HHS staffers sue over ‘hopelessly error-ridden' layoffs
This story was originally published on Healthcare Dive. To receive daily news and insights, subscribe to our free daily Healthcare Dive newsletter.
Fired HHS employees are suing the Trump administration for illegally terminating thousands of employees in the federal health department's spring restructuring based on incorrect records.
Seven affected staffers filed the lawsuit, which seeks class-action status, Tuesday in a D.C. district court against the HHS, the Department of Government Efficiency and other agencies and top leaders in the Trump administration.
The lawsuit seeks monetary damages for HHS employees who were let go with termination notices that contained errors. Lawyers estimate that most of the roughly 10,000 employees who were fired during the April reduction-in-force, or RIF, would be members of the class.
The HHS began notifying employees that they would be laid off on April 1 as part of a departmental restructuring, amid the Trump administration's larger push to drastically reduce the federal workforce.
The process was quickly dogged with questions about its legitimacy, with many affected staffers noting that termination notices included incorrect performance scores, office names and other information.
Healthcare Dive has reported extensively on the potential illegality of the RIF, including paperwork issues, the closure of congressionally mandated offices and inconsistencies with how the Trump administration decided which employees to terminate.
Now, a group of terminated HHS staffers are suing over the 'hopelessly error-ridden' personnel records that were used to underpin the cuts.
Performance ratings, which range from 1 to 5 and are assigned to federal staff to appraise their performance, were frequently wrong on RIF notices, the workers allege in their suit. In addition, employees' paperwork had seemingly random codes determining their eligibility for the RIF, and informed them that their entire division was being terminated when it wasn't.
Such errors are a major point of concern, given that data affects whether a specific employee should have been caught up in a RIF, their severance pay and the availability of stopgap healthcare coverage — and can affect future career prospects.
HHS' actions violated the Privacy Act, which gives individuals recourse if an agency acts on the basis of inaccurate personnel records, according to the suit.
An HHS spokesperson declined to comment, citing the ongoing litigation. However, the agency in the past has blamed siloed and disorganized recordkeeping for discrepancies in RIF paperwork.
'It is, of course, little solace to these Plaintiffs that they were fired because of 'siloed' recordkeeping. Nor is it any comfort to know that many of them had been fired by 'mistake,'' the lawsuit reads. 'For these Plaintiffs, HHS's intentional failure to maintain complete and accurate records before making life-changing employment decisions was a clear violation of the law.'
HHS Secretary Robert F. Kennedy Jr. has publicly acknowledged that mistakes were made during the restructuring due to the agency's desire to move quickly, and pledged to reinstate staff who were improperly let go. The HHS has since rescinded RIF notices for hundreds of employees. However, the secretary has brushed off ongoing concerns about the cuts and failed to provide a comprehensive accounting of the layoffs.
'Because the decisionmakers at these agencies were working with such flawed data, they barely knew who they were cutting,' Clayton Bailey, a lawyer at the Civil Service Law Center, which is bringing the suit, said in a statement. 'These employees suffered the consequences.'
The RIF was supposed to go into effect early June. However, the firings were paused after a California federal judge issued an injunction in a separate lawsuit over the administration slashing the federal workforce without Congress' say-so.
A group of states are also suing the Trump administration seeking to undo the HHS cuts, arguing the department's critical health work has been stymied as a result of the restructuring.
Many affected workers remain on administrative leave.
