[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repealed.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