The female-only nude spa was found to have discriminated against a male with fully intact genitals, who identifies as trans, after it prohibited him from bathing naked with women, including girls as young as 13.
The lawsuit was filed by the Washington State Human Rights Commission in 2022.
The three-judge panel ruled 2-1, with Trump appointed Judge Kenneth Lee issuing a strong dissent.
In his dissent, Judge Lee slammed the state of Washington for weaponizing it's anti-discrimination law for political purposes.
"Washington has perversely distorted a law that was enacted to safeguard women’s rights to strip women of protections," said Lee.
"Now, under edict from the state, women—and even girls as young as 13 years old—must be nude alongside patrons with exposed male genitalia as they receive treatment," he continued. "And female spa employees must provide full-body massages to naked preoperative transgender women with intact male sexual organs."
"The women and girls of Washington state deserve better," said Lee.
Judge Margaret McKeown, appointed by Bill Clinton, compared the discrimination to white people banning black people from establishments during the civil rights era.
"It's not biological women are welcome, it's non-biological women are not welcome," she said.
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