Federal Civil Service & Merit System

The federal civil service — governed by Title 5 of the U.S. Code and administered by the Office of Personnel Management (OPM) — employs approximately 2.2 million civilian workers (excluding the Postal Service and military) across hundreds of agencies, making the U.S. government the largest employer in the country. The merit system, established by the Pendleton Civil Service Reform Act (1883) and substantially expanded by the Civil Service Reform Act of 1978, replaced the 19th-century spoils system with a framework requiring competitive hiring based on qualifications, protecting employees from arbitrary firing, and prohibiting political coercion. Title 5 §§ 2301–2302 codify nine merit system principles — including hiring and promoting based on ability, treating employees fairly, protecting whistleblowers — and fourteen prohibited personnel practices, violations of which are enforceable through the Merit Systems Protection Board (MSPB). Most federal jobs fall into the competitive service (hired through OPM-supervised merit competition) or excepted service (outside standard competitive procedures, often for sensitive, legal, or policy roles). A smaller Senior Executive Service (SES) covers roughly 8,000 senior managers who serve as a professional management corps below political appointees. The Trump administration's efforts to reclassify career civil servants into a new Schedule F category — stripping them of most civil service protections — represent the most significant structural challenge to merit system principles in decades, with the Biden administration having rescinded the order and the Trump administration reinstating it in January 2025.

Current Law (2026)

Legal Authority

• 5 U.S.C. § 2101 — Civil service definition (includes all appointive positions in federal government)
• 5 U.S.C. § 2102 — Competitive service (most executive branch positions; hired through merit-based processes)
• 5 U.S.C. § 2301 — Merit system principles (9 principles: hire from qualified candidates, fair/equitable treatment, equal pay, high standards, efficient workforce, retention based on performance, education/training, protection from politics, protection of whistleblowers)
• 5 U.S.C. § 2302 — Prohibited personnel practices (13 categories including discrimination, coercion, nepotism, retaliation)
• 5 U.S.C. § 3302 — Competitive service rules (President sets examination and appointment rules)
• 5 U.S.C. § 3304 — Competitive examinations (job-specific assessments, preference for veterans)

How It Works

The federal civil service is the workforce that operates the U.S. government. Approximately 2.2 million civilian employees work across hundreds of agencies, from park rangers to patent examiners to nuclear engineers. The civil service system is built on the merit principle — the idea that government employees should be hired, promoted, and retained based on ability, not political connections.

Most federal jobs are in the "competitive service," meaning candidates are hired through an open, merit-based process. Positions are classified under the General Schedule (GS) pay system with 15 grades reflecting increasing difficulty and qualification requirements: GS-1 through GS-4 are entry-level clerical, GS-5 through GS-7 are entry professional, GS-9 through GS-12 are mid-career professional, and GS-13 through GS-15 are senior professional or managerial; each grade has 10 steps representing within-grade increases based on time and performance. Federal personnel management must follow nine statutory merit principles under 5 U.S.C. § 2301: recruit from all segments of society based on ability, ensure fair and equitable treatment without political influence, provide equal pay for equal work, maintain high standards of integrity, develop an efficient and effective workforce, retain employees based on performance, provide training, protect employees from arbitrary action, and protect whistleblowers — all enforceable through the Office of Special Counsel. Thirteen prohibited personnel practices under 5 U.S.C. § 2302 include discrimination based on race, sex, religion, age, or disability; soliciting political activity; nepotism; retaliating against whistleblowers; taking personnel actions based on conduct that doesn't adversely affect job performance; and discriminating based on marital status or political affiliation — violations can result in disciplinary action against the manager, corrective action for the employee, and in some cases criminal prosecution.

The Hatch Act limits partisan political activity for federal employees: most may not run for partisan office, use official authority to affect elections, solicit or receive political contributions, or engage in political activity while on duty, with violations potentially resulting in removal from federal service. Veterans who served during specified periods receive preference in federal hiring — disabled veterans and Purple Heart recipients receive 10-point preference, other eligible veterans receive 5-point preference — and veterans' preference also protects against reduction-in-force layoffs, making it one of the most significant advantages in the federal hiring system. Approximately 8,000 senior leaders serve in the Senior Executive Service (SES) — a corps of executives moveable across agencies to meet government-wide management needs — who have less job protection than competitive service employees but receive higher pay and performance bonuses.

How It Affects You

State Variations

Implementing Regulations

• 5 CFR Part 1 — Coverage and definitions (§§ 1.1, 1.2 — positions affected by civil service rules, extent of the competitive service)

• 5 CFR Part 210–340 — OPM examining, appointment, and qualification rules (competitive examining, veterans preference, excepted service, probationary periods, career-conditional employment)

• 5 CFR Part 300 — Employment General: overarching OPM rules governing how federal agencies may recruit and hire. Four key subparts:

  • Subpart A — Employment Practices: all federal employment practices must be based on a job analysis identifying duties, required knowledge/skills/abilities, and evaluation methods; selection must be from among the best qualified; candidates who believe an OPM employment practice violates merit system principles may appeal to the Merit Systems Protection Board (§ 300.104)
  • Subpart D — Commercial Recruiting Firms: agencies may use private headhunters and nonprofit placement services to reach qualified candidates not otherwise reachable; agencies are prohibited from using firms that charge placement fees to the referred individual (§ 300.404) — a recruiter cannot bill a job-seeker as a condition of referring them to federal positions; recruited candidates must still go through normal competitive examining and selection; agencies must document that using outside recruiters is cost-effective and consistent with merit principles
  • Subpart E — Private Sector Temporaries: agencies may contract with temporary staffing firms for brief or intermittent work; private sector temporaries are not federal employees — no employer-employee relationship is created, and they receive no civil service protections or federal benefits; agencies cannot use private-sector temporaries for managerial or supervisory work or for SES positions; they remain workers of the contracting firm, not the agency
  • Subpart F — Time-in-Grade Restrictions: employees seeking promotion to GS-12 and above must have spent at least 52 weeks in a position no more than one grade below the target grade; this prevents runaway promotions and protects competitive principles; the restriction applies to competitive service GS positions; credit accrues from all non-temporary competitive and excepted service federal civilian service at the required grade (§ 300.605); OPM may waive time-in-grade when it causes hardship to an agency or inequity to an employee
  • Subpart G — Selective Service Registration Bar: any male born after December 31, 1959 who was required to register under the Military Selective Service Act and knowingly and willfully failed to do so is permanently barred from federal civilian employment (§ 300.701); agencies must request a Selective Service registration statement from covered applicants before appointment; if an employee (appointed after November 8, 1985) is found to have willfully failed to register, the agency must terminate them; OPM adjudicates disputes about whether failure was knowing and willful — if the individual can show they did not know they were required to register, the bar does not apply

