"It sets up a whole industry for people who want to sue," Paul continued, arguing that it would give those who "happen to be gay" and get fired a "reason" to sue their former employer.

"People don't put up a sign and say, 'I'm firing you because you're gay.' It's something that's very much disputed," he said.

The senator added that plenty of companies will hire gay people and that many employers have established rules prohibiting discrimination against LGBT individuals.

"I don't know that we need to keep adding to different classifications to say the government needs to be involved in the hiring and firing. I think society is rapidly changing and that if you are gay, there are plenty of places that will hire you," he said.