Allison Hawkins Explains Potential Supreme Court Shift in Agency Removal Powers in SHRM

Media Mention

Birmingham Associate Allison Hawkins was featured in SHRM analyzing a closely watched U.S. Supreme Court case, Trump v. Slaughter, that could significantly reshape presidential authority over independent federal agencies. The case centers on former FTC Commissioner Rebecca Kelly Slaughter’s claim that her removal by President Trump violated the statutory “for cause” protections granted to FTC commissioners. Allison outlined the legal and constitutional stakes at play, noting that the outcome may influence how frequently policy changes affect HR and compliance.

Allison explained that the Supreme Court has directed the parties to address two central questions. The first is “whether Congress’ removal protections for FTC commissioners conflict with the Constitution’s allocation of powers over the government’s branches and, if so, whether Humphrey’s Executor … should be overruled.” The second asks whether courts have the authority to reinstate improperly removed officials. She noted that, “on a macro level, the court will address whether Congress may constitutionally limit the president’s removal power,” underscoring the broader implications for agencies beyond the FTC.

Allison walked through the historical precedent, describing how the 1935 Humphrey’s Executor decision held that FTC commissioners “occupy no place in the executive department … and exercise no part of the executive power vested by the Constitution in the president.” She emphasized that the Court could revisit that logic today, explaining that “the FTC’s functions have significantly evolved since that time,” and that the justices could determine the agency now exercises executive power rather than acting as a purely independent body. She also noted that recent stays involving the NLRB and MSPB suggest the Court may be receptive to arguments expanding presidential removal authority.

Looking ahead, Allison underscored what a shift in the Court’s interpretation could mean for HR professionals and employers nationwide. If presidential powers are broadened in Slaughter, she predicted that HR departments may need to “more frequently update [their] policies and practices to align with the current commission’s interpretation of the laws.” With oral argument set for December 8, the Court’s decision is expected to offer meaningful insight into the future stability, leadership, and regulatory direction of independent agencies.

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