In a recent landmark decision, the U.S. Equal Employment Opportunity Commission found that discrimination against transgender employees is a form of sex discrimination that violates Title VII of the Civil Rights Act of 1964. Although courts are not bound by the decision, it essentially creates a new "protected class" as far as the EEOC is concerned and thus can be expected to have a significant impact on private, as well as public, employers.

The Case

In Macy v. Holder, a police detective who was born a male and still presented as a male at the time, applied for a position as a ballistics technician at the Bureau of Alcohol, Tobacco, Firearms, and Explosives. Macy was assured that the position would be his assuming no problems arose during the background check. However, during the hiring process, Macy disclosed that he was in the process of transitioning from male to female. Shortly thereafter, Macy was informed that the position was no longer available due to federal budget reductions. Macy later learned that another applicant was hired for the position....