Texas recently enacted a law, HB 229, which provides in part that every person “is one of two sexes, male or female.”
This law, which unless enjoined by a court is scheduled to take effect September 1, 2025, is expected to have employment-related ramifications.
For example, the law is expected to restrict the ability of individuals who identify as non-binary to bring gender discrimination claims under Texas law. Relatedly, the law also seemingly protects Texas employers (at least under Texas law) who require employees to use the bathroom that aligns with the employee’s gender assigned at birth.
Additionally, employers in Texas who have employee reporting obligations to the State will need to ensure that their reports comport with state law given that the State only recognizes the male or female sex.
This change in Texas law serves as a good reminder to all employers (whether in Texas or elsewhere) to take a fresh look at their company culture and policies to ensure that they are both compliant with ever-changing applicable law while also remaining an inclusive, respectful, and welcoming environment for all employees.
See the full text of the law here: Bill Text: TX HB229 | 2025-2026 | 89th Legislature | Enrolled | LegiScan