I 
118TH CONGRESS 
2D SESSION H. R. 10397 
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 
DECEMBER 12, 2024 
Mr. LOUDERMILK (for himself, Mr. CRAWFORD, Mr. HILL, Mr. COLLINS, Mr. 
VAN DREW, Mr. MEUSER, Mrs. LUNA, Mr. STEUBE, Mr. CARTER of 
Georgia, Mr. BAIRD, and Mr. ALLEN) introduced the following bill; which 
was referred to the Committee on Oversight and Accountability 
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 Representa-
tives 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 Trans-
formation Act of 2024’’ or the ‘‘MERIT Act of 2024’’. 
(b) TABLE OF CONTENTS.—The table of contents for 
this Act is as follows: 
Sec. 1. Short title; table of contents. 
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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 ad-
verse 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 Exec-
utive Service. 
Sec. 11. Extension of probationary period for employees in the competitive serv-
ice. 
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Code, is repealed.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 ac-
ceptable performance’’; 
(C) in section 7512, by striking subpara-
graph (D) and redesignating subparagraphs (E) 
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and (F) as subparagraphs (D) and (E), respec-
tively; 
(D) in section 7701(c)(1), by striking ‘‘de-
cision’’ and all that follows through ‘‘preponder-
ance 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 ‘‘sec-
tions 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 ‘‘con-
sistent 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: 
‘‘§ 7513. Cause and procedure 
‘‘(a) IN GENERAL.— 
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‘‘(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 de-
termines by a preponderance of the evidence the per-
formance 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 of-
fense, and its relation to the employee’s duties, 
position, and responsibilities, including whether 
the offense was intentional or technical or inad-
vertent, 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, in-
cluding length of service, performance on the 
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job, ability to get along with fellow workers, 
and dependability; and 
‘‘(v) mitigating circumstances surrounding 
the offense such as unusual job tensions person-
ality 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 sub-
stantial 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, re-
ceive 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. 
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‘‘(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 no-
tice, response, and final decision of actions described 
in paragraphs (1) through (4) of section 7512 may 
not exceed 15 business days unless there are reason-
able causes to believe the employee has committed a 
crime for which a sentence of imprisonment may be 
imposed. 
‘‘(B) (B) The period for which an employee 
may respond to a notice of actions described in para-
graphs (1) through (4) of section 7512 in writing 
and to furnish affidavits and other documentary evi-
dence 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 busi-
ness 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 
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‘‘(h) PROCEDURE.—Copies of the notice of proposed 
action, the answer of the employee when written, a sum-
mary thereof when made orally, the notice of decision and 
reasons therefor, and any order effecting an action de-
scribed in paragraphs (1) through (4) of section 7512, to-
gether 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 docu-
ments were not provided under subsection (c).’’. 
(b) DISCIPLINE OF SUPERVISORS BASED ON RETAL-
IATION
AGAINST
WHISTLEBLOWERS.—Section 
7515(b)(2)(B) of title 5, United States Code, is amend-
ed— 
(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 sub-
sections (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. 
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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 settle-
ment of’’; 
(2) in subsection (c)— 
(A) 
by 
redesignating 
paragraphs 
(1) 
through (5) as paragraphs (5) through (9), re-
spectively; 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 re-
duction in force action under subchapter I of chap-
ter 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 
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(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 sub-
chapter II of chapter 75’’. 
SEC. 5. ACTIONS AGAINST SENIOR EXECUTIVES FOR PER-
FORMANCE OR CONDUCT. 
(a) REPEAL OF PAY RETENTION FOR CAREER AP-
POINTEES 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 sub-
section (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 ca-
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reer appointee held in the civil service imme-
diately before being appointed to the Senior Ex-
ecutive 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 sec-
tion; and 
‘‘(ii) any career appointee placed under sub-
section (b)(1) of this section shall be entitled to re-
ceive 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 pe-
riod 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 serv-
ice who is not serving a probationary period or 
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trial period under an initial appointment or who 
has completed 1 year of current continuous em-
ployment 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 Ex-
ecutive 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: 
‘‘§ 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. 
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‘‘(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 em-
ployment, 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 evi-
dence. 
