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In fact, most so-called "discrimination on the basis of sexual orientation" isn't. It's discrimination on the basis of sex.
Looking at the issue of same-sex marriage clearly displays the issue. A woman and I decide that we want to bind ourselves in legal marriage. There are two cases. In case A, I happen to be male. We are legally allowed to be married. In case B, I happen to be female. We are not legally allowed to be married. The only distinction between the two cases is my sex; therefore, the only discrimination that can be happening is discrimination on the basis of sex. However, courts often argue that this is not the case, that the discrimination is on the basis of sexual orientation. This argument is easily defeated by changing the hypothetical slightly. Let's say that in case A, I happen to be a homosexual male, rather than a male of unspecified sexual orientation (presumably heterosexual). In case A, I am still allowed to get married. Therefore, this cannot be discrimination on the basis of sexual orientation. It must be discrimination on the basis of sex.
This principle runs deeper than just same-sex marriage, however. Most workplace discrimination that is classified as "discrimination on the basis of sexual orientation" is in fact discrimination on the basis of sex. In Price Waterhouse v. Hopkins, the U.S. Supreme Court held that discrimination on the basis of nonconformity with expected gender roles is prohibited under Title VII's prohibition against "discrimination on the basis of sex." In that case, it was held that a firm could not discriminate against a female employee who was seen as too masculine. Given that, it's important next to consider what sexuality means in society. One of the most fundamental gender roles in our society is who you are allowed to love. Men are expected to fall in love with women, and women with men. In our society, anything other than strict heterosexuality is seen as a violation of gender norms. Therefore, discrimination because one is not heterosexual, or even perceived to be not heterosexual, is a form of discrimination on the basis of nonconformity with expected gender roles. As the Supreme Court tells us, that is discrimination on the basis of sex.
This is more than just an academic word game. It explains why men who don't live up to the masculine "ideal" are perceived as gay, and why women who don't live up to the feminine "ideal" are perceived as lesbians. It also plays a part in understanding the fascination with "lipstick lesbians" - it seems as though once you've flouted that fundamental gender role, people expect you to flout all of them.
It also means that in any legal analysis, "discrimination on the basis of sexual orientation" by the government needs to be held against the same level of scrutiny as discrimination on the basis of sex. Bans against same-sex marriage are unconstitutional - any judge who would rule otherwise is doing so out of their own bigotry, not out of a rational legal analysis. It means that "discrimination on the basis of sexual orientation" is already illegal, and the courts can dismiss the tortured reasoning that says that discrimination on the basis of sex is acceptable, so long as you refer to the target as a homosexual while you do it.
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