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But because of C16, this type of thing could potentially happen nationwide rather than just BC?
American here trying to better understand the law
No. Bill C-16 amended the federal Human Rights Act. That only governs federal government employees and federally regulated industries (aeronautics, railroads, shipping). It doesn’t act to fill in the gaps in provinces where the provincial legislation doesn’t match it, or change the law of the land for the whole country.
The federal Act couldn’t force a spa in say Saskatchewan from refusing to wax a trans person’s nutsack.