Recent executive orders (EOs) have raised concerns about the legal status of workplace protections for gender identity and sexual orientation. Despite these policy shifts at the federal level, Title VII of the Civil Rights Act of 1964 continues to prohibit employment discrimination based on gender identity and sexual orientation. Employers must remain committed to fostering a productive workplace through inclusion and diversity (I&D) practices while ensuring compliance with existing laws.
Understanding the Legal Foundation
The landmark Bostock v. Clayton County decision by the U.S. Supreme Court in 2020 clarified that Title VII’s prohibition on sex-based discrimination extends to gender identity or expression, as well as sexual orientation. This ruling remains in effect, meaning private-sector employers are still required to uphold protections for LGBTQ+ employees.
“Although these executive orders introduce uncertainty, private employers are still legally obligated to ensure nondiscriminatory work practices. Title VII remains the law of the land,” employment attorney Christy Kiely said during a recent SHRM webinar.
Additionally, state and local laws in many jurisdictions further reinforce these protections, with some states explicitly banning discrimination based on gender identity and sexual orientation. These legal frameworks remain unchanged despite new EOs aimed at defining sex in a binary way at the federal level.
How the Executive Orders Impact Employers
While these executive orders primarily affect federal agencies, their influence extends to federally funded institutions and contractors. There may be shifts in how the federal government enforces anti-discrimination laws, particularly through agencies such as the U.S. Equal Employment Opportunity Commission and the U.S. Department of Labor. Employers should monitor any new guidance from these agencies while ensuring that their own policies continue to align with Title VII and relevant state and local laws.
“While these executive orders may influence federal enforcement, they do not override Title VII. Employers should continue to focus on fostering workplaces where all employees feel valued and protected,” SHRM Chief Data & Analytics Officer Alex Alonso, Ph.D., SHRM-SCP, said during the webinar.
Best Practices for Employers Moving Forward
- Ensure your equal employment opportunity policies explicitly include gender identity and sexual orientation as protected characteristics.
- Provide clear guidance on harassment prevention and inclusivity.
2. Train Leadership and Employees
- Educate managers on maintaining legally compliant, inclusive workplaces.
- Reinforce respectful workplace practices that support all employees.
- Stay informed on pending lawsuits challenging these executive orders.
- Engage legal counsel to assess risks and compliance obligations.
Takeaways for Business Leaders
The core legal protections for LGBTQ+ employees remain intact. While federal agencies may shift their approach to enforcement, employers should continue to prioritize fairness, respect, and inclusion in the workplace. By maintaining strong policies and staying ahead of legal developments, organizations can navigate this evolving legal landscape while upholding their commitment to inclusion.
“The key takeaway is fairness, not favoritism. Companies that uphold inclusive policies ensure compliance and build workplace cultures that attract top talent,” SHRM Linkage CEO Tamla Oates-Forney said during the webinar.
View more FAQs related to these executive orders and get additional resources for maintaining compliance with federal regulations at the SHRM Executive Order Impact Zone.
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