• 5 CFR Part 316 — Temporary and Term Employment (25 sections across 5 subparts — OPM's rules governing non-permanent appointment types in the federal competitive service; implements 5 U.S.C. § 3301). While Part 315 covers permanent career appointments, Part 316 governs the time-limited hiring authorities that agencies use for project work, uncertain funding, extraordinary workloads, and student recruitment:

  • Term appointments (Subpart C — §§ 316.301–316.304): agencies may make term appointments lasting more than 1 year but not more than 4 years when the need for the employee's services is not permanent; authorized reasons include project work, extraordinary workload, scheduled abolishment, reorganization, contracting out, uncertain funding, and maintaining career positions for displaced employee placement; terms may be extended in agency-set increments up to the 4-year limit (OPM approval required for exceptions beyond 4 years); extended STEM/medical terms: for positions in Social Science, Economics, Psychology, Natural Resources, Life Sciences, Medical/Dental, Engineering, Physical Science, Mathematical Sciences, and IT occupational groups, term appointments may run up to 10 years, extendable to that limit in agency-set increments; the first year of any term appointment is a probationary period; term employees do not acquire competitive status — the appointment ends automatically on the not-to-exceed date; competitively selected term employees may convert to permanent career positions if they later meet merit promotion certificate requirements during their term service
  • Temporary limited appointments (Subpart D — §§ 316.401–316.403): agencies may make temporary appointments for up to 1 year to fill short-term positions, meet seasonal or emergency needs, or cover a position being restructured; temporary appointments may be extended up to an aggregate maximum of 1 year (in some circumstances agencies may seek OPM exception for longer periods under reemployment authorities); a provisional appointment designation is available when a temporary appointment fills a position whose selection process is still pending OPM certification — the provisional designation converts the appointment to permanent when OPM issues the certificate and the employee is selected
  • Post-secondary student hiring (Subpart I — §§ 316.901–316.914): agencies may hire currently enrolled or newly accepted college students in time-limited competitive service positions at the GS level; student appointments may run for any period the position is needed up to a maximum of 4 years (extendable); student positions are classified to the -99 series of the relevant occupational group (e.g., Social Science Student Trainee, 0199); agencies must provide public notice and recruit from all segments of society before filling a position under this authority; 15% annual cap: no agency may appoint more students under this authority in a fiscal year than a number equal to 15% of the number of students the head appointed in the prior fiscal year — this prevents agencies from using the student authority to fill permanent workforce gaps; students who complete their academic requirements may be noncompetitively converted to a permanent position at the employing agency (§ 316.910); upon conversion, the student begins the standard 1-year probationary period for permanent appointments; competitive status accrues only after completion of probation following conversion (§ 316.906)

  Term and temporary employees do not have the same reduction-in-force protections as career employees — in a RIF, temporary employees are generally separated first, followed by term employees, before career-conditional and career employees are affected. The student hiring authority (§ 316.901) is the successor to prior student intern programs; agencies use it alongside other student authorities like the Pathways Program. Recent rulemakings: 91 FR 7810 (February 2025) updated term employment rules, including the STEM/medical 10-year term provisions; 86 FR 46107 (August 2021) made prior technical updates.

• 5 CFR Part 430 — Performance management (appraisal systems, rating levels, performance-based actions)

• 5 CFR Part 530–536 — Pay and leave (pay rates, locality pay, special rate supplements, grade/pay retention)

• 5 CFR Part 1200–1201 — Merit Systems Protection Board (§§ 1200.1, 1201.114, 1201.119 — MSPB purpose, petition for review, OPM reconsideration)

• 5 CFR Part 213 — Excepted Service (positions and appointments outside the competitive examination process: Schedule A, B, C, and D excepted service authorities; 14 sections)

• 5 CFR Part 315 — Career and Career-Conditional Employment (46 sections across 9 subparts — OPM rules governing the two principal competitive service tenure categories and the pathways into and out of them):

  • Career vs. career-conditional tenure: new competitive service appointees start with career-conditional tenure (less than 3 years of qualifying service); after completing the service requirement, employees automatically convert to career tenure — which carries greater protections in reduction-in-force competitions and broader reinstatement eligibility; both tenures require completion of a 1-year initial probationary period before protections fully attach (§§ 315.201–315.204)
  • Noncompetitive appointment authorities (Subpart F): OPM regulations allow certain persons to be appointed to career or career-conditional positions without competing through the normal competitive examining process:
    • Former Peace Corps volunteers: eligible for noncompetitive appointment for 1 year after completing at least 36 months of Peace Corps service (§ 315.606)
    • White House and VP Office staff: employees who served at least 2 years in the White House Office or Office of the Vice President may be noncompetitively appointed within 1 year of leaving that position (§ 315.608)
    • Disabled veterans: veterans with service-connected disabilities who complete a VA vocational rehabilitation program are eligible for noncompetitive appointment; appointment converts to career status after 2 years (§ 315.604)
    • Former Foreign Service officers/employees: eligible for noncompetitive competitive service appointments within 3 years of separation, subject to status confirmation by State Department (§ 315.608)
    • Former overseas employees: persons who accompanied a federal employee on overseas assignment and worked for a U.S. government agency abroad for at least 52 weeks are eligible for noncompetitive appointment within 3 years of return to the United States (§ 315.608)
    • National Guard technicians: dual-status technicians who are involuntarily separated (not for cause) from National Guard employment may receive career-conditional appointments within 1 year of separation (§ 315.608)
  • Probation on supervisory/managerial promotion (Subpart I): career employees who are promoted to supervisory or managerial positions must serve a new probationary period; if they fail to perform satisfactorily, the agency must return them to a non-supervisory position at the same grade they held before the promotion — they do not lose their career competitive service status, only the supervisory assignment (§ 315.906)
  • Competitive status: employees in the competitive service acquire competitive status upon completing their probationary period; competitive status allows them to transfer, be reassigned, or be promoted within the competitive service without competing again as an outside applicant (§ 315.501)

