Out Leadership ranks Massachusetts No. 1, Arkansas last in LGBTQ+ business climate

By AI, Created 6:01 PM UTC, June 01, 2026, /AGP/ – Out Leadership’s 2026 State LGBTQ+ Business Climate Index says the gap between the best and worst states for LGBTQ+ inclusion is at a record 65 points, with the national average falling for a fourth straight year. The rankings matter for employers deciding where to invest and hire as states tighten protections, restrict care and widen compliance risks.

Why it matters: - The index tracks how welcoming each state is for LGBTQ+ people to live, work and do business. - Out Leadership says the rankings help corporate leaders assess where to invest, hire and manage risk. - The report says states without nondiscrimination protections leave businesses exposed and can discourage workers, especially younger talent. - Out Leadership cites an estimated $324 billion in annual GDP lost by states without statewide nondiscrimination protections. - Seventy-six percent of Gen Z workers say they will not take jobs in anti-equality states, according to the report.

What happened: - Out Leadership released the 2026 State LGBTQ+ Business Climate Index on June 1, 2026. - The index covers all 50 states and is now in its eighth year. - Massachusetts ranked No. 1 for the second consecutive year with a score of 93.23. - New York ranked second at 92.92, followed by Connecticut, New Jersey and Illinois. - Arkansas finished last for the fourth straight year with a score of 28.06. - Florida fell six places to No. 46. - Texas fell three places to No. 39.

The details: - The index scores states across five categories: legal protections, youth and family support, political and religious attitudes, health access and work environment. - Out Leadership expanded the framework to 32 indicators this year, adding 12 new measures. - New measures include bathroom bans, drag restrictions, anti-DEI mandates, library censorship and adult gender-affirming care restrictions. - A new attorney general score flags four attorneys general for targeting corporations over inclusive practices. - The report says the Supreme Court’s ruling in Chiles v. Salazar cast doubt on state conversion therapy bans nationwide. - The national average fell to 60.87 out of 100, the fourth consecutive annual decline. - The gap between the most and least inclusive states widened to 65 points, the largest spread in the index’s history. - The bottom five states are Arkansas, Tennessee, Idaho, South Carolina and Florida. - Those five states have no statewide nondiscrimination protections. - The report says transgender residents in those states face barriers to healthcare and identity documents. - The report says LGBTQ+ books have been pulled from school shelves in those states. - The report says workers can be fired for who they are with no legal recourse. - Massachusetts, New York, Connecticut, New Jersey and Illinois are described as states with comprehensive nondiscrimination protections, shield laws and governors who blocked hostile legislation.

Between the lines: - Out Leadership says the middle of the country is breaking apart, with the strongest and weakest states pulling farther away from each other. - The report’s new corporate-policy measure classifies Texas, Florida and Ohio as “High Tension” states because state policy conflicts with employers’ internal standards. - Texas has 54 Fortune 500 headquarters, Florida has 22 and Ohio has 27, according to the report. - Out Leadership says more than 100 companies now have internal policies that conflict with state laws where they operate. - The organization says the growing mismatch creates a compliance trap for employers without producing economic return. - Out Leadership also withheld member company logos this year to reduce retaliation risk. - The move signals that visibility for corporate allies is becoming more politically sensitive.

What’s next: - Out Leadership is urging states to improve conditions rather than treating the index as a public shaming exercise. - The report suggests future state policy fights will keep reshaping corporate risk, hiring and expansion decisions. - Out Leadership says the next generation of workers is watching how employers respond.

The bottom line: - The 2026 index shows LGBTQ+ inclusion is becoming a sharper economic and political dividing line across the U.S., with major implications for employers, workers and state competitiveness.