On June 27, 2025, the United States Supreme Court issued a ruling in the case of Trump v. CASA, Inc. that limited the power of federal district courts to issue universal injunctions. While the merits of the case involved a challenge to an executive order from the Trump administration removing automatic citizenship for babies born in the United States to undocumented immigrants and green card holders, the ruling restraining the use of injunctions has practical consequences which may impact you as an employer.
Many U.S. Presidents have used executive orders to address a myriad of matters, including employment issues pertaining to wage and hour law, immigration, non-compete bans, and classification of employees. Historically, injunctions have been used to stop the government from enforcing an executive order, law, policy, or regulation on a nationwide basis. Up until the decision in Trump v. CASA, Inc. an individual plaintiff could bring an injunction action and obtain relief for not only themselves but also for other individuals throughout the United States. In short, if successful on the merits, an injunction order directs the government not to take a particular action toward anyone, not just the plaintiffs who filed the case seeking relief. As an example of the nationwide impact of injunctions, an injunction action was filed in 2024 to block the implementation of the overtime rule executed by the U.S. Department of Labor under the Biden administration which would have increased salary thresholds for exempt works under the Fair Labor Standards Act.
During his second term as president, the Trump administration has initiated a variety of executive orders resulting in changes in enforcement by the U.S. Equal Employment Opportunity Commission (EEOC), the Department of Labor (DOL), and the National Labor Relations Board (NLRB). Currently, there are over thirty nationwide injunctions that have been filed to block executive orders issued by President Trump since he began his second term. Those injunctions sought to stop executive orders regarding defunding foreign aid, the firing of government employees, and the elimination of programs promoting diversity and equity in public schools. The Supreme Court’s recent ruling will now make it more difficult to challenge executive orders.
So, how does this ruling impact injunctions issued before this decision?
Previously granted injunctions remain under this new ruling, however, it is anticipated that the Trump administration may seek to have them narrowed to apply to a smaller group or area. Also, the administration may challenge the legality of injunctions issued during the Biden-era. This means prior injunctions impacting enforcement of regulations by the DOL, EEOC, or other agencies could be upended.
What avenues remain to prevent implementation of certain executive orders, policies, or regulations?
Although the Supreme Court’s decision narrowed the preferred and more efficient method of blocking government action, there are other options for relief. It is expected that there will be an increase in class action lawsuits to obtain the same effect of a nationwide injunction. In class action cases, a small number of plaintiffs can bring a case asking a court to issue relief that applies to them and others similarly situated. However, unlike injunctions which move quickly through the courts because of the need for relief from immediate harm, class action lawsuits take more time. In a class action, a court must certify the class by analyzing certain factors to determine the number of individuals in the class and the similarity of claims among members of the class.
Another option to broadly prevent the implementation of an executive order or regulation is for individuals to file their own lawsuits in separate federal districts. The result could be a flood of federal litigation. In addition, the Supreme Court’s ruling did not affect the ability of Attorney Generals in various states to file lawsuits to protect their state’s interests or those of its residents. Lastly, membership organizations may file state or federal lawsuits seeking immediate relief from harm for their individual members.
The bottom line is that it is inevitable that this recent Supreme Court ruling will result in an increase in lawsuits, whether in the form of class actions or individual lawsuits, all of which will take more time to work their way through the court system than an injunction. Thus, actions to block government orders will take longer, delaying compliance and creating greater uncertainty about enforceability for employers. The new ruling may also allow more sweeping changes to be implemented by executive orders or regulations giving greater leeway to the EEOC, DOL, NLRB, and similar agencies to invoke change. Accordingly, employers operating in multiple states should be prepared to navigate incongruent rulings in different states, which may present challenges for business implementation and consistency.
