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Based on a new Texas law, “sex” must be recorded only as “male” or “female” on all government forms. This may cause challenges for female, non-binary, and transgender employees.
At Gardner Employment Law, we stay up to date on our ever changing laws so that we can keep you current. To learn more, read on.
What Does HB 229 Change About the Definition of “Sex”?
The core rule in HB 229 defines “sex” as a biological classification—male or female, amending the Texas Government Code. Now when a governmental entity reports data for anti-discrimination compliance or for public health, crime, economic, or similar records, it “shall identify each individual as either male or female.” The statute’s effective date is September 1, 2025.
HB 229 governs only how governmental entities define “sex,” not private employers. Even though the statute is not directed at private companies, employers routinely send data to state and federal agencies. This includes new-hire reports, unemployment, TWC communications, licensing or credentialing data, or other reports. It even affects how companies report health data.
HB 229 does not forbid employers from retaining internal records using non-binary or gender-identity fields for culture, analytics, or benefits. However the statute requires employers to explain any gender descriptor that is not “male” or “female.”
Does Texas HB 229 Change the Law Controlling Discrimination?
HB 229 doesn’t change the law under the federal statute Title VII that prohibits discrimination in the workplace. For example, the US Supreme Court’s ruling in Bostock is still good law. There, the Court held that an employer who fires or mistreats someone because he or she is gay or transgender violates federal law.
On the other hand, in the case named Texas v. EEOC a Texas federal court vacated portions of the EEOC’s 2024 harassment guidance on May 15, 2025, holding that the EEOC had gone too far. In spite of this ruling, the employer still has a duty to prevent and correct harassment based on Title VII guidelines. Harassment because of an employee’s race, sex, national origin, religion, age, or disability is still illegal.
How Could HB 229 Affect You as an Employee?
A. The Policy: What You Should Know
HB 229 requires Texas employers to submit male/female sex markers in state filings, even if internally your workplace recognizes broader gender identity options. What does that mean for you?
- HR systems: You may see two different labels: one for “administrative sex (state reporting)” and another for “gender identity (internal use).” That doesn’t erase who you are—it just reflects how the state demands data.
- Handbooks & training: Expect updated language around restrooms, dress codes, and pronouns. The emphasis will be on behavior – no harassment, no disrespect – because Bostock v. Clayton County still protects you from discrimination.
- Privacy notices: If your employer keeps identity options beyond male/female, you should get a plain-English notice explaining why those fields exist and how they’re used differently than state submissions.
Bottom line: the law changes the paperwork, not your dignity or your rights.
B. Female Leaders: Extra Caution in the Spotlight
If you’re an executive, physician-leader, or senior professional, HB 229 adds new wrinkles. While the law itself doesn’t target you, sloppy rollouts by organizations can put you at risk.
- Uneven implementation – Inconsistent revisions to policies or poorly worded emails can weaken defenses in pay equity disputes, complicate harassment investigations, or create career distractions you don’t deserve. Watch for inconsistencies.
- Practical guardrails:
- Make sure policies that mention sex or gender are worded neutrally and consistently.
- Ask for proper training, not just for managers, but also for chiefs of staff and assistants who often speak in your name.
- Document the job-related reasons behind your decisions. Protect yourself as much as the organization.
HB 229 makes compliance a team effort, but as a leader, you’re the one who feels the impact if mistakes happen. Staying proactive keeps your Title VII protections strong.
C. Non-Binary and Transgender Employees: Your Rights Remain Intact
HB 229 doesn’t erase internal identity fields or force companies to strip inclusive practices. Your employer must still respect name and pronoun preferences, provide inclusive benefits, and enforce anti-harassment rules.
What changes? Only the external “export” – state-facing files must show male/female. Internally, nothing in the law requires your culture or your protections to disappear.
The key for you is enforcement: Rules against harassment, targeting, or misuse of policy must be applied evenly. That balance, protecting identity internally while submitting male/female externally, remains consistent with Bostock.
D. Healthcare Professionals: A Few More Moving Parts
If you’re a physician, nurse, or hospital executive, expect HB 229 to intersect with credentialing packets, EHR records, and rosters sent to state boards or insurers.
- Most EHR systems already separate clinical fields (like sex assigned at birth) from gender identity.
- What matters is ensuring the “administrative/legal sex” field is the one sent to state agencies, while identity fields remain visible where they matter—for patient care and team respect.
- Alignment matters: Make sure everyone responsible for the administrative work knows and aligns with the new law. HR, compliance, and medical staff offices should be on the same page.
For you, it’s about making sure your professional records stay accurate without undermining how you and your patients experience care.
What Should You Do Now?
- Know the data trail: Ask which fields in HR and credentialing systems get exported to the state. You have a right to know how your information is labeled and used.
- Check your handbook: Look for neutral, consistently enforced standards around restrooms, dress codes, and pronouns. This protects you from inconsistent discipline.
- Watch for privacy notices: Clear explanations should tell you why identity fields exist internally and why state filings differ.
- Female executives & physician leaders: Pair any policy changes with a communications plan. Make sure you know who speaks for you in sensitive situations, and insist on rapid, neutral investigations if allegations arise.
- Healthcare professionals: Confirm that your credentialing and HR records match, and test submissions early to avoid embarrassing errors that could affect your license or reputation.
- Know your rights under federal law: HB 229 changes reporting mechanics, but Bostock and Title VII still govern your workplace protections against discrimination.
Contact us Today.
At Gardner Employment Law, we represent executives, physicians, and high-level employees who may get labeled unlawfully because of HB 229. Whether you’re reviewing your employment contract, handling sensitive identity issues, or protecting your reputation during a leadership dispute, we help you anticipate the risks before they land on your desk.