Section 1 Short title
This Act may be cited as the “Model Employee Reinstatement for Ill-advised Termination Act” or the “MERIT Act”.
Model Employee Reinstatement for Ill-advised Termination Act
A BILL
To require the reinstatement of recently terminated probationary Federal employees, and for other purposes.
Sec. 2 Definitions
In this Act:
Affected probationary employee— The term affected probationary employee means an individual who—
was voluntarily or involuntarily separated from service in an Executive agency as part of a mass termination by an Executive agency during the period beginning on January 20, 2025, and ending on the date of enactment of this Act; and
immediately before the separation described in subparagraph (A)—
occupied a position in the competitive service, excepted service, or Senior Executive Service, other than under a temporary appointment; and
was—
serving a probationary or trial period under an initial appointment; or
otherwise not an employee (as defined in section 7511 of title 5, United States Code) because the individual had not completed the required years of current continuous service.
Competitive service— The term competitive service has the meaning given the term in section 2102 of title 5, United States Code.
Covered separation— The term covered separation means a separation from Government service that is—
an involuntary separation from Government service, other than an involuntary separation for retirement under section 3382 of title 5, United States Code; or
a voluntary separation from Government service for compensation or other incentives offered by the Federal Government.
Excepted service— The term excepted service has the meaning given the term in section 2103 of title 5, United States Code.
Executive agency— The term Executive agency has the meaning given the term in section 105 of title 5, United States Code.
Former employing agency— With respect to an affected probationary employee, the term former employing agency means the Executive agency from which the separation of the individual made the individual an affected probationary employee.
Mass termination— The term mass termination means not less than 15 covered separations from service in an Executive agency during a 30-day period pursuant to the same or related actions, directives, orders, or activities by the Federal Government.
Previous Federal position— The term previous Federal position means, with respect to an affected probationary employee, the position in the Federal Government occupied by the affected probationary employee in the former employing agency immediately before becoming an affected probationary employee.
Senior Executive Service— The term Senior Executive Service has the meaning given the term in section 2101a of title 5, United States Code.
Sec. 3 Reinstatement of affected probationary employees
In general— Each affected probationary employee, other than an affected probationary employee entitled to a payment under subsection (b), is entitled, in accordance with this Act, to—
an appointment to a position in the former employing agency of the affected probationary employee that is the same or similar to the previous Federal position of the affected probationary employee; and
if the affected probationary employee elects to accept an appointment under paragraph (1), a payment in an amount equal to the amount that the affected probationary employee would have been paid by the former employing agency of the affected probationary employee during the period beginning on the termination date of the affected probationary employee and ending on the date on which the affected probationary employee is so appointed, if the affected probationary employee had not become an affected probationary employee.
Subsequent Federal employment—
In general— Except as provided in paragraph (4)—
an affected probationary employee that was appointed to a new Federal position and occupies such a position as of the date of enactment of this Act is entitled to the payment described in paragraph (2); and
an affected probationary employee that was appointed to a new Federal position and does not hold such a position as of the date of enactment of this Act is entitled to—
an appointment to a position in the former employing agency of the affected probationary employee that is the same or similar to the previous Federal position of the affected probationary employee; and
if the affected probationary employee elects to accept an appointment under clause (i), the payment described in paragraph (3).
Current Federal employee payment described— The payment described in this paragraph is a payment in an amount equal to the difference between—
the amount that the affected probationary employee would have been paid by the former employing agency of the affected probationary employee during the period beginning on the termination date of the affected probationary employee and ending on the date of enactment of this Act; and
the amount equal to the sum of pay earned by the affected probationary employee in any new Federal position to which the affected probationary employee was appointed during the period described in subparagraph (A).
Other affected employee payment— The payment described in this paragraph is a payment in an amount equal to the sum of—
the payment described in subparagraph (2); and
a payment in an amount equal to the amount that the affected probationary employee would have been paid by the former employing agency of the affected probationary employee during the period beginning on the date of enactment of this Act and ending on the date on which the affected probationary employee is appointed under paragraph (1)(B), if the affected probationary employee had not become an affected probationary employee.
Exception— An affected probationary employee is not entitled to a payment under paragraph (1) if the amount of that payment is less than zero.
New Federal position defined— In this subsection, the term new Federal position means a position in the Federal Government to which an affected probationary employee is appointed after becoming an affected probationary employee.
