[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 687 Introduced in House (IH)]

<DOC>






119th CONGRESS
  1st Session
                                H. R. 687

  To amend title 5, United States Code, to provide for an alternative 
      removal for performance or misconduct for Federal employees.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            January 23, 2025

 Mr. Loudermilk (for himself, Mr. Carter of Georgia, Mrs. Houchin, Mr. 
 Crawford, Mr. Owens, Mr. Collins, Mrs. Luna, Mr. Webster of Florida, 
  Mr. Mann, Mr. Scott Franklin of Florida, Mr. Meuser, Mr. Babin, Ms. 
    Tenney, Mr. Baird, Mr. Steube, and Mr. Burchett) introduced the 
 following bill; which was referred to the Committee on Oversight and 
                           Government Reform

_______________________________________________________________________

                                 A BILL


 
  To amend title 5, United States Code, to provide for an alternative 
      removal for performance or misconduct for Federal employees.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Modern Employment 
Reform, Improvement, and Transformation Act of 2025'' or the ``MERIT 
Act of 2025''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.
Sec. 2. Termination of authority for chapter 43 performance-based 
                            actions.
Sec. 3. Adverse actions based on performance or conduct.
Sec. 4. Prohibition on grieving adverse actions and reductions in 
                            force.
Sec. 5. Actions against senior executives for performance or conduct.
Sec. 6. Actions against supervisors for performance or conduct.
Sec. 7. Modification of procedures for furlough.
Sec. 8. Reduction of annuity of employee convicted of a felony for 
                            which an adverse action is or would have 
                            been taken.
Sec. 9. Authority to recoup bonuses or awards paid to employees.
Sec. 10. Extension of probationary period for positions within the 
                            Senior Executive Service.
Sec. 11. Extension of probationary period for employees in the 
                            competitive service.
Sec. 12. Application.

SEC. 2. TERMINATION OF AUTHORITY FOR CHAPTER 43 PERFORMANCE-BASED 
              ACTIONS.

    (a) Repeal.--Section 4303 of title 5, United States Code, is 
repealed.
    (b) Application.--Subsection (a) shall not apply to any 
performance-based action under section 4303 of title 5, United States 
Code, commenced before the effective date provided in section 12.
    (c) Conforming Amendments.--
            (1) Title 5.--Title 5, United States Code, is amended--
                    (A) in section 2302(e)(1)(A), by striking ``3504, 
                and 4303(e)'' and inserting ``and 3504'';
                    (B) in section 4302(c)(6), by striking ``but only 
                after an opportunity to demonstrate acceptable 
                performance'';
                    (C) in section 7512, by striking subparagraph (D) 
                and redesignating subparagraphs (E) and (F) as 
                subparagraphs (D) and (E), respectively;
                    (D) in section 7701(c)(1), by striking ``decision'' 
                and all that follows through ``preponderance of the 
                evidence'' and inserting ``decision is supported by a 
                preponderance of the evidence'';
                    (E) in section 9508(d), by striking ``(1) In 
                applying'' and all that follows through ``(2)''; and
                    (F) in section 9902(a)(2), by striking ``sections 
                4302 and 4303(e)'' and inserting ``section 4302''.
            (2) Title 31.--Section 732(d)(3) of title 31, United States 
        Code, is amended by striking ``consistent with section 4303 of 
        title 5''.
    (d) Clerical Amendment.--The table of sections for chapter 43 of 
title 5, United States Code, is amended by striking the item relating 
to section 4303.

SEC. 3. ADVERSE ACTIONS BASED ON PERFORMANCE OR CONDUCT.

