**CHAPTER 1. GENERAL PROVISIONS**

**1-1 Number range level0Number range level1Number range level2Number
range level3Number range level4Number range level5Number range
level6Number range level7Purpose**

This Handbook implements Federal statutes and regulations of the Office
of Personnel Management (OPM) and the Merit Systems Protection Board
(MSPB) that apply when management takes action to remove, suspend,
furlough without pay for 30 days or less, or reduce an employee in grade
or pay. Some negotiated agreements may contain provisions which
supersede this Handbook. General guidance on less severe penalties
(official reprimands, etc.) is contained in paragraph 4-3.

Requirements stated in this Handbook are consistent with law,
regulations, and Agency policy applicable at the time of its issuance.
It is essential that current rules be researched, and that this Handbook
be used in conjunction with applicable negotiated agreements for
employees in an exclusive bargaining unit, in order to ensure adherence
to unique provisions, procedures, and timeframes.

2.  **Authorities and References**

    A.  Title 5, United States Code

        Office of Personnel Management Regulations, 5 CFR Parts 752 and
        792.

    Number range level2**Exceptions to Handbook Provisions**

    The Director, Office of Human Resources, may authorize waivers to
    the provisions of this Handbook insofar as the waivers are
    consistent with applicable laws, regulations, and negotiated
    agreements.

    **Definitions**

    For purposes of this issuance, the following definitions are used:

    A.  **Administrative Leave**. An excused absence from duty,
        administratively authorized, without loss of pay and without
        charge to leave. It is the Department\'s practice that the
        Director, Office of Human Resources, or in the field, the ASC
        Human Resources Director, must approve requests by program
        offices to place an employee on administrative leave to cover
        the period before the proposal notice is issued, when the
        administrative leave is expected to exceed 3 days. Such requests
        must be made in writing to the Director, Office of Human
        Resources, or ASC Human Resources Director, and they must
        contain sufficient justification to support the need.

        **Adverse Action**. A personnel action taken by HUD management
        against an employee to effect his/her removal, suspension for
        more than 14 days, furlough without pay for 30 days or less, or
        reduction in grade or pay.

        **Aggravating Factors**. Actions, circumstances, or events which
        increase or magnify the seriousness or severity of the
        employee\'s offense against the employer-employee relationship.

        **Appeal**. A request by an employee to the MSPB for review of a
        suspension of more than 14 days, change to lower grade or pay,
        removal, or furlough of 30 days or less taken under 5 U.S.C.
        Chapter 75.

        **Days**. Calendar days.

        **Deciding Official**. A HUD supervisor or manager who makes a
        decision on a proposed adverse action or disciplinary action.

        **Demotion.** The involuntary reduction of an employee in pay
        and grade.

        **Disciplinary Action**. A memorandum of warning, official
        reprimand, or suspension up to 14 calendar days.

        **Excused Absence**. Absence from duty, administratively
        authorized, without loss of pay and without charge to leave.

        **Furlough**. Placing an employee in a temporary status without
        duties and pay because of lack of work or funds or other
        nondisciplinary reasons.

        **Harmful Error**. Error by the Department in the application of
        its procedures that is likely to have caused the Department to
        reach a conclusion different from the one it would have reached
        in the absence or cure of the error. The burden is upon the
        appellant to show that the error was harmful, i.e., caused
        substantial harm or prejudice to his/her rights.

        **Indefinite Suspension**. The placing of an employee in a
        temporary status without duties and pay pending investigation,
        inquiry, or further agency action. The indefinite suspension
        continues for an indeterminate period of time and ends with the
        occurrence of the pending conditions set forth in the notice of
        action which may include the completion of any subsequent
        administrative action.

        **Mitigating Factors**. Actions, circumstances, or events which
        lessen, moderate, reduce, or abate the seriousness or severity
        of the employee\'s offense.

