The owners of a Portland-area bakery that denied service to a same-sex couple must pay $135,000 in damages, the bureau of labor and industries has ruled.

The damages are for emotional suffering caused by Sweet Cakes by Melissa, which two years ago refused to bake a wedding cake for Laurel and Rachel Bowman-Cryer.

A 2007 Oregon law protects the rights of LGBT people in employment, housing and public accommodations. It provides an exemption for religious organisations, but the agency ruled that exemption does not allow private businesses to discriminate against potential customers.

“This case is not about a wedding cake or a marriage. It is about a business’s refusal to serve someone because of their sexual orientation. Under Oregon law, that is illegal,” Oregon labor commissioner Brad Avakian said in the final order.

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