Probation on Initial Appointment to a Competitive Position, Performance-Based Reduction in Grade and Removal Actions and Adverse Actions, 200-209 [2021-28205]
Download as PDF
200
Proposed Rules
Federal Register
Vol. 87, No. 2
Tuesday, January 4, 2022
This section of the FEDERAL REGISTER
contains notices to the public of the proposed
issuance of rules and regulations. The
purpose of these notices is to give interested
persons an opportunity to participate in the
rule making prior to the adoption of the final
rules.
OFFICE OF PERSONNEL
MANAGEMENT
5 CFR Parts 315, 432, and 752
RIN 3206–AO23
Probation on Initial Appointment to a
Competitive Position, PerformanceBased Reduction in Grade and
Removal Actions and Adverse Actions
Office of Personnel
Management.
ACTION: Proposed rule.
AGENCY:
The Office of Personnel
Management (OPM) is issuing proposed
regulations governing probation on
initial appointment to a competitive
position, performance-based reduction
in grade and removal actions, and
adverse actions. The proposed rule
would rescind certain regulatory
changes made effective on November
16, 2020 and implements new statutory
requirements for procedural and appeal
rights for dual status National Guard
technicians for certain adverse actions.
OPM believes the proposed revisions
would support implementation of an
Executive Order to empower agencies to
rebuild the career Federal workforce
and protect the civil service rights of
their employees, while preserving
appropriate mechanisms for pursuing
personnel actions where warranted.
DATES: Comments must be received on
or before February 3, 2022.
ADDRESSES: You may submit comments,
identified by the docket number or
Regulation Identifier Number (RIN) for
this proposed rulemaking, via the
Federal eRulemaking Portal: https://
www.regulations.gov. Follow the
instructions for sending comments.
Instructions: All submissions must
include the agency name and docket
number or RIN for this rulemaking.
Please arrange and identify your
comments on the regulatory text by
subpart and section number; if your
comments relate to the supplementary
information, please refer to the heading
and page number. All comments
tkelley on DSK125TN23PROD with PROPOSED RULES
SUMMARY:
VerDate Sep<11>2014
18:47 Jan 03, 2022
Jkt 256001
received will be posted without change,
including any personal information
provided. Please ensure your comments
are submitted within the specified open
comment period. Comments received
after the close of comment period will
be marked ‘‘late,’’ and OPM is not
required to consider them in
formulating a final decision. Before
acting on this proposal, OPM will
consider and respond to all comments
within the scope of the regulations that
we receive on or before the closing date
for comments. Changes to this proposal
may be made in light of the comments
we receive.
FOR FURTHER INFORMATION CONTACT:
Timothy Curry by email at
employeeaccountability@opm.gov or by
telephone at (202) 606–2930.
SUPPLEMENTARY INFORMATION: On
October 16, 2020, the Office of
Personnel Management (OPM)
published a final rule governing
probation on initial appointment to a
competitive position, performancebased reduction in grade and removal
actions, and adverse actions. 85 FR
65940 (Oct. 16, 2020). The final rule
implemented a provision of Public Law
115–91 concerning the inclusion of
appeals rights information in proposal
notices for personnel actions, and
amended the regulations in parts 315,
432, and 752 of title 5, Code of Federal
Regulations to incorporate certain
requirements of Executive Order (E.O.)
13839, other statutory changes, and
technical revisions.
On January 22, 2021, President Biden
issued E.O. 14003 on ‘‘Protecting the
Federal Workforce’’ which, among other
things, revoked E.O. 13839 and directed
agencies to ‘‘as soon as practicable,
suspend, revise, or rescind, or publish
for notice and comment proposed rules
suspending, revising, or rescinding, the
actions’’ implementing various E.O.s,
including E.O. 13839, ‘‘as appropriate
and consistent with applicable law.’’
E.O. 14003 states that ‘‘[c]areer civil
servants are the backbone of the Federal
workforce, providing the expertise and
experience necessary for the critical
functioning of the Federal Government.
It is the policy of the United States to
protect, empower, and rebuild the
career Federal workforce. It is also the
policy of the United States to encourage
employee organizing and collective
bargaining. The Federal Government
should serve as a model employer.’’
PO 00000
Frm 00001
Fmt 4702
Sfmt 4702
After consideration and review, OPM
has concluded that portions of the final
rule which became effective on
November 16, 2020, and which
implemented certain requirements of
E.O. 13839, are inconsistent with the
current policy of the United States to
protect, empower and rebuild the career
Federal workforce as well as its current
policy to encourage employee
organizing and collective bargaining.
Therefore, in accordance with E.O.
