Transgender employees may suffer from discrimination due to transphobia. This article evaluates a pedagogical intervention designed to reduce the transphobia of North American undergraduate business students. Participants were enrolled in an organizational behavior course. They resolved a simulated dispute between coworkers over accommodating the bathroom choices of a transgender employee. Answers were classified as demonstrating inclusion, compliance, or hostility with the inclusive response being the establishment of gender-neutral restrooms and the hostile response being refusal to accept the transgender employee's bathroom choice. In the first year, 194 students completed the exercise with no advance preparation, while in the second year, 221 students performed the same task after reading a brief article about transgender employees. Results suggest that the intervention was effective as the inclusive response was most popular in the second year even though it had been least popular in the first year. Complete success was not attained, as one sixth of the students in the second year chose hostile responses. Implications for research, teaching, and practice are discussed.