The US Supreme Court recently issued an order staying the reinstatement of former Federal Trade Commission (FTC) Commissioner Rebecca Kelly Slaughter. This decision temporarily blocks a previous ruling by the US District Court for the District of Columbia, which found that the removal of Slaughter by President Donald Trump in March violated the Federal Trade Commission Act (FTCA). The FTCA stipulates that commissioners can only be removed for “inefficiency, neglect of duty, or malfeasance in office” (JURIST – News).
The district court’s decision drew from the 1935 Supreme Court case, Humphrey’s Executor v. United States, which upheld for-cause removal protections for FTC commissioners. This precedent was challenged by Trump’s legal team, which argued that similar protections had been invalidated in other recent cases, notably Trump’s own appeal in Trump v. Wilcox. In Wilcox, the Supreme Court stayed orders reinstating officials at independent agencies like the National Labor Relations Board and the Merit Systems Protection Board, asserting these bodies wield significant executive power distinct from the Humphrey’s precedent.
Slaughter, along with Alvaro Bedoya, had initially sought reinstatement following their dismissals, but Bedoya eventually resigned for personal and financial reasons. His resignation meant he lacked standing to pursue further legal action. While the district court’s July ruling favored Slaughter, allowing for her reinstatement, the Supreme Court’s stay, issued by Chief Justice John Roberts, prevents her return while the appeal is considered by the DC Circuit Court of Appeals.
This move aligns with the Trump administration’s broader strategy to remove protections for independent agency officials. Last month, the Supreme Court also vacated a lower court’s order mandating the Trump administration to reinstate thousands of dismissed federal employees, highlighting an ongoing legal focus on administrative reshaping (Reuters).
These judicial developments underscore an evolving interpretation of agency independence and executive power, potentially setting new precedents for the role and protection of independent federal agencies and their officials.