Susan Grundmann, once the chair of the U.S. Federal Labor Relations Authority, has walked away from her court challenge over being removed from office after President Donald Trump returned to the White House.
Her decision came after a pivotal appellate ruling that reshaped the legal ground beneath her case. A federal appeals court recently sided with the administration in similar disputes, backing the president’s authority to dismiss members of independent labor boards. With that precedent in place, Grundmann asked a Washington federal court to close her lawsuit.
The case had briefly swung in her favor. A lower court had ruled that her removal was unlawful and ordered her reinstatement, only for that decision to be put on hold while the administration appealed. The appeals court later reversed course, concluding that agencies exercising significant executive power must ultimately answer to the president.
In a statement, Grundmann said the lawsuit achieved what she set out to do: spotlight the independence Congress intended for the labor authority and ensure continuity for those appearing before it. With the legal path narrowing, she opted not to press on.
The Federal Labor Relations Authority plays referee in disputes between federal agencies and employee unions, with the power to compel bargaining and, in certain cases, block dismissals of unionized workers. Since Grundmann’s exit, the Senate has confirmed a Trump nominee to her former seat, shifting the board to a Republican majority.
Grundmann had argued that federal law limits removals of authority members to specific grounds such as inefficiency or misconduct, and that no reason was given for her dismissal. That interpretation no longer holds sway after the recent appellate ruling, which emphasized direct presidential control over agencies with executive reach.
The broader implications extend beyond one board. A closely watched dispute involving a member of the Federal Trade Commission is expected to reach the same conclusion, potentially redrawing the boundaries of independence for a wide range of federal bodies long insulated from direct White House oversight.
With that landscape taking shape, Grundmann’s case closes not with a final judgment, but with a recognition that the legal tide has turned.
