The Supreme Court is still in business amid the government shutdown. This current term began in early October with initial arguments beginning soon for cases to be decided before June 2026. This term, three particular cases will be of interest for employers across multiple industries.
Trump v. Slaughter
Those who have followed the NLRB-quorum saga know that Gwynne Wilcox still awaits news of whether her firing by President Trump will stand. The Supreme Court isn’t currently slated to hear Trump v. Wilcox, which has been remanded to the Fifth Circuit Court of Appeals.
However, the court will hear Trump v. Slaughter, which revolves around ex-FTC Commissioner Rebecca Slaughter and whether Trump can fire the head of independent federal agencies without cause. In doing so, SCOTUS will decide whether to overrule or narrow Humphrey’s Executor–precedent also cited in Trump v. Wilcox–and determine whether removal protections are unconstitutional, at least as applied to FTC members.
The outcome of Trump v. Slaughter could influence federal courts to strike down removal protections for various other independent federal agencies, potentially extending to the Merit Systems Protection Board along with the NLRB and Gwynne Wilcox.
What employers should know: If the Supreme Court overturns Humphrey’s Executor, then presumably, Wilcox’s firing will stand, which opens an NLRB spot for a more employer-friendly member. However, such an outcome would install a precedent that could backfire under future administrations, setting the stage for more NLRB unpredictability.
M & K Employee Solutions v. Trustees of the IAM National Pension Fund
This case concerns the International Association of Machinists and Aerospace Workers National Pension Fund, which is separate from the union itself and is a multiemployer plan that, pursuant to collective bargaining agreements, is largely funded through employer contributions.
Companies that withdraw participation in multiemployer pension plans are required to pay for unfunded vested benefits as a “withdrawal liability.” Here, the Supreme Court will consider how the Employee Retirement Income Security Act (ERISA) precisely determines valuation dates for employers to calculate this liability. As one can imagine, different calculation dates can vastly increase or decrease these amounts.
What employers should know: The court’s decision in this case will affect about 1,400 plans, which include around 10 million participants. During the wait for a ruling, companies face uncertainty on when they’re allowed to exit deteriorating pension plans without adverse legal consequences.
The GEO Group, Inc. v. Menocal
This complicated case will be of interest to employers who contract with federal, state, or local governments, and the Supreme Court will decide whether denials of “derivative sovereign immunity” can be immediately appealed under the collateral-order doctrine.
The facts involve private-prison operator GEO Group, which became embroiled in a class-action lawsuit filed by immigrant detainees who performed janitorial services and other work in Colorado. The plaintiffs alleged that this low-paid work was forced labor in violation of the Trafficking Victims Protection Act.
GEO Group claimed derivative sovereign immunity due to following directives laid out in Immigration and Customs Enforcement contracts. In 2022, a district court struck down this defense, and the Tenth Circuit Court of Appeals dismissed GEO’s immediate appeal. A circuit split now puts the case in the Supreme Court’s hands.
What employers should know: Employers who perform government contract work should consider their potential labor law exposure if similar immunity defenses are no longer readily available, or appealable when denied. Additionally, employers should examine existing contracts and plan for future contracts accordingly.
Conclusion: These cases won’t be resolved soon, perhaps not until June 2026. However, employers will want to watch for news about initial arguments and be prepared to adapt accordingly when rulings do arrive.