• 5 CFR Part 335 — Promotion and Internal Placement (merit promotion requirements: competitive procedures, priority consideration, and exceptions; 7 sections)

• 5 CFR Part 352 — Reemployment Rights (59 sections across 7 subparts — OPM regulations governing the right of federal employees to return to their former positions after a variety of special assignments or circumstances that temporarily take them outside their normal agency):

  • Subpart B — Emergency Reemployment Between Executive Agencies (11 sections): when an emergency situation makes normal recruiting inadequate, an agency may request OPM to issue a Letter of Authority authorizing it to offer reemployment guarantees to employees from other agencies who move voluntarily to fill the critical positions (§§ 352.201–352.203); eligible employees are career/career-conditional in the executive branch; reemployment rights expire after 2 years (extended by 1 year for overseas assignments) unless exercised earlier (§ 352.206); the losing agency must receive 15 calendar days' written notice before the move; if it objects, the gaining agency files with OPM (§ 352.205); when a reemployment right is exercised, the original agency must restore the employee to the same grade, occupational series, and geographic area within 30 calendar days; employees may appeal denials to the Merit Systems Protection Board (§ 352.209)
  • Subpart C — Detail and Transfer to International Organizations (12 sections): encourages international exchange by protecting employees who accept assignments (detail or transfer) to international organizations — the UN, World Bank, IMF, WHO, and others designated by the State Department; maximum assignment term is 5 years; employees on detail retain their civilian status and pay; employees on transfer are put on leave-without-pay and may be reemployed on return within 30 days; organizations ineligible for automatic coverage (not pre-designated by State) require prior OPM approval (§§ 352.301–352.310)
  • Subpart G — BIA/IHS Tribal Organization Reemployment (7 sections): career federal employees who leave BIA or IHS to serve in a tribal organization under the Indian Self-Determination Act retain reemployment rights to return to the same or equivalent federal position; reflects Congress's intent that federal employment should not be a barrier to tribal self-governance
  • Subpart H — Taiwan Relations Act (7 sections): covers federal employees assigned to work with the American Institute in Taiwan (AIT) — the de facto U.S. diplomatic presence in Taiwan — who retain reemployment rights on return to federal service
  • Subpart I — Panama Canal Commission (9 sections): covers employees from the Panama Canal Company/Canal Zone Government who transitioned to the Panama Canal Commission after the 1977 treaties; preservation of reemployment rights during the treaty transition period

• 5 CFR Part 330 — Recruitment, Selection, and Placement — General (58 sections across 8 subparts — OPM's framework for protecting career employees facing reduction-in-force, and for filling vacancies competitively):

  • Subpart B — Reemployment Priority List (RPL) (14 sections): career employees separated or facing separation by reduction-in-force (RIF) may register on the RPL for their local commuting area; agencies must give RPL registrants priority consideration before hiring new competitive service appointments at the same grade and occupational series; registration lasts 2 years from the separation date; employees removed from the RPL must have declined or failed to respond to an RPL offer; RPL placement priority does not apply to internal promotions, transfers within agency, or noncompetitive appointments (§ 330.211); employees may appeal violations to the Merit Systems Protection Board (§ 330.214)
  • Subpart D — Positions Restricted to Preference Eligibles (7 sections): certain custodial and support positions are reserved for veterans' preference eligibles under 5 U.S.C. § 3310; agencies must offer these positions to qualified preference eligibles from the register before selecting non-preference candidates; applies to positions such as guard, elevator operator, and messenger
  • Subpart F — Agency Career Transition Assistance Plan (CTAP) (13 sections): each executive agency must establish a CTAP giving surplus and displaced employees intra-agency selection priority before filling any vacancy with an outside candidate; "surplus" means an employee identified in a reorganization or RIF notice; "displaced" means an employee who has received a RIF separation notice or a notice of proposed removal based on unacceptable performance; a CTAP eligible must be "well-qualified" — knowledge, skills, and competencies clearly exceeding the minimum qualification requirements — to claim priority; agencies define "well-qualified" internally but must apply the standard uniformly (§ 330.606); agencies must conduct an independent second review when a CTAP eligible is found not well-qualified
  • Subpart G — Interagency Career Transition Assistance Plan (ICTAP) (11 sections): displaced employees who have been separated by RIF from any executive agency are eligible for ICTAP selection priority at other agencies within the same local commuting area for 1 year after separation; the ICTAP eligible must be well-qualified, apply through the normal competitive process, and clearly exceed minimum qualifications; agencies must select the ICTAP eligible over other candidates who are not also ICTAP or RPL priority candidates; agencies must document the reason if no ICTAP eligible was selected

• 5 CFR Part 351 — Reduction in Force (56 sections across 9 subparts — OPM's rules governing the formal layoff process for federal agencies; when an agency must abolish positions because of funding cuts, reorganization, or workload reduction, Part 351 determines who loses their job and in what order):

