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The Equal Employment Opportunity Commission (EEOC) recently adopted the position that employment discrimination against transgender individuals is a form of sex discrimination under Title VII of the Civil Rights Act of 1964. The decision, though not binding on courts, will likely have a significant impact on employers in all sectors as courts typically defer to the EEOC’s interpretation of Title VII. In essence, the decision indicates that the EEOC considers “transgender” to now constitute a protected class under Title VII.