Title 38, Veterans' BenefitsRelease 119-110
§714 Employees: Removal, Demotion, or Suspension Based on Performance or Misconduct
Title 38 › PART I — GENERAL PROVISIONS › CHAPTER 7 — EMPLOYEES › SUBCHAPTER I — GENERAL EMPLOYEE MATTERS › § 714
Summary
The Secretary can remove, demote, or suspend certain Department employees if their work or behavior deserves it. The Secretary may fire the employee from civil service, lower their grade and pay, or suspend them. If someone is demoted, they get the pay for the new grade starting on the demotion date. A demoted employee cannot be put on administrative leave while an appeal is happening and only gets paid if they work or are allowed to use accrued leave. If they do not report to work or use approved leave, they get no pay or benefits during the appeal period that follows a removal from civil service. The Department must give notice, the evidence, and a chance to respond. The whole process for notice, reply, and a final decision must be finished within 15 business days, and the employee has 7 business days to respond. Most removals, demotions, or suspensions longer than 14 days can be appealed to the Merit Systems Protection Board within 10 business days. Appeals are sped up: an administrative judge must issue a final decision within 180 days. If the Secretary’s action is supported by substantial evidence, the judge and the Board must uphold it and may not lessen the penalty. Certain stays and limits apply, and if an employee wins on appeal they can get back pay. Whistleblowers get extra protection: the Secretary generally may not act against someone who has filed a protected complaint without approval or until required reviews are finished. The Office of Special Counsel may stop its own investigations if it gives a written reason. Definitions: “covered individual” — a Department employee who is not a senior executive, certain special appointees, someone still in probation, or a political appointee; “suspend” — disciplinary leave without duties or pay for more than 14 days; “grade” — pay grade; “misconduct” — things like neglect of duty, wrongdoing, or refusing a directed reassignment; “political appointee” and “whistleblower disclosure” — defined elsewhere in law.
Full Legal Text
Title 38, §714
Veterans' Benefits, Source: USLM XML via OLRC
(a)In General.—
(1)The Secretary may remove, demote, or suspend a covered individual who is an employee of the Department if the Secretary determines the performance or misconduct of the covered individual warrants such removal, demotion, or suspension.
(2)If the Secretary so removes, demotes, or suspends such a covered individual, the Secretary may—
(A)remove the covered individual from the civil service (as defined in section 2101 of title 5);
(B)demote the covered individual by means of a reduction in grade for which the covered individual is qualified, that the Secretary determines is appropriate, and that reduces the annual rate of pay of the covered individual; or
(C)suspend the covered individual.
(b)Pay of Certain Demoted Individuals.—
(1)Notwithstanding any other provision of law, any covered individual subject to a demotion under subsection (a)(2) shall, beginning on the date of such demotion, receive the annual rate of pay applicable to such grade.
(2)(A)A covered individual so demoted may not be placed on administrative leave during the period during which an appeal (if any) under this section is ongoing, and may only receive pay if the covered individual reports for duty or is approved to use accrued unused annual, sick, family medical, military, or court leave.
(B)If a covered individual so demoted does not report for duty or receive approval to use accrued unused leave, such covered individual shall not receive pay or other benefits pursuant to subsection (d)(5).
(c)Procedure.—
(1)(A)The aggregate period for notice, response, and final decision in a removal, demotion, or suspension under this section may not exceed 15 business days.
(B)The period for the response of a covered individual to a notice of a proposed removal, demotion, or suspension under this section shall be 7 business days.
(C)Paragraph (3) of subsection (b) of section 7513 of title 5 shall apply with respect to a removal, demotion, or suspension under this section.
(D)The procedures in this subsection shall supersede any collective bargaining agreement to the extent that such agreement is inconsistent with such procedures.
(2)The Secretary shall issue a final decision with respect to a removal, demotion, or suspension under this section not later than 15 business days after the Secretary provides notice, including a file containing all the evidence in support of the proposed action, to the covered individual of the removal, demotion, or suspension. The decision shall be in writing and shall include the specific reasons therefor.
(3)The procedures under chapter 43 of title 5 shall not apply to a removal, demotion, or suspension under this section.
(4)(A)Subject to subparagraph (B) and subsection (d), any removal or demotion under this section, and any suspension of more than 14 days under this section, may be appealed to the Merit Systems Protection Board, which shall refer such appeal to an administrative judge pursuant to section 7701(b)(1) of title 5.
(B)An appeal under subparagraph (A) of a removal, demotion, or suspension may only be made if such appeal is made not later than 10 business days after the date of such removal, demotion, or suspension.
(d)Expedited Review.—
(1)Upon receipt of an appeal under subsection (c)(4)(A), the administrative judge shall expedite any such appeal under section 7701(b)(1) of title 5 and, in any such case, shall issue a final and complete decision not later than 180 days after the date of the appeal.
(2)(A)Notwithstanding section 7701(c)(1)(B) of title 5, the administrative judge shall uphold the decision of the Secretary to remove, demote, or suspend an employee under subsection (a) if the decision is supported by substantial evidence.
(B)Notwithstanding title 5 or any other provision of law, if the decision of the Secretary is supported by substantial evidence, the administrative judge shall not mitigate the penalty prescribed by the Secretary.
