A U.S. Supreme Court case this term could significantly alter the landscape for HR professionals by expanding the president's authority to remove members of independent agencies. This could lead to more frequent policy shifts affecting the Federal Trade Commission (FTC), the U.S. Equal Employment Opportunity Commission (EEOC), and the National Labor Relations Board (NLRB).
The case, Trump v. Slaughter, stems from President Donald Trump's removal of FTC Commissioner Rebecca Kelly Slaughter for policy disagreements. Slaughter sued, arguing her removal was unlawful because the FTC Act permits removal only for "inefficiency, neglect of duty, or malfeasance in office."
Her case relies on the 1935 Supreme Court precedent, Humphrey's Executor v. United States, which established that Congress could constitutionally restrict the president's removal power for officials of independent agencies like the FTC.
The Supreme Court is now re-examining whether these removal protections are constitutional and if Humphrey's Executor should be overruled. The court's recent decisions have shown skepticism toward the concept of "independent agencies," suggesting a potential shift in its long-standing precedent.
A ruling that broadens the president's removal powers would mean that the leadership and priorities of agencies such as the EEOC and the NLRB could change more rapidly with each new administration. Who leads these agencies has a direct impact on their enforcement priorities.
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