Navigating Workplace Protections for LGBTQ+ Employees Amid Policy Shifts

With recent executive orders that define sex as strictly male or female and limit diversity initiatives within federal agencies, many employers are questioning whether they should revise or remove gender identity and sexual orientation protections from their employee handbooks.

However, federal law remains clear: LGBTQ+ employees are still protected under Title VII of the Civil Rights Act. Therefore, organizations should continue to uphold inclusive workplace policies to foster a fair and legally compliant environment.

Legal Protections Remain in Place

Despite shifts in federal policy, private employers are still bound by Bostock v. Clayton County (2020), a landmark Supreme Court decision that confirmed gender identity/expression and sexual orientation discrimination are unlawful under Title VII. This ruling remains intact, meaning LGBTQ+ employees are legally protected from workplace discrimination regardless of any executive orders.

“Although these executive orders may influence federal enforcement, they do not override Title VII. Employers should remain proactive in fostering workplaces where all employees feel safe and valued,” employment attorney Christy Kiely said during a recent SHRM webinar.

Additionally, many state and local laws offer even broader protections than federal statutes. Employers operating in multiple states must ensure they comply with the strictest applicable laws — which often means maintaining robust nondiscrimination policies that explicitly include gender identity and sexual orientation.

Why Inclusive Employee Handbooks Matter

Employee handbooks serve as a critical resource for outlining workplace expectations, legal rights, and organizational values. Removing LGBTQ+ protections could lead to confusion, erode employee trust, and expose a company to potential legal risks.  

“Employers should see their handbooks as living documents that not only ensure compliance but also demonstrate a commitment to workplace inclusion. Clear policies help build trust and prevent legal challenges,” SHRM Chief Data & Analytics Officer Alex Alonso, Ph.D., SHRM-SCP, said during the webinar.

Maintaining inclusive policies signals a commitment to equal opportunity and helps organizations attract and retain top talent in an increasingly diverse workforce.

Best Practices for Employers Moving Forward

1. Review and Update Policies Regularly

• Ensure your equal employment opportunity (EEO) policy explicitly states that discrimination based on gender identity and sexual orientation is prohibited.
• Make sure policies align with federal, state, and local laws to avoid compliance issues.

2. Train Leadership and Employees on Inclusive Practices

• Conduct regular training on workplace inclusion, harassment prevention, and unconscious bias.
• Ensure that HR teams and managers are equipped to handle concerns related to LGBTQ+ discrimination effectively.

3. Foster an Inclusive Workplace Culture

• Encourage open dialogue and support employee resource groups (ERGs) focused on LGBTQ+ inclusion.
• Provide gender-neutral restrooms and accommodations where legally required and feasible.

Takeaways for Business Leaders

While executive orders may influence federal agencies, private employers should maintain LGBTQ+ protections in employee handbooks to comply with existing laws and reinforce a culture of respect and inclusion. By staying proactive, organizations can navigate legal changes while ensuring that all employees feel valued and supported in the workplace.

“Employers who take a proactive stance on inclusion will not only remain compliant but also foster a culture that attracts 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.