Statutory limits allowing the President to remove Federal Trade Commission Commissioners only “for cause” violate the Constitution’s separation of powers, the Supreme Court ruled June 29. In Trump v. Slaughter, the Court overruled precedent permitting removal protections for leaders of independent agencies like the FTC.
The Court reasoned that FTC Commissioners exercise executive power, and therefore the President must be able to remove them at will. The decision appears to apply to all agencies that wield executive power, including the National Labor Relations Board and Equal Employment Opportunity Commission.
The decision significantly limits the ability of Congress to create independent agencies and makes agencies that exercise executive power more directly responsive to the President. Therefore, changes in Presidential administrations could accelerate shifts in agencies’ attitudes toward workplace policies, anti-discrimination compliance, and labor-management relations.
Members of the Center for Workplace Compliance (CWC), our affiliated nonprofit membership association, can read more here. Members can also discuss the practical impact of the Court’s decision at our July 30 Member Roundtable or at an upcoming Conversation Corner. CWC members can monitor key Trump Administration nominations and appointments using this resource.