this post was submitted on 04 Jun 2025
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Those affected were all considered probationary employees, typically more recent hires although many had years of experience in their fields. The Commerce Department fired nearly 800 of them in late February and early March as part of the Trump administration's efforts to rapidly downsize the federal workforce. At the time, some employees were told their health benefits would end after a 31-day grace period.

But states sued over their sudden terminations, and in mid-March, a federal judge in Maryland found that their firings were likely illegal and ordered them reinstated. The Commerce Department brought them back and put them on paid administrative leave. Some were assured by their supervisors that their benefits would be restored. Others received new insurance cards in the mail.

Then just weeks later, an appeals court voided the lower court order. The very next day, April 10, the Commerce Department informed employees they were being fired once again, retroactive to their original termination dates.

Now, Lynch has asked Lutnick to explain why the Commerce Department did not honor its commitment to continue employees' health coverage for a 31-day period after their termination, challenging the department's decision to base insurance coverage on the employees' original termination dates after the appeals court allowed the firings to go forward. Cases challenging the firings continue to make their way through the courts.

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