‘‘(d)(1)(A) The aggregate period for written notice, 
response, and final decision of actions covered by this sub-
chapter 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 im-
posed. 
‘‘(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) 
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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 em-
ployee. 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 rea-
sons 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 op-
portunity 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 Sys-
tems 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 an-
swer of the employee when written, a summary thereof 
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when made orally, the notice of decision and reasons there-
for, and any order effecting an action covered by this sub-
chapter, 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 re-
quest, 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 di-
rected reassignment or to accompany a position in a trans-
fer 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 ‘‘mis-
conduct, neglect of duty, malfeasance,’’ and insert-
ing ‘‘a removal under section 7543’’; 
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(3) in section 3594, by adding at the end the 
following: 
‘‘(d) This section shall not apply to any career ap-
pointee who is subject to a personnel action under sub-
chapter V of chapter 75.’’; and 
(4) in section 7542, by striking ‘‘or to a re-
moval under section 3592 or 3595’’ and inserting 
the following: ‘‘to a removal from the Senior Execu-
tive Service under section 3592 of this title, to a re-
duction in force as defined in section 3595(d) of this 
title, or to a transfer of function as described in sec-
tion 3595(e)’’. 
(g) APPLICATION.—The amendments made by this 
section shall not apply to any personnel action under sub-
chapter V of chapter 75 of title 5, United States Code, 
commenced before the effective date of this Act. 
SEC. 6. ACTIONS AGAINST SUPERVISORS FOR PERFORM-
ANCE OR CONDUCT. 
Subchapter II of title 5, United States Code, is 
amended— 
(1) by redesignating sections 7514 and 7515 as 
sections 7516 and 7517, respectively; and 
(2) by inserting after section 7513 the fol-
lowing: 
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‘‘§ 7514. Supervisors 
‘‘(a) IN GENERAL.— 
‘‘(1) The agency may take an action covered by 
this subchapter against a supervisor, as defined in 
section 7103(a)(10), if the agency determines by a 
preponderance of the evidence that the performance 
or misconduct of the supervisor warrants such ac-
tion. 
‘‘(2) When making an initial decision on an ac-
tion covered by this subchapter, the deciding em-
ployee of the agency shall exclusively apply the fol-
lowing factors: 
‘‘(A) The nature and seriousness of the of-
fense, and its relation to the supervisor’s duties, 
position, and responsibilities, including whether 
the offense was intentional or technical or inad-
vertent, or was committed maliciously or for 
gain, or was frequently repeated. 
‘‘(B) The supervisor’s job level and type of 
employment, including supervisory or fiduciary 
role, and prominence of the position. 
‘‘(3) The agency shall review the initial decision 
and uphold such decision if it is supported by sub-
stantial evidence. 
‘‘(4) A supervisor against whom an action cov-
ered by this subchapter is proposed is entitled to— 
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‘‘(A) a written notice stating the specific 
reasons for the proposed action; 
‘‘(B) be represented by an attorney or 
other representative; and 
‘‘(C) a written decision and the specific 
reasons therefor at the earliest practicable date. 
‘‘(5) The agency may carry out such action cov-
ered by this subchapter without first placing a su-
pervisor on a performance improvement plan. 
‘‘(6) The procedures under chapter 43 shall not 
apply to an action covered by this subchapter. 
‘‘(b) PROCEDURE.—(1)(A) The aggregate period for 
written notice, response, and final decision of actions cov-
ered 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 imprison-
ment 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 re-
spect to a covered action not later than 15 business days 
after the agency provides notice, including a file con-
taining all the evidence in support of the proposed action, 
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to the employee. The decision shall be in writing and shall 
include the specific reasons therefor. 
‘‘(c) REDUCTION IN GRADE.— 
‘‘(1) A reduction in grade under subsection (a) 
shall be carried out as a reduction in grade for 
which the covered individual is qualified, that the 
agency determines is appropriate, and that reduces 
the annual rate of pay of the supervisor. 
‘‘(2) Notwithstanding any other provision of 
law, any supervisor subject to a reduction in grade— 
‘‘(A) shall, beginning on the date of such 
demotion, receive the annual rate of pay appli-
cable to such grade; 
‘‘(B) 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 supervisor reports for 
duty or is approved to use accrued unused an-
nual, sick, family medical, military, or court 
leave; and 
‘‘(C) who does not report for duty or re-
ceive approval to use accrued unused leave shall 
not receive pay or other benefits. 
