HHS Faces Legal Challenge Over Mass Layoffs Amid Federal Workforce Reduction

In a significant development within the federal health sector, the Department of Health and Human Services (HHS) is facing a class-action lawsuit over its recent mass layoffs. The legal action, filed by seven former HHS employees, alleges that the agency's spring restructuring was based on flawed personnel records, potentially affecting thousands of terminated staff members.

Lawsuit Details and Allegations

The lawsuit, filed in a D.C. district court, targets not only the HHS but also the Department of Government Efficiency and other agencies within the Trump administration. The plaintiffs are seeking monetary damages for HHS employees who received termination notices containing errors during the April reduction-in-force (RIF).

According to the legal filing, the layoffs were marred by numerous discrepancies in employee records. These errors included incorrect performance ratings, random eligibility codes, and misinformation about entire divisions being terminated. The suit claims that these inaccuracies violate the Privacy Act, which provides recourse for individuals affected by agency actions 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."

Scale and Impact of the Restructuring

The restructuring, which began on April 1, was part of a broader initiative by the Trump administration to reduce the federal workforce. Approximately 10,000 HHS employees were affected by the cuts, with lawyers estimating that most could qualify for the class-action lawsuit.

HHS Secretary Robert F. Kennedy Jr. has acknowledged that mistakes were made during the restructuring process, citing the agency's desire to move quickly. While the HHS has rescinded RIF notices for hundreds of employees and pledged to reinstate staff who were improperly terminated, critics argue that the secretary has failed to provide a comprehensive accounting of the layoffs.

Legal Challenges and Current Status

The HHS layoffs are facing multiple legal challenges beyond this class-action suit. A California federal judge has issued an injunction in a separate lawsuit, pausing the firings that were set to take effect in early June. This injunction stems from allegations that the administration slashed the federal workforce without Congressional approval.

Additionally, a group of states is suing the Trump administration to reverse the HHS cuts, arguing that the department's critical health work has been severely impacted by the restructuring.

As the legal battles unfold, many affected workers remain on administrative leave, caught in a state of uncertainty about their professional futures and the fate of the federal health infrastructure.