Title 5 › Part III— EMPLOYEES › Subpart B— Employment and Retention › Chapter 33— EXAMINATION, SELECTION, AND PLACEMENT › Subchapter VI— ASSIGNMENTS TO AND FROM STATES › § 3373
Federal employees sent to work for a State or local government are treated either as temporarily detailed to their agency or as on leave without pay. The State or local government may pay some or all travel costs and some or all of the employee’s pay while the person is assigned. Any money paid back to the Federal agency must go into the same agency account that paid those costs. If the employee is on leave without pay, the agency must make up any shortfall if the State or local pay is lower than the federal rate. The employee keeps annual and sick leave as if they stayed with the agency. They can keep their Federal life and health insurance if they keep paying the employee share. The time spent working for the State or local government counts for step increases, retention, leave accrual, and retirement rules if the right retirement contributions are paid by the employee and the agency. That service also counts as Federal service for federal wage and unemployment purposes, and the employee may choose to claim unemployment either under State law or the federal system for that time. If the employee is hurt or dies because of work during the assignment, they are treated like a Federal employee for federal injury benefits. If they can get both State/local and federal benefits for the same injury or death, they must choose which to take within one year (unless more time is allowed). Choosing is final, and an employee cannot get both an annuity and State/local disability pay for the same time, though rules allow taking the greater benefit or other specific survivor or service-based benefits.
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 3, 2026
Release point: 119-73not60