For gay and transgender people, these are the most (and least) welcoming states

For the past six years, the gay advocacy group Out Leadership has been publishing an annual index that evaluates the business climate for LGBTQ+ individuals across the United States. This index highlights the best and worst states for LGBTQ+ people in terms of living and working conditions with minimal discrimination. Last year, as anti-LGBTQ+ legislation surged in statehouses nationwide, the average score for all 50 states dropped for the first time.

Todd Sears, the founder and CEO of Out Leadership, anticipated the drop in the average score again in 2024 as Republicans escalated their attacks on gay and transgender rights in the run-up to the presidential election. “It was just confirmation of what we have already seen unfortunately,” Sears told USA TODAY.

New York, Connecticut, and Massachusetts maintained their top positions in the Out Leadership index for 2024, while Arkansas received the lowest score since the index was first created. The overall average score across all states was 62.77 out of 100, down from 63.48 in 2023 and 64.61 in 2022.

According to Sears, the biggest drops in state business rankings were due to increasing anti-LGBTQ+ sentiment and restrictive state laws, including “Don’t Say Gay” bills in Florida, Indiana, Kansas, and North Carolina. North Carolina saw the sharpest decline, driven by numerous anti-LGBTQ+ bills, particularly those affecting the health and safety of transgender youth.

Sears is concerned about the deepening polarization as GOP strategists and legislators push for conservative social policies in state legislatures. “This is not the America where we have fought for and bragged about equality,” he said. “This is a very right-wing approach to telling a significant portion of our country that they don’t have rights.”

LGBTQ+ individuals living in states with such legislation face severe consequences, including increased intimidation, harassment, violence, and high suicide rates. “This massive, massive spike in anti-LGBTQ+ legislation,” Sears said, “makes me fearful for our community.”

Sears calls on the business community to stand by the LGBTQ+ community. He pointed out that despite the increased fear and vilification of diversity over the past two years, corporations still wield significant economic power in these states. “Their power hasn’t changed. It’s just the noise that’s been created by these right-wing, anti-inclusive politicians.”

New York topped the rankings for LGBTQ+ equality for the fourth consecutive year, scoring 93.67 out of 100 points. Arkansas ranked the lowest for the second consecutive year, with a score of 27 points, the lowest ever recorded.

Released during Pride Month, Out Leadership’s State LGBTQ+ Business Climate Index measures the impact of state government policies and prevailing attitudes on the LGBTQ+ community. The index considers factors such as support for young people and families, health access and safety, political and religious attitudes, work environment, and nondiscrimination protections.

Initially, the index was designed for business leaders who play a crucial role in advancing LGBTQ+ equality by using their economic influence to promote gay rights initiatives and withdrawing investments from states that discriminate against LGBTQ+ employees. However, state governors and local governments soon reached out, seeking advice on how to improve their scores. Employees also began using the scores to determine where to live and work.

“Our aim is to see improvement in every state,” Sears said. “The objective isn’t to name and shame but to highlight the economic consequences of these laws, whether they are positive or negative.”

In 2024, Michigan, Georgia, and Oregon made the most significant gains, adopting pro-LGBTQ+ legislation and having elected officials who advocated for LGBTQ+ rights. For example, Michigan implemented a statewide ban on conversion therapy, which attempts to change an individual’s sexual orientation or gender identity.

“Bigotry is bad for business,” Michigan Governor Gretchen Whitmer said in a promotional video for Out Leadership. “We all know that companies want to invest in places where their employees are safe. And we know that people want to live in places where they have basic rights and control over their own bodies.”

A recent survey by job search company Indeed and Harris Poll supports this. It found that a third of LGBTQ+ employees avoid working for companies in states lacking strong LGBTQ+ rights protections. Nearly one in three have declined to apply for positions due to insufficient support for the LGBTQ+ community. These percentages were even higher for specific groups: 35-44-year-olds (39%), transgender individuals (50%), Hispanics (46%), and those with household incomes of $100,000 or more (44%).