This study examined the relationship between ambient workplace heterosexism, emotional reactions (i.e., fear and anger), and outcomes for sexual minority and heterosexual employees. Five hundred thirty-six restaurant employees (68% female, 77% White) completed an online survey assessing the variables of interest. Results showed that greater experiences of ambient workplace heterosexism were associated with heightened fear and anger and, in turn, with heightened psychological distress (for fear) and greater physical health complaints, turnover intentions, and lowered job satisfaction (for anger). Fear also mediated the relationship between ambient workplace heterosexism and psychological distress. In addition, sexual orientation moderated the relationship between ambient workplace heterosexism and fear such that sexual minority employees reported more fear than heterosexuals with greater ambient heterosexism. These effects occurred after controlling for personal experiences of interpersonal discrimination. Our findings suggest that ambient workplace heterosexism can be harmful to all employees, not only sexual minorities or targeted individuals.