Gender-Neutral Restrooms: What Employers Need to Know Following Executive Order

With a recent executive order that defined sex as strictly male or female, many employers are questioning whether gender-neutral restrooms and related inclusion and diversity (I&D) policies remain legal. “These orders have ignited robust conversations on how organizations should approach gender inclusion initiatives in the workplace,” said Anuradha Hebbar, J.D., president of SHRM CEO Action for Inclusion & Diversity, during a recent SHRM webinar.

The short answer is yes: Private employers still have the flexibility to provide gender-neutral restrooms as part of their workplace policies. However, navigating this landscape requires balancing compliance with inclusivity.

The Impact of the Executive Order

The new executive order in question mandates that federal agencies enforce sex-based rights in a strictly binary manner. As a result, federal facilities must now designate restrooms, locker rooms, and other gender-segregated spaces based solely on an individual’s sex assigned at birth. However, this directive applies only to government-operated spaces and does not extend to private employers.

“Employers still have the discretion to implement gender-neutral bathrooms, provided they align with state and local regulations. The key is ensuring that policies are applied consistently and do not discriminate based on gender identity,” employment attorney Christy Kiely said during the webinar.

Why Gender-Neutral Restrooms Matter

Providing gender-neutral restroom options is about ensuring privacy, safety, and inclusivity for all employees, including transgender and non-binary individuals. Many companies have embraced gender-neutral restrooms as a practical solution to support workplace inclusion while addressing potential legal concerns.

Additionally, state and local laws still matter. While the federal order enforces a binary sex definition for government spaces, several states and municipalities require gender-inclusive restroom policies. Employers operating in multiple locations must ensure they comply with all applicable laws, which may sometimes conflict with federal directives.

“Many organizations are taking a proactive approach by ensuring that restroom policies align with broader inclusion efforts. Employers need to think about workplace culture and employee well-being as they navigate these changes,” SHRM Chief Data & Analytics Officer Alex Alonso, Ph.D., SHRM-SCP, said during the webinar.

Best Practices for Employers Moving Forward

1. Assess Current Restroom Policies

• Review existing workplace policies to ensure they align with legal requirements and company values.
• Identify whether gender-neutral restrooms are a viable solution within your facilities.

2. Ensure Compliance with State and Local Laws

• Some states have specific legal protections for gender identity that require accommodating restroom access.
• Employers must ensure policies reflect all governing regulations.

3. Provide Options for All Employees

• Consider single-occupancy restrooms as a gender-neutral alternative.
• Maintain traditional gender-segregated restrooms while offering inclusive options.

4. Communicate Policies Clearly

• Employees should be informed about restroom policies through training and official guidance.
• A clear, respectful approach helps minimize confusion and potential conflicts.

Takeaways for Business Leaders

While federal policy changes may impact government buildings, private employers still have control over their restroom policies. By offering inclusive solutions, ensuring legal compliance, and maintaining a respectful workplace, organizations can navigate this evolving landscape while supporting all employees.

“Employers who prioritize transparency and inclusion will be best positioned to foster a positive workplace culture amid regulatory shifts,” 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.