Several states have recently enacted laws that limit transgender individuals. In the workplace, however, the growing trend in federal law protects transgender individuals from discrimination. As a result, employers are increasingly faced with the question of what to do when an employee raises the issue of their gender identity, especially in light of the recent state legislative initiatives. During this session, we will review the interplay between state laws that affect transgender individuals and federal laws prohibiting discrimination against transgender employees. We will provide some useful tips for employers when faced with an issue in this area of developing law.