[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 (a) Repeal.--Section 4303 of title 5, United States Code, is repealed.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