The DMV is now investigating the incident.
Yust applied for a license in her female name at a San Francisco office. Four days later, she said she received a letter from the clerk who processed her application.
It was addressed to her male name, David, and referred to her gender change as, "a very evil decision."
The note said she would be condemned to hell.
She filed a claim this week against the state for damages.
Her attorney, Christopher Dolan, tells the San Francisco Chronicle the employee's suspension is not enough.
The Associated Press contributed to this report.
