You may have seen the news that non-binary residents of California can now select X as their gender on state identification (instead of simply male or female). California is one of several areas which now allow a third gender designation. Similar laws are in effect in D.C. and Oregon.
D.C.'s law also permits individuals seeking to change their gender marker to make the change without certification from a medical provider or any other individual.
Last year, for the first time in the U.S., a judge in Oregon ruled that the state must recognize a third gender and applications for state identification have been updated to allow for the selection of X. This is notable in that the policy changed via a the court system, rather than the legislature.
Australia and New Zealand have allowed for third gender designations on passport applications since 2011 - so while this is new to a few U.S. states, these policies are changing elsewhere, too. Currently, Denmark, Germany, Malta, Canada, Pakistan. India, Ireland and Nepal also allow third gender options on passport applications.
While Gender X is the most popular third gender option, there are some which use "other" as an alternative.
With more and more people identifying as transgender and non-binary, it makes good business sense to consider a third gender on the forms used within your company. It sends a clear signal of inclusivity to guests and employees and can improve customer service.