The Merit Systems Protection Board (MSPB) has dismissed an appeal from Denyzio Laboy, a former employee of the Department of Homeland Security (DHS), regarding his termination. The board ruled that it lacked jurisdiction over the case, which stems from Laboy's appointment to an excepted-service position as an Equal Employment Specialist. This decision is significant as it clarifies the limits of the board's authority in employment disputes involving federal employees.

Laboy's case began when he was appointed to his position on November 6, 2023, with a two-year trial period. The agency informed him that at the end of this period, it could decide whether to convert his position to a permanent one. However, on the second anniversary of his appointment, Laboy received an email stating that the agency had decided not to retain him beyond his probationary period, effectively terminating his employment.

Laboy appealed this decision, arguing that he met the definition of an employee under federal law and that he deserved due process rights, including written notice and an opportunity to respond before his termination. The case eventually reached the MSPB, where an administrative judge initially ruled in Laboy's favor, stating that he was entitled to due process rights.

However, the MSPB subsequently reopened the case for further review. The board's ruling, issued on October 22, 2026, found that it lacked the authority to consider Laboy's claims regarding the validity of Civil Service Rule XI, which was established by an executive order. The board stated, "We find that the Board lacks the authority to consider the appellant’s assertion that the promulgation of Civil Service Rule XI violates the Administrative Procedure Act (APA)." This ruling effectively dismissed Laboy's appeal for lack of jurisdiction.

The MSPB's decision is based on the interpretation of Civil Service Rule XI, which states that an employee's service terminates at the end of their probationary or trial period unless the agency certifies that their continued employment would benefit the federal service. In Laboy's case, the agency did not provide such certification, leading the board to conclude that his appointment expired on November 5, 2025.

This ruling has implications for other federal employees in similar situations, as it reinforces the authority of the executive branch in determining employment regulations and limits the MSPB's jurisdiction over certain cases. The decision clarifies that challenges to agency rules under the APA must be directed to the federal judiciary rather than the MSPB.

Looking ahead, Laboy may still seek judicial review of the MSPB's decision. He has the option to file a petition with the U.S. Court of Appeals for the Federal Circuit within 60 days of the ruling. This case highlights the ongoing complexities surrounding employment law within federal agencies and the significant impact of executive orders on civil service regulations.