MERIT Act of 2022
Bill: H.R.9409 | Sponsor: Rep. Loudermilk, Barry (R-GA)
Policy area: Government Operations and Politics

Summary:
Modern Employment Reform, Improvement, and Transformation Act of 2022 or the MERIT Act of 2022
This bill revises provisions related to federal employment, including the furlough and removal of federal employees, the calculation of federal employee retirement benefits, and the length of the probationary employment period.
Specifically, the bill repeals the process for taking action against a federal employee for unacceptable performance, accelerates the process for removal or suspension based on performance or actions, and prohibits grievances based on adverse personnel actions and reductions in force. The bill also authorizes an agency to remove a senior executive from the civil service for performance-related reasons, and it revises provisions covering performance- or conduct-related actions against senior executives.
The bill authorizes agencies to furlough employees for such cause as will promote the efficiency of the service, and it prohibits appeals to the Merit Systems Protection Board based on short-term furloughs or furloughs due to a lapse in appropriations (i.e., government shutdown).
Additionally, the bill limits the retirement benefits of a federal employee who is removed due to a felony conviction related to their official duties by prohibiting felonious service from being taken into account when calculating the employee's annuity.
The bill also authorizes an agency to order the repayment of a bonus or award when performance or conduct issues are discovered and such bonus or award would not have been paid had such issues been known when they were made.
Lastly, the bill extends from one year to two years the probationary period for competitive service appointments and members of the Senior Executive Service.

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 2022'' or the ``MERIT 
Act of 2022''.
    (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. Modification of procedures for furlough.
Sec. 7. Reduction of annuity of employee convicted of a felony for 
                            which an adverse action is or would have 
                            been taken.
Sec. 8. Authority to recoup bonuses or awards paid to employees.
Sec. 9. Extension of probationary period for positions within the 
                            Senior Executive Service.
Sec. 10. Extension of probationary period for employees in the 
                            competitive service.
Sec. 11. 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 11.
    (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--
            (1) in subsection (b)--
                    (A) in paragraph (1)--
                            (i) by striking ``at least 30 days' advance 
                        written notice'' and inserting ``written notice 
                        15 business days in advance''; and
                            (ii) by inserting before the semicolon at 
                        the end the following: ``, and including a file 
                        containing all the evidence in support of the 
                        proposed action'';
                    (B) in paragraph (2), by striking ``but not less 
                than 7 days'' and inserting ``but not more than 7 
                business days''; and
                    (C) in paragraph (4), by striking ``at the earliest 
                practicable date'';
            (2) by amending subsection (c) to read as follows:
    ``(c) An agency shall issue the decision not later than 15 business 
days after the agency provides notice, to the maximum extent 
practicable, to the employee affected.'';
            (3) in subsection (d), by inserting before the period at 
        the end the following: ``not later than 10 business days after 
        the effective date of the action''; and
            (4) in subsection (e)--
                    (A) by striking ``and to the employee affected upon 
                the employee's request''; and
                    (B) by adding at the end the following: ``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 11.

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, except as provided in 
                section 1599e of title 10, 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--
            (1) by striking subsections (a), (b), and (c) and inserting 
        the following:
    ``(a) Under regulations prescribed by the Office of Personnel 
Management, an agency may take an action covered by this subchapter 
against an employee only for such cause as would promote the efficiency 
of the service.
    ``(b) An employee against whom an action covered by this subchapter 
is proposed is entitled to--
            ``(1) written notice 15 business days in advance, unless 
        there is reasonable cause to believe the employee has committed 
        a crime for which a sentence of imprisonment can be imposed, 
        stating specific reasons for the proposed action, and including 
        a file containing all the evidence in support of the proposed 
        action;
            ``(2) a reasonable time, but not more than 7 business days, 
        to answer orally and in writing and to furnish affidavits and 
        other documentary evidence in support of the answer;
            ``(3) be represented by an attorney or other 
        representative; and
            ``(4) a written decision and the specific reasons therefor.
    ``(c) An agency shall issue the decision not later than 15 business 
days after the agency provides notice, to the maximum extent 
practicable, to the employee affected.'';
            (2) in subsection (d), by inserting before the period at 
        the end the following: ``not later than 10 business days after 
        the effective date of the action''; and
            (3) in subsection (e)--
                    (A) by striking ``and to the employee affected upon 
                the employee's request''; and
                    (B) by adding at the end the following: ``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).''.
    (e) 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 inserting the following: ``to a 
        removal from the Senior Executive Service under section 3592 of 
        this title, to a reduction in force as defined in section 
        3595(d) of this title, or to a transfer of function as 
        described in section 3595(e)''.
    (f) Application.--The amendments made by this section shall not 
apply to any personnel action under subchapter V of chapter 75 of title 
5, United States Code, commenced before the effective date provided in 
section 11.

