MERIT Act of 2025 is a sweeping reform of how federal employees can be removed or subjected to adverse actions. The bill repeals the current Chapter 43 framework for performance-based actions and replaces it with a unified, faster process for adverse actions based on performance or misconduct (and applies to supervisors and Senior Executives as well). Key elements include a standard of proof of preponderance of the evidence, a defined set of factors for initial decisions, strict timelines (7 business days to respond; final agency decision within 15 business days after notice), and an appeal path to the Merit Systems Protection Board. The legislation also expands adverse-action authority to supervisors and SES, changes pay/seniority rules in some cases, and introduces new penalties and procedures related to furloughs, annuities for felons, and the recoupment of certain bonuses or awards. It also alters how whistleblower retaliation is handled and tightens procedures around grievances, effectively moving many actions out of the grievance system. The bill’s overall aims appear to speed up and standardize removal processes, broaden accountability (including for supervisors and senior leaders), impose financial consequences for misconduct (including bonus recoupment and potential annuity reductions for felonies), and overhaul furlough rules. It also shifts the enforcement and regulatory framework to the Office of Personnel Management and the Merit Systems Protection Board, with various conforming amendments across Title 5 and related titles. The effective date is tied to a date in Section 12 (not included in the provided text), and several provisions specify applicability only after that date or after implementing regulations are issued.
Key Points
- 1Repeal and replace: Repeals Section 4303 (Chapter 43 performance-based actions) and replaces the framework with a new adverse-action standard under 5 U.S.C. 7513, including a preponderance-of-the-evidence standard and a defined initial-decision-cue set of factors.
- 2Schedule and process for adverse actions: Agencies may impose actions described in section 7512 based on performance or misconduct, with:
- 3- 7 business days for an employee to respond to proposed action,
- 4- final agency decision due within 15 business days after notice (absent possible criminal-imprisonment concerns),
- 5- an opportunity for a hearing (optional) and a right to appeal to the Merit Systems Protection Board within 10 business days.
- 6PIP and due process: Performance Improvement Plans (PIPs) may be bypassed for actions under this framework; employees still have rights to written notice, representation, and written decisions.
- 7Supervisors and executives: Creates new or renamed sections to cover supervisors (Sec. 7514) and modifies pay and discipline for Senior Executives (SES) and supervisors, including pay treatment after reductions and extensive procedural protections for supervisors.
- 8Grievances and reductions in force: Prohibits or limits grieving certain adverse actions and reductions in force, moving those matters toward a framework aligned with subchapter II of chapter 75 for similar actions, and adjusting grief-related procedures accordingly.
- 9Furlough changes: General and emergency furloughs are restructured. General furloughs must be regulated with new standards and guidance from OPM, including notice and procedural requirements; emergency furloughs receive specific notice provisions and are exempt from some other procedures.
- 10Furlough enforcement and judge roles: Administrative Law Judges now have explicit designation to hear certain furlough actions; the tables of sections across subchapters I and II of chapter 75 are reorganized to reflect these changes.
- 11Pay and benefits consequences:
- 12- SES and supervisory actions may involve reductions in grade and corresponding pay reductions with mirrored pay-protection rules and leave/pay restrictions during appeals.
- 13- A new section on reducing annuities for felons: where an agency head determines a felonious act was committed in connection with official duties, an employee’s annuity may be reduced. The process includes notice, a response window, final order timelines, and MSPB appeal rights.
- 14Bonus and awards recoupment: Adds a new subchapter prohibiting bonuses for 5 years after an adverse finding relating to misconduct; if a bonus is awarded and an adverse finding later occurs, the agency may order repayment, with a repayment plan and hearing rights.
- 15Expanded scope of misconduct definitions: The bill broadens the definition of misconduct to include neglect of duty, malfeasance, or failure to accept a directed reassignment or a transfer of function in certain contexts.
- 16Effective date and applicability: Many provisions specify timing tied to Section 12 (not fully included in the excerpt). Some changes to furloughs and SES actions take effect after a specified period (e.g., 180 days after enactment, or upon promulgation of regulations by OPM).