Overview

Title

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

ELI5 AI

The "MERIT Act of 2024" is a plan to change how government workers can be told to leave their jobs if they're not doing well or behaving badly, making it quicker and simpler for bosses to take action. It also suggests new rules like a longer testing period when starting a job and stricter rules about bonuses, hoping everyone follows the rules better.

Summary AI

H.R. 10397, also known as the "Modern Employment Reform, Improvement, and Transformation Act of 2024" or the "MERIT Act of 2024," proposes changes to the rules governing the removal, suspension, and discipline of federal employees due to performance issues or misconduct. The bill aims to make it easier for federal agencies to discipline or remove employees based on evidence of unsatisfactory performance or behavior, without first requiring a performance improvement plan. It also seeks to extend the probationary period for new employees in the competitive service and the Senior Executive Service from one year to two years and imposes stricter rules on the awarding and recoupment of bonuses. Additionally, it allows for reducing the retirement annuity of employees convicted of felonies related to their work duties and seeks to streamline the procedures for handling reductions in force and furloughs.

Published

2024-12-12
Congress: 118
Session: 2
Chamber: HOUSE
Status: Introduced in House
Date: 2024-12-12
Package ID: BILLS-118hr10397ih

Bill Statistics

Size

Sections:
19
Words:
9,298
Pages:
42
Sentences:
186

Language

Nouns: 2,473
Verbs: 717
Adjectives: 322
Adverbs: 83
Numbers: 450
Entities: 481

Complexity

Average Token Length:
3.95
Average Sentence Length:
49.99
Token Entropy:
5.24
Readability (ARI):
25.50

AnalysisAI

The proposed legislation, known as the Modern Employment Reform, Improvement, and Transformation Act of 2024 or the MERIT Act of 2024, seeks to amend specific sections of title 5 of the United States Code. Its primary aim is to provide a framework for alternative actions regarding performance or misconduct by Federal employees. The bill introduces a range of reforms, addressing performance-based actions, adverse actions related to conduct, and procedural modifications for senior executive and supervisory roles within the federal government. Additionally, it proposes significant changes to probationary periods for various employment positions, as well as financial consequences for employees convicted of felonies.

General Summary of the Bill

This comprehensive legislation includes amendments that impact employee performance evaluations, disciplinary procedures, rights of appeal, and the treatment of senior executives. Notably, it extends probationary periods, modifies furlough procedures, and imposes new rules regarding the removal of employees based on performance and misconduct. Moreover, the bill outlines conditions under which annuities can be reduced for felonious behavior and establishes authority to reclaim bonuses upon findings of misconduct.

Significant Issues

Time Constraints and Due Process

A central concern involves the timeframes set for addressing employee misconduct or performance issues. With a 15-business-day limit for notice, response, and final decision, coupled with a seven-day response period, these constraints might not suffice in more complex situations. The allowance for expedited decision-making could affect thoroughness and fairness.

Furthermore, the removal of performance improvement plans (PIPs) as a prerequisite to adverse actions might undermine due process. This raises concerns about whether employees are given ample opportunity to correct performance before facing severe penalties.

Impact on Employee Rights

The provision that prohibits grieving adverse actions and reductions in force raises significant concerns regarding employee rights and fairness. It limits the avenues available for employees to contest unjust or unfounded disciplinary actions, posing potential due process challenges.

Additionally, the bill’s new rules on pension reductions for employees convicted of felonies, defined as "felonious service," might invoke ethical and legal debates due to its broad interpretation and retroactive application.

Consistency and Implementation

There is concern about how uniformly the provisions will be implemented across various federal agencies. Sections pertaining to what constitutes an "adverse finding" and the procedures for recouping bonuses leave room for varied interpretations, potentially leading to inconsistencies and challenges in application.

Broader Impact on the Public and Stakeholders

Public Impact

The bill could lead to a more streamlined federal workforce by setting clear processes for handling misconduct and poorly performing employees. It might foster an environment of accountability, emphasizing performance and lawful conduct within government roles.

Impact on Employees and Agencies

Employees, particularly those in senior or supervisory positions, could face increased uncertainty concerning job security. Stricter rules without initial performance improvement opportunities might lead to swift disciplinary actions, affecting morale and potential retention rates.

Federal agencies may need to allocate additional resources to ensure compliance with the new regulations, particularly given the detailed procedural requirements for disciplinary actions, appeals, and furlough procedures.

Positive Outcomes

For stakeholders advocating for government accountability and efficiency, this bill could be seen as a move towards ensuring that federal employees meet high performance and conduct standards. By aiming to address misconduct decisively, the bill might enhance public trust in federal operations.