SEC. 6. MODIFICATION OF PROCEDURES FOR FURLOUGH.

    (a) General Furlough of 14 Days or Less; Furlough Due to Lapse in 
Appropriations.--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 
                (5); and
                    (C) by inserting after paragraph (1) the following:
            ``(2) `furlough' has the meaning given that term in section 
        7511(a)(5);
            ``(3) `furlough due to lapse in appropriations' means a 
        furlough due to a lapse in appropriations;
            ``(4) `general furlough' means a furlough that is not due 
        to a lapse in appropriations; and'';
            (2) in section 7502, by striking ``This subchapter'' and 
        all that follows through ``this title.'' and inserting the 
        following: ``This subchapter applies to--
            ``(1) a suspension for 14 days or less, but not a 
        suspension under section 7521 or 7532 or any action initiated 
        under section 1215;
            ``(2) a general furlough for 14 days or less; and
            ``(3) a furlough due to lapse in appropriations of any 
        duration.'';
            (3) by redesignating section 7504 as section 7505; and
            (4) by inserting after section 7503 the following:
``Sec. 7504. Furlough cause and procedure
    ``(a) General Furlough.--
            ``(1) In general.--An employee may be subject to a general 
        furlough for such cause as will promote the efficiency of the 
        service. Any employee furloughed under this subsection is 
        entitled to the procedures established under the regulations 
        promulgated under paragraph (2).
            ``(2) Procedures.--Not later than 180 days after the date 
        of enactment of this section, the Office of Personnel 
        Management shall promulgate regulations providing for--
                    ``(A) the circumstances under which an employee may 
                be furloughed under this subsection;
                    ``(B) the procedures to be afforded furloughed 
                employees, including, to the extent appropriate and 
                practicable under the circumstances of the furlough 
                action--
                            ``(i) advanced notice stating the specific 
                        reasons for the proposed furlough;
                            ``(ii) a reasonable time to answer orally 
                        and in writing and to furnish affidavits and 
                        other documentary evidence in support of the 
                        answer;
                            ``(iii) representation by an attorney or 
                        other representative; and
                            ``(iv) a written decision and specific 
                        reasons therefor at the earliest practicable 
                        date; and
                    ``(C) the materials that shall be furnished to a 
                furloughed employee and the Merit Systems Protection 
                Board upon request of the employee or the Board.
    ``(b) Furlough Due to Lapse in Appropriations.--
            ``(1) In general.--An employee may be subject to a furlough 
        due to lapse in appropriations.
            ``(2) Procedures.--
                    ``(A) Notice.--Under regulations prescribed by the 
                Office of Personnel Management, any employee subject to 
                a furlough due to lapse in appropriations shall be 
                afforded notice explaining the reasons for the 
                furlough. If the notice cannot be provided in advance 
                of the furlough, notice shall be provided as soon as 
                reasonably practicable.
                    ``(B) Other procedures.--No other procedures, 
                including those provided under subsection (a) or any 
                other provision of this title, shall be available to 
                any employee subject to a furlough due to lapse in 
                appropriations under this subsection.
    ``(c) Definition.--For purposes of this section, the term 
`employee' means any employee described under section 7501(1)(A).''.
    (b) General Furlough of More Than 14 Days.--Subchapter II of 
chapter 75 of title 5, United States Code, is amended--
            (1) in section 7511(a)--
                    (A) in paragraph (4), by striking ``and'' at the 
                end;
                    (B) in paragraph (5), by striking the period at the 
                end and inserting a semicolon; and
                    (C) by adding at the end the following:
            ``(6) `furlough due to lapse in appropriations' means a 
        furlough due to a lapse in appropriations; and
            ``(7) `general furlough' means a furlough that is not due 
        to a lapse in appropriations.'';
            (2) in section 7512, as amended by section 2(c)--
                    (A) in paragraph (5), by striking ``a furlough of 
                30 days or less'' and inserting ``a general furlough 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;
                    (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) a furlough due to lapse in appropriations action 
        under section 7504.'';
            (3) in section 7513(a), by striking ``an action covered by 
        this subchapter'' and inserting ``an action described in 
        paragraphs (1) through (4) of section 7512''; and
            (4) by inserting after section 7515 the following:
``Sec. 7516. General furlough cause and procedure
    ``(a) In General.--An employee may be subject to a general furlough 
for such cause as will promote the efficiency of the service. An 
employee furloughed under this section is entitled to the procedures 
established under the regulations promulgated under subsection (b).
    ``(b) Procedures.--Not later than 180 days after the date of 
enactment of this section, the Office of Personnel Management shall 
promulgate regulations providing for--
            ``(1) the circumstances under which an employee 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; and
            ``(3) the materials that shall be furnished to a furloughed 
        employee and the Merit Systems Protection Board upon request of 
        the employee or the Board.
    ``(c) Appeal.--An employee against whom a furlough action is taken 
under this section is entitled to appeal 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) a furlough due to lapse in appropriations 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.--The heading of section 7513 of title 5, 
        United States Code, is amended by striking ``Cause and 
        procedure'' and inserting ``Cause and procedure for actions 
        other than furlough''.
    (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 cause and procedure.
``7505. Regulations.''.
            (2) Subchapter ii of chapter 75 of title 5.--The table of 
        sections for subchapter II of chapter 75 of title 5, United 
        States Code, is amended--
                    (A) by striking the item relating to section 7513 
                and inserting the following:

