## Facts

- Karen Frances Ulane was hired by Eastern Air Lines in 1968 and worked as a commercial pilot and instructor, accumulating over 8,000 flight hours.
- In 1979, Ulane was diagnosed as transsexual and began medical treatment, including female hormones.
- In 1980, Ulane underwent sex reassignment surgery.
- After the transition, Illinois issued a revised birth certificate identifying Ulane as female, and the FAA certified Ulane for flight status as female.
- Eastern terminated Ulane in 1981 after learning of the transition.
- Ulane filed an EEOC charge and then sued under Title VII alleging (1) discrimination as a female and (2) discrimination as a transsexual.
- After a bench trial, the district court ruled for Ulane on both theories and ordered reinstatement, back pay, seniority restoration, and attorneys’ fees.
- Eastern appealed to the Seventh Circuit under Rule 54(b).

## Issues

1. Whether Title VII’s prohibition of discrimination “because of ... sex” covers discrimination based on transsexual status.
2. Whether the record supported a finding that Eastern discriminated against Ulane “as a female,” independent of transsexual status.

## Decision

- The Seventh Circuit reversed the district court’s judgment.
- The court held Title VII’s term “sex” refers to biological distinctions between male and female and does not include transsexual status or gender identity.
- The court found insufficient evidence that Eastern discriminated against Ulane as a female; the adverse action was directed at Ulane’s transsexual status.
- Because Title VII, as construed by the court, did not prohibit discrimination based on transsexual status, Ulane could not prevail on either theory.

## Legal Principles

- Statutory interpretation of Title VII must follow the ordinary meaning and congressional understanding of “sex” at enactment, absent clear legislative change.
- Courts may not expand Title VII’s protected categories beyond those specified by Congress.
- A plaintiff asserting sex discrimination must show the challenged action was taken because of male–female status, not solely because of a non-covered classification (here, transsexual status as construed by the court).

## Conclusion

The Seventh Circuit held that Title VII’s prohibition on discrimination “because of ... sex” protects against discrimination based on biological male–female status, not transsexual status, and it reversed relief for a pilot terminated after transitioning because the evidence did not establish discrimination “as a female” apart from the asserted transsexual basis.


Ulane v. E. Airlines, Inc., 742 F.2d 1081 (7th Cir. 1984)