Labor & Employment Law Daily Wrap Up, AGENCY NEWS—FTC ends DEI efforts, but Democratic commissioners question chair’s approach, (Jan 27, 2025)
Despite concerns, Dems give Ferguson "courtesy" of allowing implementation of Trump DEI-termination orders.
FTC Chairman Andrew Ferguson is moving forward with eliminating Diversity, Equity, and Inclusion (DEI) efforts at the agency. The move followed executive orders by President Donald Trump to put an end to DEI in the federal government. Following initial efforts to step away from DEI practices, a divided Commission voted to give the new chair the authority to “achieve full compliance” with the President’s orders. Ferguson joined by fellow Republican Commissioner Melissa Holyoak, voted to grant authority to the chairman to continue the termination of DEI at the agency. Democratic Commissioners Rebecca Kelly Slaughter and Lina Khan did not participate. Democratic Commissioner Alvaro Bedoya voted no and issued a sharply-worded dissent. The 2-1-2 enabled Ferguson to move forward with additional steps targeting DEI.
On January 22, Ferguson announced that DEI was over at the FTC, calling DEI “a scourge on our institutions.” In furtherance of that effort, he:
closed the FTC’s DEI office—the Office of Workplace Inclusivity and Opportunity—and has placed all employees within that office on administrative leave;
terminated the Diversity Council;
removed materials promoting DEI on the Commission’s website;
ordered a review of all FTC contracts, which concluded that no FTC contracts currently in force contained DEI ideology;
ordered the heads of the Commission’s Bureaus and Offices to conduct an internal audit by tomorrow to ensure total compliance with President Trump’s orders, and to terminate any noncompliant programs immediately;
ordered an immediate review of all Commission orders to ensure that the Biden Administration’s DEI dictates did not make their way into formal Commission decisions; and
forbade the Commission from promoting DEI in any internal or external operations, rules, law-enforcement decisions, or hiring decisions.
At that time, questions remained about whether some DEI-related directives, documents, or programs—including the current strategic plan—could be brought into compliance under Ferguson’s existing authority. As a result, the chair moved for the Commission to delegate to him the authority to comply fully with President Trump’s orders. Ultimately, the Commission approved; however, two Democratic FTC members did not do so quietly.
Questions from Bedoya and Slaughter. Both Bedoya and Slaughter questioned the process by which Ferguson sought authority to move forward with additional efforts to end DEI at the agency.
Bedoya also took issue with the fact that Ferguson made the end of DEI-related activities his first public act. Instead of cancelling DEI, the chairman could have done any number of things to actually lower the cost of living and create opportunities for American businesses and workers,” said Bedoya.
Slaughter said in her separate statement that she voted “not participating” on the emergency motion because she “lacked sufficient time to consider the matter,” in light of short notice on the vote. She went on to say that Ferguson had “broad rights to manage the agency as he sees fit” and that he “has all the powers he needs to scrub” the agency’s 2022-2026 strategic plan. That strategic plan, among other things, calls for “a stronger emphasis on targeted recruitment efforts across the diversity spectrum” and the cultivation of a “diverse, inclusive, and engaged workforce.”
Ferguson response. In response to Bedoya’s dissenting statement, Ferguson said that Bedoya raised “objections to the outcome of an election that placed at the helm of the U.S. government a President who is committed to ending DEI, and who ordered that it be one of the government’s highest priorities.” Ferguson also disagreed with Slaughter’s position that the chair had the power to remove from the agency’s website the current strategic plan, which calls for DEI efforts. Moreover, he took the position that an officer of the United States cannot refuse to comply with the President’s lawful orders.
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