    (a) In General.--Section 7513 of title 5, United States Code, is 
amended to read as follows:
``Sec. 7513. Cause and procedure
    ``(a) In General.--
            ``(1) Under regulations prescribed by the Office of 
        Personnel Management, an agency may take an action described in 
        paragraphs (1) through (4) of section 7512 against an employee 
        if the agency determines by a preponderance of the evidence the 
        performance or misconduct of the employee warrants such action.
            ``(2)(A) When making an initial decision on an action 
        described in paragraphs (1) through (4) of section 7512, the 
        deciding employee of the agency shall exclusively apply the 
        following factors:
                    ``(i) The nature and seriousness of the offense, 
                and its relation to the employee's duties, position, 
                and responsibilities, including whether the offense was 
                intentional or technical or inadvertent, or was 
                committed maliciously or for gain, or was frequently 
                repeated.
                    ``(ii) The employee's job level and type of 
                employment, including supervisory or fiduciary role, 
                and prominence of the position.
                    ``(iii) The employee's past disciplinary records.
                    ``(iv) The employee's past work record, including 
                length of service, performance on the job, ability to 
                get along with fellow workers, and dependability.
                    ``(v) Mitigating circumstances surrounding the 
                offense such as unusual job tensions personality 
                problems, mental impairment, harassment, or bad faith, 
                malice or provocation on the part of others involved in 
                the matter.
            ``(B) The agency shall review the initial decision and 
        uphold such decision if it is supported by substantial 
        evidence.
    ``(b) Pay of Certain Employees Subject to a Reduction in Grade.--
            ``(1) Notwithstanding any other provision of law, an 
        employee subject to a reduction in grade shall, beginning on 
        the date of such reduction, receive the annual rate of pay 
        applicable to such grade.
            ``(2) An employee subject to a reduction in grade 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 employee reports for duty or is 
        approved to use accrued unused annual, sick, family medical, 
        military, or court leave.
            ``(3) If an employee subject to a reduction in grade does 
        not report for duty or receive approval to use accrued unused 
        leave, such employee shall not receive pay or other benefits.
    ``(c) Procedure.--
            ``(1)(A) The aggregate period for written notice, response, 
        and final decision of actions described in paragraphs (1) 
        through (4) of section 7512 may not exceed 15 business days 
        unless there are reasonable causes to believe the employee has 
        committed a crime for which a sentence of imprisonment may be 
        imposed.
            ``(B) The period for which an employee may respond to a 
        notice of actions described in paragraphs (1) through (4) of 
        section 7512 in writing and to furnish affidavits and other 
        documentary evidence in support of the response shall be 7 
        business days.
            ``(2) The agency shall issue a final decision with respect 
        to actions described in paragraphs (1) through (4) of section 
        7512 not later than 15 business days after the agency provides 
        notice, including a file containing all the evidence in support 
        of the proposed action, to the employee. The decision shall be 
        in writing and shall include the specific reasons therefor.
    ``(d) PIP.--The agency may carry out such actions described in 
paragraphs (1) through (4) of section 7512 without first placing an 
employee on a performance improvement plan.
    ``(e) Employee Rights.--An employee against whom actions described 
in paragraphs (1) through (4) of section 7512 is proposed is entitled 
to--
            ``(1) a written notice stating the specific reasons for the 
        proposed action;
            ``(2) be represented by an attorney or other 
        representative; and
            ``(3) a written decision and the specific reasons therefor 
        at the earliest practicable date.
    ``(f) Hearing.--An agency may provide, by regulation, for a hearing 
which may be in lieu of or in addition to the opportunity to answer 
provided under subsection (c)(1)(b) of this section.
    ``(g) Appeal.--An employee against whom an action described in 
paragraphs (1) through (4) of section 7512 is taken is entitled to 
appeal to the Merit Systems Protection Board under section 7701 of this 
title not later than 10 business days after the effective date of the 
action.
    ``(h) Procedure.--Copies of the notice of proposed action, the 
answer of the employee when written, a summary thereof when made 
orally, the notice of decision and reasons therefor, and any order 
effecting an action described in paragraphs (1) through (4) of section 
7512, together with any supporting material, shall be maintained by the 
agency and shall be furnished to the Board upon its request. Upon the 
affected employee's request, copies of the documents described in the 
preceding sentence shall be furnished to the employee, to the extent 
those documents were not provided under subsection (c).''.
    (b) Discipline of Supervisors Based on Retaliation Against 
Whistleblowers.--Section 7515(b)(2)(B) of title 5, United States Code, 
is amended--
            (1) in clause (i), by striking ``not later than 14 days'' 
        and inserting ``not more than 7 business days''; and
            (2) in clause (ii), by striking ``14-day period'' and 
        inserting ``7-business-day period''.
    (c) Application.--The amendments made by subsections (a) and (b) 
shall not apply to any action under section 7513 or 7515 of title 5, 
United States Code, as amended by those subsections, respectively, 
commenced before the effective date provided in section 12.

