In a decision released April 18, 2017, the U.S. Court of Appeals for the Second Circuit ruled that “Title VII does not prohibit discrimination based on sexual orientation,” affirming the lower court’s judgement. The decision cites a 2000 ruling in Simonton v. Runyon, in which the same court “declined to hold that discrimination based on sexual orientation constituted discrimination based on sex for the purposes of Title VII.” The decision also denies Zarda’s appeal to overturn Simonton, stating “a panel of this Court could not overturn another panel’s decision” and specifies that precedent “can only be overturned by the entire Court sitting in banc.”
In contrast the Seventh Circuit recently ruled “that discrimination on the basis of sexual orientation is a form of sex discrimination” in Hively v. Ivy Tech.
2nd Circuit (again) finds anti-gay discrimination legal under Title VII — Washington Blade
Zarda v. Altitude Express — Decision, April 18, 2017