  • Competitive area and competitive level (§§ 351.402–351.403): a RIF affects only positions within the same competitive area — normally a specific organizational subdivision at a single geographic location; agencies may divide by commuting area, organization, or other factor, but definitions must be applied consistently; within the competitive area, positions are sorted into competitive levels of interchangeable positions (same grade, series, and duties sufficiently similar that the incumbent could be moved between them without undue disruption) — employees compete for retention only with others in their competitive level
  • Retention register order (§ 351.501): the order of retention within a competitive level is determined by three factors in sequence: (1) tenure group (Group I: career employees; Group II: career-conditional employees; Group III: term employees and others) — Group I employees are retained before Group II before Group III; (2) veterans' preference subgroup within each tenure group (Subgroup AD: 30%+ disabled veterans; Subgroup A: other veterans with preference; Subgroup B: non-veterans) — AD employees are retained first, then A, then B; (3) service credit — within each subgroup, employees are ordered by length of service augmented by performance credits: OPM assigns 4, 12, or 20 additional years of service credit based on the employee's last three performance ratings (Outstanding/highest level = 20; next-lower level = 12; Fully Successful = 4; Minimally Satisfactory or below = 0), so strong performers with lower seniority may outrank weak performers with more service
  • Transfer of function (§§ 351.301–351.303): when an agency transfers a function to another agency or location, employees whose positions are identified with the transferring function must be offered the opportunity to transfer with the function before a RIF is applied to them; employees who decline a reasonable transfer offer lose their RIF procedural rights for the resulting separation; the "identified with function" determination is made at the agency level and is reviewable by the MSPB
  • Advance notice requirement (§ 351.801): agencies must give at least 60 calendar days' written notice before a RIF separation or demotion takes effect; the notice must state the nature of the action, the effective date, the competitive area and level, and the employee's retention standing; during the notice period, employees may exercise bump and retreat rights — bumping displaces a lower-standing employee in the same competitive area at the same grade; retreating allows an employee to move to a lower grade previously held; both rights are constrained by qualification requirements and grade limits
  • Appeals (§ 351.901): employees separated or demoted by RIF may appeal to the Merit Systems Protection Board within 30 days of the effective date; the MSPB reviews whether the agency followed all Part 351 procedures correctly — substantive decisions about which positions to abolish are agency prerogatives and not reviewable, but procedural compliance (correct competitive area, correct retention register, proper notice) is fully reviewed; OPM published a proposed rule in March 2026 to streamline RIF procedures, which federal employee unions are challenging

• 5 CFR Part 293 — Personnel Records (39 sections — OPM's rules governing the creation, maintenance, use, and disclosure of federal employee personnel records; establishes the Official Personnel Folder system and the privacy protections that apply to employee records under 5 U.S.C. §§ 1103, 2951, and the Privacy Act):

  • Official Personnel Folder (OPF) (§§ 293.302–293.304): each agency must maintain an Official Personnel Folder for every employee in a civil service position; the OPF is the authoritative record of all personnel actions taken during the employee's career; even when the OPF is physically held by the employing agency, it remains part of OPM's records — agencies are custodians, not owners (§ 293.303); required contents include SF-50 personnel action forms, performance ratings, disciplinary actions, and other documents specified in OPM's Guide to Personnel Recordkeeping
  • Privacy and accuracy requirements (§§ 293.104–293.106): any information used in making decisions about an employee's rights, benefits, or privileges must be accurate and complete before it is used (§ 293.104); the accuracy requirement is ongoing — agencies must correct records that are found to contain errors; administrative, technical, and physical controls are required to protect records from unauthorized access, use, modification, or disclosure (§ 293.106); automated personnel systems require additional security safeguards covering input, output, and transmission (§ 293.107)
  • First Amendment protection (§ 293.105): agencies may not maintain records describing how individuals exercise rights guaranteed by the First Amendment — freedom of speech, association, religion, or assembly — unless expressly authorized by statute, by the individual concerned, or unless pertinent to and within the scope of an authorized law enforcement activity; this prohibition protects against government tracking of employees' political activities, union membership, or religious practices
  • Privacy Act and systems of records (§§ 293.201–293.203): personnel records are subject to the Privacy Act; when OPM publishes a system-of-records notice for personnel records in the Federal Register, that notice covers the records maintained by all agencies under OPM regulations — individual agencies do not need to publish separate notices for records covered by an OPM notice; OPM reviews agency compliance with personnel recordkeeping rules and may direct corrective action (§ 293.203)

• 5 CFR Part 359 — Removal from the Senior Executive Service; Guaranteed Placement in Other Personnel Systems (35 sections across 9 subparts — OPM's rules governing the limited circumstances under which career SES members may be removed from the SES and what placement rights they hold; implements 5 U.S.C. §§ 3592–3595):

  • Probationary removal for performance or conduct (§§ 359.402–359.404): career SES appointees serving their initial SES probationary period (normally 1 year) may be removed for unacceptable performance, misconduct, or conditions arising before appointment; a performance-based probationary removal does not require a formal rating under the agency's SES appraisal system — the agency needs only to determine performance is unacceptable; none of these probationary removals are appealable to the MSPB under § 7701, which means no external review of the decision itself; only removal during probation by RIF is MSPB-appealable
  • Post-probation removal by reduction in force (§§ 359.501–359.504): career SES members who have completed probation can be removed only through a formal RIF process; agencies must give the appointee at least 30 calendar days' written notice before the effective date, stating the basis, the placement rights available, and the appeal rights; post-probation SES removal for performance alone is not permitted without OPM approval; these removals are not appealable to the MSPB on the merits — the MSPB reviews only whether competitive procedures were followed
  • Agency RIF for SES career appointees (§§ 359.601–359.607): when an agency conducts a RIF affecting SES career appointees, it must establish competitive procedures applicable to all career SES members (including probationary); agency heads must certify in writing to OPM when no vacant SES position within the agency is available for an identified appointee — that certification may not be delegated below the Assistant Secretary level; 45 calendar days' written notice is required for post-probation SES RIF removals; a career appointee subject to RIF may appeal to the MSPB whether the competitive procedures complied with Part 359
  • 120-day restriction (§§ 359.406, 359.503): removal of a career SES member during probation for performance, conduct, or pre-appointment conditions may not be made effective within 120 days after the appointment of a new agency head or within 120 days after the appointment of the career appointee's most immediate noncareer supervisor — this cooling-off window is designed to prevent politically motivated removals immediately following a change in leadership
  • Guaranteed placement outside the SES (Subpart G): career SES members removed by RIF (whether probationary or post-probation) are entitled to guaranteed placement rights in a General Schedule or equivalent position outside the SES; OPM serves as a clearinghouse, identifying available positions at the GS-15 (or equivalent) level; placement must be at a pay rate that does not reduce the appointee's salary by more than two grade levels; this protection is what distinguishes a career SES member from a political appointee — career members cannot be left without employment in the competitive service

• 5 CFR Part 536 — Grade and Pay Retention (28 sections across 3 subparts — OPM's rules implementing 5 U.S.C. §§ 5361–5366, which protect federal employees whose grade or pay is involuntarily reduced from experiencing an immediate pay cut; the two protections — grade retention and pay retention — apply in different circumstances and for different durations):