        **MSPB**. Merit Systems Protection Board.

        **Nexus**. The connection between the specific misconduct and
        the efficiency of the Federal service.

        **OPM**. Office of Personnel Management.

        **Proposing Official**. A HUD supervisor or manager who proposes
        an adverse or disciplinary action.

        **Reasonable Accommodation**. An adjustment or modification to
        the work environment which would enable a qualified individual
        with disabilities to perform the essential duties of his/her
        position.

        **Reduction in Grade**. The involuntary assignment of an
        employee to a position at a lower classification or job grading
        level.

        **Reduction in Pay**. The involuntary reduction in basic pay.

        **Removal**. The involuntary separation of an employee from
        employment with the Department and Federal service except when
        taken as a reduction-in-force (RIF) action or at the expiration
        of appointment.

        **Standards of Ethical Conduct**. The Standards of Ethical
        Conduct regulations issued by the Office of Government Ethics
        and found at 5 CFR Part 2635; the Executive Branch Financial
        Disclosures Qualified Trusts, and Certificates of Divestiture
        regulations issued by the Office of Government Ethics and found
        at 5 CFR Part 2634; the Limitations on Outside Employment and
        Prohibition of Honoraria; Confidential Reporting of Payments to
        Charities in Lieu of Honoraria regulations issued by the Office
        of Government Ethics and found at 5 CFR Part 2636; and HUD\'s
        Standards of

    Ethical Conduct regulations found at 24 CFR Part 0.735 and any HUD
    Employee Responsibilities and Conduct Addendum or supplemental
    regulations to the regulations of the Office of Government Ethics.

    A.  **Suspension**. The temporary placement of an employee in a
        nonduty, nonpay status for disciplinary reasons.

    Number range level2**Employees Covered**

    The categories of employees covered, as well as employees not
    covered, are listed in Appendix 2.

    **Actions Covered**

    The following actions are subject to the policies and procedures of
    this Handbook.

    A.  **Misconduct**:

        1.  Suspensions of 14 days or less (Chapter 2)

            Suspensions of more than 14 days (Chapter 3)

            Removal (Chapter 3)

            Reduction in grade (Chapter 3)

            Reduction in pay (Chapter 3)

        Number range level3**Other**:

        1.  Furlough without pay for 30 days or less (Chapter 3)

            Actions that involve both performance and non­­­­-performance
            related factors

            Performance-based action that is not taken under 5 CFR
            Part 432. Before initiating a performance-based disciplinary
            action, the policy and procedural requirements of Handbook
            0432.01, Performance, and those of this Handbook must be
            considered. Of particular importance, note the differences
            in the evidentiary standards or \"degree of proof\" required
            under two pertinent regulatory procedures in order to
            support the action. 5 CFR Part 432 requires **substantial
            evidence**; conversely, 5 CFR Part 752 requires
            **preponderance of the evidence**.

    Number range level2Number range level3**Actions Not Covered**

    A.  A reduction-in-force action.

        A suspension or removal in the interest of national security.

        The separation of a probationary employee.

        The reduction in grade or pay of a supervisor or manager who
        fails to successfully complete a new probationary period as a
        supervisor or manager if such reduction is to the grade held
        immediately before becoming a supervisor or manager.

        An action which entitles an employee to grade retention, and an
        action to terminate this entitlement.

        Voluntary action(s) initiated by the employee.

        Termination of appointment on the expiration date specified as a
        basic condition of employment at the time the appointment was
        made.

        An action which terminates a temporary or term promotion and
        returns the employee to the position from which temporarily
        promoted, or to a different position of equivalent grade and
        pay, if the Department informed the employee that it was to be
        of limited duration.

        Cancellation of a promotion to a position not classified prior
        to the promotion.

        Reduction of an employee\'s rate of pay from a rate which is
        contrary to a rate allowed or permitted by law or regulation.

        An action against a reemployed annuitant.

        An action imposed by MSPB under authority of 5 U.S.C. 1206.

        A reduction in grade or removal based on unacceptable
        performance.

        An action taken or directed by the Office of Personnel
        Management based on a suitability determination.

    Number range level2**General Standards**

    A.  Adverse and disciplinary actions may be taken against an
        employee covered by this Handbook only for such cause as will
        promote the efficiency of the Federal service.

