The city says it guarantees "the opportunity for each person to obtain employment without regard to race, color, religion, sex, sexual orientation, gender identity, national origin, age or disability."

The Houston-based US Pastor Council and the Texas Values organization is suing the city in federal court over the code. Both groups argue that the ordinance forces churches to go against their biblical beliefs and does not include a religious exemption for churches in Austin that refuse to hire homosexual or transgender people as employees, including pastors.

Austin city officials are not backing down. They defend the ordinance which basically says churches have no right to insist their employees accept and practice a church's teachings on ...