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Agencies can legally discriminate against employees on the basis of their sexual orientationcan't legally discriminate against federal employees on the basis of their sexual orientation, but if they're discriminated against and sue under Title II, they will probably lose in court:

According to DHS, the plaintiff tried to "place his own interpretive spin" on his alleged "harassment and classify it as harassment based on sex or gender rather than as harassment based on sexual orientation." The Court agreed, finding that plaintiff's allegations consist of instances of harassment based on his sexual orientation. The Court explained that the SAC used the term "flamboyant" to indicate behavior associated with a gay man, not a woman, and that, therefore, the acting SAC did not make the alleged comments "because of sex."

I have to say, technology is important, but policies like this are also important things young workers look at when determining if a workplace is somewhere they want to be.

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