Yesterday, the Seventh Circuit became the first federal appeals court to extend protections of Title VII to discrimination on the basis of sexual orientation. The decision gives an Indiana professor, as well as other gay, lesbian, and bisexual individuals, the right to sue under Title VII over discriminatory employment practices based on their sexual orientation. According to the Court, “… it is actually impossible to discriminate on the basis of sexual orientation without discriminating on the basis of sex …”

This landmark decision is critical support for the EEOC’s interpretation that Title VII prohibits discrimination on the basis of sexual orientation and gender identity.  It also increases the likelihood that the Supreme Court will decide whether Title VII does, in fact, prohibit discrimination on these grounds.  Until the Supreme Court rules, however, employers in Illinois, Wisconsin and Indiana should consider the risk of sexual orientation or gender identity discrimination claims under Title VII (in addition to claims under applicable state and local laws prohibiting such discrimination) when making employment decisions.  We will keep you posted on further developments relating to this issue.