The Office of Personnel Management (OPM) has updated its guidance on government shutdowns clarifying how agencies should handle Reduction in Force (RIF) procedures during lapses in appropriations.
This revised guidance follows news that the White House Office of Management and Budget (OMB) recently directed federal agencies to prepare RIF plans in advance of a possible partial government shutdown. With that now looking increasingly likely, this makes the updated guidance more timely and important.
The directive outlines the distinctions between RIFs and furloughs, emphasizing that while furloughs are temporary suspensions due to lack of funds or work, RIFs involve permanent separations or reassignments when positions are abolished.
Importantly, OPM confirms that agencies are authorized to carry out RIFs and issue RIF notices even during shutdown periods, as these activities are considered excepted functions. This is something that has been called into question since OMB published the memo.
For example, legislation was introduced last week by Congressman Johnny Olszewski (D-MD) to block the Trump administration from firing federal employees via RIFs during government shutdowns, both now or in future shutdowns.
The legislation is called the Securing Assurance for Federal Employees (SAFE) Act (H.R. 5599). Olszewski called the potential terminations “unlawful” and said that the legislation would require reinstatement with back pay for any federal employees fired during a partial shutdown if the legislation were to become law as written.
“These mass firings would make any shutdown effectively permanent, stripping thousands of dedicated, patriotic workers of their livelihoods and depriving the American public of the critical government services they provide. If the Administration and Congressional Republicans refuse to return to Washington and negotiate a bipartisan budget, we must do everything possible to protect these employees,” Olszewski said in a statement.
The revised OPM memo also details procedural requirements for implementing RIFs, including the preparation of decisional documents and consultation with legal staff. Agencies must adhere to specific notice protocols, especially when separating 50 or more employees, and follow established timelines for defining competitive areas.
An excerpt from the OPM guidance on RIFs is included below.
Reductions in Force
Reminder to agencies: Agencies are encouraged to prepare decisional documents to document and support RIF-related decision-making. OPM encourages agencies to consult with their legal staff regarding what documents are necessary and what information they should contain.
- What is the difference between a reduction in force (RIF) and a furlough?
A. A reduction in force is a process to separate or reassign employees when positions have been abolished. A furlough is the placing of an employee in a temporary non-duty, non-pay status because of lack of work or funds, or other nondisciplinary reasons.- Can an agency run a RIF during a shutdown furlough? If so, can an agency issue RIF notices during the period of orderly shutdown before a shutdown furlough?
A. Yes, an agency can run a RIF and may issue RIF notices (prepared in accordance with the requirements in 5 CFR part 351, subpart H) when preparing for a shutdown furlough. OMB has determined that agencies are authorized to direct employees to perform work necessary to administer the RIF process during the lapse in appropriations as excepted activities.- What happens if the RIF effective date occurs during a shutdown furlough?
A. The RIF notice period continues during a lapse in funding (i.e., the effective date of release occurs as planned). OMB has determined that agencies are authorized to direct employees to perform the work necessary to administer the RIF process during the lapse in appropriations as excepted activities.- Is a furlough notice different than a RIF notice?
A. Yes, furlough notices and RIF notices require different information. A furlough notice provides information about the reason for the furlough, information about appeal rights and a Form SF-8 (Notice to Federal Employee about Unemployment Insurance). This form provides information on filing unemployment compensation claims, including the agency’s mailing address and Federal identification code. Employees may be asked to provide or refer to this form when they file a claim with their State unemployment insurance agency. A RIF notice provides information about the RIF, how the employee is impacted, the benefits available to the employee and appeal rights. RIF notices must be created in accordance with 5 CFR 351 Subpart F. Sample templates for RIF notices are available on OPM’s website at RIF Resources and Templates.- Are there any additional notice requirements for RIFs of 50 or more employees in a competitive area?
A. Yes, when an agency separates 50 or more employees by RIF from a competitive area, the agency must provide additional notification in accordance with 5 CFR 351.803(b) and the Workforce Investment Act of 1998.- Are there any restrictions on establishing or changing competitive area definitions?
A. Yes. An agency must establish competitive areas at least 90 days prior to the RIF effective date. Establishment or changes to competitive areas within 90 days of the RIF effective date must be approved by OPM. To request an exception to the 90-day competitive area requirement, please send a completed request template to the OPM Workforce Policy and Innovation’s RIF Policy Advisory Team at [email protected].
