Federal Court Removes EEOC Guidance on Gender Identity and Sexual Orientation Harassment

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) overstepped its authority by issuing enforcement guidance that broadened protections related to gender identity and sexual orientation.

As a result, the court invalidated the applicable portions of that guidance, with the decision applying 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.