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Tuesday, November 25, 2025

Texas Mandates Binary Sex Classifications: 5 Tips for Employers on Employee Data Collection and More - JD Supra

Texas lawmakers recently passed a slew of bills affecting transgender and nonbinary individuals, and one in particular could have a huge impact on your workplace. HB 229 makes clear that state law will recognize only two sexes – male and female – and rejects nonbinary or gender-identity based designations for all purposes including state government data collection. This will impact not only gender discrimination claims under the Texas Labor Code but also how employers collect and share demographic information. While we expect civil rights groups to challenge the new law, it is slated to take effect on September 1, and employers should be prepared for its impact on workplace operations and data collection. Here are the key takeaways and steps you can take to create both a compliant and inclusive workplace.

What Changed?

  • Definitions: HB 229 provides very detailed and specific definitions of “male” and “female” based on biological sex at birth. The new law states that, under Texas law, all people are either male or female and there is no third designation. It does, however, state that intersex individuals (although not considered to belong to a third sex) are entitled to accommodations under state and federal law.
  • Separate Spaces: HB 229 also states that there are legitimate reasons to have different facilities for men and women, such as bathrooms, locker rooms, and other areas “where biology, safety, or privacy are implicated.”
  • Broad Application: The law establishes...


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