8/14/26 What Does Trump v. Slaughter Mean for Employers?

August 14, 2026

This summer, the U.S. Supreme Court decided in its 6-3 Trump v. Slaughter opinion that the Federal Trade Commission’s (“FTC”) “for-cause” removal requirement is an unconstitutional encroachment on the separation of powers. This case focused on explaining that executive power is vested in the President and that as a result, officers of federal agencies reporting to the President must remain accountable to the President. 

The decision overturns almost a century of precedent and we are already seeing its impact on other federal agencies. Since the decision, a former Equal Employment Opportunity Commission appointee has dismissed her lawsuit against the Trump Administration. Meanwhile, ongoing litigation challenging Gwynne Wilcox’s dismissal from the National Labor Relations Board seems likely to be decided in the Administration’s favor. 

Since 1935, FTC Commissioners have been congressionally protected from removal by the “for-cause” requirement, which prevented Presidents from dismissing Commissioners before the end of their term unless the termination was for “inefficiency, neglect of duty, or malfeasance in office.” This protection -- as well as the requirement that no more than three of the five members belong to either party -- was designed to reduce partisan political influence on composition and decision-making. 

Looking ahead, Slaughter is likely to ripple throughout the federal government, as dismissals without cause in other agencies may be upheld under the new precedent (with the exception of the Federal Reserve Board, as the Supreme Court announced on the same day as the Slaughter decision). 

In the long run, however, some federal agency decisions may become less predictable and precedents less dependable depending on administration changes. As a result, we anticipate an increased need for employers to monitor both legal and political developments. 

For federal labor and employment law compliance, you can contact any Barran Liebman LLP attorney, including Nicole Elgin at nelgin@barran.com.