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‘‘(d) DEFINITION.—In this section, the term ‘super-
visor’ has the meaning given that term under section 
7103(a).’’. 
SEC. 7. MODIFICATION OF PROCEDURES FOR FURLOUGH. 
(a) FURLOUGH OF 14 DAYS OR LESS; EMERGENCY 
FURLOUGH.—Subchapter I of chapter 75 of title 5, 
United States Code, is amended— 
(1) in section 7501, as amended by section 
5(c),— 
(A) in paragraph (1) by striking ‘‘and’’ at 
the end; 
(B) by redesignating paragraph (2) as 
paragraph (4); and 
(C) by inserting the following after para-
graph (1) the following: 
‘‘(2) ‘furlough’ has the meaning given that term 
in section 7511(a)(5); 
‘‘(3) ‘emergency furlough’ means a furlough 
due to a lapse in appropriations;’’; 
(2) in section 7502, by striking ‘‘This sub-
chapter’’ and all that follows through ‘‘this title.’’ 
and inserting the following: ‘‘This subchapter applies 
to— 
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‘‘(1) a suspension for 14 days or less, but not 
a suspension under section 7521 or 7532 or any ac-
tion initiated under section 1215; 
‘‘(2) a furlough for 14 days or less; and 
‘‘(3) an emergency furlough of any duration.’’; 
(3) by redesignating section 7504 as section 
7505; and 
(4) by inserting after section 7503, the fol-
lowing: 
‘‘§ 7504. Furlough and emergency furlough cause and 
procedure 
‘‘(a) GENERAL FURLOUGH.— 
‘‘(1) IN GENERAL.—An employee may be sub-
ject to a furlough for such cause as will promote the 
efficiency of the service. Any employee furloughed 
under this section is entitled to the procedures es-
tablished under the regulations promulgated under 
paragraph (2). 
‘‘(2) PROCEDURES.—Not later than 180 days 
after the date of enactment of this section, the Of-
fice of Personnel Management shall promulgate reg-
ulations providing for— 
‘‘(A) the circumstances under which an 
employee may be furloughed under this section; 
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‘‘(B) the procedures to be afforded fur-
loughed employees, including, to the extent ap-
propriate and practicable under the cir-
cumstances of the furlough action— 
‘‘(i) a written notice stating the spe-
cific reasons for the proposed action; 
‘‘(ii) be represented by an attorney or 
other representative; and 
‘‘(iii) a written decision and the spe-
cific reasons therefor at the earliest prac-
ticable date; and 
‘‘(C) the materials that shall be furnished 
to a furloughed employee and the Merit Sys-
tems Protection Board upon request of the em-
ployee or the Board. 
‘‘(b) EMERGENCY FURLOUGH.— 
‘‘(1) IN GENERAL.—An employee may be sub-
ject to an emergency furlough. 
‘‘(2) PROCEDURES.— 
‘‘(A) NOTICE.—Under regulations pre-
scribed by the Office of Personnel Management, 
any employee subject to an emergency furlough 
shall be afforded notice explaining the reasons 
for the emergency furlough. If the notice cannot 
be provided in advance of the emergency fur-
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lough, notice shall be provided as soon as rea-
sonably practicable. 
‘‘(B) OTHER PROCEDURES.—No other pro-
cedures, including those provided under sub-
section (a) or any other provision of this title, 
shall be available to any employee subject to an 
emergency furlough under this subsection. 
‘‘(3) DEFINITION.—For the purposes of this 
section, the term ‘employee’ means any employee de-
scribed under section 7501(1).’’. 
(b) FURLOUGH OF MORE THAN 14 DAYS.—Sub-
chapter II of chapter 75 of title 5, United States Code, 
is amended— 
(1) in section 7511(a)(5) by inserting before 
the period the following: ‘‘, but does not include an 
emergency furlough as defined in section 7501 of 
title 5’’. 