Potential Negative Outcomes

Conversely, the absence of comprehensive PIP requirements and potential disparities in the application of new rules could fuel perceptions of inequity or inflexibility within the federal employment system. This may affect employee relations and exacerbate bureaucratic challenges.

Overall, while this legislation targets rigorous reform in federal employment management, it necessitates close scrutiny to balance disciplinary efficiency with fairness and due process, ensuring equitable treatment across the federal workforce.

Issues

  • Section 3 and Section 7513: The timeframe for actions involving employee misconduct or performance, set at 15 business days aggregate for notice, response, and final decision, and the allowance of 7 business days for employee response, may not be sufficient in complex cases, posing potential fairness concerns.

  • Section 4: The prohibition on grieving adverse actions and reductions in force may raise significant concerns about employee rights and fair treatment, potentially impacting due process and justice for affected federal employees.

  • Section 8 and Section 8323: The reduction of annuity for employees convicted of a felony, defined as "felonious service," could potentially be contentious due to its broad interpretation and possible retroactive application, raising ethical and legal concerns.

  • Section 1, Section 3, and Section 11: There is a lack of clarity and rationale for extending probationary periods for Senior Executive and competitive service positions to two years, which may have legal, performance, accountability, and financial implications.

  • Section 3 and Section 7513: Removing the requirement for a performance improvement plan (PIP) before taking adverse actions may circumvent due process and not afford employees the opportunity to address performance issues, affecting fairness and potentially leading to legal challenges.

  • Section 9 and Section 4531: The broad definition of "adverse finding" and its implications on recouping bonuses or awards could lead to inconsistent applications across federal agencies, raising concerns about fairness and consistency.

  • Section 7 and Section 7504: The lack of detailed procedures for emergency furloughs besides notice could lead to confusion about employee rights during such furloughs, potentially impacting their legal and financial standing.

  • Section 5 and Section 7543: The process for taking actions against senior executives based on performance or conduct, without first utilizing a performance improvement plan, may be viewed as harsh, lacking due process, and could lead to inconsistent application.

  • Section 2: The repeal of Section 4303 and the removal of detailed wording from performance-based actions could introduce inconsistencies and confusion in how performance measures are evaluated, impacting the overall performance management framework.

Sections

Sections are presented as they are annotated in the original legislative text. Any missing headers, numbers, or non-consecutive order is due to the original text.

1. Short title; table of contents Read Opens in new tab

Summary AI

The Modern Employment Reform, Improvement, and Transformation Act of 2024 (also known as the "MERIT Act of 2024") outlines several key reforms related to employment practices, including the termination of certain performance-based actions, guidelines for addressing adverse actions due to performance or conduct, and the modification of procedures for senior executives and supervisory roles. It also proposes changes to the probationary periods for specific employment positions and addresses financial consequences for employees convicted of felonies.

2. Termination of authority for chapter 43 performance-based actions Read Opens in new tab

Summary AI

The section eliminates the authority for performance-based actions under chapter 43 of title 5 in the U.S. Code by repealing section 4303. It specifies that this repeal doesn't affect actions started before a certain date and includes several updates to other related sections to conform with this change.

3. Adverse actions based on performance or conduct Read Opens in new tab

Summary AI

The text outlines amendments to Section 7513 of Title 5, U.S. Code, detailing procedures for taking action against federal employees based on performance or conduct, including factors for decision-making, specific time frames for notifications and responses, and employee rights to representation and appeals. It also addresses modifications related to disciplining supervisors for retaliation against whistleblowers and clarifies that these changes do not apply to actions started before the amendments’ effective date.

7513. Cause and procedure Read Opens in new tab

Summary AI

Under the regulations from the Office of Personnel Management, an agency can take disciplinary actions against an employee if there is enough evidence of misconduct or poor performance. This process includes notifying the employee, allowing them time to respond, giving a final decision within a set time, and letting them appeal the decision. Additionally, employees can't be placed on administrative leave when appealing a demotion in grade unless they are working or using approved leave.

4. Prohibition on grieving adverse actions and reductions in force Read Opens in new tab

Summary AI

Congress is proposing changes to certain sections of the U.S. Code to disallow grievances related to adverse employment actions or reductions in force, such as long furloughs, layoffs, or demotions, and is updating how similar matters are addressed in existing laws.

