Title 38Veterans' BenefitsRelease 119-73

§721 Recoupment of bonuses or awards paid to employees of Department

Title 38 › Part PART I— - GENERAL PROVISIONS › Chapter CHAPTER 7— - EMPLOYEES › Subchapter SUBCHAPTER I— - GENERAL EMPLOYEE MATTERS › § 721

Last updated Apr 6, 2026|Official source

Summary

The Secretary can order a Department employee to pay back all or part of a bonus or award paid under title 5 (including chapters 45 or 53) or under this title if the Secretary finds the employee behaved badly or did poor work before the payment and the bonus would not have been paid if that had been known. Before making the order, the employee must get notice and up to 10 business days to answer. If the employee answers, the Secretary must issue the order within 5 business days after the answer. If the employee does not answer, the Secretary must issue the order within 15 business days after the notice. After the order is issued, the employee may appeal to the Director of the Office of Personnel Management within 7 business days. The Director must make a final decision within 30 business days after getting the appeal.

Full Legal Text

Title 38, §721

Veterans' Benefits — Source: USLM XML via OLRC

(a)Notwithstanding any other provision of law, the Secretary may issue an order directing an employee of the Department to repay the amount, or a portion of the amount, of any award or bonus paid to the employee under title 5, including under chapters 45 or 53 of such title, or this title if—
(1)the Secretary determines that the individual engaged in misconduct or poor performance prior to payment of the award or bonus, and that such award or bonus would not have been paid, in whole or in part, had the misconduct or poor performance been known prior to payment; and
(2)before such repayment, the employee is afforded—
(A)notice of the proposed order; and
(B)an opportunity to respond to the proposed order by not later than 10 business days after the receipt of such notice; and
(3)the Secretary issues the order—
(A)in the case of a proposed order to which an individual responds under paragraph (2)(B), not later than five business days after receiving the response of the individual; or
(B)in the case of a proposed order to which an individual does not respond, not later than 15 business days after the Secretary provides notice to the individual under paragraph (2)(A).
(b)(1)Upon the issuance of an order by the Secretary under subsection (a) with respect to an individual, the individual shall have an opportunity to appeal the order to the Director of the Office of Personnel Management before the date that is seven business days after the date of such issuance.
(2)The Director shall make a final decision with respect to an appeal under paragraph (1) within 30 business days after receiving such appeal.

Legislative History

Notes & Related Subsidiaries

Editorial Notes

Prior Provisions

Prior section 721 and 722 were renumbered section 1921 and 1922 of this title, respectively.

Statutory Notes and Related Subsidiaries

Effective Date

Pub. L. 115–41, title II, § 204(c),
June 23, 2017, 131 Stat. 876, provided that: “Section 721 of title 38, United States Code, as added by subsection (a), shall apply with respect to an award or bonus paid by the Secretary of Veterans Affairs to an employee of the Department of Veterans Affairs on or after the date of the enactment of this Act [
June 23, 2017].”

Reference

Citations & Metadata

Citation

38 U.S.C. § 721

Title 38Veterans' Benefits

Last Updated

Apr 6, 2026

Release point: 119-73