Recommended Reading
HHS layoffs may be illegal, legal experts say
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
UPI
an hour ago
- UPI
'Unite for Vets' rally in Washington, D.C., protest overhaul of VA
1 of 8 | Veterans, military families and demonstrators gather on the National Mall in Washington, D.C.,, to participate in a Unite for Veterans Rally to protest the Trump Administration's cuts to staffing and programs at the Department of Veterans Affairs. Photo by Annabelle Gordon/UPI | License Photo June 6 (UPI) -- Several thousand veterans converged on the National Mall on Friday at a rally among 200 events nationwide against a proposed overhaul that includes staffing reduction and some services shifted. The Veterans Administration counters the new proposed budget is higher than last year, processing of claims have sped up and it's easier to get benefits. Veterans, military families and others participated in the Unite for Veterans, Unite for America Rally on the 81st anniversary of D-Day, which was the Allies' amphibious invasion of German-occupied France. The protests, which were organized by a union, took place at 16 state capitol buildings and more than 100 other places across 43 states. "We are coming together to defend the benefits, jobs and dignity that every generation of veterans has earned through sacrifice," Unite for Veterans said on its website. "Veteran jobs, healthcare, and essential VA services are under attack. We will not stand by." Speakers in Washington included Democrats with military backgrounds: Sen. Tammy Duckworth of Illinois, former Rep. Conor Lamb of Pennsylvania and California Rep. Derek Tran. There were signs against President Donald Trump, VA Secretary Doug Collins and Elon Musk, the multi-billionaire who ran the Department of Government Efficiency. They said those leaders are betraying the country's promises to troops. "Are you tired of being thanked for our service in the public and stabbed in our back in private?" Army veteran Everett Kelly, the national president of the American Federation of Government Employees, asked the crowd. "For years, politicians on both sides of the aisle have campaigned on their support of veterans, but once they get into office, they cut our benefits, our services. They take every opportunity to privatize our health care." The Trump administration plans to cut 83,000 VA staffers and shift more money from the federal health care system to private-sector clinics. The administration's proposed budget for the VA, released on Friday, slashes spending for "medical services" by $12bn - or nearly 20% - an amount offset by a corresponding 50% boost in funding for veterans seeking healthcare in the private sector. The Department of Veterans Affairs employs approximately 482,000 people, including 500,000 workers at 170 hospitals and 1,200 local clinics in the nation's largest health care system. In all, there are 15.8 million veterans, which represents 6.1% of the civilian population 18 years and older. VA officials said the event was misguided. "Imagine how much better off veterans would be if VA's critics cared as much about fixing the department as they do about protecting its broken bureaucracy," VA press secretary Peter Kasperowicz said in a statement to UPI. "The Biden Administration's VA failed to address nearly all of the department's most serious problems, such as rising health care wait times, growing backlogs of veterans waiting for disability compensation and major issues with survivor benefits." Kasperowicz told UPI disability claims backlog is already down 25% since Trump took office on Jan. 20 after it increased 24% during the Biden administration. He said VA has opened 10 new healthcare clinics around the country, and Trump has proposed a 10% budget increase to $441.3 billion in fiscal year 2026. The administration's proposed budget for the VA reduces spending for "medical services" by $12 billion - or nearly 20% - which is offset by a 50% boost in funding for veterans seeking healthcare in the private sector. Kasperowicz said the "VA is accelerating the deployment of its integrated electronic health record system, after the program was nearly dormant for almost two years under the Biden Administration." The event was modeled after the Bonus Army protests of the 1930s, when veterans who served in World War I gathered in the nation's capital to demand extra pay denied after leaving the service. Irma Westmoreland, a registered nurse working at a VA hospital and the secretary-treasurer of National Nurses United, told the crowd in Washington: "It's important for every person to keep their job, from the engineering staff to the housekeeper to the dietary staff. When cuts are made, the nursing and medical staff will have to pick up all their work that needs to be done."
Yahoo
an hour ago
- Yahoo
Why Oscar Health, Inc. (OSCR) Soared On Thursday
We recently published a list of . In this article, we are going to take a look at where Oscar Health, Inc. (NYSE:OSCR) stands against other best-performing stocks on Thursday. Oscar Health snapped a five-day losing streak on Thursday, jumping 10.6 percent to close at $15.65 apiece as investors resorted to bargain-hunting while waiting for more concrete developments on the Trump administration's Medicare Advantage review. Earlier this year, lawmakers passed a $5-trillion tax-and-spending package that shaves as much as $900 billion in Medicaid, which servers over 70 million low-income households. A close up of a patient and a healthcare professional engaging in conversation, showing the company's commitment to patient care. Now, Senate Republicans to broaden savings by looking for supposed inefficiencies in the Medicare program for senior citizens. In the first quarter of the year, Oscar Health, Inc. (NYSE:OSCR) registered a 55-percent increase in attributable net income of $275 million versus the $177 million registered in the same period last year. Revenues rose by 42 percent to $3.046 billion from $2.142 billion year-on-year. Overall, OSCR ranks 5th on our list of best-performing stocks on Thursday. While we acknowledge the potential of OSCR as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
2 hours ago
- Yahoo
In Lansing, Democrats warn Medicaid and SNAP cuts would be a 'perfect storm' for the poor
