CFPB orders workers to stay home; union responds with two lawsuits

Orrick, Herrington & Sutcliffe LLP
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Orrick, Herrington & Sutcliffe LLP

On February 9, the CFPB ordered approximately 1,700 employees to stay home after Acting Director Russ Vought instructed the agency to halt operations. The directive, communicated through an email from the COO, required staff to cease all supervision and examination activities unless approved explicitly or mandated by law. This move followed the Department of Government Efficiency’s (DOGE) visit, accessing CFPB data sources including personnel records.

The union representing CFPB workers responded by filing two lawsuits against Acting Director Vought for different claims. The first lawsuit claimed the DOGE workers accessed unauthorized CFPB employee information; the complaint averred that the individuals associated with DOGE are not CFPB employees; thus, they were prohibited from accessing employee records without authorization. The second lawsuit contested the directive to freeze the Bureau’s operations and refusal to accept its funding, arguing the executive branch’s actions to dismantle the CFPB violated separation of powers principles.

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