The Supreme Court ruled Monday that the Civil Rights Act of 1964 does not require courts to consider whether an employer has a policy that prohibits discrimination on the basis of race, gender, sexual orientation, or religion.
The decision means that states can still try to find such policies that are legally acceptable under federal law, but they have until June 28 to do so.
The Court’s opinion came in a lawsuit filed by a transgender woman who says she was fired for being a woman and for being pregnant.
The court ruled that a policy denying her employment based on her sex is not a discriminatory act that is prohibited by Title VII of the Civil Act.
The ruling does not apply to people who have been fired for sexual orientation or gender identity, however, and does not affect the employment of people who had been fired because of those issues.
The Justice Department has appealed the decision.
The Supreme House of Representatives unanimously passed the bill in February, with support from both parties.
President Trump signed it into law last month, which gave the attorney general authority to investigate discrimination based on sex.
Since then, a number of other states have tried to pass similar legislation.
The Civil Rights Bill of Rights of 1964 prohibits employers from discriminating against employees on the grounds of race or color.