(2) in section 7512, as amended by section 
2(c)— 
(A) in paragraph (5) by striking ‘‘a fur-
lough of 30 days or less’’ and inserting ‘‘a fur-
lough of more than 14 days but less than 31 
days’’; 
(B) in subparagraph (D), as redesignated 
by section 2(c), by striking ‘‘or’’ at the end; 
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(C) in subparagraph (E), as redesignated 
by section 2(c), by striking the period at the 
end and inserting ‘‘; or’’; and 
(D) by adding at the end the following: 
‘‘(F) an emergency furlough action under 
section 7504.’’; 
(3) by inserting after section 7514, as added by 
section 6, the following: 
‘‘§ 7515. Furlough cause and procedure 
‘‘(a) IN GENERAL.—An employee may be subject to 
a furlough for such cause as will promote the efficiency 
of the service. Any employee furloughed under this section 
is entitled to the procedures established under the regula-
tions promulgated under subsection (b). 
‘‘(b) PROCEDURES.—Not later than 180 days after 
the date of enactment of this section, the Office of Per-
sonnel Management shall promulgate regulations pro-
viding for— 
‘‘(1) the circumstances under which an em-
ployee may be furloughed under this section; 
‘‘(2) the procedures provided under section 
7513 to the extent appropriate and practicable 
under the circumstances of the furlough action; and 
‘‘(3) the materials that shall be furnished to a 
furloughed employee and the Merit Systems Protec-
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tion Board upon request of the employee or the 
Board. 
‘‘(c) APPEAL.— An employee against whom a fur-
lough action is taken under this section is entitled to ap-
peal to the Merit Systems Protection Board under section 
7701 not later than 10 business days after the effective 
date of the action.’’. 
(c) 
ADMINISTRATIVE
LAW
JUDGES.—Section 
7521(b) of title 5, United States Code, is amended— 
(1) in subparagraph (B) by striking ‘‘or’’ at the 
end; 
(2) in subparagraph (C) by striking the period 
at the end and inserting ‘‘or’’; and 
(3) by adding at the end the following: 
‘‘(D) an emergency furlough action under 
section 7504.’’. 
(d) TECHNICAL AMENDMENTS.— 
(1) SECTION
7503.—The heading of section 
7503 of title 5, United States Code, is amended by 
striking ‘‘Cause and procedure’’ and inserting 
‘‘Suspension cause and procedure’’,. 
(2) SECTION
7513.—Section 7513 of title 5, 
United States Code, is amended by striking 
‘‘Cause and procedure’’ and inserting ‘‘Cause 
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and procedure for actions other than fur-
lough’’. 
(e) CLERICAL AMENDMENTS.— 
(1) SUBCHAPTER I OF CHAPTER 75 OF TITLE 
5.—The table of sections for subchapter I of chapter 
75 of title 5, United States Code, is amended by 
striking the items relating to sections 7503 and 
7504 and inserting the following: 
‘‘7503. Suspension cause and procedure. 
‘‘7504. Furlough and emergency furlough cause and procedure. 
‘‘7505. Regulations.’’. 
(2) SUBCHAPTER II OF CHAPTER 75 OF TITLE 
5.—The table of sections for subchapter II of chap-
ter 75 of title 5, United States Code, is amended by 
striking the items relating to sections 7513 through 
7515 and inserting the following: 
‘‘7513. Cause and procedure for actions other than furlough. 
‘‘7514. Supervisors. 
‘‘7515. Furlough cause and procedure. 
‘‘7516. Regulations. 
‘‘7517. Discipline of supervisors based on retaliation against whistleblowers.’’. 
(f) APPLICATION.—Notwithstanding section 12, the 
amendments made by this section shall take effect on the 
earlier of— 
(1) the date that is 180 days after the date of 
enactment of this Act; or 
(2) the date on which the Office of Personnel 
Management 
promulgates 
regulations 
provided 
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under sections 7504 and 7515 of title 5, United 
States Code, as added by this section. 
SEC. 8. REDUCTION OF ANNUITY OF EMPLOYEE CON-
VICTED OF A FELONY FOR WHICH AN AD-
VERSE ACTION IS OR WOULD HAVE BEEN 
TAKEN. 
