The Modern Employment Reform, Improvement, and Transformation Act of 2025, also known as the MERIT Act of 2025, provides a detailed outline of its contents, including provisions for handling performance and conduct issues among federal employees, prohibiting grievances on certain adverse actions, and adjusting probationary periods and procedures for specific employment actions.

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.

The section of the bill outlines how agencies can take action against federal employees for poor performance or misconduct, detailing the decision-making process, pay implications for demotions, and employees' rights such as the ability to appeal decisions and be represented by an attorney. It also shortens the timeline for actions against supervisors who retaliate against whistleblowers and specifies that these changes do not apply to actions started before the section's effective date.

Under regulations from the Office of Personnel Management, an agency can take actions like suspensions or demotions against employees for misconduct if there is enough evidence, and must follow a specific process including notifying the employee in writing, allowing them to respond, and providing a final decision. Employees have rights to legal representation and can appeal decisions to the Merit Systems Protection Board within 10 business days.

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.

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.

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.

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.

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.

The section describes the changes to federal procedures for furloughing employees, outlining new rules for both short-term and emergency furloughs. It mandates that the Office of Personnel Management establish regulations to guide these processes, ensuring affected employees are informed and have certain rights, while allowing appeals for longer furloughs.

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.

Employees may be furloughed if it benefits the service, and they must follow specific procedures set by the Office of Personnel Management, which includes appealing to the Merit Systems Protection Board within 10 business days. Regulations will outline when and how furloughs can happen and what information must be provided to affected employees and the Board.

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.

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."

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.

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.

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.

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.

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.