California’s Anti-Discrimination Laws in Public-Facing Businesses

Essential Guidance for HR

The California Supreme Court has declined to review a case involving a Bakersfield bakery that refused to provide a wedding cake for a same-sex couple. This leaves in place a lower court ruling affirming that businesses open to the public must comply with California’s anti-discrimination laws, including the Unruh Civil Rights Act, which prohibits discrimination based on sexual orientation.

The Short

Companies that serve the public must ensure their policies and practices do not deny goods or services based on protected characteristics. Non-compliance can lead to legal action, financial penalties, and reputational harm.

What the ruling means

Businesses that provide goods or services to the public cannot refuse service based on protected characteristics, including sexual orientation and gender identity. The decision signals continued judicial support for California’s anti-discrimination framework, which applies broadly to public accommodations.

Action Items

• Policy review: Ensure anti-discrimination policies are current and clearly prohibit bias in both employment and customer interactions.
• Training: Provide regular training for employees on compliance with civil rights laws and inclusive practices.
• Risk management: Violations can result in lawsuits, enforcement actions, and reputational damage, even if the issue arises in customer-facing contexts rather than employment.

This case serves as a reminder that compliance with civil rights laws is not optional. Businesses should take proactive steps to align policies and practices with California’s legal requirements.