US Supreme Court Rules President Can Terminate Administrative Officers Without Cause
The U.S. Supreme Court ruled today in the case of Trump v. Slaughter that a for-cause removal provision applicable to the Commissioners of the Federal Trade Commission (“FTC”) violates the U.S. Constitution. The Court’s decision is a game changer for executive-level administrative agencies and will have far reaching effects. For example, the Court’s ruling that the President can remove “his subordinates at will” likely ends the legal challenge filed by Board Member Gywnne Wilcox to her 2025 termination from the National Labor Relations Board (“NLRB”) by President Trump.
The majority opinion in Slaughter was written by Chief Justice Roberts and joined by Justices Alito, Gorsuch, Kavanaugh and Barrett. Justice Thomas joined in all but one part of the decision. Justices Sotomayor, Kagan and Jackson dissented.
Justice Roberts explained that the Framers to the U.S. Constitution purposefully vested the Executive Power in one person – a President. As the head of the Executive Branch, the President is in charge of faithfully executing federal law. To do so, he has various assistants and deputies who ‘derive their offices from his appointment’ and remain ‘subject to his superintendence.’” The Framers rejected a “’committee-style Executive Branch in favor of a unitary and accountable President, standing under law, yet over’ his department heads.” The Court determined that given these historical facts, administrative officers must be removable at will by the President. The Court further explained that this decision was already made by the First Congress, which confirmed the Constitution’s structure in its “first year-and in the years that followed.”
The Supreme Court also found that the FTC “unquestionably exercises executive power.” “Not only does it promulgate rules that carry the force of law, but it also enforces those rules against private parties, collecting civil penalties in the billions of dollars.” The Court determined that a statute limiting the removal of the five FTC Commissioners only for cause violates “the separation of powers enshrined in the Constitution.” It is likely that the lower court will now determine that President Trump’s decision to terminate the two Democratic members of the FTC shortly after he began his second term because their “continued service was inconsistent with his Administration’s priorities” was lawful.
The Court concluded that the President “must have the assistance of officers he can trust.” “Although it is up to the Senate to decide whether to confirm those whom the President would prefer to work, neither Congress nor the courts may saddle him with those with whom he cannot work. Subordinates who exercise the President’s power are subject to removal by him. Then, and only then, can they remain accountable to the President, and the President to the people.”
Justice Gorsuch wrote separately to point out that administrative agencies are no longer just performing executive functions; they are also performing judicial and legislative functions. He agreed with the “step back toward the Constitution” the Court made in Slaughter but argued more steps are needed. “From here, the only sure path is to finish the journey we start today and restore legislative and judicial powers to where they belong: in Congress and the courts. . . . It is time to return, all the way, to the Constitution.” Justice Sotomayor wrote a strong dissent focused on the assertion that administrative agencies should be independent from partisan politics. The majority of the Court asserted, however, that most administrative agencies are not independent – they are created to serve the Executive Branch. “If Congress wishes to establish independent agencies to assist it with its functions, it may do so. But it may not foist these agencies upon the President, and thus deprive him of ‘the executive power vested [in him] by the Constitution.’”
We will continue to monitor this interesting and important development that directly impacts employers which are regularly subject to multiple administrative agencies, such as the Department of Labor, the Equal Employment Opportunity Commission, the Occupational Safety and Health Administration, and the NLRB. We have frequently briefed you on the changes to policy a new administration brings to the NLRB. Today’s decision may increase the speed of those policy changes as the President will now be able to quickly change Board members, not just the General Counsel, at will.
Stay tuned to the KZA Employer Report for more developments in this area. If you have questions about this decision, please contact a KZA attorney.
KZA Employer Report articles are for general information only; they are not intended and should not be construed to be legal advice. Reading or replying to such articles does not establish an attorney-client relationship. In addition, because the subject matters and applicable laws discussed in Employer Report articles are often in a state of change and not always applicable to every type of business entity or organization, readers should consult with counsel before making decisions based on the same.