14003, OPM proposes to rescind
portions of the final rule published at 85
FR 65940 (October 16, 2020). The
elements of the final rule that OPM
proposes to rescind are described in
detail below, together with the policy
explanation in each instance. OPM is
proposing these regulations under its
congressionally granted authority to
regulate the parts that it proposes to
revise in accordance with 5 U.S.C. 3321,
4305, 4315, 7504, 7514, and 7543, and
subject to the notice-and-comment
process set forth in the Administrative
Procedure Act, and mindful of the
President’s expressed policy direction.
Furthermore, pursuant to Public Law
114–328 (Dec. 23, 2016), OPM proposes
to revise its regulations on coverage for
performance-based actions and
appealable adverse actions in
accordance with statutory changes that
extend title 5 rights to dual status
National Guard technicians under
certain conditions. Elements of the
November 16, 2020, regulatory
amendments that were due to statutory
changes will remain in effect, such as
procedures for disciplinary action
against supervisors who retaliate against
whistleblowers (5 U.S.C. 7515) and the
inclusion of appeals rights information
in proposal notices for adverse actions
(Pub. L. 115–91, section 1097(b)(2)(A)).
OPM invites the public to comment
on any aspect of the proposed changes,
including whether members of the
public believe that any matters
proposed for rescission instead should
be retained in OPM’s regulations,
consistent with OPM’s statutory and
regulatory authorities. Ultimately, the
purpose of the revisions is to implement
applicable statutory mandates and
provide agencies the necessary tools and
flexibility to address matters related to
unacceptable performance and
misconduct or other behavior contrary
to the efficiency of the service by
Federal employees when they arise,
E:\FR\FM\04JAP1.SGM
04JAP1
Federal Register / Vol. 87, No. 2 / Tuesday, January 4, 2022 / Proposed Rules
tkelley on DSK125TN23PROD with PROPOSED RULES
consistent with the policies of E.O.
14003.
5 CFR Part 315, Subpart H—Probation
on Initial Appointment to a Competitive
Position
The regulations at subpart H of 5 CFR
part 315 provide information regarding
agency action during a probationary
period. Under its authority at 5 U.S.C.
3321, OPM proposes to rescind its
November 16, 2020, amendment to
regulations at § 315.803(a) for two
reasons. First, E.O. 14003 directs OPM
to rescind any regulations effectuated by
E.O. 13839, as appropriate and
consistent with applicable law. Second,
OPM has concluded that the
amendment to the regulations at
§ 315.803(a) placed unnecessary
requirements on agencies regarding how
agencies addressed probationary period
matters. OPM believes these
requirements prevented agencies from
implementing policies most suitable for
each respective agency based on their
unique circumstances. The November
2020 amendment requires agencies to
notify supervisors at least three months
prior to expiration of the probationary
period that an employee’s probationary
period is ending, and then again one
month prior to expiration of the
probationary period, and to advise a
supervisor to make an affirmative
decision regarding the employee’s
fitness for continued employment or
otherwise take appropriate action.
While agencies are encouraged to notify
supervisors that an employee’s
probationary period is ending, OPM
believes the frequency and timing of
notifications should be left up to the
discretion of each agency.
OPM guidance has stated previously
that the probationary period is the last
and crucial step in the examination
process. The probationary period is
intended to give the agency an
opportunity to assess, on the job, an
employee’s overall fitness and
qualifications for continued
employment and permit the
termination, without chapter 75
procedures, of an employee whose
performance or conduct does not meet
acceptable standards to deliver on the
mission. Thus, it provides an
opportunity for supervisors to address
problems expeditiously, with minimum
burden to the agency, and avoid longterm problems inhibiting effective
service to the American people.
Employees may be terminated from
employment during the probationary
period for reasons including
demonstrated inability to perform the
duties of the position, lack of
cooperativeness, or other unacceptable
VerDate Sep<11>2014
18:47 Jan 03, 2022
Jkt 256001
conduct or poor performance. As a
matter of good administration, agencies
should ensure that their practices make
effective use of the probationary period.
While OPM is proposing to rescind a
government-wide requirement to notify
supervisors when an employee’s
probationary period is ending, agencies
would not be precluded from providing
such notifications under their own
authorities and are strongly encouraged
to do so.
5 CFR Part 432—Performance-Based
Reduction in Grade and Removal
Actions
Part 432 applies to reduction in grade
and removal of covered employees
based on performance at the
unacceptable level. Chapter 43 provides
a straightforward, though not exclusive,
process for agencies to use in taking
action based on unacceptable
performance.
Section 432.102 Coverage
Section 432.102 identifies actions and
employees covered by this part. The
proposed rule at § 432.102 updates
coverage to align with the National
Defense Authorization Act (NDAA) for
Fiscal Year 2017, Public Law 114–328
(Dec. 23, 2016). Specifically, section
512(a)(1)(C) of the 2017 NDAA provides
appeal rights under 5 U.S.C. 7511, 7512,
and 7513 to dual status National Guard
technicians for certain adverse actions.
