On May 15, 2025, the U.S. District Court for the Northern District of Texas ruled that the U.S. Equal Employment Opportunity Commission (EEOC) exceeded its authority by issuing enforcement guidance expanding gender identity and sexual orientation protections. The ruling vacates relevant portions of such guidance and applies nationwide.

Background

On Apr. 29, 2024, the EEOC issued an updated Enforcement Guidance on Harassment in the Workplace (Enforcement Guidance). Among the updates, the EEOC added protections for harassment on the basis of gender identity and sexual orientation to incorporate case law, including the Supreme Court’s 2020 decision in Bostock v. Clayton County, that holds discrimination on the basis of sexual orientation constitutes sex discrimination under Title VII of the Civil Rights Act (Title VII).

Court Ruling

In Texas v. EEOC, the Texas District Court held that the EEOC exceeded its authority in expanding the definition of “sex” to include “sexual orientation” and “gender identity” and that neither Title VII nor the ruling in Bostock define “sex” accordingly. In its ruling, the Texas District Court vacated certain elements of the updated Enforcement Guidance, including:

• All language defining “sex” in Title VII to include “sexual orientation” and “gender identity”’;
• The entire section of the Enforcement Guidance outlining harassment based on sexual orientation and gender identity (including that discriminatory harassment includes failure to accommodate transgender bathroom, pronoun and dress preferences);
• The example that states misgendering an employee may constitute a hostile work environment; and
• All language defining “sexual orientation” and “gender identity” as protected classes under Title VII.

The other portions of the Enforcement Guidance remain in effect.

Employer Takeaways

Although the Texas ruling affects how the EEOC may evaluate claims of harassment at the federal level, Bostock still prohibits employment discrimination based on sexual orientation and gender identity. In addition, employers may be subject to prohibitions on sexual orientation and gender identity harassment and discrimination under state and federal laws. Therefore, employers should continue to ensure compliance with all relevant discrimination and harassment laws and guidance.

Highlights

• In 2024, the EEOC updated its Enforcement Guidance to expand protections for harassment on the basis of gender identity, among other changes.
• On May 15, 2025, a federal District Court vacated the provisions of the Enforcement Guidance related to sexual orientation and gender identity protections.

This Bulletin is not intended to be exhaustive nor should any discussion or opinions be construed as legal advice. Readers should contact legal counsel for legal advice. Design ©2025 Zywave, Inc. All rights reserved.