The obligations of colleges and universities under existing laws prohibiting sex discrimination are discussed. Attention is directed to developments in the law relating to sex discrimination against employees and against students in colleges and universities, and practical and cost-efficient strategies for complying with the law. The pertinent laws on sex discrimination against employees, job applicants, and students are cited. The employee-related laws address hiring, retention, promotion, tenure, salary and fringe benefits, sexual harassment, and affirmative action practices for government contracts. Judicial decisions are based on the prima facie case, rebuttal, pretext, and the discovery of confidential faculty evaluations. The laws on sex discrimination against students address practices in admissions, tuition rates, financial aid, sexual harassment, student organizations, student services, housing and parietal rules, and athletics. Three strategies for compliance are: (1) carefully selecting and training key academic and administrative personnel, including faculty who serve on review and search committees; (2) implementing a management control system; and (3) securing indemnification against losses suffered as a result of unintentional discrimination. (SW)