5. Actions against senior executives for performance or conduct Read Opens in new tab

Summary AI

This section updates various provisions regarding the treatment of senior executives in the federal government, including rules for setting their pay if they are reassigned, the procedures for suspending or removing them, and their rights during these processes. It clarifies that certain protections and processes, such as notice and opportunity to respond, apply when actions like suspension or termination are taken against these employees, and it establishes timelines and appeals processes for such actions.

7543. Cause and procedure Read Opens in new tab

Summary AI

An agency can take action against an employee for poor performance or misconduct if proven by evidence, and must follow specific procedures, including providing written notices and allowing the employee to respond. The employee can be represented, can appeal to the Merit Systems Protection Board, and is entitled to receive related documents. Misconduct includes neglecting duties or refusing job assignments.

6. Actions against supervisors for performance or conduct Read Opens in new tab

Summary AI

The text outlines a process by which government agencies can take disciplinary action against supervisors for poor performance or misconduct. It specifies the criteria for decision-making, timelines for notice and response, and details the consequences, such as potential reduction in pay and procedural rights, for supervisors facing such actions.

7514. Supervisors Read Opens in new tab

Summary AI

The section outlines processes and rules for taking action against supervisors if their performance or misconduct justifies it. It specifies procedures for notice, representation, and decision-making, including timelines for responses and decisions, and addresses how reductions in pay and grade should be handled.

7. Modification of procedures for furlough Read Opens in new tab

Summary AI

The section outlines changes to the procedures for federal employee furloughs, which are temporary unpaid leaves of absence. It introduces new definitions for regular and emergency furloughs, establishes specific procedures and regulations for each type, and clarifies how furloughs of different durations are treated under U.S. law, including appeal rights.

7504. Furlough and emergency furlough cause and procedure Read Opens in new tab

Summary AI

An employee can be furloughed to enhance service efficiency, with specific procedures and rights such as receiving a written notice and being represented by an attorney. In emergencies, an employee may be furloughed with only a notice of explanation, and no other standard procedures apply.

7515. Furlough cause and procedure Read Opens in new tab

Summary AI

This section outlines the guidelines for furloughing employees to enhance service efficiency. It requires the Office of Personnel Management to establish detailed regulations about furlough conditions, procedures, and necessary information to be shared with affected employees, who also have the right to appeal a furlough decision within ten business days.

8. Reduction of annuity of employee convicted of a felony for which an adverse action is or would have been taken Read Opens in new tab

Summary AI

The section establishes that if a federal employee is convicted of a felony related to their job, their pension will be reduced by excluding the period involving the wrongdoing from their retirement calculation. It also provides procedures for notification, response, appeals, and outlines exceptions for spouses who cooperated with investigations.

8323. Reduction of benefits of employees convicted of certain crimes Read Opens in new tab

Summary AI

The section outlines rules for reducing the retirement benefits of government employees convicted of felonies related to their job duties. It specifies that employees facing such convictions may have their annuity calculated without considering the period of felonious service, allows for the possibility of appeal, and describes the administrative process for amending retirement records. Additionally, it provides exceptions for cooperating spouses to receive benefits and defines key terms such as "covered individual" and "felonious service."

9. Authority to recoup bonuses or awards paid to employees Read Opens in new tab

Summary AI

In this section, agencies are prohibited from awarding bonuses to employees if there's an "adverse finding" against them, meaning they've seriously violated policy or law. If a bonus was given during the year of adverse finding, the employee must repay it, with the option to use a repayment plan and the right to appeal the decision.

4531. Certain forms of misconduct Read Opens in new tab

Summary AI

The section outlines rules about misconduct by government employees, specifying that if an agency finds an employee guilty of serious misconduct, the employee cannot receive a bonus for five years. Additionally, if an employee gets a bonus and then is found guilty of misconduct in the same year, they must pay the bonus back, but they can appeal this decision.

10. Extension of probationary period for positions within the Senior Executive Service Read Opens in new tab

Summary AI

The section changes the probationary period for certain government positions to two years instead of one year. This applies to people appointed after the law goes into effect.

11. Extension of probationary period for employees in the competitive service Read Opens in new tab

Summary AI

The bill extends the probationary period for certain federal employees from one year to two years, depending on whether the position requires formal training or a license. It also mandates that federal agencies provide clear information about the probationary period's terms and conditions, notify supervisors about the end date of the probationary period, and submit a certification to the President if an employee is retained after the probationary period.

12. Application Read Opens in new tab

Summary AI

The section outlines that the changes made by the Act will begin one year after the Act is passed. It also states that these changes will override any existing collective bargaining agreements if they conflict with the new procedures. Additionally, it defines a "business day" as any day that is not a Saturday, Sunday, or a public holiday.