Great question.
In 2001, the Department of Education published a guidebook which included some guidance for administrators regarding sexual harassment claims and the First Amendment. I'll quote the most relevant text, but if you click through the link, it provides case law and gives a couple of examples:
Quote:
In cases of alleged harassment, the protections of the First Amendment must be
considered if issues of speech or expression are involved.112 Free speech rights apply in
the classroom (e.g., classroom lectures and discussions)113 and in all other education
programs and activities of public schools (e.g., public meetings and speakers on campus;
campus debates, school plays and other cultural events114; and student newspapers,
journals, and other publications 115). In addition, First Amendment rights apply to the
speech of students and teachers.116
Title IX is intended to protect students from sex discrimination, not to regulate the
content of speech. OCR recognizes that the offensiveness of a particular expression as
perceived by some students, standing alone, is not a legally sufficient basis to establish a
sexually hostile environment under Title IX. 117 In order to establish a violation of Title
IX, the harassment must be sufficiently serious to deny or limit a student’s ability to
participate in or benefit from the education program.118
Moreover, in regulating the conduct of its students and its faculty to prevent or
redress discrimination prohibited by Title IX (e.g., in responding to harassment that is
sufficiently serious as to create a hostile environment), a school must formulate, interpret,and apply its rules so as to protect academic freedom and free speech rights.
For instance, while the First Amendment may prohibit a school from restricting the right of students to express opinions about one sex that may be considered derogatory, the school can take steps to denounce those opinions and ensure that competing views are heard.
The age of the students involved and the location or forum may affect how the school can
respond consistently with the First Amendment.119 As an example of the application of
free speech rights to allegations of sexual harassment, consider the following:
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http://www2.ed.gov/about/offices/lis...cs/shguide.pdf
I would also urge you to take a look at a Fourth Circuit case, Iota Xi Chapter of Sigma Chi Fraternity v. George Mason University,
http://cehdclass.gmu.edu/jkozlows/gmu1az.htm . In that case, the Sigma Chis at George Mason participated in an "ugly woman" contest during Derby Days. There were several caricatures of females, one participant wore blackface and stuffed pillows into his outfit to exaggerate a woman's breasts and buttocks. He spoke in slang to parody African Americans.
George Mason University followed by suspending them for all activities for a semester and placing them on a two-year probation on all social activities except pre-approved pledging events and pre-approved philanthropic events with an educational purpose directlyr elated to gender discrimination and cultural diversity. They also required Sigma Chi to plan and implement an educational program addressing cultural differences, diversity, and other concerns of women.
Sigma Chi sued the University as well as the Dean under the Civil Rights Act on the grounds that the sanctions violated their First Amendment rights.
The Court held: "The University certainly has a substantial interest in maintaining an educational environment free of discrimination and racism, and in providing gender-neutral education. Yet it seems equally apparent that it has available numerous alternatives to imposing punishment on students based on the viewpoints they express. 8 We agree wholeheartedly that it is the University officials' responsibility, even their obligation, to achieve the goals they have set. On the other hand, a public university has many constitutionally permissible means to protect female and minority students. We must emphasize, as have other courts, that "the manner of [its action] cannot consist of selective limitations upon speech." The First Amendment forbids the government from "restrict[ing] expression because of its message [or] its ideas." The University should have accomplished its goals in some fashion other than silencing speech on the basis of its viewpoint." (citations omitted)
Clearly, if this precedent is followed, the school has already violated these students' rights and is now digging a deeper hole. That said, this interim suspension isn't likely going to hurt the group if it's lifted at the end of the semester, but if principles matter, and I think they do, I still hope they sue.
It looks like an air-tight case and 1983 cases require the defendants to pay attorney fees. This is a case of poorly trained administrators giving in to the demands of extremist minorities who ultimately want Greek Life to become a thing of the past. It is necessary for us to not concede any ground in that contest.