A business license does not magically mean the employer can have the employee arrested for saying something like “he” instead of “she”. At most it means they can fire them.
In all actuality, holding a license probably makes you MORE liable not to violate civil rights.
No, but a business license DOES bind the employer or person entering into it to consenting to the body of municiple code which may have other provisions the licensee never even considers as pertinent when getting it. You’re right that it’s a stretch to threaten jail to the employee, but then again they may be bound by their own individual professional licensing code too.