WASHINGTON ( CNN ) -- A former Army commander who underwent a sex change operation was discriminated against by the U.S. government , a federal judge ruled Friday in an important victory for transgenders claiming bias in the workplace . Diane Schroer won her federal lawsuit against the Library of Congress after officials backed out of a 2005 job offer when told of her intention to become a transsexual . At the time of the job interview for a position as a senior terrorism research analyst , David Schroer was a male . He had been a onetime Army Special Forces commander . U.S. District Court Judge James Robinson said Schroer 's civil rights were violated . `` The evidence established that the Library was enthusiastic about hiring David Schroer -- until she disclosed her transsexuality , '' Robinson wrote . `` The Library revoked the offer when it learned that a man named David intended to become , legally , culturally and physically , a woman named Diane . This was discrimination 'because of ... sex . ' `` The judge will later rule on what financial damages Schroer is due . `` It is especially gratifying that the court has ruled that discriminating against someone for transitioning is illegal , '' said Schroer in a statement from the ACLU , which represented her in court . `` I knew all along that the 25 years of experience I gained defending our country did n't disappear when I transitioned , so it was hard to understand why I was being turned down for a job doing what I do best just because I 'm transgender . It is tremendously gratifying to have your faith in this country , and what is fundamentally right and fair , be reaffirmed . '' After Schroer had retired from the military , she applied for a job at the Library of Congress . Court records show that Schroer , then a male , took her future boss to lunch to outline her transition to a female , as she planned to present herself as a female on her first day of the job . Schroer testified that on the day after the lunch , the job offer was rescinded , and she was told she was n't a `` good fit '' for the library . The ACLU said the ruling sends a `` loud and clear '' message to employers against firing or refusing to hire someone for changing their gender . There was no immediate reaction from the library , which had claimed at trial that transgender people are not covered under federal anti-discrimination laws . The case is Schroer v. Billington ( Cv-05-1090 ) .
Officials rescinded job offer after learning of transition . The White House has said it will not accept any new hires until the president-elect is in office. Judge finds discrimination on basis of gender . ACLU applauds ruling ; library has no comment .