SEC. 4. PROHIBITION ON GRIEVING ADVERSE ACTIONS AND REDUCTIONS IN 
              FORCE.

    Section 7121 of title 5, United States Code, is amended--
            (1) in subsection (a)(1), by striking ``the settlement 
        of'';
            (2) in subsection (c)--
                    (A) by redesignating paragraphs (1) through (5) as 
                paragraphs (5) through (9), respectively; and
                    (B) by inserting before paragraph (5), as so 
                redesignated, the following:
            ``(1) an adverse action under subchapter II of chapter 75;
            ``(2) a furlough of more than 30 days by a reduction in 
        force action under subchapter I of chapter 35;
            ``(3) a separation by a reduction in force action under 
        subchapter I of chapter 35;
            ``(4) a demotion by a reduction in force action under 
        subchapter I of chapter 35;'';
            (3) in subsection (e)--
                    (A) in paragraph (1)--
                            (i) by striking ``(1) Matters'' and all 
                        that follows through ``but not both.''; and
                            (ii) in the second sentence, by striking 
                        ``Similar matters'' and inserting ``Matters 
                        similar to those covered under subchapter II of 
                        chapter 75''; and
                    (B) by striking paragraph (2); and
            (4) in subsection (f)--
                    (A) by striking the first sentence; and
                    (B) in the second sentence, by striking ``In 
                matters similar to those covered under sections 4303 
                and 7512 of this title'' and inserting ``In matters 
                similar to those covered under subchapter II of chapter 
                75''.

SEC. 5. ACTIONS AGAINST SENIOR EXECUTIVES FOR PERFORMANCE OR CONDUCT.

