The Justice Department has filed a brief stating that the Civil Rights Act of 1964 does not prohibit discrimination against gay and bisexual employees.
The court papers were filed Thursday at the U.S. Court of Appeals for the 2nd Circuit.
DOJ attorneys contend that Title VII of the Civil Rights Act, which bans sex discrimination in the workplace, does not cover sexual orientation.
The filing comes on the heels of President Trump's Twitter announcement Wednesday that he plans to bar transgender people from serving in the U.S. military.
The DOG's filing stems from the court case of Donald Zarda, a sky diving instructor who claims he was fired by Altitude Express over his sexual orientation.
The suit alleged the company violated Title VII.
Liberty Counsel reports the Justice Department brief takes issue with the Equal Employment Opportunity Commission's argument that Title VII's ban on sexual discrimination also includes gender identity - thereby barring discrimination against so-called LGBT employee."
According to Liberty Counsel, the DOJ brief says "the EEOC is not speaking for the United States and its position about the scope of Title VII is entitled to no deference beyond its power to persuade."
"Passed in 1965, the Title VII employment provision does not include sexual orientation or gender identity," said Mat Staver, Founder and Chairman of Liberty Counsel.
"No government entity outside of the legislative process can grant special rights to a subset of the population based on demand or a desire to rewrite the law. Judges are not legislators. Only Congress can amend the federal law, and that diverse body of legislators has rejected several requests to do so. I applaud the DOJ for upholding the rule of law," said Staver.