  • § 536.201 — Mandatory grade retention: an agency must provide grade retention when an employee moves from a covered pay system position to a lower-graded position due to: a RIF (reduction in force), reclassification of the employee's position to a lower grade, or a management-directed reassignment; the employee must have served at least 52 consecutive weeks in one or more positions at or above the retained grade; grade retention is automatic — the agency cannot decline to grant it when the conditions are met
  • § 536.202 — Optional grade retention: an authorized agency official may (but is not required to) provide grade retention to employees who move voluntarily to a lower grade, such as when an employee applies for a lower-graded position; the same 52-week service requirement applies; used most often when agencies want to facilitate voluntary reassignments without penalizing willing employees
  • § 536.204 — Duration of grade retention: employees retain the higher grade for 2 years beginning on the date they are placed in the lower-graded position; the retained grade is fully effective — the employee is treated at the higher grade for all purposes during the retention period
  • § 536.205 — Effect of retained grade: the agency treats the retained grade as the employee's actual grade for pay, premium pay (overtime, night differential), retirement contributions, life insurance premiums, and all other federal pay-related purposes; this means RIF retention standing is calculated at the retained grade, not the actual lower grade
  • § 536.207–536.208 — Loss of grade retention: grade retention ends early if the employee is demoted further, accepts a different position at the retained grade or higher (a "reasonable offer"), takes a position outside the covered pay system, or separates from federal service
  • § 536.301 — Mandatory pay retention: after grade retention ends (or in cases where grade retention doesn't apply), an agency must provide pay retention when an employee's rate of basic pay would otherwise be reduced; pay retention also applies when an employee moves from a position not under a covered pay system to a position where their current pay exceeds the maximum rate
  • § 536.305 — Pay schedule adjustments under retention: when the pay schedule is raised while an employee is receiving a retained rate, the employee receives 50% of the general schedule increase applied to their retained rate — preventing the retained rate from becoming permanently frozen while still limiting cost to the government
  • § 536.306 — Retained rate ceiling: a retained rate may never exceed the rate payable for Level IV of the Executive Schedule; if an employee's rate hits this ceiling, pay retention stops and the cap applies
  • § 536.307 — Retained rate as basic pay: a retained rate counts as basic pay for retirement deductions, life insurance premiums, severance pay, and all other computations that use basic pay as a base — the employee is not financially penalized in future retirement calculations for having been placed in a lower position

  Grade and pay retention are among the most practically significant civil service protections during agency reorganizations, reclassifications, or voluntary downgrades. An employee whose position is reclassified from GS-13 to GS-12 retains GS-13 grade (and pay) for 2 years while in the same position — giving them time to find a GS-13 or higher position elsewhere, apply for a promotion, or negotiate with the agency. After grade retention expires, pay retention kicks in and continues indefinitely (subject to the Level IV cap and absorption through pay raises) so the employee is never forced to take an immediate pay cut solely because of management decisions about position classification. 70 FR 31310 (May 31, 2005) and 73 FR 66155 (November 7, 2008) contain the most recent substantive rulemaking amendments to Part 536.

• 5 CFR Part 362 — Pathways Programs (OPM rules implementing two structured pipelines for bringing students and recent graduates into competitive federal service; 5 subparts):

  • § 362.102 — Definitions: "qualifying educational institution" means an accredited school; "recognized postsecondary credential" means a diploma, certificate, or associate's or higher degree; notably, a Registered Apprenticeship Program (as registered with DOL) counts as a qualifying credential — apprentices completing a registered program may be eligible for the Recent Graduates track, reflecting a 2025 regulatory update broadening pathways beyond traditional degree programs
  • Internship Program (Subpart B): for currently enrolled students at qualifying educational institutions; appointments are time-limited competitive service positions for work related to the student's academic program or career goals; students must be enrolled and in good standing; agencies must establish a participant agreement — a written agreement setting out expected work schedule, academic goals, mentorship, and the possibility of conversion; interns who complete the program requirements and serve at least 640 hours may be noncompetitively converted to a permanent competitive service position in a related field
  • Recent Graduates Program (Subpart C): for individuals who completed a qualifying educational credential within the preceding 2 years (veterans who were unable to apply due to military service may apply within 6 years of degree); appointments are 1-year developmental positions, extendable to 2 years in exceptional circumstances; agencies must provide at least 40 hours of training per year, a mentor, and regular performance evaluations; participants who complete the program and meet agency criteria may be noncompetitively converted to a permanent competitive service position
  • Participant agreement requirement: both programs require a formal participant agreement executed at the time of appointment; the agreement must specify duties, training and development activities, mentorship, and the conditions for conversion eligibility; failure to execute an agreement within the required timeframe may bar conversion

  Pathways Programs are distinct from the Presidential Management Fellows (PMF) program, which is a separate OPM-run fellowship covering graduate and professional school degree-holders; PMF has its own competitive selection process and is not part of Part 362. Pathways and student hiring under 5 CFR Part 316 (Subpart I) are complementary authorities — agencies use them alongside each other for different recruitment goals. Recent rulemakings: 90 FR 38606 and 90 FR 38607 (April 2025) amended Part 362 to expand the definition of qualifying credential to include Registered Apprenticeship Programs and updated participant agreement requirements — reflecting OPM's effort to bring apprenticeship pathways into parity with degree-based routes into federal service.