``7513. Cause and procedure for actions other than furlough.'';
                and
                    (B) by inserting after the item relating to section 
                7515 the following:

``7516. General furlough cause and procedure.''.
    (f) Application.--Notwithstanding section 11, 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 under sections 7504 and 7516 of title 
        5, United States Code, as added by this section.

SEC. 7. REDUCTION OF ANNUITY OF EMPLOYEE CONVICTED OF A FELONY FOR 
              WHICH AN ADVERSE ACTION IS OR WOULD HAVE BEEN TAKEN.

    (a) Reduction of Annuity of Employee Convicted 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:
``Sec. 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 chapter or chapter 84 if--
                    ``(A) the covered individual is finally convicted 
                of a felony; and
                    ``(B) the head of the agency at which the 
                individual was employed determines that the 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 
                        official duties at the agency; and
                            ``(ii) are sufficient to support a removal 
                        action under section 7513, 7543, or any other 
                        provision of law against the covered 
                        individual.
            ``(2) Procedures.--A covered individual against whom a 
        determination is made under paragraph (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 
                determination 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 business days after 
                receiving the response from the 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 provided notice to the 
                individual under paragraph (2)(A), to the maximum 
                extent practicable.
            ``(4) Appeal.--A covered individual with respect 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 
        paragraph (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 individual, the applicable employing agency shall amend 
        the covered individual's retirement records to reflect the 
        period of service that is no longer creditable 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 covered 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 individual 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 period of felonious service.
    ``(d) Spouse Exception.--The spouse of any covered individual 
referred to in subsection (a) shall be eligible 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 prosecution of the individual 
that resulted in the benefit reduction.
    ``(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 section 
                        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 respect to a 
        covered individual, the period of service--
                    ``(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 action 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 proposed 
                        removal action described in paragraph (1);
            ``(3) the term `finally convicted' or `final conviction' 
        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 appeals 
                process for which is completed;
            ``(4) the term `lump-sum credit' has the meaning 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 sections 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 Management may prescribe 
regulations to carry out this section and the amendments made by this 
section.

