When the U.S. Supreme Court ruled in the June landmark 6-3 decision that Title VII of the 1964 Civil Rights Act protects gay, lesbian, bisexual and transgender employees from discrimination based on sex, it clarified the definition of sex and settled what has been a murky area for employers, employees and even the courts in discrimination lawsuits. Discrimination based on sex, including sexual orientation and gender identity, is illegal, and employers must abide by this rule.