OPM Modifies 'Deferred Resignation' Policies Amidst Union-Led Judicial Contestation
The Office of Personnel Management (OPM) has issued additional guidance for the deferred resignation program, following a court ruling that cleared the way for its implementation. The memo from Acting OPM Director Charles Ezell provides agencies with instructions on how to proceed with the program.
The guidance requires federal workers aged 40 and over to receive a supplemental notice, making written disclosure of additional, agency-specific disclosures required by the Older Workers Benefit Protection Act. Federal workers aged 40 and older must also have a seven-day window after signing the agreement to revoke it.
Agencies have been advised to treat the deferred resignation program as an "exit incentive program" under the Age Discrimination in Employment Act. This means that agencies must provide a 45-day window for federal workers aged 40 and older to consider the program.
The deferred resignation program, which initially set a deadline of February 6 for employees to decide whether to take the program, has been paused. Employees who opted into the program but whose positions were exempted by management directly should be notified. Ineligible employees should be informed that if they nonetheless wish to end their employment, they should contact their agency's HR office.
The guidance also advises federal workers aged 40 and older of their right to seek legal representation prior to signing the agreement.
The Trump administration and federal workers are awaiting a written decision from U.S. District Judge George A. O'Toole Jr. regarding the White House and Elon Musk's "deferred resignation" program. Judge O'Toole is preparing a written decision on whether to issue a temporary restraining order further delaying its implementation.
Democrats, employee groups, and federal employment experts have expressed concerns about the proposal's dubious legality and provisions that may allow the government to renege on promised pay and benefits.
In a separate development, the American Federation of Government Employees (AFGE) highlighted the removal of Federal Labor Relations Authority Chairwoman Susan Tsui Grundmann and Merit Systems Protection Board Member Cathy Harris. AFGE stated that the terminations of Grundmann and Harris have weakened the entities and undermined their bipartisan composition.
There is no information available about the exact timing of the Federal Court's decision regarding jurisdiction on Elon Musk's fork program and the Trump administration. The Justice Department has argued that federal courts lack jurisdiction to hear the unions' case because employment actions and labor issues traditionally are channeled before those two bodies first.
As the situation continues to develop, it is important for federal workers to stay informed and seek legal advice if they have concerns about the deferred resignation program or any other employment-related issues.
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