Chai Feldblum, a former EEOC commissioner, criticized the decision, stating it essentially pre-determines gender identity cases as meritless and undermines the agency's responsibilities.

Despite Lucas's claims of compliance with executive orders, civil rights activists contend that the EEOC is evading its responsibility to enforce anti-discrimination laws effectively.

While the EEOC will still issue 'right to sue' notices and allow for mediation upon request, it will take no further action if mediation fails, leaving many cases unresolved.

Critics argue that the EEOC's new stance may violate the Supreme Court's 2020 ruling in Bostock v. Clayton County, which affirmed that Title VII prohibits discrimination based on gender identity.

The recent policy changes at the U.S. Equal Employment Opportunity Commission (EEOC) follow President Trump's executive order recognizing only two immutable sexes, male and female, issued in January 2025.

Transgender and nonbinary individuals facing workplace discrimination now face limited options for recourse, as they must typically file complaints with the EEOC before pursuing other legal avenues.

Civil rights activists have accused the EEOC of neglecting its duty to enforce anti-discrimination laws, particularly regarding gender identity discrimination cases.

This shift in policy is perceived as a retreat from defending the rights of transgender and nonbinary individuals, coinciding with broader changes in civil rights enforcement under the Trump administration.

Under the leadership of Acting Chair Andrea Lucas, the EEOC has prioritized implementing this executive order, resulting in the agency dropping seven pending lawsuits related to transgender discrimination.

During a recent meeting, EEOC staff were instructed to categorize gender identity complaints as 'C,' a designation typically reserved for meritless charges, indicating a systemic undervaluation of these cases.

As a result of this new policy, the EEOC has classified all new gender identity-related discrimination cases as its lowest priority, effectively placing them on indefinite hold.

In fiscal years 2023 and 2024, the EEOC received over 3,000 charges alleging discrimination based on sexual orientation or gender identity, highlighting the ongoing need for effective enforcement against such discrimination.