A new Supreme Court decision has changed how federal rules can be blocked in court. While the facts of the case fall outside the employment context, the ruling holds important implications for employers.
In Trump v. Casa, Inc., the Court limited the authority of federal district courts to issue nationwide injunctions that apply beyond the parties involved. Going forward, lower courts cannot halt a federal rule nationwide unless the relief is narrowly tied to specific plaintiffs.
Although the case focused on immigration, the ruling reaches far beyond that scope. It raises the likelihood that federal rules may be enforced differently across jurisdictions, increasing compliance headaches and legal risk for employers operating in more than one state.
The big question in this case: Do federal district courts, which exist independently in each state, have the power to issue injunctions that apply nationally?
The Supreme Court decided that nationwide injunctions likely exceed the authority that Congress has provided to federal tribunals. As a result, it said federal district court injunctions generally can only be as broad as they need to be to provide relief to the parties in the suit at hand.
In so ruling, the Court rejected the argument that nationwide injunctions are needed to provide complete relief, and that without them, piecemeal litigation will cause confusion. It determined that federal district courts simply do not...
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