(a) REDUCTION OF ANNUITY OF EMPLOYEE CON-
VICTED OF A FELONY FOR WHICH AN ADVERSE ACTION 
IS TAKEN.— 
(1) IN GENERAL.—Subchapter II of chapter 83 
of title 5, United States Code, is amended by adding 
at the end the following: 
‘‘§ 8323. Reduction of benefits of employees convicted 
of certain crimes 
‘‘(a) REDUCTION OF ANNUITY.— 
‘‘(1) IN GENERAL.—The felonious service of a 
covered individual shall not be taken into account 
for purposes of calculating an annuity with respect 
to the individual under subchapter III of this chap-
ter or chapter 84 if— 
‘‘(A) the covered individual is finally con-
victed of a felony; and 
‘‘(B) the head of the agency at which the 
individual was employed determines that the 
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conviction was based on the acts or omissions 
of the covered individual that— 
‘‘(i) were taken or not taken in the 
performance of the covered individual’s of-
ficial duties at the agency; and 
‘‘(ii) are sufficient to support a re-
moval action under section 7513, 7543, or 
any other provision of law against the cov-
ered individual. 
‘‘(2) 
PROCEDURES.—A 
covered 
individual 
against whom a determination is made under para-
graph (1) shall be afforded— 
‘‘(A) notice of the determination not later 
than 15 business days in advance of a final 
order under paragraph (3); and 
‘‘(B) an opportunity to respond to the de-
termination by not later than 10 business days 
after receipt of the notice. 
‘‘(3) FINAL ORDER.—The head of the agency 
shall issue a final order to carry out paragraph (1) 
not later than— 
‘‘(A) in the case of a covered individual 
who responds under paragraph (2)(B), 5 busi-
ness days after receiving the response from the 
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covered individual, to the maximum extent 
practicable; or 
‘‘(B) in the case of a covered individual 
who does not so respond, 15 business days after 
the date on which the head of the agency pro-
vided notice to the individual under paragraph 
(2)(A), to the maximum extent practicable. 
‘‘(4) APPEAL.—A covered individual with re-
spect to whom an annuity is to be reduced under 
this subsection may appeal the final order under 
paragraph (3) to the Merit Systems Protection 
Board in accordance with any regulations that the 
Board may prescribe for purposes of this subsection. 
An appeal may not be made under this paragraph 
later than that date that is 10 business days after 
the date on which an order is issued under para-
graph (3). 
‘‘(b) ADMINISTRATIVE REQUIREMENTS.— 
‘‘(1) IN GENERAL.—Not later than 30 business 
days after the date on which the head of an agency 
issues a final order under subsection (a) or a final 
decision of the Merit Systems Protection Board is 
rendered (as the case may be) with respect to an in-
dividual, the applicable employing agency shall 
amend the covered individual’s retirement records to 
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reflect the period of service that is no longer cred-
itable by operation of this section and transmit the 
amended records to the Director of the Office of 
Personnel Management. 
‘‘(2) ANNUITANTS.—With respect to any cov-
ered individual who is an annuitant on the date on 
which a final order is so issued, the Director of the 
Office of Personnel Management shall, not later 
than 30 business days after the receipt of amended 
retirement records from an agency under paragraph 
(1), recalculate the annuity of the annuitant. 
‘‘(c) LUMP-SUM ANNUITY CREDIT.—A covered indi-
vidual with respect to whom an annuity is reduced under 
subsection (a) shall be entitled to be paid so much of the 
individual’s lump-sum credit as is attributable to the pe-
riod of felonious service. 
‘‘(d) SPOUSE EXCEPTION.—The spouse of any cov-
ered individual referred to in subsection (a) shall be eligi-
ble for spousal annuity benefits that, but for subsection 
(a), would otherwise have been payable if the Attorney 
General of the United States or the attorney general of 
a State, a territory, or the District of Columbia determines 
that the spouse fully cooperated with authorities in the 
conduct of a criminal investigation and subsequent pros-
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ecution of the individual that resulted in the benefit reduc-
tion. 
‘‘(e) APPLICATION.—Nothing in this section shall be 
construed to affect or otherwise mitigate the application 
of any other section of this subchapter. 
