State of Texas and the Heritage Foundation v. Equal Employment Opportunity Commission

Title VII of the Civil Rights Act of 1964 (Title VII) prohibits employers from discriminating against employees based on sex and defines sex to include pregnancy, childbirth, or related medical conditions. The Equal Employment Opportunity Commission (EEOC) (defendant) was charged with adopting rules implementing Title VII and investigating suspected violations. In 2024, the EEOC adopted new guidance that defined sex as including pregnancy, childbirth, and related medical conditions, plus sexual orientation and gender identity. It also stated that sex-based harassment included harassment based on sexual orientation and gender identity, such as (1) repeatedly using a name or pronoun inconsistent with an employee’s gender identity, (2) denying an employee access to bathrooms that align with the employee’s gender identity, or (3) preventing an employee from wearing clothes aligned with the employee’s gender identity. The guidance had a disclaimer stating that its contents did not have the force of law and were not binding outside the EEOC. However, the guidance was adopted using a formal rulemaking process, meaning that its provisions were effectively rules, the application of which within the EEOC would necessarily impact Title VII enforcement. The State of Texas and the Heritage Foundation (plaintiffs) were both employers subject to Title VII and had policies that would run afoul of the EEOC’s guidance. They sued the EEOC, arguing, among other things, that the guidance was contrary to law and exceeded the EEOC’s rulemaking authority. They moved for summary judgment. The EEOC cross-moved for summary judgment, and the district court considered the parties’ motions.