Anyone experiencing anxiety or confusion over the rapid pace of change in the U.S. business world and economy right now is not alone. The news is a constant stream of information that raises more questions than can be answered. This post is highlighting some developments to watch as the year goes on.
There is ongoing litigation over whether the Trump Administration illegally fired the leadership of several independent agencies of the federal government. At the National Labor Relations Board, for instance, the new administration dismissed Gwynne Wilcox, a Democrat, from the Board. After this dismissal, only two members were left on the Board which meant the Board could not issue regulations and could not hear cases. The Board’s investigations were able to continue. On March 6, 2025, a Washington D.C. District Judge decided that Ms. Wilcox’s dismissal was unlawful because the law requires that the dismissal must be “for cause.”
Similarly, Cathy Harris, the Chair of the U.S. Merit Systems Protection Board, challenged her firing by the Trump Administration on similar grounds and prevailed in federal court. It is possible that these two cases will be consolidated and go before the United States Supreme Court. In hearing these cases, the U.S. Supreme Court will review a ninety-year precedent restricting the executive branch’s power to remove members of independent federal agencies.
Two Equal Employment Opportunity Commissioners fired by the Trump Administration have also indicated they may challenge their removals. The pace and number of removals since January suggests that there may be further challenges coming.
What does all of this mean for employers? Disruption in the operations of these agencies could certainly delay response times. Employers should also anticipate shifts in agency policies and priorities and be prepared to adapt.
This same advice applies to companies with diversity, equity and inclusion programs. There have already been stories in the news about large corporations scaling back or eliminating their diversity, equity and inclusion programs. The Trump administration directed the Department of Justice to investigate “illegal DEI” at private sector companies. Although it is too soon to know where the Department of Justice will draw the line between acceptable DEI and anti-discrimination law, companies may want to start to review their policies and practices.
Finally, there is new guidance from the Financial Crimes Enforcement Network. The deadline for BOI filings for most companies is now March 21, 2025. If you own a company impacted by this requirement, make sure you take steps to comply before this deadline.