On May 22, 2025, the Supreme Court granted President Trump’s emergency application to stay the D.C. Circuit Court order that reinstated National Labor Relations Board (NLRB) Member Wilcox. In the 6-3 decision, the Supreme Court ruled that greater risk of harm could come if Wilcox remained on the NLRB and exercised executive power while her termination is under dispute than if she were to remain unable to perform her claimed statutory duty during this period. This stay will remain in effect while the D.C. Circuit Court reviews whether her removal was lawful.
As we previously reported, in an unprecedented move, President Trump fired NLRB Member Wilcox, setting the stage for this legal challenge. Wilcox promptly sued, arguing that her dismissal violated federal law that only permits removal of Board members for “neglect of duty or malfeasance.” The D.C. Circuit Court reinstated Wilcox, restoring the Board to a quorum of at least three members. However, on April 9, 2025, the Supreme Court temporarily blocked her return, foreshadowing its latest decision.
The Supreme Court’s ruling underscores the President’s power to remove executive officials at will, drawing a sharp distinction between independent federal agencies and the Federal Reserve. While the Court allowed President Trump to remove officials from the NLRB, it made clear that this authority does not extend to the Federal Reserve, which it described as a “uniquely structured, quasi-private entity” warranting special independence.
In a forceful dissent, Justice Kagan – joined by Justices Sotomayor and Jackson – argued that the ruling undermines the long-standing precedent set by Humphrey’s Executor v. United States, 295 U.S. 602 (1935), which protected members of bipartisan, expert-led agencies like the NLRB from at-will dismissal by the President.
The Bottom Line
The Supreme Court’s decision on Wilcox’s reinstatement highlights the shifting balance of power between the executive branch and independent agencies. The D.C. Circuit will weigh the merits of the legality of these removals, with an appeal to the Supreme Court likely to follow. The outcome could reshape the legal framework governing administrative agencies for years to come. For now, the NLRB remains without a quorum, which will continue to deadlock federal labor law proceedings until a third NLRB member is appointed and confirmed.
