Dive Brief:

• National retail giant Target has become a target, now that it's decided to allow transgender employees and customers to choose the restroom and fitting room that matches their current gender identities. The new policy, which already existed for employees, puts the retailer firmly on one side of the debate over gender identity, civil rights and privacy, according to the New York Times and other media reports.

• As the Times points out, North Carolina's recently passed law restricting bathroom access to transgender people set off a national debate, with other states poised to follow the Tar Heel state's example. Earlier this week, an ordinance passed by the City Council in Oxford, Ala., rules that people may only use the bathroom that matches the gender assigned to them at birth. Target has a store in the city, the Times notes. That situation presents some interesting legal issues.

• Target's decision received a thumbs up from transgender rights advocates, but became the focal point for conservatives on several levels who are unhappy with the company’s very public position. The Times reports that some are arguing that Target’s policy threatens the public’s safety. An online boycott petition from the American Family Association has hit more than 900,000 signatures.

Dive Insight:

"Generally speaking, as you saw in the gay marriage debate, the big corporations tend to be out in front of Congress and most of the states in implementing anti-discrimination policies," William Eskridge, a professor at Yale Law School and a co-author of "Sexuality, Gender and the Law," told the Times.

Target spokeswoman Molly Snyder told the Times Target would comply with all local laws. But she also said, "Our belief in and commitment to inclusivity has not changed." She added that the company’s policy had applied to employees for years, according to the Times. This scenario may create compliance issues for Target. The Equal Employment Opportunity Commission has clearly stated that blocking workers from using restrooms that correspond to their gender identities violates federal law.

“Any employer that has a rule to the contrary is going to find itself in very hot water,” said Jillian T. Weiss, a professor of law and society at Ramapo College who has worked on a number of cases involving transgender workplace issues, told the Times. “Companies have got to be aware that federal law essentially prohibits them from having rules like the one passed in Alabama.”

HR professionals will want to keep an eye on the complex legal battleground the contrasting laws are likely to create.