Will California taxpayers pay your employees if they say they are transgender?

Philip Greenspun's Weblog 2017-04-07

“Going From Marginalized to Welcomed in the Workplace” (nytimes):

… TransCanWork, a nonprofit that has teamed up with the California Restaurant Association, among other groups. The program trains employers to become transgender-friendly in their hiring practices and their overall operations. It also connects transgender people with employers; a state grant pays for the first 60 hours of each new employee’s wages.

If you’re an employer, why not ask every new-hire to identify as “transgender” (Wikipedia says that this is “an umbrella term” that covers potentially almost anyone)? At that point state taxpayers are funding most of your costs of bringing a new person on board.

What’s the flaw in this strategy for cutting costs and increasing profit?