The EEOC’s Shift on Transgender Discrimination Cases
Employment Law Expert Ty Hyderally’s Thoughts on Landmark Federal Reinstatement Orders
March 19, 2025
Why Should You Focus On Employee Data Privacy?
April 15, 2025
Executive Summary
The EEOC is now placing most transgender discrimination complaints into its lowest priority category, making them less likely to be investigated while their Title VII protections remain. This puts the burden of enforcement on individuals, especially those in NY and NJ where strong state protections remain.
What Is the EEOC Doing About Transgender Discrimination Complaints Right Now?
The EEOC is now placing most new transgender discrimination complaints into its lowest priority category, which significantly reduces the chances of investigation or follow-up. While this does not erase legal protections under Title VII, it puts the onus on individuals to take legal action themselves.
My name is Ty Hyderally. I’m an employment attorney licensed in New Jersey and New York. As such, I wanted to share my thoughts and perspective on these changes and why they matter.
This change matters because:
- In most cases, employees must first go through the EEOC before they can file a federal lawsuit
- If the agency sidesteps investigation, workers face more obstacles
- Those unfamiliar with the legal system face particular challenges
How the EEOC Used to Handle These Cases
Before 2025, the EEOC investigated workplace discrimination claims involving gender identity and, in some cases, filed lawsuits on behalf of transgender workers. This policy aligned with the 2020 Supreme Court decision in Bostock v. Clayton County. The decision confirmed that Title VII protects workers from discrimination based on sexual orientation and gender identity.
At the time, EEOC guidance also made clear that:
- Misgendering
- Bathroom access denial
- Refusal to use a person’s affirmed name or pronouns
Could amount to unlawful harassment. The agency positioned itself as an enforcer of these protections.
For employees in New York and New Jersey, this federal support complemented strong state laws already in place. Together, they created a powerful safety net for LGBTQ+ workers.
What Has Changed—and Why?
After President Donald Trump returned to office, his administration issued an executive order mandating the federal government only recognize two biological sexes: male and female. This caused federal agencies, like the EEOC, to change how they handle gender identity issues.
Shortly afterward, Acting EEOC Chair Andrea Lucas instructed staff to treat most new gender identity complaints as “Category C” charges. This the category for cases that the agency deems unlikely to have merit. It also came on the heels of earlier decisions to withdraw at least six EEOC-led lawsuits on behalf of transgender employees, including one in New York.
These decisions represent a sharp departure from the EEOC’s prior enforcement strategy. While the agency states it will still issue right-to-sue notices upon request, it’s drastically reduced its investigative support for transgender discrimination claims.
How the New EEOC Policies Affect Workplace Complaints
Most complaints involving gender identity are now unlikely to be investigated unless the employee pushes the matter forward themselves. The EEOC continues to accept these filings, but typically takes no action beyond offering mediation or granting a right-to-sue.
This creates a different experience for workers filing discrimination charges:
- Employees are now expected to seek their own legal representation
- Workers must file suit without federal backing
For example, if a transgender worker in New Jersey is fired after disclosing their gender identity, the EEOC might not investigate. That employee could still sue—but only if they know to request a right-to-sue letter and understand how to proceed in court.
Does This Conflict With Federal Law?
It may. According to the Supreme Court’s decision in Bostock v. Clayton County, firing or discriminating against someone for being transgender violates Title VII of the Civil Rights Act. That legal precedent hasn’t changed.
But, legal scholars and former EEOC officials argue that deprioritizing or dismissing gender identity claims could conflict with the agency’s duty to enforce Title VII. Critics say the agency is failing to uphold its responsibilities by treating these cases as meritless.
The legal question could end up in court. Until a judge rules otherwise, the Supreme Court’s interpretation of Title VII remains binding. How it’s enforced depends heavily on agency leadership.
What Should NY and NJ Employers and Employees Know?
Despite the EEOC’s current posture, state laws in New York and New Jersey still protect employees from discrimination based on gender identity.
According to state civil rights laws:
- The New York Human Rights Law prohibits discrimination based on gender identity
- The New Jersey Law Against Discrimination provides comprehensive protections
- Both states continue active enforcement regardless of federal policy changes
Employers shouldn’t see the EEOC’s policy change as a green light to ignore gender identity issues. Doing so could still result in legal consequences under state law. Updated policies, staff training, and HR procedures should reflect both federal and state obligations.
For employees, the best step is to:
- Document any incidents carefully
- Seek legal advice early
- Understand that you may still have strong claims—even if the EEOC declines to act
- Request a right-to-sue letter if you wish to bring your case to court
Frequently Asked Questions
Does the EEOC still protect transgender workers?
Yes, Title VII still applies. But, the EEOC is choosing not to focus on gender identity complaints, which means fewer investigations and less support. Workers still have the right to sue, but often must do so without EEOC involvement.
Can transgender workers file complaints under state law in New York or New Jersey?
Absolutely. Both states offer robust protections against gender identity discrimination in employment. These laws are unaffected by federal policy shifts and provide independent paths to relief.
What is a right-to-sue letter, and why does it matter?
It’s a document from the EEOC allowing you to file a federal lawsuit. Even if the EEOC doesn’t investigate your case, you need this letter to move forward in court. You can request it directly if needed.
Should employers change their policies based on the EEOC’s actions?
No. Employers must still follow state and federal laws, including Bostock. Ignoring gender identity issues exposes companies to significant liability.
Are these EEOC changes final?
Not necessarily. They reflect current agency leadership and executive policy, but they could be reversed through future court rulings, elections, or administrative changes. Legal challenges are ongoing.
About the Author
Ty Hyderally is the owner of Hyderally & Associates, P.C., a prominent employment law firm with offices in Montclair, New Jersey and New York, New York. A seasoned litigator and former President of the National Employment Lawyers Association (NJ), Mr. Hyderally has been recognized among the Top Ten Leaders in Employment Law in Northern New Jersey.
Legal Protections Still Exist, Even If Enforcement Has Shifted
The EEOC’s current stance marks a turning point in how the federal government handles transgender discrimination. Yet the protections laid out in Bostock—and state laws in New York and New Jersey—remain intact.
Whether you’re an employee facing discrimination or an employer looking to stay compliant, understand that the law still applies. The agency responsible for enforcement may change its approach, but your rights and responsibilities don’t disappear with it.
My team and I will continue to watch these changes and are ready to assist clients with handling workplace discrimination claims. If you believe your rights have been violated—or want to make sure your business policies are up to date—don’t hesitate to reach out.
