In a long-expected decision, the Supreme Court ruled that the President can terminate Commission members of independent agencies at will, officially ending any pretext of regulatory independence.
Why it matters: The decision puts the federal government’s regulatory apparatus firmly in the President's control. Employers can expect the regulatory whiplash that has already reached a fever pitch in some agencies to get even worse.
The decision: A 6-3 Republican majority overturned a 91-year-old precedent that had permitted the President to fire members or commissioners of certain independent agencies such as the FTC, SEC, and NLRB only for cause. The Court’s decision here in Trump v. Slaughter removes those restrictions, allowing the President to terminate agency commissioners for any reason, at any time, with the exception of the Federal Reserve.
- Chief Justice Roberts, who authored the majority opinion, concluded that “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.”
Key Takeaways:
- Regulatory ping-pong intensifies: Employers can expect major regulations to be more politically motivated and flip with each new administration, leaving less practical, middle-ground options.
- Less judicial deference: Now that regulations will increasingly be explicitly driven by the White House’s political agenda, courts may give even less credence to agencies, meaning any new regulation may have even less staying power.
- Agency authority keeps shrinking: The Trump administration and the Supreme Court have both dealt significant blows to agency authority in recent years, with the Slaughter decision being the latest example. Cases headed to the Court in the next year, or two could nix certain agencies (such as the SEC and NLRB) altogether.
- Will Congress step up, or will states continue to lead? Eroding agency power could push Congress to legislate again—adding pressure to scrap the Senate 60-vote threshold. Until then, states remain the primary regulators of the workplace.
