CFPB, FDIC and OCC respond to court ruling by reinstating probationary employees

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On March 17, the CFPB, the FDIC, the OCC and other government agencies reportedly reinstated probationary employees that had been terminated as part of the Trump administration’s efforts to reduce the federal workforce.

As previously covered by InfoBytes, the CFPB had terminated 70 enforcement attorneys and other probationary employees as well as up to 100 term employees in the week after Acting Director Russell Vought took over on February 7. The FDIC had fired around 170 probationary employees in February (covered here), while the OCC had terminated 76 newly hired or promoted workers. Reports suggested most of these reinstated employees will be placed on administrative leave until instructed to return to work.

These reinstatements came after the U.S. District Court for the District of Maryland ruled on March 13 that the Trump administration unlawfully fired probationary employees with two years or less of experience at 18 agencies (covered by InfoBytes here). These agencies faced a March 17 deadline to comply with a temporary restraining order directing them to rehire these staff members.

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