Pennsylvania LGBT employee rights in flux as courts weigh in on bias.

• Position: In the Spotlight

An estimated 9 million adults in the United States are lesbian, gay, bisexual or transgender. As a practical matter, if you employ more than a few workers, you probably have at least one who doesn't identify as heterosexual.

How LGBT employees are treated by employers and co-workers may make the difference between having a productive, civil work environment or one full of strife. Plus, there's the risk of litigation--a significant risk because the EEOC and gay-rights groups are actively challenging employers that discriminate.

A significant number of test cases are working their way through federal courts, testing whether Title VII's prohibition against sex discrimination encompasses discrimination on the basis of sexual orientation and gender identity.

The EEOC takes the position that Title VII does prohibit discrimination on the basis of sexual orientation and gender identity. In the 3rd Circuit, which governs Pennsylvania employers, several federal courts agree with the EEOC's position.

However, the U.S. Department of Justice has taken the...