God that have helped me get here.”

Portillo’s case also serves as a warning to other employers. The significant damages awarded to her underscore the high cost of ignoring workplace discrimination and retaliation. “This verdict puts other employers on notice that tolerating harassment of transgender employees is both unlawful and costly,” Puth said. The ruling also establishes an important precedent for future transgender employment discrimination cases under the D.C. Human Rights Act.

As McDonald’s continues to promote itself as a champion of LGBTQ+ rights, Portillo’s case stands as a reminder that corporate values must be reflected in every aspect of the business, including franchise locations. The inconsistency between McDonald’s corporate policies and the behavior of its franchises cannot be ignored, especially when the stakes involve human dignity and the protection of fundamental rights.

For transgender employees and their allies, Portillo’s victory is a beacon of hope. It shows that despite the obstacles, justice can prevail. As the fight for equality continues, Portillo’s case will serve as a powerful example of the strength it takes to stand up against discrimination—and the change that can be achieved as a result.

The Bottom Line

Diana Portillo’s $930,000 jury award not only compensates her for the emotional and psychological harm she endured but also serves as a crucial victory for transgender rights in the workplace. The case exposes the stark hypocrisy between the inclusive values McDonald’s publicly claims and the discrimination tolerated within its franchise network. While the company celebrates its commitment to the LGBTQ+ community, Portillo’s story reveals that there is still much work to be done. For now, Portillo’s resilience offers hope to those still fighting for justice and equality in their own workplaces.

Transvitae Staff
Transvitae Staffhttps://transvitae.com
Staff Members of Transvitae here to assist you on your journey, wherever it leads you.
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