Mayor Zach Smith says the city council unanimously approved the measure.
About 2,000 people live in Victor, many making a living by working in nearby Jackson Hole, Wyoming.
Smith says the ordinance takes effect Monday.
Victor becomes the eighth Idaho city to approve a non-discrimination ordinance.
Last week, voters in Pocatello, Idaho, narrowly rejected a ballot referendum aimed at repealing a similar ordinance passed by the town council last year. Opponents of ordinance have asked for a recount.
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