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- FTC Seeks to Pause Its Appeals of Noncompete Case Rulings
- Another Judge Rules a Trump Agency Firing Was Illegal
- Chavez-DeRemer Confirmed as Secretary of Labor
- Former EEOC Chair Nominated to Oversee Pension Agency
- Federal HR Executive Roles Get a Job Architecture Overhaul
- Department of Education Announces Layoffs; Lawsuit Filed
As you are likely aware, plenty of news surrounding the Presidential administration of Donald Trump has an impact on federal and private-sector employers as well as their human resources (HR) and total rewards (TR) functions.
This article serves as a synopsis of several recent moves, countermoves and more that deserve some attention.
FTC Seeks to Pause Its Appeals of Noncompete Case Rulings
The Federal Trade Commission (FTC), chaired by recent Trump pick Andrew Ferguson, on March 7 filed court motions on behalf of the federal government that seek a 120-day pause of the agency’s Biden-era legal challenges to court rulings that invalidated a 2024 final rule on noncompete agreements.
On Jan. 2, less than three weeks before inauguration day, the FTC filed appeals to the Fifth Circuit and Eleventh Circuit after lower federal courts in Texas and Florida decreed in August that the commission exceeded its rulemaking authority in banning noncompetes for most U.S. employers.
Ferguson said the “stay” motions would allow the FTC to review the prior administration’s position on restrictive employee-employer covenants. In not-so-subtle commentary on how the agency may proceed with its case appeals, the motions cited remarks by Ferguson at the Harvard Conservative and Republican Student Conference on Feb. 8.
“[T]he commission should reconsider its defense of the challenged rule,” Ferguson said. “My view is that the commission … basically needs to decide whether it’s a good idea — it’s in the public interest to continue defending this rule. I’ve articulated my view of this rule. I think it’s unconstitutional. I think it violated our organic Act [likely in reference to the FTC Act]. I think it violated the [Administrative Procedures Act]. … I’m going to be presenting at some point to my colleagues the decision about whether to continue defending this rule and spending all the money necessary to defend the rule. … [T]he Justice Department is having the same debates that we are now.”
The court filings came nine days after Ferguson stated his intent for the FTC to scrutinize the fairness and legality of noncompete agreements and similar arrangements. As part of that, he announced the creation of a Joint Labor Task Force that will identify and prosecute employer practices the agency deems as “deceptive, unfair and anticompetitive” and harmful to workers.
Another Judge Rules a Trump Agency Firing Was Illegal
As reported previously in Workspan Daily, a U.S. federal judge on March 6 ruled President Trump’s firing of National Labor Relations Board (NLRB) member and former chair Gwynne Wilcox was illegal and ordered her to be reinstated. That closely followed a separate judge’s March 4 illegal-firing ruling and reinstatement order for Merit Systems Protection Board member Cathy Harris.
On Wednesday, March 12, Trump sustained another legal loss, as U.S. District Judge Sparkle Sooknanan ruled the President’s firing of Federal Labor Relations Authority (FLRA) member Susan Grundman similarly violated federal laws and overstepped Congress’ power to establish and staff federal agencies. The judge ordered that Grundmann be reinstated to the FLRA, which referees labor disputes between the federal government and federal employees’ unions.
“The government’s arguments … threaten to upend fundamental protections in our Constitution,” Sooknanan wrote in her 35-page ruling. “But ours is not an autocracy; it is a system of checks and balances.”
The Trump administration likely will add the Sooknanan decision to its list of appeals to the U.S. Appeals Court for the District of Columbia Circuit. The broader legal issue — whether the President has the authority to fire executive branch workers at-will — may soon head to the Supreme Court, which has in recent years been sympathetic to claims that the President should have more control over executive branch agencies.
Chavez-DeRemer Confirmed as Secretary of Labor
The Senate on March 10 handily confirmed (by a 67-32 vote) Lori Chavez-DeRemer to serve as Trump’s Secretary of Labor. The President had nominated the former Oregon Congress member for the role on Nov. 22.
Chavez-DeRemer takes over a Department of Labor (DOL) that had nearly 16,000 full-time employees and a proposed budget of $13.9 billion for fiscal year 2025. Some of the department’s responsibilities include reporting the U.S. unemployment rate, regulating workplace health and safety standards, investigating the minimum wage, child labor and overtime pay disputes, and applying laws on union organizing and unlawful terminations.
In other DOL news, Keith Sonderling was confirmed March 12 by the Senate to be Deputy Secretary of Labor. He previously served on the Equal Employment Opportunity Commission (EEOC), where he played a key role advising employers on how to implement artificial intelligence without discriminating against workers.
Former EEOC Chair Nominated to Oversee Pension Agency
Trump nominated Janet Dhillon on March 11 to serve as director of the Pension Benefit Guaranty Corporation (PBGC). If approved by the Senate, she would serve for a five-year term.
The agency protects the retirement income of U.S. workers in private-sector pension plans. It was established by Congress in 1974.
From 2019 to 2021, Dhillon served as the chair of the EEOC. She served on the commission until she resigned in November 2022.
Federal HR Executive Roles Get a Job Architecture Overhaul
As the Trump administration presses to overhaul the federal workforce, “chief human capital officer” (CHCO) is the latest executive role to fall under its scrutiny.
A March 6 memo from the Office of Personnel Management (OPM) recommended that all agencies redesignate their CHCO roles as “general” within the federal job architecture rather than “career reserved.”
Critics say the move would allow political appointments to fill many open HR/human capital leadership positions. However, in the memo, OPM acting director Charles Ezell argued the shift is essential to counteract HR policies that had, in recent years, become “intensely politicized.” In particular, he called out the implementation of diversity, equity, inclusion and accessibility (DEIA) directives during the Biden administration as a key reason to change up the CHCO position.
Department of Education Announces Layoffs; Lawsuit Filed
As part of the administration’s plan to downsize federal workforces, the Department of Education (DOE) announced March 11 it would lay off more than 1,300 of its employees as part of an effort to halve the organization’s staff.
Prior to the layoffs, DOE employment was roughly 4,100, the Associated Press reported. The department is also terminating leases on buildings in cities including New York, Boston, Chicago and Cleveland.
On March 13, Democratic state attorneys general (AG) in 20 states and the District of Columbia filed a lawsuit against the administration over the terminations. In addition to the President, the defendants named in the lawsuit are the DOE and Secretary of Education Linda McMahon.
“The layoffs are an effective dismantling of the department,” the state AGs wrote.
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