Section 512(c) repealed 5 U.S.C.
7511(b)(5), which excluded National
Guard technicians from the definition of
‘‘employee.’’
The repeal of 5 U.S.C. 7511(b)(5) and
the coverage of National Guard
technicians under 5 U.S.C. 7511, 7512,
and 7513 required that OPM review 5
U.S.C. 4303. Section 4303(e) provides
that any employee who is a preference
eligible, in the competitive service, or in
the excepted service and covered by
subchapter II of chapter 75, and who has
been reduced in grade or removed under
this section is entitled to appeal the
action to the MSPB under section 7701.
Accordingly, MSPB appeal rights
must be extended to National Guard
technicians who are defined in section
4303(e). OPM proposes to revise
paragraphs (b) and (f) of § 432.102 to
reflect that certain performance-based
actions against dual status National
Guard technicians are no longer
excluded. Specifically, OPM proposes to
add as an exclusion an action against a
technician in the National Guard
concerning any activity under section
709(f)(4) of title 32, United States Code,
except as provided by section 709(f)(5)
of title 32, United States Code. In
addition, the proposed rule removes the
PO 00000
Frm 00002
Fmt 4702
Sfmt 4702
201
exclusion at § 432.102(f)(12): ‘‘A
technician in the National Guard
described in 5 U.S.C. 8337(h)(1),
employed under section 709(b) of title
32.’’ The impact of the repeal of 5 U.S.C.
7511(b)(5) on adverse actions taken
under chapter 75 will be further
discussed below in the supplemental
information for § 752.401.
Section 432.104 Addressing
Unacceptable Performance
This section provides requirements in
chapter 43 of title 5 of the United States
Code for addressing unacceptable
performance. While the regulatory
amendments to part 432 made effective
November 16, 2020, are within OPM’s
existing authority under 5 U.S.C. 4303
and 4305, E.O. 13839 was the catalyst
for the changes. OPM proposes to
amend the regulation at § 432.104 to
remove the following language: ‘‘The
requirement described in 5 U.S.C.
4302(c)(5) refers only to that formal
assistance provided during the period
wherein an employee is provided with
an opportunity to demonstrate
acceptable performance, as referenced
in 5 U.S.C. 4302(c)(6). The nature of
assistance provided is in the sole and
exclusive discretion of the agency. No
additional performance assistance
period or similar informal period shall
be provided prior to or in addition to
the opportunity period provided under
this section.’’ OPM will re-insert at
§ 432.104 a statement that was in the
regulation prior to the November 2020
amendment: ‘‘As part of the employee’s
opportunity to demonstrate acceptable
performance, the agency shall offer
assistance to the employee in improving
unacceptable performance.’’
OPM believes that the amendment to
the regulations at § 432.104 placed
unnecessary restrictions and limitations
on agencies regarding decisions on
when performance assistance is
provided to employees. These
restrictions and limitations removed
previous flexibilities enjoyed by
agencies in how to address performance
issues with their employees under
chapter 43. By placing these restrictions
on agencies, OPM believes it was not
supporting agencies and supervisors in
determining the most effective
assistance for struggling employees.
OPM proposes to revert to the
language in § 432.104 prior to the
November 2020 amendments regarding
the agency’s obligation to provide
assistance to an employee who has
demonstrated unacceptable
performance. The proposed language
restates the statutory requirement
described in 5 U.S.C. 4302(c)(5) that
agencies are obligated to provide
E:\FR\FM\04JAP1.SGM
04JAP1
202
Federal Register / Vol. 87, No. 2 / Tuesday, January 4, 2022 / Proposed Rules
tkelley on DSK125TN23PROD with PROPOSED RULES
performance assistance during the
opportunity period. OPM would
emphasize that the employee has a right
to a reasonable opportunity to improve,
which includes assistance from the
agency in improving unacceptable
performance.
OPM encourages efficient use of
chapter 43 procedures and effective
delivery of agency mission while
providing employees sufficient
opportunity to demonstrate acceptable
performance as required by law.
Additionally, OPM advises agencies to
act promptly and effectively to address
and resolve poor performance.
Supervisors should draw upon their
skills and expertise to determine the
most effective assistance for a struggling
employee and work in concert with the
technical advice received from their
agency’s human resources staff.
Section 432.105 Proposing and Taking
Action Based on Unacceptable
Performance
This section specifies the procedures
for proposing and taking action based
on unacceptable performance once an
employee has been afforded an
opportunity to demonstrate acceptable
performance. The regulatory
amendments to § 432.105(a)(1) that
became effective November 16, 2020,
were made for consistency with and
promotion of the principles of E.O.
13839. For consistency with and
promotion of the principles of E.O.
14003 and in accordance with its
authority under 5 U.S.C. 4302, OPM
proposes to revise the regulation at
§ 432.105(a)(1).
