The Office of Personnel Management (OPM) has proposed a significant change to reduction-in-force (RIF) procedures that shifts the focus from seniority to employee performance, reflecting the administration’s push for a more efficient, results-driven federal workforce.
What’s Driving OPM’s Proposed Changes to RIF Procedures?
For federal employees who pay attention to a broader perspective of how the Trump administration has been changing the federal workforce, they are aware that human resources is often a key element of the changes. As Director of the Office of Personnel Management, Scott Kupor has a major role in making and implementing many of these changes. He has taken a different, more direct, and personal approach to communication than most (perhaps all) former OPM directors.
Federal employees can learn more about his philosophy (and potential forthcoming changes) from reading Secrets of OPM, a weekly posting on topics that are important and have captured his attention.
For those reading his columns, the new proposal to modify the reduction-in-force (RIF) process for the federal government does not contain big surprises. Instead, the proposal is a vehicle for implementing a different philosophy for how government should operate, as often outlined in his weekly comments.
The RIF procedure changes (outlined below) are the most recent initiative, reflecting a different philosophy of government operations with the administration’s intent to create a more efficient, effective government.
Downplaying Longevity and Emphasizing Performance
Kupor is critical of the “tenure-based” culture in federal personnel management. Drawing on his private-sector background, he argues that government often treats time in service as a proxy for merit, particularly in promotion systems and workforce retention decisions.
He has criticized a system that rewards longevity in government service and downplays actual performance. Specifically:
- Tenure and longevity often determine career advancement
- High performers are not sufficiently rewarded early in their careers
- Agencies need a greater ability to retain strong performers and address weaker performance.
This philosophy is clearly reflected in the proposed new RIF procedures. The proposal also underlies other workforce initiatives pursued during the Trump administration, including:
- Changes to performance appraisal systems
- New personnel categories allowing easier removal of certain policy-related employees
- Reforms are intended to reward high-performing employees more quickly.
How This Change Will Impact Federal Employees
The newly proposed RIF regulation applies the same performance-first philosophy to federal layoffs.
Traditionally, federal RIF procedures emphasize:
- Tenure group
- Veterans’ preference
- Length of service
- Performance ratings (as additional credit)
Under the existing structure, seniority has been a dominant factor. Unions and agencies often prioritize seniority to determine who keeps a government job and who has to leave, because seniority is objective, verifiable, and easy to defend agency decisions made in the RIF process in the inevitable appeals to third parties.
The proposed rule change for running a RIF shifts that balance by increasing the weight of performance ratings in retention decisions.
1. Performance Ratings Receive Greater Weight Than Tenure
The proposal creates a scoring system based on employees’ recent performance ratings, assigning significant retention value to higher ratings.
This reflects Kupor’s view that federal systems should “differentiate excellence from average performance.” That change in how performance ratings are awarded would result in greater protection during a RIF.
Under the proposed rule, retention standing would rely heavily on a weighted score derived from an employee’s three most recent performance appraisals. The proposal assigns:
- 7 points for an “Outstanding” rating
- Progressively fewer points for lower ratings
- 0 points for “Minimally Successful” or “Unacceptable”
2. Greater Managerial Flexibility
The rule also seeks to simplify RIF procedures so agencies can retain employees who best support mission needs—another theme Kupor has emphasized in his blog posts.
4. Expansion of Employees Excluded from RIF Procedures
The proposal would also modify coverage rules in 5 CFR Part 351.
Currently, RIF regulations exclude only certain categories of employees, including:
- Members of the Senior Executive Service
- Political appointees
The proposed rule would expand exclusions to include career employees in the excepted service and probationary employees, removing them from many of the procedural protections that apply to competitive service employees during RIF actions.
This change is designed to give agencies broader flexibility when restructuring their workforce.
5. Major Changes to RIF Appeal Rights
Another significant regulatory change involves 5 CFR §351.901, which governs appeals of RIF actions.
Under the current regulation:
“An employee who has been furloughed for more than 30 days, separated, or demoted by a reduction in force action may appeal to the Merit Systems Protection Board.”
OPM proposes replacing that language so that appeals would instead be filed exclusively with OPM.
The proposed rule states that employees affected by a RIF:
- Appeal only to OPM, not the Merit Systems Protection Board (MSPB)
- Must prove by a preponderance of the evidence that the RIF violated statute or OPM regulations
- May not use alternative appeal mechanisms, including grievance arbitration
OPM also states that the appeal process it establishes would be the “sole and exclusive means” of challenging a RIF action.
In addition, the proposal would eliminate judicial review of OPM decisions resulting from RIF appeals.
6. Changes to Required RIF Notices
OPM is also proposing conforming changes to 5 CFR §351.802(a)(6) governing the contents of RIF notices to employees.
Currently, notices must inform employees of their right to appeal to the MSPB. Under the proposed rule, references to MSPB would be replaced with references to OPM appeal rights.
Timing of the Proposed Rule
Because the RIF rule is currently a proposed regulation, it will not take effect immediately.
The process includes:
- Public comment period following publication in the Federal Register
- Review of comments by OPM
- Issuance of a final rule, which would establish the effective date
Only after the final rule is published would agencies begin implementing the revised RIF procedures.
Bottom Line
Director Scott Kupor’s weekly blog has repeatedly argued that federal personnel systems fail to distinguish between performance and tenure and rely too heavily on tenure.
The proposed changes to the reduction-in-force process translate that philosophy into practice by placing greater weight on recent performance ratings when determining which employees are retained during layoffs.
Another obvious impact of this proposal is that it will be easier to reduce the size of the federal workforce through the RIF process. Appeals will be more limited and handled more quickly; an agency would be able to use a RIF to reorganize the workforce based on mission needs, rather than one designed to reward tenure or seniority, and the process would be completed much more quickly than under existing rules.
If finalized, the rule would represent a significant shift in federal workforce policy—moving the RIF process away from traditional seniority protection and toward a system that strongly rewards individual performance.
This proposed change also makes it more likely that an agency will use RIF procedures to downsize the federal workforce. The decision to run a RIF will be based on the objectives and more immediate needs of the administration in power rather than on a process designed to protect the federal workforce.
This article is a summary for federal employees interested in learning how they are most likely to be impacted by the proposed changes. The article quickly summarizes a complex proposal extending over multiple pages. This is a simplified version of the changes.
As usual, with significant proposed changes, there will be legal challenges to slow them down and prevent them from occurring. As noted in an immediate press release that was issued, one union wrote:
This proposal is part of a coordinated campaign. It follows proposed rules last month to strip away independent review of RIFs and institute a forced performance ratings system. Together, these proposed rules represent a blueprint for faster, less accountable mass firings and another step in the administration’s effort to dismantle the nonpartisan civil service. AFGE will be filing public comments on the proposed rule and reviewing all legal options if OPM moves forward with it.
Those in the federal community who closely follow changes such as these know what will happen next:
- Lawsuit(s) will be filed in district courts where there is a greater chance of a favorable initial decision.
- Appeals will be filed with at least one Court of Appeals.
- Ultimately, the case may reach the US Supreme Court after months of legal wrangling.
- Numerous articles covering the latest unfolding events will be issued through the process, contending, “We are saving democracy” or “Government will now be able to operate more efficiently.”
FedSmith will continue to provide the latest updates and events affecting this new proposal.
