Trump v. Slaughter (US 25-3326 6/29/26) Termination of FTC Commissioners | Separation of Powers – Employment Law Weekly

Trump v. Slaughter (US 25-3326 6/29/26) Termination of FTC Commissioners | Separation of Powers

The Federal Trade Commission (FTC) is a regulatory agency that has accumulated vast rulemaking, enforcement, and adjudicatory powers. The FTC’s powers belong not to the President or his appointees alone, but instead to five Commissioners, each of whom serves for seven years and may be removed by the President only “for inefficiency, neglect of duty, or malfeasance in office.” 15 U. S. C. §41.

Soon after President Trump began his second term in January 2025, he fired the FTC’s two Democratic appointees, Rebecca Slaughter and Alvaro Bedoya. He did not identify a cause under the statute. He instead told them their “continued service on the FTC [was] inconsistent with [his] Administration’s priorities” and that they were removed “pursuant to [his] authority under Article II of the Constitution.” App. 28. Slaughter filed suit against the President and other executive officials, seeking relief to restore her to office. She argued that her removal was ultra vires, violated the Administrative Procedure Act, and violated the Constitution. The District Court granted Slaughter’s motion for summary judgment. It acknowledged that Myers v. United States, 272 U. S. 52, generally permits the President to remove executive officers at will, but explained that Humphrey’s Executor v. United States, 295 U. S. 602, carved out an exception for the FTC. The court declared the President’s “purported removal” ultra vires and issued a permanent injunction barring interference “with Ms. Slaughter’s right to perform her lawful duties.” App. 90–91. A divided Court of Appeals denied the Government’s motion for a stay pending appeal, and this Court stayed the District Court’s order and granted certiorari before judgment.

Held: The FTC’s for-cause removal provision is contrary to the separation of powers enshrined in the Constitution. Pp. 2–36.

https://www.supremecourt.gov/opinions/25pdf/25-332_qn12.pdf

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