The MERIT Act creates a new entitlement for a specific group of federal workers who were part of mass terminations during a defined window starting January 20, 2025. It designates these individuals as “affected probationary employees” and requires their reinstatement by their former employing agency into a position that is the same or similar to their prior federal role. If reinstated, they would receive a lump-sum payment intended to compensate for the pay they would have earned had they not been terminated, minus any pay they earned in a new federal job since termination. The bill lays out how pay is determined, timelines for notice and acceptance, and how benefits and reinstatement are handled. It also directs reporting on mass terminations and reinstatement outcomes. In short, MERIT guarantees a path back to federal service for a specific group of probationary employees affected by mass terminations, with back pay to make up for lost wages, and it sets up processes for agencies to implement these reinstatements and for Congress to monitor the situation.
Key Points
- 1Defines “affected probationary employee” as a person who was in a probationary or trial period and was part of a mass termination in an Executive agency between January 20, 2025 and the date of enactment.
- 2Requires reinstatement to the former agency in the same or a similar position, with a lump-sum back-pay payment intended to compensate for earnings lost from termination to reinstatement.
- 3Sets up two main pay scenarios (depending on whether the employee held a new federal position at enactment and whether they accept a reinstatement) and includes an offset for any pay earned in a new position.
- 4Establishes notice and selection timelines: agencies must notify affected employees within 30 days of enactment; employees have 30 days to respond; if they accept, the former agency must appoint them within 30 days.
- 5Mandates that payments be treated as wages for tax purposes, be made within 90 days after pay for the relevant position is determined, and that reinstatement into the competitive service be accomplished without certain constraints in 5 U.S.C. Subchapter I.
- 6Requires the Office of Personnel Management (OPM) to determine pay for the reinstated positions, based on evidence provided by the employee or other appropriate information, and to collect necessary data from agencies.
- 7Includes comprehensive definitions (e.g., “mass termination,” “former employing agency,” “previous federal position,” “competitive service,” and “benefits”) to specify who is covered and how terms are interpreted.
- 8Creates reporting obligations: the Comptroller General must report on mass terminations, and OPM must report on reinstatement activity, within specified timeframes.