• 5 CFR Part 332 — Recruitment and Selection Through Competitive Examination: OPM rules governing how competitive service appointments are filled through open competitive examinations and ranked eligibles registers (implements 5 U.S.C. § 1103 — OPM authority to examine applicants):

  • § 332.101 — Open competition as the default: all competitive service examinations must be open to the public by default; OPM may authorize noncompetitive examinations only when insufficient numbers of qualified individuals compete through open processes; the open competition rule is the foundational principle distinguishing competitive service (merit-based) from excepted service (agency discretion) positions
  • § 332.311 — Quarterly examinations for preference eligibles: a 10-point veterans preference eligible may file an application at any time for any position for which OPM maintains or is about to establish an eligible register; this is a significant scheduling advantage — regular applicants are limited to announced examination windows, while veterans with 10-point preference have continuous access regardless of when they file
  • § 332.312 — Military and overseas applicants: applicants on active military duty or stationed overseas may file applications for competitive examinations after the published closing date — recognizing that deployment or remote location may prevent timely filing; the extensions available are specified in OPM's operating manuals and vary by circumstance
  • § 332.313 — Reinstating separated preference eligibles: a veterans preference eligible who held a career or career-conditional appointment and separates from federal service retains the right to have their name re-entered on appropriate existing registers in priority order; this restores competitive standing without requiring a new examination, facilitating re-employment
  • § 332.321–332.322 — Resignees and military service restoration: veterans preference eligibles who resigned without misconduct may have their names re-entered on registers where they previously held eligibility; individuals who lost register eligibility during military service are entitled to restoration of their prior standing

  The Part 332 competitive examination rules form the legal backbone of merit-based federal hiring. The veterans preference provisions embedded throughout this Part reflect the longstanding federal commitment to hiring priority for veterans — 10-point preference eligibles (typically veterans with service-connected disabilities or veterans who served in certain campaigns) receive more flexible access to examinations and register reinstatement rights than other applicants.

• 5 CFR Part 731 — Suitability and Fitness: OPM standards for determining whether individuals are suitable for federal employment, governing the background investigations and adjudication process that applies before appointing individuals to competitive service and career SES positions (implements 5 U.S.C. § 1302):

  • § 731.103 — Delegation to agencies: OPM delegates suitability determination authority to agency heads for positions within their jurisdiction; agencies may take suitability actions, including limited agency-specific debarments (up to 3 years), under delegated authority; OPM retains oversight and may review any agency suitability determination
  • § 731.104 — Investigation requirements: all positions subject to suitability determination require the individual to undergo a background investigation by an authorized agency; reciprocity applies — an investigation conducted by one agency may be accepted by another for the same or lower-risk position without requiring a new investigation
  • § 731.106 — Public trust position designation: agency heads must designate every position at high, moderate, or low risk based on the sensitivity of information the position can access and the potential for harm if a position were occupied by someone unsuitable; the risk designation determines the level of background investigation required; high-risk public trust positions require Tier 4 investigations (similar depth to Secret security clearances)
  • § 731.202 — Suitability criteria: OPM or an agency may find an individual unsuitable based on specific factors including: a criminal or dishonest act, material false statement or deception in the appointment process, deliberate drug abuse of a type that, after job offer, the individual failed to show rehabilitative effort, alcohol-induced behavior causing problems on the job, financial irresponsibility that creates vulnerability to influence, or prior adverse suitability findings not corrected
  • § 731.204–731.205 — Debarment: OPM may debar a person found unsuitable from competitive service employment for up to 3 years from the date of the unfavorable determination; agencies with delegated authority may also impose limited agency-specific debarments of up to 3 years
  • § 731.302–731.303 — OPM-initiated action due process: before OPM takes a suitability action, it must provide written notice specifying charges and allowing the respondent 30 days to file a written answer with supporting documentation; OPM issues a written decision explaining the reasons
  • § 731.501 — MSPB appeal: any person against whom OPM or a delegated agency takes a suitability action may appeal to the Merit Systems Protection Board (MSPB) within 30 days of receiving the decision; the MSPB may review the factual findings and mitigate the penalty if it finds the action unwarranted or disproportionate

  Part 731 suitability determinations are distinct from security clearances: suitability governs whether someone's character and conduct warrant federal employment at all, while security clearances govern whether a cleared employee may access classified information. An individual can hold a suitability determination without having any clearance; many positions require both. The 2024 expansion of Continuous Vetting — ongoing automated monitoring of employees' financial, criminal, and other records rather than periodic manual re-investigations — has made suitability an ongoing status rather than a one-time gate check.

• 5 CFR Part 410 — Training: OPM rules governing federal agency employee development and training programs — the full framework for how agencies use the government-wide training authority to build workforce capability (implements 5 U.S.C. Chapter 41):

  • § 410.201 — Agency head responsibilities: agency training programs must be designed to build a workforce capable of achieving the agency's mission and performance goals; training should facilitate continuous improvement and address skills gaps identified through performance management systems
  • § 410.202 — Annual evaluation: agencies must evaluate their training plans and programs annually to assess how well they contribute to mission accomplishment and meet organizational performance goals; training investments must be justified by mission need, not administrative habit
  • § 410.203 — Training options: agencies may use the full range of available methods — classroom, on-the-job training, technology-based training, satellite or remote training, employee exchange programs, developmental assignments, and attendance at conferences and professional development events; no single method is mandated
  • § 410.305 — Interagency training sharing: executive departments, independent agencies, and government corporations may develop and share training programs with other agencies; interagency training reduces duplication and enables economies of scale for common skill needs (leadership development, cybersecurity, acquisition, etc.)
  • § 410.306 — Fair and equitable selection: agencies must establish merit-based criteria for selecting employees for training opportunities; selection may not be made on the basis of race, color, religion, sex, gender identity, national origin, disability, age, or any other protected characteristic; intergovernmental employees on temporary assignment are included under the same nondiscrimination requirements
  • § 410.308 — Academic degree training: agencies may authorize an employee to pursue an academic degree at government expense under specific statutory conditions (5 U.S.C. § 4107(a)); the degree program must be at an institution accredited by a recognized national accrediting body; the degree must be necessary for the employee's job or for career development in the agency's workforce plan
  • § 410.309 — Continued service agreements: when an agency pays for training expected to cost more than a threshold amount (and in other circumstances where the agency determines appropriate), the employee must sign a continued service agreement committing to remain in federal service for a specified period after completing the training; if the employee leaves before the agreement period expires without an approved exception, the employee must reimburse the government for training costs
  • § 410.401 — Reimbursable training expenses: agencies may pay or reimburse employees for necessary expenses incurred in connection with authorized training — tuition, fees, books, and in some cases travel and per diem; the agency head determines which specific expenses are reimbursable based on mission need and the nature of the training
  • § 410.404 — Conference as training: an agency may sponsor an employee's attendance at a conference as a developmental assignment when: the announced purpose of the conference is educational or instructional; the employee gains specialized knowledge or skills; and the primary reason for attending is to gain knowledge rather than represent the agency or fulfill a duty requirement

