Union sues to void IRS ban on unearned leave, citing unconstitutional appointment

The National Treasury Employees Union has taken the Internal Revenue Service to federal court, seeking an injunction against a policy that bars employees from using advanced annual or sick leave. The union’s filing argues that the directive was issued by Frank Bisignano, the agency’s chief executive officer, a title created under the previous administration, and that his de facto leadership breaches the Constitution’s Appointments Clause because he was never nominated or confirmed as IRS commissioner.

Bisignano, who also heads the Social Security Administration, previously imposed an identical restriction there, and the union notes that no other agency has adopted such a sweeping prohibition. The complaint further claims the rule is “arbitrary and capricious” under the Administrative Procedure Act. The IRS, currently without a confirmed commissioner, maintains that the measure supports a high-performing workforce and aligns with responsible stewardship of taxpayer dollars. The union warns that allowing such appointments could create a government run by unelected CEOs, contrary to the Framers’ intent.