WASHINGTON—Rejecting the federal government’s attempt to throw out a transgender veteran’s sex discrimination lawsuit against the Library of Congress, a federal judge ruled Nov. 29 that the case could go forward.

The American Civil Liberties Union brought the lawsuit in June 2005 on behalf of 25-year U.S. Army veteran Diane Schroer, who was offered a job as a senior terrorism researcher but was later told she was not a “good fit” after her future boss learned she was in the process of transitioning from male to female.

“After putting my life on the line for my country for 25 years, I couldn’t believe that I could be refused a job that I was told I was the most qualified for solely because I happened to be transgender,” said Diane Schroer, a former U.S. Army Special Forces Officer who specialized in fighting terrorism.

In its motion to dismiss, the government argued that Title VII, which protects against sex discrimination, does not protect transgender workers.

The court rejected that argument.

“Today the court sent a very clear message that employers can be held liable when they make decisions about whom to hire based on stereotypical views about gender as opposed to merit,” said Sharon McGowan, a staff attorney with the ACLU’s Lesbian Gay Bisexual Transgender Project.