The Equal Employment Opportunity Commission ruled last week that the Civil Rights Act protects the transgendered from sexual discrimination in the workplace.
A California woman said she was promised a job in a Bureau of Alcohol, Tobacco, Firearms and Explosives crime bureau in San Francisco. Mia Macy, a former police detective, was then living as a man.
Macy was told the job was no longer open after she informed her future employer the she intended to legally live as a woman.
Earlier this month, the EEOC ruled that Macy could seek legal redress under sexual-discrimination regulations - a ruling hailed a victory by advocates for transgender people.
The ruling confirmed prior court rulings dating back to the late 1980s and is consistent with policies already enacted in the private sector, according to an EEOC spokeswoman.