Feds Propose Easier Way to Fire Underperforming Employees
Published Date: 7/2/2026
Proposed Rule
Summary
The Office of Personnel Management and Merit Systems Protection Board want to make it easier for agencies to hold employees accountable for poor work or bad behavior. They’re proposing clearer rules for performance-based actions and better training for supervisors. This affects federal employees and agencies, with comments open until August 3, 2026, and aims to save time and improve fairness without extra costs.
Analyzed Economic Effects
8 provisions identified: 0 benefits, 6 costs, 2 mixed.
30-Day Limit For Improvement Periods
OPM proposes to limit the formal opportunity to demonstrate acceptable performance to a maximum of 30 calendar days, prohibit agencies from adding separate informal performance assistance periods that extend that time, and state that assistance provided before or during the opportunity satisfies the legal assistance requirement.
Removal Becomes Default Penalty
For unacceptable performance, agencies would be required to propose removal as the default penalty; agencies alone may mitigate to a reduction in grade or lesser penalty at the sole discretion of a higher official.
Limit On Taxpayer-Funded Union Representation
The proposal would prohibit the use of taxpayer-funded union time under 5 U.S.C. 7131(d) for a Federal employee serving as a representative during procedures established under subparts B and D of part 752; OPM notes taxpayers subsidize union representation at a total compensation rate of $64.05 per hour and cites an FY2024 annual cost of more than $207 million (FY2019 was about $135 million). Existing collective bargaining agreements providing such time would be affected at their expiration.
Annual Supervisor Training Requirement
Agencies would be required to provide annual training (instead of once every three years) for supervisors, managers, and executives and add eight new subjects, including procedures for holding employees accountable, effective use of probationary periods, and handling reports of hostile work environment, retaliation, or harassment.
Faster Standardized Timelines For Actions
OPM proposes standardized timelines: generally effectuate a proposed chapter 43 action no later than 30 days after the employee is notified; require the employee to answer within 7 to 10 calendar days (with a possible agency-granted 10-day extension to consider settlement); and require agencies to make a final written decision within 30 days after the advance notice period expires.
MSPB Replaces Douglas With Totality Test
The Merit Systems Protection Board proposes to stop applying the 12 Douglas factors in penalty review and instead evaluate penalties under a flexible 'totality of the circumstances' standard when reviewing agency adverse actions under Chapter 75.
Ban On 'Clean Record' Settlement Provisions
OPM would prohibit agencies from agreeing to erase, remove, alter, or withhold information about an employee's performance or conduct from Federal personnel records as a condition of settling complaints or adverse actions; agencies may still correct records found to be inaccurate or illegal, and neutral references to non-Federal employers remain allowed.
Stricter Representation And Medical-Waiver Rules
The proposed rule requires employees to provide written designation of a chosen representative, allows agencies to deny an internal employee representative in limited circumstances (conflict of interest, inability to release from duties, or unreasonable cost), and requires employees to raise any medical issue affecting performance in their answer (failure to do so is treated as a waiver except where prohibited by statute).
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Key Dates
Department and Agencies
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