SEC. 8. AUTHORITY TO RECOUP BONUSES OR AWARDS PAID TO EMPLOYEES.

    (a) Authority.--
            (1) In general.--Chapter 45 of title 5, United States Code, 
        is amended by adding at the end the following:

            ``SUBCHAPTER IV--REPAYMENT OF BONUSES OR AWARDS

``Sec. 4531. Recoupment of bonuses or awards paid to employees
    ``(a) In General.--Notwithstanding any other provision of law, and 
except as provided in subsection (c), the head of an agency may issue 
an order directing an employee or former employee of the agency to 
repay the amount, or a portion of the amount, of any award or bonus 
paid to the employee under this title, including under this chapter or 
section 5384, 5753, or 5754, if--
            ``(1) the agency head determines by clear and convincing 
        evidence that--
                    ``(A) the employee or former employee engaged in 
                misconduct or unsatisfactory performance prior to 
                payment of the award or bonus; and
                    ``(B) the award or bonus would not have been paid, 
                in whole or in part, had the misconduct or 
                unsatisfactory performance described in subparagraph 
                (A) been known by the agency prior to payment;
            ``(2) before the repayment, the employee or former employee 
        is afforded--
                    ``(A) notice of the determination not later than 15 
                business days in advance of a final order under this 
                subsection; and
                    ``(B) an opportunity to respond to the proposed 
                order by not later than 10 business days after the 
                receipt of the notice; and
            ``(3) the agency head issues the order not later than--
                    ``(A) in the case of a proposed order to which an 
                employee or former employee responds under paragraph 
                (2)(B), 5 business days after receiving the response of 
                the employee or former employee (as the case may be), 
                to the maximum extent practicable; or
                    ``(B) in the case of a proposed order to which an 
                employee or former employee does not respond, 15 
                business days after the agency head provides notice to 
                the employee or former employee (as the case may be) 
                under paragraph (2)(A), to the maximum extent 
                practicable.
    ``(b) Recruitment, Relocation, or Retention Bonus.--
            ``(1) In general.--In addition to ordering an employee to 
        repay any payments received under a service agreement under 
        subsection (a), the head of an agency shall terminate a 
        recruitment, relocation, or retention service agreement and 
        make no further recruitment, relocation, or retention bonus 
        payments under the agreement.
            ``(2) Application.--A bonus repayment order or a 
        termination or withholding of a bonus payment under this 
        subsection shall supersede any other bonus payment or repayment 
        requirement established by law or regulation.
    ``(c) Office of Special Counsel Filing.--If an employee or former 
employee has filed a claim with the Office of Special Counsel, an 
agency seeking repayment of any bonus or award from the employee or 
former employee shall provide the Office with notice of intent to seek 
repayment, and the repayment order shall not be effective unless and 
until the Office approves the order.
    ``(d) Appeal.--Upon the issuance of an order by an agency head 
under subsection (a) with respect to an employee or former employee, 
the employee or former employee (as the case may be) shall have an 
opportunity to appeal the order to the Merit Systems Protection Board 
under section 7701 not later than 10 business days after the date of 
the issuance.''.
            (2) Clerical amendment.--The table of sections for chapter 
        45 of title 5, United States Code, is amended by adding after 
        the item relating to section 4523 the following:

             ``subchapter iv--repayment of bonuses or awards

``4531. Recoupment of bonuses or awards paid to employees.''.
    (b) Other Bonuses or Awards.--
            (1) In general.--Notwithstanding any other provision of 
        law, a bonus or award to an employee (as that term is defined 
        in section 2105 of title 5, United States Code) that is similar 
        to a bonus or award covered by section 4531 of that title (as 
        added by subsection (a)) shall be subject to the requirements 
        in such section 4531. The head of the applicable agency shall 
        ensure that such section 4531 shall apply to employees of that 
        agency.
            (2) Application.--An employee covered by such section 4531 
        by operation of paragraph (1) may not appeal any decision 
        regarding a bonus under that section or paragraph to the Merit 
        Systems Protection Board if the employee is not otherwise 
        authorized by law to appeal to the Board.
    (c) Service Agreements.--
            (1) In general.--The Director of the Office of Personnel 
        Management shall direct each agency (as that term is defined in 
        section 4501(1) of title 5, United States Code) to incorporate 
        into service agreements entered into after the date of 
        enactment of this Act under sections 5753 and 5754 of that 
        title terms addressing the conditions under which the agreement 
        and bonus payments shall be terminated and employees may be 
        required to repay bonus payments under such section 4531.
            (2) Conforming amendments.--Subchapter IV of chapter 57 of 
        title 5, United States Code, is amended--
                    (A) in section 5753(c)(2)(A)--
                            (i) in clause (iii), by striking ``and'' at 
                        the end;
                            (ii) by redesignating clause (iv) as clause 
                        (v); and
                            (iii) by inserting after clause (iii) the 
                        following:
            ``(iv) notwithstanding any additional bonus payment and 
        service agreement termination requirements under this 
        subsection, the conditions under which--
                    ``(I) the agreement and bonus payments shall be 
                terminated under section 4531; and
                    ``(II) the employee may be required to repay bonus 
                payments under section 4531 during or after the 
                completion of the service period; and''; and
                    (B) in section 5754(d)--
                            (i) in paragraph (2)(A)--
                                    (I) in clause (iii), by striking 
                                ``and'' at the end;
                                    (II) by redesignating clause (iv) 
                                as clause (v); and
                                    (III) by inserting after clause 
                                (iii) the following:
            ``(iv) notwithstanding any additional bonus payment and 
        service agreement termination requirements under this 
        subsection, the conditions under which--
                    ``(I) the agreement and bonus payments shall be 
                terminated under section 4531; and
                    ``(II) the employee may be required to repay bonus 
                payments under section 4531 during or after the 
                completion of the service period; and'';
                            (ii) by striking paragraph (3); and
                            (iii) by redesignating paragraph (4) as 
                        paragraph (3).
    (d) Regulations.--Not later than 1 year after the date of enactment 
of this Act, the Director of the Office of Personnel Management shall 
issue any regulations necessary to carry out section 4531 of title 5, 
United States Code, as added by subsection (a).
    (e) Effective Date.--Section 4531 of title 5, United States Code, 
as added by subsection (a), shall apply with respect to an award or 
bonus authorized by an agency to an employee of the agency on or after 
the effective date provided in section 11 of this Act.

SEC. 9. EXTENSION OF PROBATIONARY PERIOD FOR POSITIONS WITHIN THE 
              SENIOR EXECUTIVE SERVICE.

    (a) In General.--Section 3393(d) of title 5, United States Code, is 
amended by striking ``1-year'' and inserting ``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 provided in section 11 of this Act.

SEC. 10. EXTENSION OF PROBATIONARY PERIOD FOR EMPLOYEES 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 subsections (c) 
                and (d), the President'';
                    (B) by redesignating subsection (c) as subsection 
                (e); and
                    (C) by inserting after subsection (b) the 
                following:
    ``(c)(1) The length of a probationary period established 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 appointment 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 beginning on 
        the date of the appointment to the position.
    ``(2) For purposes of paragraph (1)--
            ``(A) the term `formal training' means, with respect to any 
        position, a training program required by law, rule, or 
        regulation, or otherwise required by the employing agency, to 
        be completed by the employee before the employee is able to 
        successfully execute the duties of the applicable position; and
            ``(B) the term `license' means a license, certification, or 
        other grant of permission to engage in a particular activity.
    ``(d) The head of each agency shall, in the administration of this 
section, take appropriate measures to ensure 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 performance 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
            ``(4) if the agency head decides to retain an individual 
        after the completion of a probationary period under this 
        section, the agency head submits a certification to that effect 
        to the President, supported by a brief statement of the basis 
        for the certification, 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 section 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 11 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 
        6(a)(1), is further amended--
                    (A) by striking ``or, except'' and inserting ``and, 
                except''; and
                    (B) by striking ``1 year of current'' and inserting 
                ``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 11.
    (c) Regulations.--The Office of Personnel Management may prescribe 
regulations to carry out this section and the amendments made by this 
section.

SEC. 11. 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.--Notwithstanding 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.
                                 <all>