• 5 CFR Part 319 — Employment in Senior-Level and Scientific and Professional Positions: OPM rules governing the two federal pay systems that sit above GS-15 outside the Senior Executive Service — the Senior-Level (SL) system for high-level non-SES professional positions and the Scientific and Professional (ST) system for senior researchers (implements 5 U.S.C. §§ 3104, 5108, 9201–9206):

  • § 319.102 — Senior-Level (SL) positions: SL positions are classified above GS-15 under 5 U.S.C. § 5108 and are paid under 5 U.S.C. § 5376 (a pay band from 120% of GS-15 Step 1 to the rate for Executive Level III); they are distinct from the SES and from positions in other separate pay systems; SL positions can be in either the competitive or excepted service; competitive service SL appointments are made from civil service registers; reassignments, promotions, and transfers within the competitive service do not require a new register
  • § 319.103 — Scientific and Professional (ST) positions: ST positions are established under 5 U.S.C. § 3104 specifically for research and development work requiring the services of specially qualified personnel — a higher scientific bar than senior management; ST positions are filled without competitive examination (5 U.S.C. § 3325), so agencies select based on qualifications rather than register ranking; ST positions are not subject to the citizenship restrictions in 5 CFR Part 338 — noncitizens may be hired unless a specific appropriations act restricts it; this flexibility reflects Congress's intent to allow agencies to recruit the best available scientists regardless of citizenship
  • § 319.202–319.203 — OPM position allocation: OPM must approve the allocation — the total pool of SL and ST positions an agency may maintain; once an allocation is approved, agencies may establish individual positions within it without further OPM approval; OPM may require prior approval of individual positions if an agency has a history of compliance issues; this two-tier structure (OPM controls the ceiling, agencies control individual placements) gives agencies operational flexibility while preserving government-wide workforce planning
  • § 319.301–319.302 — Qualifications: the agency head establishes qualifications standards in writing for each SL or ST position, identifying the specific knowledge, skills, and abilities required; the agency head also approves individual applicants' qualifications — OPM does not make individual qualification determinations for SL/ST positions, unlike most competitive service positions
  • § 319.106 — Criminal history inquiry: agencies inquiring about criminal history for SL/ST candidates must follow the Fair Chance Act rules in 5 U.S.C. Chapter 92 and 5 CFR Part 920 — the same ban-the-box requirements that apply to most federal hiring

  The SL/ST pay system is the federal government's mechanism for retaining and recruiting senior technical experts who do not fit the management-oriented SES framework. A nationally recognized virologist, a top-level economic analyst, or a senior litigation attorney in an agency may be paid at SL rates without serving in an SES management position. The ST system's exemption from competitive examination and citizenship requirements is particularly significant in scientific research: federal research agencies (NIH, USDA, EPA, DOE) can recruit senior researchers from abroad or from academia without running them through the standard competitive hiring process, which is often too slow and rigid for scientific talent acquisition.

  Part 410's training rules connect to workforce planning, performance management, and succession planning across the federal government. The annual evaluation requirement (§ 410.202) creates an accountability loop that most private employers don't have to follow by regulation. The continued service agreement framework (§ 410.309) protects the government's investment in expensive training — employees who complete graduate programs, long-term developmental assignments, or specialized technical training at government expense are expected to apply that investment to federal service, not immediately leave for higher private sector salaries.

• 5 CFR Part 339 — Medical Qualification Determinations: OPM rules governing physical and medical standards for federal positions where fitness directly affects the work or safety of employees or the public (implements 5 U.S.C. § 1104 — OPM examining authority):

  • § 339.101 — Coverage: Part 339 applies to competitive service positions and career SES positions; it does not cover national security positions governed by separate authority
  • § 339.103 — Arduous or hazardous positions: agencies may establish physical requirements for positions they determine are arduous (physically demanding) or hazardous (dangerous) without seeking OPM approval on a position-by-position basis; the agency must document the basis for its medical requirements
  • § 339.202 — OPM authority to pass over preference eligibles on medical grounds: OPM may authorize an agency to pass over a veterans preference eligible — and select a lower-ranked, non-preference candidate — when the preference eligible does not meet the position's medical standards; OPM approval provides a procedural check to prevent discriminatory application of this exception
  • § 339.204 — Agency-required physical examinations: agencies may require medical examinations of applicants or employees when directly related to identified job requirements; general physical examinations unrelated to specific job duties are not permitted
  • § 339.205 — Waiver when accommodation is sufficient: an agency must waive a physical or medical standard and conduct an individualized assessment when it determines — with medical advice — that the individual can perform the position's essential functions safely without posing a direct threat, even if the individual does not fully meet the written standard; physical standards cannot be automatic bars when a reasonable accommodation resolves the concern
  • § 339.301–339.302 — ADA and Rehabilitation Act compliance: all medical qualification determinations must comply with the Rehabilitation Act (the primary framework for federal executive agencies) and, where applicable, the ADA; blanket exclusions for medical conditions are prohibited; agencies must conduct individualized direct-threat assessments before disqualifying an applicant on medical grounds

  Part 339 sits at the intersection of veterans' preference, disability rights, and occupational health — three legal frameworks with different and sometimes conflicting requirements. A veterans preference eligible with a physical limitation has rights under both frameworks; the agency must navigate both. The mandatory waiver requirement in § 339.205 means that physical standards must be applied individually rather than categorically, and an agency that automatically rejects applicants with a specific medical history without assessing functional capacity is violating this Part.

