Sexual orientation isn't a protected class under current federal law. State and federal laws—including Title VII of the Civil Rights Act of 1964 (Title VII)—prohibit discrimination in employment decisions such as hiring and firing based on race, religion, color, sex, and national origin.
EEOC rulings
In 2012, the EEOC ruled that employment discrimination based on an individual's gender identity, change of sex, and/or transgender status is a form of sex discrimination that violates Title VII. In 2015, the EEOC ruled that claims of sexual orientation discrimination should be treated as complaints of sex discrimination under Title VII. Federal courts are not required to follow the EEOC's rulings.
Gender Stereotyping
While federal and some states' discrimination laws don't prohibit discrimination on the basis of sexual orientation, that doesn't mean that you shouldn't be concerned with those types of discrimination issues.
Some courts have held that "gender stereotyping" (e.g., requiring certain styles of dress for men and women) can be the basis for a gender-bias lawsuit. Creative lawyers often try to file sexual orientation discrimination claims under a gender discrimination theory. A number of those kinds of cases have arisen when an employee has gone through a sex change or attempted to live as a member of the opposite sex. In 2012, the EEOC ruled that employment discrimination based on an individual's gender identity, change of sex, and/or transgender status is a form of sex discrimination that violates Title VII.
Some employers prohibit sexual orientation discrimination as a matter of company policy even in states where it's not legally required. Some do so because they operate in states that prohibit it and want one set of policies for all workers.
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