Payment—
In general— The former employing agency of an affected probationary employee shall begin making any payment to which that affected probationary employee is entitled under this section not later than 90 days after the pay for each relevant position is determined in accordance with section 5.
Method— A payment described in subsection (a) or (b) shall be paid in 1 lump sum.
Taxation— For purposes of the Internal Revenue Code of 1986, any payment to an individual under subsection (a) or (b) shall be treated as wages paid with respect to the employment of that individual.
Pay limits— A payment to an affected probationary employee under this section shall be disregarded with respect to any limit on the pay of employees that is applicable to the affected probationary employee.
Reinstatement— An appointment under subsection (a)(1) or (b)(1)(B) to a position in the competitive service shall be made without regard to the provisions of subchapter I of chapter 33 of title 5, United States Code.
Employment benefits— For the purposes of this section, a position is the same or similar to a previous Federal position with respect to an affected probationary employee only if the employment benefits, including retirement benefits, health insurance, and leave, available to the affected probationary employee in that position match or exceed the employment benefits available to the affected probationary employee in the previous Federal position of the affected probationary employee.
Sec. 4 Notice and selection
Notice— Not later than 30 days after the date of enactment of this Act, the head of each Executive agency shall notify each affected probationary employee for which the Executive agency is the former employing agency of the rights of affected probationary employees under this Act and the method by which the affected probationary employee may inform that Executive agency of the acceptance or rejection an appointment in accordance with subsection (b)(1).
Selection—
In general— An affected probationary employee entitled to an appointment under section 3 shall inform the former employing agency of the affected probationary employee of the acceptance or rejection of that appointment by that affected probationary employee not later than 30 days after receiving the notice required by subsection (a).
Forfeiture— An affected probationary employee entitled to an appointment under section 3 that does not inform the former employing agency of the affected probationary employee in accordance with paragraph (1) shall cease to be entitled to such an appointment.
Agency compliance— If an affected probationary employee accepts an appointment under section 3 and informs the former employing agency of the affected probationary employee of that acceptance in accordance with subsection (b), the head of the former employing agency shall make that appointment not later than 30 days after the affected probationary employee so informs the former employing agency.
Sec. 5 Separation treatment
Each affected probationary employee is deemed to have been involuntarily separated without cause from the previous Federal position of the affected probationary employee.
Sec. 6 Payment determination
In general— For the purposes of this Act, the Director of the Office of Personnel Management shall determine the pay for a position held by an affected probationary employee based on such evidence of the pay of that position as the affected probationary employee may provide, or if the Director determines sufficient evidence has not been so provided to adequately determine the pay for that position, the pay shall be determined by the Director based on such other information as the Director determines appropriate.
Employee information— An affected probationary employee may provide evidence of the pay of a position to the Director of the Office of Personnel Management under subsection (a) until the earlier of—
the date that is 60 days after the date on which the affected probationary employee received the notice described in section 4(a); or
the date on which the Director determines the pay for those positions for the purposes of this Act.
Information sharing— The head of each Executive agency shall provide to the Director of the Office of Personnel Management such information as the Director may require to carry out this Act.
Sec. 7 Reports
Mass termination report— Not later than 60 days after the date of enactment of this Act, the Comptroller General of the United States shall submit to the Committee on Homeland Security and Governmental Affairs of the Senate and the Committee on Oversight and Government Reform of the House of Representatives a report on the mass terminations during the period beginning on January 20, 2025, and ending on the date of enactment of this Act, including—
the number of employees (as defined in section 2105 of title 5, United States Code) voluntarily or involuntarily separated from Government service as part of those mass terminations, in total and disaggregated by Executive agency;
for employees described in paragraph (1) that were involuntarily separated from Government service as part of those mass terminations, the reasons provided for those involuntary separations;
the number of affected probationary employees;
recommendations for employees described in paragraph (1), other than affected probationary employees, to which the provisions of this Act should apply; and
such other information as the Comptroller General determines appropriate.
Reinstatement report— Not later than 90 days after the date of enactment of this Act, the Director of the Office of Personnel Management shall submit to Congress a report on the reinstatement of affected probationary employees under this Act, including the number of affected probationary employees notified under section 4(a) and the number of affected probationary employees that accepted an appointment under this Act.