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S662119th CongressWALLET

MERIT Act of 2025

Sponsored By: Senator Sheehy, Tim [R-MT]

Introduced

Summary

Creates a unified standard for federal adverse employment actions across performance, misconduct, supervisors, SES, and furloughs. It would set one burden of proof, faster timelines, and new pay rules for Senior Executive Service positions while recasting how furloughs and grievances work.

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  • Federal employees: Would apply a single "preponderance of the evidence" standard to performance and misconduct actions. Employees would get notice, a chance to respond, representation, a 7 business day response window, and an MSPB appeal right within 10 business days.
  • Supervisors: Would be governed by a new supervisors subchapter with the same burden of proof and timelines. The bill would allow reductions in grade and prescribe pay mechanics when supervisors are placed in lower-graded positions.
  • Senior Executive Service (SES): Would repeal SES pay retention and replace it with pay-designation rules tying pay to the highest applicable rate in the placed or prior position. SES adverse actions would follow the unified cause and procedure rules and timelines.
  • Grievances and bargaining: Would bar grievances over adverse actions and many reductions in force as redefined. It would also remove settlement as a basis for filing grievances and align grievance-eligible matters with the new framework.
  • Furloughs, agencies, and oversight: Would split furloughs into general and emergency categories and codify procedures for short and long furloughs. It would require the Office of Personnel Management to issue implementing regulations within 180 days and expand agency recordkeeping and materials production for Merit Systems Protection Board review.

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Bill Overview

Analyzed Economic Effects

9 provisions identified: 0 benefits, 6 costs, 3 mixed.

Cutting annuities for felony service

This bill would let agencies exclude periods of "felonious service" from a federal annuity when the person is finally convicted of a related felony tied to official duties. Agencies would give at least 15 business days' notice and a short chance to respond. Agencies must send amended retirement records to OPM and OPM would recalculate annuities within 30 business days. A covered person could receive any lump‑sum credit for the excluded period. A spouse might keep annuity rights if the spouse fully cooperated with authorities.

Longer ban and recoup for bonuses

This bill would bar an agency from awarding a bonus to an employee until five years after the fiscal year of an adverse finding about that employee. If a bonus is paid in the same fiscal year an adverse finding is made, the agency could order repayment after notice and a hearing and must allow a repayment plan. Employees would have appeal rights to the Merit Systems Protection Board and must sign a repayment certification to get such bonuses.

Longer probation for new hires

This bill would extend most probationary periods from one year to two years. For jobs with formal training, the two years end two years after training is complete. For licensed jobs, the two years end two years after appointment or when the license is granted, whichever is later. Agencies must tell applicants about probation terms and notify supervisors at set intervals. Agency heads must certify decisions to retain someone after probation.

Changes to SES pay and appraisals

This bill would change how Senior Executive Service pay is set when an SES is placed or moved. Certain career appointees could get the highest of several applicable pay rates when placed. The SES appraisal rules could use civil‑service baselines when warranted. The bill also includes a technical rule altering how some SES pay placement rules interact with the new adverse‑action provisions.

Narrower grievance rights for employees

This bill would narrow what employees can file as a grievance. It would remove settlement as a grievance basis and bar grievances over certain Chapter 75 adverse actions. Furloughs tied to a reduction‑in‑force over 30 days, RIF separations, and RIF demotions would be excluded from grievance coverage.

Supervisor discipline and pay rules

This bill would create a supervisor‑specific adverse‑action process. Supervisors would have 7 business days to respond and agencies would generally decide within 15 business days. The bill would allow reductions in grade with pay cut to the lower grade starting on the date of reduction. Supervisors generally could not be put on paid administrative leave during appeals unless they report for duty or use approved leave.

Unified adverse-action rules for workers

This bill would create one set of rules for performance and misconduct actions across the civilian workforce. Agencies would use a preponderance‑of‑the‑evidence test and must apply listed decision factors. Employees would normally get 7 business days to respond and agencies would generally issue a final decision within 15 business days. Appeals to the Merit Systems Protection Board would generally be filed within 10 business days. The bill would also repeal the old Chapter 43 authority for new performance actions and expand who can face 14‑day suspensions.

New rules for furloughs and emergencies

This bill would split furloughs into general furloughs and emergency furloughs caused by appropriations lapses. OPM would write rules within 180 days explaining procedures and when each type can be used. Emergency furloughs could be any length and in some cases start without advance notice, though agencies must give notice as soon as reasonably practicable. Certain furlough appeals would go to the Merit Systems Protection Board and emergency furlough disputes could involve Administrative Law Judges.

Timing and union contract preemption

This bill would make most of its amendments take effect one year after enactment unless a different date is specified. The bill would override any collective bargaining agreement to the extent it conflicts with the new procedures. For the bill's timelines, "business day" would mean weekdays and federal legal holidays would be excluded.

Sponsors & CoSponsors

Sponsor

Sheehy, Tim [R-MT]

MT • R

Cosponsors

  • Sen. Cramer, Kevin [R-ND]

    ND • R

    Sponsored 2/20/2025

  • Sen. Hyde-Smith, Cindy [R-MS]

    MS • R

    Sponsored 2/20/2025

Roll Call Votes

No roll call votes available for this bill.

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