‘‘(f) DEFINITIONS.—In this section— 
‘‘(1) the term ‘covered individual’ means— 
‘‘(A) an individual who is removed from a 
position as an employee (as defined in section 
2105) in the civil service for performance or 
misconduct under section 7513, 7543, or any 
other provision of law; or 
‘‘(B) an individual who— 
‘‘(i) is an employee (as defined in sec-
tion 2105) subject to a removal action for 
performance or misconduct under section 
7513, 7543, or any other provision of law; 
and 
‘‘(ii) voluntarily separates from service 
with the employing agency prior to the 
issuance of a final decision with respect to 
the removal action; 
‘‘(2) the term ‘felonious service’ means, with re-
spect to a covered individual, the period of service— 
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‘‘(A) beginning on the date on which the 
head of the employing agency determines that 
the individual commenced engaging in the acts 
or omissions that gave rise to the removal ac-
tion or proposed removal action described in 
paragraph (1); and 
‘‘(B) ending on the date that is the earlier 
of— 
‘‘(i) the date on which the individual 
is removed from or voluntarily separates 
from a position at the agency; or 
‘‘(ii) the date on which the individual 
ceases engaging in the acts or omissions 
that gave rise to the removal action or pro-
posed removal action described in para-
graph (1); 
‘‘(3) the term ‘finally convicted’ or ‘final convic-
tion’ refers to a conviction of a felony— 
‘‘(A) that has not been appealed and is no 
longer appealable because the time for taking 
an appeal has expired; or 
‘‘(B) that has been appealed and the ap-
peals process for which is completed; 
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‘‘(4) the term ‘lump-sum credit’ has the mean-
ing given that term in section 8331(8) or 8401(19) 
(as the case may be); and 
‘‘(5) the term ‘service’ has the meaning given 
that term in section 8331(12) or 8401(26) (as the 
case may be).’’. 
(2) CLERICAL AMENDMENT.—The table of sec-
tions for subchapter II of chapter 83 of title 5, 
United States Code, is amended by adding at the 
end the following: 
‘‘8323. Reduction of benefits of employees convicted of certain crimes.’’. 
(b) APPLICATION.—Section 8323 of title 5, United 
States Code, as added by subsection (a), shall apply to 
acts or omissions described in subsection (a)(1)(B) of that 
section occurring after the date of enactment of this Act. 
(c) REGULATIONS.—The Office of Personnel Man-
agement may prescribe regulations to carry out this sec-
tion and the amendments made by this section. 
SEC. 9. AUTHORITY TO RECOUP BONUSES OR AWARDS 
PAID TO EMPLOYEES. 
(a) ADVERSE FINDINGS AND EMPLOYEES UNDER IN-
VESTIGATION.—Chapter 45 of title 5, United States Code, 
is amended by adding at the end the following: 
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‘‘Subchapter IV—Limitations on Bonus 
Authority 
‘‘§ 4531. Certain forms of misconduct 
‘‘(a) DEFINITIONS.—In this section: 
‘‘(1) ADVERSE FINDING.— 
‘‘(A) IN
GENERAL.—The term ‘adverse 
finding’ means a determination by the head of 
the agency employing an employee that the con-
duct of the employee— 
‘‘(i) violated a policy of the agency for 
which the employee may be removed or 
suspended for a period of not less than 14 
days; or 
‘‘(ii) violated a law for which the em-
ployee may be imprisoned for more than 1 
year. 
‘‘(B) BASIS.—A determination described in 
subparagraph (A) may be based on an inves-
tigation by, a determination of, or information 
provided by the Inspector General or another 
senior ethics official of an agency or the Comp-
troller General of the United States, as part of 
carrying out an activity, authority, or function 
of the Inspector General, senior ethics official, 
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or Comptroller General, respectively, under a 
provision of law other than this section. 
‘‘(2) AGENCY.—The term ‘agency’ has the 
meaning given the term in section 551. 
‘‘(3) BONUS.—The term ‘bonus’ means any 
performance award or cash award under— 
‘‘(A) section 4505a; 
‘‘(B) section 5384; or 
‘‘(C) section 5754. 
‘‘(4) EMPLOYEE.—The term ‘employee’ means 
an employee of an agency. 
