Summary of May 2025’s Labor Law Cases in Texas
A roundup of key Texas labor law and employment update cases decided in Texas during May 2025. These cases include significant state and federal court decisions affecting workplace protections, tort claims, and agency authority.
State of Texas v. Equal Employment Opportunity Commission (EEOC) — U.S. District Court, N.D. Texas (No. 2:24-cv-00173)
Date decided: May 15, 2025
Summary: Texas, joined by the Heritage Foundation, challenged the EEOC’s April 2024 Enforcement Guidance. That guidance interpreted Title VII to protect transgender and non-binary employees from harassment—covering pronouns, bathroom access, dress codes, etc.
Ruling: The court vacated portions of the EEOC guidance, concluding the agency exceeded its statutory authority and violated the Administrative Procedure Act.
Implications:
This ruling removes key gender identity and pronoun protections in the EEOC guidance for employers nationwide. Businesses in Texas—and possibly beyond—must reassess policies to align with narrower agency power under federal law until revised guidance is issued.
Butler v. Collins — Supreme Court of Texas (24‑0616)
Date decided: May 23, 2025
Summary: Professor Cheryl Butler sued Southern Methodist University (SMU) and individual employees over a racially biased, delayed tenure denial. She alleged discrimination under Texas Labor Code Chapter 21 and common-law claims (fraud, defamation, conspiracy) against the employees. Lower courts dismissed the common-law liens, holding Chapter 21 preempted them.
Ruling: The Supreme Court of Texas held that Chapter 21 does not bar employee-level tort claims (fraud, defamation) that overlap with statutory discrimination claims. Employees may still be sued individually for separate tortious misconduct.
Implications:
This clarifies that Texas workplace rights include the ability to pursue common-law claims against individual co-workers—even when parallel statutory claims exist under Chapter 21. Employers and HR must train supervisors accordingly to reduce personal liability exposure.
Other Notable May 2025 Developments Relevant to Texas Employment Law
Supreme Court Ruling on EEOC Harassment Guidance: Confirmed by Jackson Lewis, the federal court action in Texas matches national legal trends reshaping EEOC enforcement authority.
Federal NLRB Decision (May 22, 2025): U.S. Supreme Court allowed NLRB member Gwynne Wilcox to remain terminated—affecting labor policy implementation—though it didn’t arise from Texas, it reflects broader federal labor law shaped at the time.
Conclusion: Looking back on Texas Labor Cases in May 2025
May 2025 brought pivotal Texas labor law rulings: a federal court curtailed EEOC power on workplace protections for LGBTQ+ employees, and the Texas Supreme Court preserved the right to sue individuals for torts separate from statutory discrimination claims. These decisions reshape Texas workplace rights and leave employers and employees with important considerations:
- Update workplace harassment, pronoun, and bathroom policies per federal court’s narrower EEOC scope.
- Be aware that individuals in management roles can still face personal defamation or fraud lawsuits—even when statutes like Chapter 21 apply.
If you’re an employer, HR professional, or employee navigating these changes, feel free to contact HKM for guidance on compliance, policy updates, or legal risk. Visit https://hkm.com/ to learn more and protect your rights effectively.