(3)(A)The decision of the administrative judge under paragraph (1) may be appealed to the Merit Systems Protection Board.
(B)Notwithstanding section 7701(c)(1)(B) of title 5, the Merit Systems Protection Board shall uphold the decision of the Secretary to remove, demote, or suspend an employee under subsection (a) if the decision is supported by substantial evidence.
(C)Notwithstanding title 5 or any other provision of law, if the decision of the Secretary is supported by substantial evidence, the Merit Systems Protection Board shall not mitigate the penalty prescribed by the Secretary.
(4)In any case in which the administrative judge cannot issue a decision in accordance with the 180-day requirement under paragraph (1), the Merit Systems Protection Board shall, not later than 14 business days after the expiration of the 180-day period, submit to the Committee on Veterans’ Affairs of the Senate and the Committee on Veterans’ Affairs of the House of Representatives a report that explains the reasons why a decision was not issued in accordance with such requirement.
(5)(A)A decision of the Merit Systems Protection Board under paragraph (3) may be appealed to the United States Court of Appeals for the Federal Circuit pursuant to section 7703 of title 5 or to any court of appeals of competent jurisdiction pursuant to subsection (b)(1)(B) of such section.
(B)Any decision by such Court shall be in compliance with section 7462(f)(2) of this title.
(6)The Merit Systems Protection Board may not stay any removal or demotion under this section, except as provided in section 1214(b) of title 5.
(7)During the period beginning on the date on which a covered individual appeals a removal from the civil service under subsection (c) and ending on the date that the United States Court of Appeals for the Federal Circuit issues a final decision on such appeal, such covered individual may not receive any pay, awards, bonuses, incentives, allowances, differentials, student loan repayments, special payments, or benefits related to the employment of the individual by the Department.
(8)To the maximum extent practicable, the Secretary shall provide to the Merit Systems Protection Board such information and assistance as may be necessary to ensure an appeal under this subsection is expedited.
(9)If an employee prevails on appeal under this section, the employee shall be entitled to backpay (as provided in section 5596 of title 5).
(10)If an employee who is subject to a collective bargaining agreement chooses to grieve an action taken under this section through a grievance procedure provided under the collective bargaining agreement, the timelines and procedures set forth in subsection (c) and this subsection shall apply.
(e)Whistleblower Protection.—
(1)In the case of a covered individual seeking corrective action (or on behalf of whom corrective action is sought) from the Office of Special Counsel based on an alleged prohibited personnel practice described in section 2302(b) of title 5, the Secretary may not remove, demote, or suspend such covered individual under subsection (a) without the approval of the Special Counsel under section 1214(f) of title 5.
(2)In the case of a covered individual who has made a whistleblower disclosure to the Assistant Secretary for Accountability and Whistleblower Protection, the Secretary may not remove, demote, or suspend such covered individual under subsection (a) until—
(A)in the case in which the Assistant Secretary determines to refer the whistleblower disclosure under section 323(c)(1)(D) of this title to an office or other investigative entity, a final decision with respect to the whistleblower disclosure has been made by such office or other investigative entity; or
(B)in the case in which the Assistant Secretary determines not to refer the whistleblower disclosure under such section, the Assistant Secretary makes such determination.
(f)Termination of Investigations by Office of Special Counsel.—
(1)Notwithstanding any other provision of law, the Special Counsel (established by section 1211 of title 5) may terminate an investigation of a prohibited personnel practice alleged by an employee or former employee of the Department after the Special Counsel provides to the employee or former employee a written statement of the reasons for the termination of the investigation.
(2)Such statement may not be admissible as evidence in any judicial or administrative proceeding without the consent of such employee or former employee.
(g)Vacancies.—
In the case of a covered individual who is removed or demoted under subsection (a), to the maximum extent feasible, the Secretary shall fill the vacancy arising as a result of such removal or demotion.
(h)Definitions.—
In this section: (1)
(2)The term “suspend” means the placing of an employee, for disciplinary reasons, in a temporary status without duties and pay for a period in excess of 14 days.
(3)The term “grade” has the meaning given such term in section 7511(a) of title 5.
(4)The term “misconduct” includes neglect of duty, malfeasance, or failure to accept a directed reassignment or to accompany a position in a transfer of function.
(5)The term “political appointee” means an individual who is—
(B)a limited term appointee, limited emergency appointee, or noncareer appointee in the Senior Executive Service, as defined under paragraphs (5), (6), and (7), respectively, of section 3132(a) of title 5; or
(C)employed in a position of a confidential or policy-determining character under schedule C of subpart C of part 213 of title 5, Code of Federal Regulations, or successor regulation.
(6)The term “whistleblower disclosure” has the meaning given such term in section 323(g) of this title.
Legislative History
Notes & Related Subsidiaries
Editorial Notes
Prior Provisions
A prior section 714 was renumbered section 1914 of this title.
Amendments
2019—Subsec. (e)(2)(B). Pub. L. 116–61 substituted “to refer” for “to the refer”.
Reference
Citations & Metadata
Citation
38 U.S.C. § 714
Title 38, Veterans' Benefits
Last Updated
Sep 22, 2026
Release point: 119-110