Judge Issues Ruling Against Trump in Labor Case with Potential Impact on DOGE

A federal judge ruled on Wednesday against President Donald Trump in a case that may significantly impact his efforts to reduce the federal government’s size.

Judge Sparkle Sooknanan determined that the president lacks the authority to dismiss Federal Labor Relations Authority (FLRA) Chairwoman Susan Tsui Grundmann, a Democrat, and mandated her reinstatement.

With Grundmann’s reinstatement, the FLRA now holds a 2–1 Democratic majority until her term concludes in July. Prior to this, the FLRA comprised one Democratic member and one Republican, indicating potential division on issues related to crucial Trump initiatives aimed at cutting the federal labor force, particularly led by the Department of Government Efficiency (DOGE).

The FLRA is responsible for overseeing labor relations between federal agencies and their employees.

The agency possesses the authority to compel federal agencies to engage in negotiations with unions and can even prevent agencies from terminating unionized federal employees.

“The independence of the FLRA was central to its establishment, as Congress sought to ensure a fair, consistent, and unbiased framework for managing federal labor relations that would remain unaffected by political fluctuations,” Sooknanan stated in her ruling.

Trump terminated Grundmann, who was appointed by President Joe Biden, on February 11. Court documents indicate that no justification was provided for her dismissal.

In a later lawsuit, Grundmann alleged that Trump breached federal labor relations law by terminating an FLRA chair for extralegal reasons, including “inefficiency, neglect of duty, or malfeasance in office.”

“The government’s assertions are broadly painted and risk undermining fundamental protections enshrined in our Constitution. Our nation is not an autocracy; it operates under a system of checks and balances,” Sooknanan remarked.

A lawyer from the Department of Justice contended last week that such limitations on the president’s authority are unconstitutional.

During a hearing on March 7, Sooknanan scrutinized the claims made by Justice Department attorney Alexander Resar, who argued that constitutional separation of powers inhibits courts from ordering the president to reinstate individuals in cases where the court finds that the termination violates federal law.

“Under your theory, there is no recourse for a breach of law … which essentially nullifies Congress’s role and the judiciary’s role. Is that the government’s stance in this matter?” Sooknanan inquired.

Resar maintained that if the termination were deemed illegal, the judge could merely provide for back pay, stating that the president retains the authority to dismiss officials at any agency aside from the Federal Reserve.

Sooknanan countered, asserting that Trump’s actions undermined Congress’s intent of protecting the FLRA from political interference.

“The independence of the FLRA was central to its creation, as Congress aimed to guarantee a fair, consistent, and unbiased process for overseeing federal labor relations that would not vary with political considerations,” Sooknanan reiterated.

Reuters contributed to this report.