North Carolina Gov. Pat McCrory stood his ground on Wednesday and told CNBC's "Closing Bell" that the private sector should be able to set its own bathroom policies.
McCrory referred to a bill that requires transgender individuals to use the public restroom corresponding to the gender on their birth certificate. The Justice Department says the measure violates civil rights laws and is seeking a court order to block it.
McCrory made his comments after Brian Cornell, chairman and CEO of Target, highlighted his company's inclusive bathroom policy on "Squawk Box." The retailer previously said that customers and employees may use the restroom that "corresponds to their gender identity," winning applause from those fighting for transgender rights. Cornell added that family bathrooms already exist in many Target stores.
"Government ought to stay out of the bathroom policies of the private sector, but the Justice Department, right now, based upon the ruling on Wednesday would rule that what Target is doing is discriminatory because they — a gender expression person should be able to choose whichever group restaurant or dressing room they want. Offering an alternative to that is now deemed to be discriminatory by the U.S. Justice Department of the Obama administration," McCrory said.