Culture   //   January 22, 2025

Trump order threatens transgender workers’ rights: Key actions for HR

Doing away with diversity, equity and inclusion programs is a key goal for the Trump Administration. And on his first day in office, he signed several orders seeking to reverse Biden-era rules around DEI.

One notable change is the reversal of rules covering gender identity protections in the workplace. Those rules spelled out that employers can not discriminate against workers for being transgender, or based on their sexual orientation.

It comes following much progress made in the area, with the use of preferred pronouns at work becoming commonplace, the addition of gender-neutral bathrooms in offices, companies extending gender transition healthcare benefits, and generally greater acceptance for gender and sexual orientation differences in corporate America.

Companies and their HR teams now must navigate the changes while reassuring their workforces and avoiding backlash from outside conservative groups, now emboldened by the President’s messaging.

“From an HR leader's perspective, I think the challenge lies in navigating these changes while still maintaining a commitment to building an inclusive workplace that fosters belonging, growth, innovation."
Cleo Valeroso, vp of global people operations at AI Squared.

“From an HR leader’s perspective, I think the challenge lies in navigating these changes while still maintaining a commitment to building an inclusive workplace that fosters belonging, growth, innovation,” said Cleo Valeroso, vp of global people operations at AI Squared a company that assists businesses with AI integration.

“Transgender rights have been a more politically fraught question for companies because Americans are much more divided on what they think about things like transgender youth access to gender-affirming care, and transgender women and girls playing on sports teams,” said Luke Hartig, president at Gravity Research, a DC-based, societal risk firm. “These things remain highly divisive topics that present a tough spot for companies,” Hartig said. 

Under the new Trump rule, federal workers and organizations receiving federal funding will not be obligated to use employees’ preferred pronouns. The federal government will only recognize two genders, and use the term “sex” rather than “gender” in government-issued forms. And guidance documents like a “White House Toolkit on Transgender Equality,” will be rescinded.

Title IX already protects individuals from employment discrimination based on sexual orientation, though the legislation Biden previously signed solidified those protections and stipulated that they include transgender people.

Amid other recent DEI rollbacks, the LGBTQ+ community has raised alarms over the impact this movement will have on LGBTQ+ workers. A September survey from the Human Rights Campaign including over 2,000 respondents found over 70% of LGBTQ+ adults said they would feel less accepted at work if their employer rolled back DEI initiatives. 

“I can't tell you how many executives I've chatted with that have said, ‘Yeah, I have a trans kid, and there's no way I can share that with my team or with the other vps. It's not safe for my career to share that part of my life.'"
Elena Joy Thurston, CEO of Latitude Leaders.

Ultimately, the movement could take a major toll on the psychological safety of LGBTQ+ staff and their friends and loved ones, and make authenticity in the workplace increasingly risky. “They’re going to stop coming out to their coworkers because they don’t know who is going to make life hell for them now,”  said Elena Joy Thurston, CEO of Latitude Leaders, a consulting firm that guides executives on inclusive workplace practices. 

“I can’t tell you how many executives I’ve chatted with that have said, ‘Yeah, I have a trans kid, and there’s no way I can share that with my team or with the other vps. It’s not safe for my career to share that part of my life,’” she said. 

HR can take several routes in addressing this. They can reiterate that they support trans employees while toning down messaging likely to be attacked by outside conservative groups. They can also stay mostly silent, and not overtly support trans employees.

The best course of action for HR is to be “incredibly proactive and very clear where the priority for safety is, because they need to assume that their people who are feeling vulnerable are assuming the worst case scenario,” Thurston said. They should reinforce that “their number one priority is a safe work environment period, and therefore, harm to other co-workers is not tolerated.”

A knock-on effect on productivity for those affected may also be on the cards. “Everyone who’s holding back that part of their life, whether it’s them or their kid or their partner, they’re not being as productive as they could be at work. They are not showing up the way they could be showing up. They are not engaging,” Thurston said. 

“Everyone needs to feel safe if we want to get the maximum amount of engagement from them,” she added.