HHS Faces Lawsuit Over "Error-Ridden" Layoffs Amid Federal Workforce Restructuring

A group of former U.S. Department of Health and Human Services (HHS) employees has filed a lawsuit against the Trump administration, alleging illegal terminations based on inaccurate personnel records. The lawsuit, which seeks class-action status, was filed in a D.C. district court on Tuesday and could potentially include most of the approximately 10,000 HHS staff members laid off during the department's spring restructuring.

Controversial Reduction-in-Force Process

The HHS began notifying employees of impending layoffs on April 1 as part of a broader Trump administration initiative to downsize the federal workforce. However, the process quickly became mired in controversy, with many affected staffers reporting significant errors in their termination notices.

According to the lawsuit, these errors included:

• Incorrect performance ratings
• Random eligibility codes for the reduction-in-force (RIF)
• Misinformation about entire divisions being terminated

These discrepancies have raised serious concerns, as such data directly impacts an employee's eligibility for termination, severance pay, and stopgap healthcare coverage, as well as potential future career prospects.

Legal Implications and Privacy Act Violations

The plaintiffs allege that the HHS's actions violated the Privacy Act, which provides individuals with recourse when an agency acts based on inaccurate personnel records. Clayton Bailey, a lawyer at the Civil Service Law Center representing the plaintiffs, stated, "Because the decisionmakers at these agencies were working with such flawed data, they barely knew who they were cutting. These employees suffered the consequences."

While HHS Secretary Robert F. Kennedy Jr. has acknowledged that mistakes were made during the restructuring due to the agency's desire to move quickly, the department has yet to provide a comprehensive accounting of the layoffs. The HHS has rescinded RIF notices for hundreds of employees, but concerns about the cuts persist.

Broader Legal Challenges and Ongoing Uncertainty

The lawsuit is the latest in a series of legal challenges facing the Trump administration's efforts to reduce the federal workforce. A California federal judge recently issued an injunction in a separate lawsuit, pausing the firings that were set to take effect in early June. Additionally, a group of states is suing the administration to undo the HHS cuts, arguing that the department's critical health work has been severely impacted by the restructuring.

As litigation continues, many affected workers remain on administrative leave, leaving the future of thousands of federal health employees uncertain. The outcome of these legal battles could have far-reaching implications for the structure and functioning of the HHS and other federal agencies.