Department of Defense Sued by Labor Unions

Joe Wallace

In early March, the Department of Defense tried to terminate DoD labor union contracts via executive order. But a federal lawsuit filed in early July in the U.S. District Court for the District of Maryland challenges a directive from the Secretary of Defense that attempts to comply with that executive order by ordering the termination of hundreds of collective bargaining agreements (CBAs) across the Department of Defense.

Department of Defense Sued by Labor Unions

The litigation was brought by more than 20 local affiliates of the American Federation of Government Employees (AFGE) and three locals of the National Federation of Federal Employees (NFFE-IAM). The lawsuit challenges the authority of the move, which instructed DOD agencies to terminate most existing CBAs within 24 hours.

Key Legal Claims

• The unions contend the DOD failed to provide a valid explanation for reversing its year-long practice of honoring existing contracts.
• The plaintiffs argue the DOD applied the executive order’s exclusions broadly, capturing positions—such as those not involved in intelligence, counterintelligence, or security—that the order itself did not intend to cover.
• The lawsuit claims that the 24-hour termination window created disruption by stripping workers of established grievance procedures, leave policies, and workplace safety protocols.
• The lawsuit states that tens of thousands of civilian employees, many of whom are veterans or members of military families, lost rights established under CBAs that had been in effect for over 50 years.

The Pentagon contends that centralized, top-down management is necessary to modernize the joint force and ensure that personnel deployment and operations remain “agile”.  

DoD Violates Federal Labor Laws?

According to the plaintiffs’ documents filed in federal court, the termination of federal labor contracts violates federal labor law.

“Secretary Hegseth’s recent action to terminate DoD’s CBAs violates the Administrative Procedure Act. DoD continued to honor its CBAs for more than a year after the issuance of EO 14251, and It could continue to honor them now.”

“Yet Secretary Hegseth’s April 9, 2026, Memorandum reversed DoD’s policy to leave CBAs in place without any reasoned explanation for the reversal and directed that DoD agencies terminate their CBAs within just 24 hours without considering the reliance interests at stake and the chaotic disruptions that predictably resulted.”

Furthermore, the plaintiffs contend “….while EO 14251 does not apply to any employees—regardless of occupation—at the “local employing offices” where DoD police officers, security guards, and firefighters serve, DoD agencies acted contrary to law by terminating CBAs at some of those offices for employees who are not police officers, security guards, or firefighters.”

Because DoD has broken federal labor law, the plaintiffs contend that the DoD’s actions, “including Secretary Hegseth’s Memorandum, must be vacated and set aside.”

The Maryland court is currently reviewing the plaintiffs’ request for a preliminary injunction. If granted, the injunction would stay the termination of these contracts while the court considers the merits of the case. The outcome will clarify the scope of executive authority to alter labor conditions for the federal civilian workforce unilaterally. This is a developing story.