In a significant victory for employees’ rights, a federal judge has mandated that the Consumer Financial Protection Bureau (CFPB) cannot terminate any employee without cause related to performance or conduct. This ruling, issued by U.S. District Judge Amy Berman Jackson, also prohibits the issuance of any notices of reduction-in-force to CFPB employees.
Unveiling Chaos at the CFPB
The case, initiated by the CFPB union against acting Director Russ Vought, has shed light on the turmoil caused by administration officials and Department of Government Efficiency (DOGE) operatives within the agency. The consumer bureau has become a focal point of efforts by the White House and DOGE to significantly downsize the federal bureaucracy.
During the proceedings, CFPB Chief Operations Officer Adam Martinez revealed that DOGE officials had swiftly moved to shutter the agency in early February, with plans to slash the workforce by over 1,000 employees.
Judge Questions Intentions
At a hearing, Judge Jackson expressed skepticism regarding the government’s assertion that Vought did not intend to dismantle the bureau. She raised doubts about employees’ understanding of their duties after Vought halted most operations on February 8 and closed the headquarters on February 10.
Martinez testified that the agency’s leadership initially aimed to terminate all contracts but later realized the necessity of some contracts to fulfill mandated duties. Consequently, the agency rescinded termination notices issued to contractors, prompting Judge Jackson to question the hasty decision-making approach.
Reflecting on the events, Martinez likened the situation to a “shoot first, ask questions later” scenario, highlighting the challenges faced by CFPB employees amidst the organizational upheaval.
