Today, the Supreme Court changed the procedural landscape for challenges to executive branch actions, ruling that federal district courts generally cannot enjoin (or block) executive actions nationwide. In a 6-3 decision in Trump v. Casa, Inc., the Court’s majority held that national (or “universal”) injunctions exceed the authority that Congress delegated to the federal courts. Instead, the Court held that injunctive relief must be limited to the named parties to the suit, or the class of individuals that they represent—if those claimants can first satisfy the requirements to establish a class action under the Federal Rules of Civil Procedure.
By limiting its ruling to the procedural issue of the scope of an injunction, the majority sidestepped the underlying issue in Trump v. Casa: whether the Trump administration’s executive order placing new restraints on birthright citizenship violates the Fourteenth Amendment of the U.S. Constitution. That issue will continue to be litigated in the lower courts until it eventually reaches the Supreme Court for a full decision on the merits. In the meantime, the Court ruled that the Trump administration can move forward with developing and issuing public guidance about implementation of the executive order, but that the implementation of the order would be stayed for 30 days. The claimants in the various pending cases are now expected to seek to broaden the scope of the injunctions, including potentially seeking to convert the claims to class actions.
This decision could have a monumental impact of federal litigation in the sphere of labor and employment law. As previously covered by HR Legalist, nationwide injunctions have played a major role in blocking federal orders and rules that impact employees and employers, such as the expansion of overtime rules and restrictions on non-compete agreements. Moving forward, private individuals and states wishing to challenge labor and employment rules at the federal level may need to establish a valid class action before obtaining more sweeping relief to block these rules nationwide. We will continue to track the impact of this ruling, particularly as it may impact workplace law.
The information contained in this publication should not be construed as legal advice, is not a substitute for legal counsel, and should not be relied on as such. For legal advice or answers to specific questions, please contact one of our attorneys.
Ivo is a partner in Obermayer’s Labor Relations & Employment Law Department. He focuses his practice on representing employers, including advising companies on how to handle employee issues, and defending employee claims...
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