U.S. Sen. Elissa Slotkin (D-Holly) and U.S. Rep. Kristen McDonald Rivet (D-Bay City) at a June 6, 2025 town hall in Lansing. | Kyle Davidson Members of the Michigan Democratic Party laid out the impacts of congressional Republicans' 'big beautiful bill' at a town hall on Friday, calling on residents of Michigan's 7th Congressional District to help educate their friends and family as well. A few hundred supporters packed into the gym of Everett High School in Lansing as U.S. Sen. Elissa Slotkin (D-Holly), U.S. Rep. Kristen McDonald Rivet (D-Bay City) and Michigan Democratic Party Chair Curtis Hertel detailed how the Trump administration's policies would impact everyone, particularly individuals with limited income. The Michigan Democratic Party has hosted several similar events in Republican districts throughout the state, Hertel said, noting House Republicans had been instructed to avoid town halls with their constituents. 'The most basic thing for a public servant is to be able to sit and answer questions. … The least someone can do is sit down with people and explain their votes' Hertel said. And the 7th Congressional District's current representative, Tom Barrett (R-Charlotte) has a lot of explaining to do, Hertel said, slamming Barrett for supporting Republican's spending plan, and arguing the representative failed to stand up to the President and make himself available to his constituents A Barrett spokesperson did not respond to a request for comment. Prior to taking questions, McDonald Rivet slammed the Republican spending effort, telling audience members that it would take away healthcare and raise the cost of medicine, education and energy in order to deliver a tax break to the wealthy. 'Oh, and by the way, it's going to increase the deficit by several trillion dollars,' She said. Slotkin looked back on the president's first term, when Trump was looking to overturn the Affordable Care Act, which expanded access to Medicaid and barred insurance providers from denying people coverage or charging them due to preexisting health conditions. 'It was the first thing he talked about when he got sworn in, he even had the House of Representatives vote to repeal Obamacare. And now we not only still have it, we expanded it, and how? Because we educated people,' Slotkin said. However, rather than cutting people's healthcare outright, Slotkin argued Trump is aiming to hide those cuts by requiring individuals to reregister for Medicaid every six months, making it harder to qualify and more difficult to sign up. While the current proposal would implement work requirements for Medicaid recipients, Slotkin noted it also raises the age limit for those requirements to 64. According to KFF, an independent health policy organization, 92% of medicaid recipients under 65 are already working full or part time. The nonpartisan Congressional Budget Office estimated that Republican's budget plan would result in 10.9 million additional people being uninsured in 2034, with 7.8 million fewer individuals on Medicaid due to the policy's proposed work requirements. Even individuals who are not on Medicaid will feel the impacts of cuts to the program, Slotkin said, noting that nursing homes, hospitals and mental health facilities all rely on Medicaid funding. 'I would just say this bill is designed to really be a perfect storm for poor people. If you are living at or below the poverty line, you're getting hit in every direction. Medicaid, your health care; SNAP your food; a bunch of programs, right, that you depend on. … They are paying for those tax benefits for the most wealthy by really the perfect storm of cuts for the poorest among us,' Slotkin said. On top of cutting SNAP benefits by $300 billion, the Department of Government Efficiency had canceled $1 billion in funding to programs supporting school meals and food banks, McDonald Rivet said. 'So you're that hungry kid and you have lost access to a food bank. You have lost access to food at school, and now you don't have SNAP benefits. This is the America that this bill creates,' McDonald Rivet said. Alongside questions on cuts to SNAP and Medicaid, audience members asked the lawmakers about the legal challenges levied against the Trump administration, and Democrats' plans to counter Republicans heading into the 2026 mid-term election. On Friday, the Trump Administration backed down in its resistance of a Supreme Court order demanding that the administration facilitate the return of Kilmar Abrego Garcia, who was wrongly deported to El Salvador three months ago. However, the fight goes beyond Abrego Gracia, into whether the executive branch needs to obey orders from the Supreme Court, Slotkin said. 'Now, we haven't had to deal with this issue in the years past because Democrats and Republicans have largely said, 'Huh, if the Chief Justice of the Supreme Court issues a court order, we're going to follow it.' Trump is pushing the boundaries on all the democratic values and principles most of us grew up with,' Slotkin said. Should an individual defy a federal court order, U.S. marshals would eventually be sent to enforce that order, Slotkin said. However, the U.S. marshals are controlled by the United States attorney general. Should the U.S. marshals receive a request to enforce a Supreme Court order against the president, Slotkin raised the question on whether Attorney General Pam Bondi, a Trump loyalist, would approve it. 'We've needed to have this fight. We need to have it out. We need a court order that he needs to obey, and we need to precipitate this conversation on the U.S. marshals. But today was an important sign that they don't want to get to that point. They don't want to wait until the U.S. marshals are potentially getting an order to activate,' Slotkin said. In preparing to take on the Trump Administration, Slotkin said she'd gone back to her roots in national security and crafted a war plan in the form of a 17-page powerpoint, with plans to lay out her vision of the nation's future under Democratic leadership. 'It's about facing our problems head on and saying the only way we do well as a country, the only way that we have a strong middle class going forward, the American Dream going forward, is if we face these issues and have a vision. And it's economic, it's about national security, and it's about our democracy,' Slotkin said. SUBSCRIBE: GET THE MORNING HEADLINES DELIVERED TO YOUR INBOX
