Why the Texas Ruling on Transgender Protections Matters Now

On June 3, 2025, a federal judge in Texas struck down EEOC guidance that extended Title VII protections to transgender employees. Judge Matthew J. Kacsmaryk concluded that Title VII’s language covers “sex” based on biological distinctions only. This decision marks a pivotal shift. Employers, HR leaders, and DEI champions must respond quickly to safeguard all staff and minimize compliance gaps.

Background on Title VII and Bostock
Title VII of the Civil Rights Act prohibits discrimination based on race, color, religion, sex, and national origin. In 2020, the Supreme Court’s Bostock v. Clayton County decision held that “sex” inherently includes sexual orientation and gender identity for termination cases. Despite that precedent, the EEOC’s 2024 guidance sought to clarify protections in everyday workplace interactions—like restrooms, dress codes, and pronoun usage. Kacsmaryk’s ruling now casts uncertainty on whether those expanded interpretations remain enforceable outside termination contexts. apnews.com

Key Changes Employers Must Address

• Review Written Policies:

  • Revisit anti-harassment and non-discrimination policies. Ensure they explicitly cover gender identity.

  • Check dress code and restroom access clauses. Remove language that could be read as excluding transgender employees.

• Re-train Managers and HR Teams:

  • Conduct workshops on upholding Bostock. Emphasize respect, pronouns, and inclusive practices.

  • Train teams to handle complaints fairly, even if EEOC guidelines waver.

• Communicate with Employees:

  • Send clear memos explaining policy updates.

  • Host Q&A sessions. Reassure staff that harassment will not be tolerated, regardless of legal nuances.

• Audit Incident Response Processes:

  • Confirm that investigation steps align with best practices—prompt, fair, and unbiased.

  • Document all complaints thoroughly to demonstrate due diligence.

Potential Legal Pitfalls
Lawsuits may spike. Private plaintiffs can still file under Title VII as interpreted by Bostock. Kacsmaryk’s ruling applies to EEOC guidance, not the Supreme Court. If employers ignore gender identity harassment, plaintiffs can argue that courts should follow Bostock. Consequences include costly settlements, class actions, and reputational damage.

Best Practices Moving Forward

• Adopt an Inclusive Culture: Encourage respect. Model inclusive behavior at all levels.

• Regular Policy Audits: Schedule quarterly reviews to catch gaps.

• Proactive Communications: Keep an open dialogue with staff about concerns.

• Partner with Legal Counsel: Seek advice to navigate this shifting landscape.

Why This Matters to You
Your role as an HR or business leader goes beyond compliance. You shape culture. When policies shift abruptly, clarity and consistency matter. Taking swift, actionable steps now can prevent lawsuits, boost employee morale, and maintain your reputation. Remember: legal landscapes change. A proactive posture—reviewing policies, training teams, and communicating openly—is the best defense.

Stay vigilant. Keep learning. And lead with empathy to ensure all employees feel safe, seen, and supported. 

apnews.com