‘‘(b) PROHIBITION.—The head of an agency may not 
award a bonus to an employee of the agency until the date 
that is 5 years after the end of the fiscal year during which 
the head of an agency makes an adverse finding relating 
to the employee. 
‘‘(c) AFTER BONUS AWARDED.— 
‘‘(1) IN GENERAL.—For a bonus awarded to an 
employee after the date of enactment of this section, 
if the head of the agency employing the employee 
makes an adverse finding relating to the employee 
during the fiscal year in which the bonus is awarded, 
the head of the agency, after notice and an oppor-
tunity for a hearing, shall issue an order directing 
the employee to repay the amount of the bonus. 
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‘‘(2) REPAYMENT PLAN.—An agency shall allow 
an employee who is required to repay a bonus under 
paragraph (1) to repay that bonus using a repay-
ment plan. 
‘‘(3) HEARINGS.—A hearing under this sub-
section shall be conducted in accordance with regula-
tions relating to hearings promulgated by the head 
of the agency under chapter 75. 
‘‘(d) CONDITION OF RECEIPT.—As a condition of re-
ceiving a bonus awarded after the date of enactment of 
this section, an employee shall sign a certification stating 
that the employee shall repay the bonus in accordance with 
a final order issued under subsection (c). 
‘‘(e) APPEAL.—An employee determined to be ineli-
gible for a bonus under subsection (b) or against whom 
an order is issued under subsection (c) may submit an 
appeal to the Merit Systems Protection Board under sec-
tion 7701.’’. 
(b) RULEMAKING.—The head of each agency, as de-
fined in section 551 of title 5, United States Code, may 
promulgate rules to carry out section 4531 of title 5, 
United States Code, as added by subsection (a). 
(c) TECHNICAL AND CONFORMING AMENDMENT.— 
The table of sections for chapter 45 of title 5, United 
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States Code, is amended by adding at the end the fol-
lowing: 
‘‘SUBCHAPTER IV—LIMITATIONS ON BONUS AUTHORITY 
‘‘4531. Certain forms of misconduct. 
SEC. 10. EXTENSION OF PROBATIONARY PERIOD FOR POSI-
TIONS 
WITHIN 
THE 
SENIOR 
EXECUTIVE 
SERVICE. 
(a) IN GENERAL.—Section 3393(d) of title 5, United 
States Code, is amended by striking ‘‘1-year’’ and insert-
ing ‘‘2-year’’. 
(b) CONFORMING AMENDMENT.—Section 3592(a)(1) 
of title 5, United States Code, is amended by striking ‘‘1- 
year’’ and inserting ‘‘2-year’’. 
(c) APPLICATION.—The amendments made by this 
section shall apply in the case of any individual initially 
appointed as a career appointee under section 3393 of title 
5, United States Code, on or after the effective date pro-
vided in section 12 of this Act. 
SEC. 11. EXTENSION OF PROBATIONARY PERIOD FOR EM-
PLOYEES IN THE COMPETITIVE SERVICE. 
(a) EXTENSION OF PROBATIONARY PERIOD.— 
(1) IN
GENERAL.—Section 3321 of title 5, 
United States Code, is amended— 
(A) in subsection (a), by striking ‘‘The 
President’’ and inserting ‘‘Subject to sub-
sections (c) and (d), the President’’; 
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(B) by redesignating subsection (c) as sub-
section (e); and 
(C) by inserting after subsection (b) the 
following: 
‘‘(c)(1) The length of a probationary period estab-
lished under paragraph (1) or (2) of subsection (a) shall— 
‘‘(A) with respect to any position that requires 
formal training, begin on the date of the appoint-
ment to the position and end on the date that is 2 
years after the date on which the formal training is 
completed; 
‘‘(B) with respect to any position that requires 
a license, begin on the date of the appointment to 
the position and end on the date that is 2 years 
after the date of the appointment or the date on 
which the license is granted, whichever is later; and 
‘‘(C) with respect to any position not covered by 
subparagraph (A) or (B), be a period of 2 years be-
ginning on the date of the appointment to the posi-
tion. 