• 5 CFR Part 451 — Awards: OPM rules requiring federal agencies to operate formal recognition programs that motivate employees and reward contributions to agency mission, efficiency, and the public interest (implements 5 U.S.C. §§ 4501–4509):

  • § 451.104 — Mandatory agency award programs: every executive agency must establish a written employee recognition program and communicate it to all employees; recognition programs are not optional — agencies must maintain them regardless of budget pressures
  • § 451.105 — Award types: agencies may grant cash awards, honorary awards (certificates, plaques, medals), and time-off awards (paid leave as a recognition tool); each type carries different approval thresholds and administrative requirements
  • § 451.106 — Approval thresholds: agency heads may approve cash awards up to $10,000 without further review; awards between $10,001 and $25,000 require OPM approval before payment; awards exceeding $25,000 require Presidential approval and an OPM recommendation; time-off awards must be used within 26 pay periods and cannot be converted to cash
  • § 451.108 — SES election-period restriction: career and non-career SES members may not receive performance awards during the 120-day period before a Presidential election through Inauguration Day; this restriction prevents lame-duck administrations from directing large cash awards to politically aligned SES executives; all SES performance awards are covered, not just cash bonuses

  Part 451 recognition programs are distinct from within-grade step increases, which accrue automatically through time and satisfactory performance — awards are for contributions that exceed normal expectations. The mandatory program requirement means agencies cannot simply eliminate all recognition during reorganizations; some program must remain operational. The SES election-period restriction (§ 451.108) was added specifically to address a pattern of large end-of-term awards that appeared politically motivated; it applies automatically without requiring any agency determination.

• 5 CFR Part 470 — Personnel Management Research and Demonstration Projects: OPM's regulations implementing the authority in 5 U.S.C. §§ 4702–4706 to conduct research and run controlled demonstration projects that test alternative approaches to federal personnel management:

  • § 470.101 — Research authority: OPM is authorized to establish research programs to study and develop improved methods, techniques, and programs for federal personnel management; OPM may design and conduct studies of workforce practices, human capital outcomes, and personnel system effectiveness
  • § 470.103 — Definition of demonstration project: a "demonstration project" is a project that tests specified changes in federal personnel management policy or practices in a controlled setting — a specific agency, set of agencies, or workforce population — before those changes are proposed for government-wide implementation; demonstration projects are distinguished from general research by their structured, experimental design and their direct policy application
  • § 470.203 — Research contractors and partnerships: OPM may conduct research directly or through contracts or cooperative agreements with federal agencies, state or local governments, universities, colleges, and private research institutions; OPM publishes solicitations for research proposals and selects contractors based on the quality of their proposed research design, methodology, and relevance to federal workforce needs; this structure means academic and private-sector experts contribute to shaping federal HR policy through OPM-funded research
  • § 470.301 — Purpose of demonstration projects: demonstration projects test alternative personnel management concepts — such as pay-banding, broadened classification authority, or modified hiring procedures — in real operational conditions within a controlled setting; the goal is to gather empirical evidence about what works before committing to government-wide change; projects are time-limited and evaluated against defined outcome measures
  • § 470.303 — Agency-initiated demonstration projects: any federal agency or group of agencies may propose a demonstration project to OPM; if OPM approves the design, the project proceeds with congressional notification — Congress must receive advance notice of a new demonstration project before it launches; this oversight mechanism reflects the sensitivity of experimenting with civil-service rules that Congress has legislated

  Part 470 is the legal foundation for how the federal government innovates in personnel management rather than simply applying government-wide rules uniformly. Historically significant demonstration projects conducted under this authority include China Lake (Navy's alternative pay and performance system, which pioneered pay-banding concepts later adopted in broader civil service legislation) and multiple NIH and DoD experiments with alternative classification and appraisal systems. The framework allows agencies to avoid the political difficulty of proposing government-wide personnel reforms by first demonstrating their effectiveness in a controlled setting — providing Congress and OPM with evidence before broader legislative or regulatory action.

Pending Legislation

• S 3043 — Military and Federal Employee Protection Act: funds pay for federal employees and contractors who lost pay during government funding lapse. Status: Introduced.
• HR 5708 (Rep. Boyle, D-PA) — Federal Employees Civil Relief Act: court-ordered pauses on bills, evictions, foreclosures for federal workers during shutdowns. Status: Introduced.
• HR 5953 — Protect Military and Federal Employees from Unfair Bank Fees Act: bars overdraft/credit-card late fees for furloughed federal employees. Status: Introduced.

Recent Developments

• Schedule Policy/Career reinstated (January 2025): On his first day in office, President Trump reinstated Schedule F — now called "Schedule Policy/Career" — as an executive order, reclassifying federal employees in "policy-related" positions into a new schedule that strips competitive service protections and makes them easier to dismiss. The Biden administration had rescinded Trump's original Schedule F EO (2020) on its first day in 2021. The new order directed agencies to identify positions for reclassification. Federal employee unions (AFGE, NTEU) immediately challenged the order in court; litigation over its legality and scope is ongoing. If fully implemented, it would potentially affect tens of thousands of career employees.
• DOGE mass terminations: The Department of Government Efficiency (DOGE), operating through OPM and agency heads, orchestrated mass terminations of probationary federal employees across agencies in February 2025 — affecting an estimated 10,000–20,000 workers who had been employed for under one year and lacked full civil service tenure protections. Federal courts issued temporary restraining orders blocking some of the terminations, finding that DOGE may have lacked proper authority. Multiple federal employees' unions filed emergency motions; the MSPB was flooded with appeals. Several agencies were ordered to reinstate workers while litigation proceeded.
• "Fork in the Road" deferred resignation: In late January 2025, OPM sent federal employees an email offering a "deferred resignation" — employees who agreed to stop working immediately would continue receiving pay and benefits until late September 2025 while officially on administrative leave. Approximately 75,000–100,000 employees accepted the offer. Courts questioned whether OPM had authority to make this offer and whether the "deferred" nature of the resignation was legally valid; some employees who accepted later sought to rescind their resignations. The Supreme Court allowed the program to continue while litigation proceeded.
• Return-to-office mandate: Trump issued an executive order ending remote work for federal employees, requiring full in-person attendance. Agencies raced to accommodate returning workers in buildings that had been downsized. Employees with approved ADA accommodations for remote work faced the tension between the RTO mandate and their accommodation rights. Some agencies lacked sufficient office space for all employees.
• OPM RIF regulations: OPM published a proposed rule in March 2026 to revise reduction-in-force regulations — the formal process for agency-wide layoffs that provides specific protections, notice requirements, and retention rights for career employees. The proposed changes would make it easier for agencies to conduct large-scale RIFs, reducing some of the procedural protections that have historically made federal layoffs slow and administratively complex. Federal unions are expected to challenge any final rule in court.