Best and worst states for LGBTQ folks? Divide worsens after 'Don't Say Gay,' report says

Amid a wave of anti-LGBTQ legislation, the gap between states that are welcoming to the LGBTQ community and those that are not is widening. The lack of progress may lead to a brain drain as workers choose areas that are more tolerant, according to a new business climate ranking given exclusively to USA TODAY.  

New York had the most equitable climate for the LGBTQ community while South Carolina ranked the lowest, according to the fourth annual State LGBTQ+ Business Climate Index from the global LGBTQ business advisory Out Leadership.

But while New York held the top spot for the second consecutive year and South Carolina scored the worst for the third year in a row, the shifting scores of many states in between highlight the nation's widening divisions around issues ranging from LGBTQ inclusion to reproductive rights, says Todd Sears, Out Leadership's founder and CEO.

"The states that are getting worse for LGBT people are also getting worse for women and for people of color,'' Sears says. "Texas, Alabama, Mississippi, South Dakota, Tennessee, all of those are states where reproductive rights are being threatened, Black folks are being disenfranchised. … The most LGBTQ-friendly states are the best states for Americans for safety, for health, for employment, for innovation.''

Florida, Montana among worst for LGBTQ community 

The index ranked states according to five areas: work environment, legal protections, youth and family support, health access and safety, and political and religious attitudes.

States at the top tended to get more inclusive over the past year, while their lower-ranked peers became less tolerant or didn't move from where they were in 2021.

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Alaska, which put in more legal protections and bolstered support for young people and families, saw its score rise 8.1 points, the largest increase of any state.

Michigan made the next-highest jump, rising 7.5 points after implementing workplace and health insurance protections for those who are LGBTQ and prohibiting the use of government money for conversion therapy of minors. The so-called therapy attempts to change a person's sexual orientation or gender identity.

Meanwhile, Florida – which has enacted what opponents call a "Don't Say Gay'' bill that would restrict discussion of LGBTQ people in the classroom – dropped 3.4 points. And Montana dropped from No. 30 to No. 41–the biggest drop in ranking – because of several anti LGBTQ bills, including a teaching ban similar to Florida's and a law prohibiting trans athletes from participating on teams that match their gender identity.

Anti-gay policies can cost states money

There is an economic price for states that are seen as intolerant, the index says.

Implementing anti-discrimination measures could lead to a 3% increase in GDP, according to the index, which cited a report from the Williams Institute, a UCLA think tank that researches law and public policy focused on sexual orientation and gender identity.

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Meanwhile, research by Out Leadership in 2020 and 2021 found that 24% of LGBTQ employees have relocated to a more welcoming city, and 36% of LGBTQ workers say they would think about moving to a state that was more accepting.

An evaluation of average annual wage data in 2018 revealed that replacing an employee in a state that has a less inclusive environment would cost 20% of that workers salary, while replacing an executive would cost a business 213% of that corporate leader's pay.

In addition, college students are more inclined to move to states they see as friendly to members of the LGBTQ community, Sears says.

"There's literally a talent drain," he says. "This is not just about workers currently in the workforce. ... These states are literally sacrificing their future simply because they want to be anti-LGBTQ."