‘‘(2) For purposes of paragraph (1)— 
‘‘(A) the term ‘formal training’ means, with re-
spect to any position, a training program required 
by law, rule, or regulation, or otherwise required by 
the employing agency, to be completed by the em-
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ployee before the employee is able to successfully 
execute the duties of the applicable position; and 
‘‘(B) the term ‘license’ means a license, certifi-
cation, or other grant of permission to engage in a 
particular activity. 
‘‘(d) The head of each agency shall, in the adminis-
tration of this section, take appropriate measures to en-
sure that— 
‘‘(1) any announcement of a vacant position 
and any offer of appointment made to an individual 
with respect to a vacant position clearly states the 
terms and conditions of any applicable probationary 
period, including any formal training period and any 
license requirement; 
‘‘(2) any individual who is required to complete 
a probationary period under this section receives 
timely notice of any requirements, including per-
formance requirements, that must be met in order to 
satisfactorily complete that period; 
‘‘(3) any supervisor or manager of an individual 
who is required to complete a probationary period 
under this section receives periodic notifications of 
the end date of that period not later than 1 year, 
6 months, 3 months, and 30 days before the end 
date; and 
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‘‘(4) if the agency head decides to retain an in-
dividual after the completion of a probationary pe-
riod under this section, the agency head submits a 
certification to that effect to the President, sup-
ported by a brief statement of the basis for the cer-
tification, in such form and manner as the President 
may by regulation prescribe.’’. 
(2) TECHNICAL AMENDMENT.—Section 3321(e) 
of title 5, United States Code (as so redesignated by 
paragraph (1)), is amended by striking ‘‘Subsections 
(a) and (b)’’ and inserting ‘‘Subsections (a) through 
(d)’’. 
(3) APPLICATION.—This subsection and the 
amendments made by this subsection shall apply in 
the case of any appointment (as referred to in sec-
tion 3321(a)(1) of title 5, United States Code) and 
any initial appointment (as referred to in section 
3321(a)(2) of that title) taking effect on or after the 
effective date provided in section 12 of this Act. 
(b) ADVERSE ACTIONS.— 
(1) SUBCHAPTER I OF CHAPTER 75 OF TITLE 
5.—Section 7501(1) of title 5, United States Code, 
as amended by sections 5(c) and 7(a)(1), is further 
amended— 
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(A) by striking ‘‘or, except’’ and inserting 
‘‘and, except’’; and 
(B) by striking ‘‘1 year of current’’ and in-
serting ‘‘2 years of current’’. 
(2) SUBCHAPTER II OF CHAPTER 75 OF TITLE 
5.—Section 7511(a)(1) of title 5, United States 
Code, is amended— 
(A) in subparagraph (A)— 
(i) in clause (i), by striking ‘‘; or’’ and 
inserting ‘‘; and’’; and 
(ii) in clause (ii), by striking ‘‘1 year’’ 
the first place it appears and inserting ‘‘2 
years’’; 
(B) in subparagraph (B), by striking ‘‘1 
year’’ and inserting ‘‘2 years’’; and 
(C) in subparagraph (C)(i), by striking ‘‘; 
or’’ and inserting ‘‘; and’’. 
(3) APPLICATION.—The amendments made by 
paragraphs (1) and (2) shall apply in the case of 
any individual whose period of continuous service 
commences on or after the effective date provided in 
section 12. 
(c) REGULATIONS.—The Office of Personnel Man-
agement may prescribe regulations to carry out this sec-
tion and the amendments made by this section. 
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SEC. 12. APPLICATION. 
(a) EFFECTIVE DATE.—Unless otherwise specifically 
provided for in this Act, the amendments made by this 
Act shall take effect on the date that is 1 year after the 
date of enactment of this Act. 
(b) COLLECTIVE BARGAINING AGREEMENTS.—Not-
withstanding any other provision of law, the procedures 
established or amended by this Act shall supersede any 
collective bargaining agreement to the extent that the 
agreement is inconsistent with those procedures. 
(c) DEFINITION OF BUSINESS DAY.—For purposes 
of carrying out this Act and the amendments made by this 
Act, the term ‘‘business day’’ means any day other than 
a Saturday, Sunday, or legal public holiday under section 
6103(a) of title 5, United States Code. 
Æ 
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