The MERIT Act would, in response to a mass termination in early 2025, automatically reinstate certain probationary Federal employees who were terminated or otherwise separated as part of that mass action. It creates a framework for reinstatement to the former agency (or a same/similar position) and provides back pay and benefits to make up for what they would have earned if they had not been terminated. For employees who had moved to a new Federal job, the bill lays out options for back pay and for returning to a former position, with lump-sum payments intended to offset lost earnings. The bill also requires agencies to notify affected employees, outlines a selection process, and directs federal oversight bodies to report on the mass terminations and reinstatement activity. In short, the bill is designed to repair what it views as an ill-advised mass termination by restoring affected probationary employees to positions with pay and benefits that match or exceed what they would have received, including back pay for the period since termination. It also seeks to quantify and report on the scope of mass terminations and the reinstatement effort.
Key Points
- 1Applies to “affected probationary employees” who were part of a mass termination (defined as at least 15 separations in 30 days) in early 2025, and who were in probationary or trial status or not yet eligible for full civilian status.
- 2Reinstatement obligation: eligible employees are entitled to an appointment in the former agency to a position that is the same or similar to their previous Federal role, plus back pay for the period from termination to appointment if they would have earned that pay had they not been terminated.
- 3If the employee had moved to a new Federal position, options include continued pay in that new job (with an offset for earnings in the new job) or reinstatement to the former agency with back pay payments.
- 4Pay and benefits: lump-sum payments are required; the bill requires that benefits (retirement, health insurance, leave) in the reinstated role match or exceed those of the prior position.
- 5Notice and selection: agencies must notify affected employees within 30 days of enactment and provide a 30-day window for accepting or declining the reinstatement offer; failing to respond can forfeit eligibility.
- 6Separation treatment: affected probationary employees are deemed involuntarily separated without cause from their previous position.
- 7Pay determination: the Director of the Office of Personnel Management (OPM) will determine the pay for the reinstated position, using evidence provided by the employee or other appropriate information.
- 8Administrative oversight: Congress and the Comptroller General must report on the scope of mass terminations and the reinstatement process, including numbers of affected employees and outcomes.