        Adverse and disciplinary actions may not be taken against an
        employee if the action is based on unlawful discrimination or a
        personnel practice prohibited by any law, rule, or regulation.

    **Records**

    A.  The Department is required to make as part of its records copies
        of the following documents:

        1.  The Notice of Proposed Adverse or Disciplinary Action;

            The employee\'s answer when written;

            A summary of any oral answer when given;

            The Decision Notice; and

            The material relied on by HUD to support the reasons in the
            Proposal and Decision Notices.

        These records shall be furnished to the MSPB upon its request
        and to the affected employee upon the request of the employee or
        his/her designated representative.

        Case files should be destroyed after 4 years unless a request is
        received to retain the records for use in another forum, i.e.,
        EEO complaint.

        Number range level3Appropriate personnel specialists in each
        Administrative Service Center (ASC) and in Headquarters Labor
        and Employee Relations Division (LERD) are responsible for
        establishing and maintaining the Departmental records relating
        to actions covered by this Handbook.

    Number range level2**Delegations of Authority**

    A.  Any supervisor or manager at or above the Branch Chief level in
        Headquarters and the Field is authorized to issue a notice of
        proposed suspension of 14 days or less or adverse action against
        an employee for reasons of misconduct or performance-based
        action taken under 5 CFR 752. The proposal is to be based on
        factual information.

        The decision on a proposed suspension of 14 days or less or
        adverse action must be made by an organizationally higher level
        official of the Department, when that exists, than the official
        who proposed the adverse or disciplinary action. A typical
        example of the Deciding Official would be the Division Director
        when the Branch Chief proposed the action.

        When the Secretary or Deputy Secretary is the Proposing
        Official, he/she may also serve as the Deciding Official.

        When the Deputy Secretary is both the Proposing and Deciding
        Official, the written decision must be concurred in by either an
        organizationally higher level official, when that exists or the
        Secretary.

        When the Secretary or Deputy Secretary is the Deciding Official,
        either may designate:

        1.  An appropriate official to serve in his/her stead as
            Deciding Official. The official designated must be at a
            level equivalent to, or higher than, the official who
            proposed the action; or

            An appropriate official to handle the receipt of replies,
            both written and oral, to obtain whatever additional
            information is deemed appropriate, and make a pre-decision
            recommendation to the Deciding Official. The designee may
            not be the Proposing Official or anyone subordinate to the
            Proposing Official.

        The Assistant to the Secretary for Field Management shall issue
        a decision notice in the case of an employee to whom a
        Secretary\'s Representative issued a notice of proposed action.

        Refer to the Department\'s current applicable Delegations of
        Authority for guidance when initiating or taking an action
        covered by this Handbook.

    **Pre-Decision Review Option**

    A.  Before issuing a notice, the Proposing or Deciding Official, as
        appropriate, may designate an appropriate official to carry out
        a review of the facts or circumstances of the events that led to
        the disciplinary action in such a manner and form as prescribed.
        The reviewing official shall report the results to the
        designating official.

        The official who is designated to carry out a review of the
        proposed action shall be an official of the Department who took
        no part in the events that led to issuance of the Notice of
        Proposed Adverse Action, and who is not under the jurisdiction
        of the official who proposed the adverse action.

        The Proposing and Deciding Officials are not required to carry
        out a review through a designated official. The decision to
        carry out such a review is discretionary and rests with the
        Proposing or Deciding Official, as appropriate.

    **Distribution of Proposal and Decision Notices**

    Copies of proposal and decision notices shall be furnished to the
    following:

    A.  The original for the employee;

        The representative, if any (decision notice only);

        The Proposing and Deciding Officials;

        In Headquarters, LERD; in the Field, the appropriate ASC Labor
        and Employee Relations Branch;

        Appropriate administrative officer; and

        Appropriate Field Assistant General Counsel or in Headquarters,
        the Assistant General Counsel for Human Resources Law (to alert
        counsel in the event the action is appealed to the MSPB or
        reviewed in a negotiated or administrative grievance procedure).