Title 5 › Part PART III— - EMPLOYEES › Subpart Subpart B— - Employment and Retention › Chapter CHAPTER 33— - EXAMINATION, SELECTION, AND PLACEMENT › Subchapter SUBCHAPTER VI— - ASSIGNMENTS TO AND FROM STATES › § 3373
A Federal employee sent to work for a State or local government is treated while away either as detailed to his regular agency job or as on unpaid leave from it. The State or local government may or may not pay for travel and for all or part of the employee’s pay. Any money repaid goes back into the agency’s funds. If the employee is on unpaid leave and the State or local pay is less than his agency pay, the agency must pay the difference. He keeps earning annual and sick leave as if he were still in the agency. He can keep federal life and health insurance if he keeps paying his share through the agency. If required employee and agency retirement payments are made into the federal retirement fund or another applicable system, the time counts for pay steps, retention, leave accrual, and retirement as if he had stayed in the agency. For unemployment, he may choose to claim either under State law or the federal system. If the employee on unpaid leave is injured, disabled, or dies while doing assigned work, he is treated as a federal employee for federal workers’ compensation. If both federal and State/local benefits apply, the worker or his dependents must choose which to take within one year (or later for good cause); that choice is final except as law says. Choosing State benefits may prevent getting a federal annuity and the same State benefits for the same period, but the person may take whichever benefit is larger, still receive an annuity that has already accrued from service, and receive concurrent State benefits for someone else’s death.
Full Legal Text
Government Organization and Employees — Source: USLM XML via OLRC
Legislative History
Reference
Citation
5 U.S.C. § 3373
Title 5 — Government Organization and Employees
Last Updated
Apr 6, 2026
Release point: 119-73