    (a) Repeal of Pay Retention for Career Appointees Removed From the 
Senior Executive Service.--Section 3594(c)(1)(B) of title 5, United 
States Code, is amended to read as follows:
            ``(B)(i) any career appointee placed under subsection (a) 
        or (b)(2) of this section shall be entitled to receive basic 
        pay at the highest of--
                    ``(I) the rate of basic pay in effect for the 
                position in which placed;
                    ``(II) the rate of basic pay in effect at the time 
                of the placement for the position the career appointee 
                held in the civil service immediately before being 
                appointed to the Senior Executive Service; or
                    ``(III) the rate of basic pay in effect for the 
                career appointee immediately before being placed under 
                subsection (a) or (b) of this section; and
            ``(ii) any career appointee placed under subsection (b)(1) 
        of this section shall be entitled to receive basic pay at the 
        rate of basic pay in effect for the position in which placed; 
        and''.
    (b) Appraisal System Requirements.--Section 4314(b) of title 5, 
United States Code, is amended--
            (1) in paragraph (3), by inserting before the semicolon the 
        following: ``or, as warranted, from the civil service''; and
            (2) in paragraph (4), by inserting before the period at the 
        end the following: ``or, as warranted, from the civil 
        service''.
    (c) Suspension for 14 Days or Less.--Paragraph (1) of section 7501 
of title 5, United States Code, is amended to read as follows:
            ``(1) `employee' means--
                    ``(A) an individual in the competitive service who 
                is not serving a probationary period or trial period 
                under an initial appointment or who has completed 1 
                year of current continuous employment in the same or 
                similar positions under other than a temporary 
                appointment limited to 1 year or less; or
                    ``(B) a career appointee in the Senior Executive 
                Service who--
                            ``(i) has completed the probationary period 
                        prescribed under section 3393(d); or
                            ``(ii) was covered by the provisions of 
                        subchapter II of this chapter immediately 
                        before appointment to the Senior Executive 
                        Service; and''.
    (d) Modification of Cause and Procedure for Suspension and 
Termination.--Section 7543 of title 5, United States Code, is amended 
to read as follows:
``Sec. 7543. Cause and procedure
    ``(a) Under regulations prescribed by the Office of Personnel 
Management, an agency may take an action covered by this subchapter 
against an employee if the agency determines by a preponderance of the 
evidence the performance or misconduct of the employee warrants such 
action.
    ``(b) When making an initial decision on an action covered by this 
subchapter, the deciding employee of the agency shall exclusively apply 
the following factors--
            ``(1) the nature and seriousness of the offense, and its 
        relation to the employee's duties, position, and 
        responsibilities, including whether the offense was intentional 
        or technical or inadvertent, or was committed maliciously or 
        for gain, or was frequently repeated; and
            ``(2) the employee's job level and type of employment, 
        including supervisory or fiduciary role, and prominence of the 
        position.
    ``(c) The agency shall review the initial decision and uphold such 
decision if it is supported by substantial evidence.
    ``(d)(1)(A) The aggregate period for written notice, response, and 
final decision of actions covered by this subchapter may not exceed 15 
business days unless there are reasonable causes to believe the 
employee has committed a crime for which a sentence of imprisonment may 
be imposed.
    ``(B) The period for which an employee may respond to a notice of 
actions covered by this subchapter in writing and to furnish affidavits 
and other documentary evidence in support of the response shall be 7 
business days. (2) The agency shall issue a final decision with respect 
to a covered actions not later than 15 business days after the agency 
provides notice, including a file containing all the evidence in 
support of the proposed action, to the employee. The decision shall be 
in writing and shall include the specific reasons therefor.
    ``(e) An employee against whom an action covered by this subchapter 
is proposed is entitled to--
            ``(1) a written notice stating the specific reasons for the 
        proposed action;
            ``(2) be represented by an attorney or other 
        representative; and
            ``(3) a written decision and the specific reasons therefor 
        at the earliest practicable date.
    ``(f) An agency may provide, by regulation, for a hearing which may 
be in lieu of or in addition to the opportunity to answer provided 
under subsection (d)(1)(B) of this section.
    ``(g) An employee against whom an action is taken under this 
section is entitled to appeal to the Merit Systems Protection Board 
under section 7701 of this title not later than 10 business days after 
the effective date of the action.
    ``(h) Copies of the notice of proposed action, the answer of the 
employee when written, a summary thereof when made orally, the notice 
of decision and reasons therefor, and any order effecting an action 
covered by this subchapter, together with any supporting material, 
shall be maintained by the agency and shall be furnished to the Board 
upon its request. Upon the affected employee's request, copies of the 
documents described in the preceding sentence shall be furnished to the 
employee, to the extent those documents were not provided under 
subsection (c).
    ``(i) In this section, 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.''.
    (e) Relation to Other Provisions of Law.--Section 3592(b)(1) of 
title 5, United States Code, deso not apply to an action under section 
7543(a), as amended in subsection (d).
    (f) Conforming Amendments.--Title 5, United States Code, is 
amended--
            (1) in section 3592(b)(2)(B), by striking ``any 
        disciplinary action'' and inserting ``any action under section 
        7543'';
            (2) in section 3593(a)(2), by striking ``misconduct, 
        neglect of duty, malfeasance,'' and inserting ``a removal under 
        section 7543'';
            (3) in section 3594, by adding at the end the following:
    ``(d) This section shall not apply to any career appointee who is 
subject to a personnel action under subchapter V of chapter 75.''; and
            (4) in section 7542, by striking ``or to a removal under 
        section 3592 or 3595'' and ins