Lawsuits Filed by States Against EEOC Policy Regarding Transgender Employees

A lawsuit has been filed by a coalition of Republican-led U.S. states aiming to prevent the U.S. Equal Employment Opportunity Commission from enforcing expansive legal protections for transgender workers.

This complaint was filed by 18 states in federal court in Knoxville, Tennessee, late on Monday. They argue that the federal agency responsible for workplace discrimination does not have the authority to mandate that employers use the preferred pronouns of transgender workers and allow them to utilize restrooms that correspond with their gender identity.

The commission recently updated its guidelines on workplace harassment, for the first time in 25 years, following a 2020 U.S. Supreme Court decision that determined discrimination against gay and transgender employees is a form of unlawful sex bias.

In its guidance, the EEOC specified that denying accommodations to transgender workers constitutes workplace harassment based on sex.

However, the states involved in the lawsuit claim that federal law only protects transgender employees from being terminated based on their gender identity, but does not require employers to make affirmative accommodations for them.

They argue, “EEOC does not have the authority to address these highly contentious and localized issues, which should be left for Congress and individual states to decide.”

A spokesperson for the commission did not immediately respond to requests for comment.

Guidelines are intended to inform the enforcement actions of EEOC personnel, who handle worker complaints, negotiate settlements, and may pursue legal action against employers, but they are not legally binding. Agencies have previously argued that enforcement guidelines are not subject to review in court.

However, the states in this lawsuit contend that the EEOC’s guidance represents a substantial shift in the agency’s interpretation of federal law and will compel some employers to modify their practices in order to avoid EEOC complaints and worker lawsuits.

They also assert that the guidance is invalid due to the alleged unconstitutional structure of the commission as an independent agency. They argue that the U.S. president, who appoints the EEOC’s five commissioners, should have the authority to dismiss them at will.

A similar group of states recently raised similar claims in a lawsuit challenging an EEOC regulation granting the same legal protections to workers who have had abortions as those who are pregnant or recently gave birth.

This lawsuit, led by Tennessee and supported by Alabama, Georgia, Indiana, Missouri, Ohio, South Carolina, Virginia, and other states, is set to address these contentious legal issues.