A few thoughts...
- Wouldn't the fact that this employee was telecommuting make the claims of damages due to a "hostile work environment" much more difficult to prove?
- Hostile work environment is harder to prove if you're fired, in general... It's easier if you quit, generally, or have begun going to the EEOC while still employed.
- Unless there's smoking guns (e.g. e-mails, witnesses, etc...) or a paper trail of reported complaints, these cases are extremely hard to win.
- Is there any sense of the context under which this employee was called it? I didn't read the court documents, but I have witnessed people using that terminology without ill will, because it's socially awkward for some to address transitions.
- Is there more to the claim than being called "it"? I am not saying that that's proper behavior, of course, but it seems very thin ground to get a jury to award such a large settlement. I don't know that most people would agree that this behavior was so outrageous that it alone could justify the claim. That says a lot about the political situation of transgendered people in the USA, but it's the way it is at the moment, I'm afraid.
- The question of unpaid labor seems to be beside the point to me. Even if it's unethical, the company would seem to have every right to fire someone for critiquing their business practices. Again, not great for corporate culture, but definitely not illegal. I think that this is just an attempt to smear Valve with bad PR to force a settlement?
Not trying to upset anyone... just trying to understand.