The proposed regulatory change to
§ 432.105(a)(1) removes the language:
‘‘For the purposes of this section, the
agency’s obligation to provide
assistance, under 5 U.S.C. 4302(c)(5),
may be discharged through measures,
such as supervisory assistance, taken
prior to the beginning of the opportunity
period in addition to measures taken
during the opportunity period. The
agency must take at least some measures
to provide assistance during the
opportunity period in order to both
comply with section 4302(c)(5) and
provide an opportunity to demonstrate
acceptable performance under
4302(c)(6).’’
OPM believes that the amendment to
the regulations at § 432.105(a)(1) placed
too much emphasis on supervisory
assistance taken prior to the beginning
of the opportunity period and placed
too little emphasis on supervisory
assistance taken during the opportunity
period and could result in some
agencies relying too much on
supervisory assistance outside of the
VerDate Sep<11>2014
18:47 Jan 03, 2022
Jkt 256001
opportunity period to support any
performance-based action taken against
an employee.
Agencies are reminded that they must
provide assistance during the
opportunity period in accordance with
section 5 U.S.C. 4302(c)(5). OPM has
long encouraged agencies to act
promptly to address performance
concerns as soon as they arise.
Supervisors should continually monitor
performance, provide ongoing feedback,
and assist employees who exhibit
performance issues. Agencies should
also remain mindful that third parties
(for example, arbitrators and judges)
place a strong emphasis on a
supervisor’s effort to assist the employee
in improving his or her performance.
Evidence that the supervisor engaged an
employee in discussion, counseling,
training, or the like prior to the
opportunity period may assist the
agency in developing a stronger case
before a third party that the employee
was given a reasonable opportunity to
demonstrate acceptable performance
before a performance-based action is
taken.
The supplemental information
supporting the regulatory changes
issued pursuant to E.O. 13839,
Probation on Initial Appointment to a
Competitive Position, PerformanceBased Reduction in Grade and Removal
Action and Adverse Actions, 85 FR
65940 (October 16, 2020), and the
subsequent revocation of E.O. 13839
and consequent rescission of some those
regulations in this proposed rule,
require clarification and reaffirmation of
an agency’s obligations with regard to
actions based on unacceptable
performance. Section 4302(c) states, in
pertinent part, that, ‘‘Under regulations
which the Office of Personnel
Management shall prescribe, each
performance appraisal system shall
provide for . . . (5) assisting employees
in improving unacceptable performance;
and (6) reassigning, reducing in grade,
or removing employees who continue to
have unacceptable performance but only
after an opportunity to demonstrate
acceptable performance.’’ Section
4303(a) and (b)(1)(A) provides that ‘‘an
agency may reduce in grade or remove
an employee for unacceptable
performance’’ subject to ‘‘30 days
advance written notice of the proposed
action which identifies—(i) specific
instances of unacceptable performance
by the employee on which the proposed
action is based; and (ii) the critical
elements of the employee’s position
involved in each instance of
unacceptable performance.’’ Although
the statute is silent regarding an
agency’s determination in the first
PO 00000
Frm 00003
Fmt 4702
Sfmt 4702
instance that an employee’s
performance is unacceptable, OPM’s
regulation is pellucid. Pursuant to its
authority to promulgate regulations,
OPM issued 5 CFR 432.104, which it
now proposes to restore. That regulation
states in pertinent part: ‘‘At any time
during the performance appraisal cycle
that an employee’s performance is
determined to be unacceptable in one or
more critical elements, the agency shall
notify the employee of the critical
element(s) for which performance is
unacceptable and inform the employee
of the performance requirement(s) or
standard(s) that must be attained in
order to demonstrate acceptable
performance in his or her position. The
agency should also inform the employee
that unless his or her performance in the
critical element(s) improves to and is
sustained at an acceptable level, the
employee may be reduced in grade or
removed. For each critical element in
which the employee’s performance is
unacceptable, the agency shall afford
the employee a reasonable opportunity
to demonstrate acceptable performance,
commensurate with the duties and
responsibilities of the employee’s
position.’’ (Emphasis added). This
language in 5 CFR 432.104 was
unchanged in the final rule issued on
October 16, 2020.
The comments summarized in the
October 16, 2020, final rule, included
concern that the amendment to 5 CFR
432.104 (which we are proposing to
remove) might give some managers the
ability to remove employees without
factual evidence or deny them the
ability to either counter the agency’s
assessment or correct it through a
mandated improvement process. OPM
responded to those concerns by saying,
inter alia, that ‘‘The amended rule does
not relieve agencies of the responsibility
to demonstrate that an employee was
performing unacceptably—which per
statute covers the period both prior to
and during a formal opportunity
period—before initiating an adverse
action under chapter 43.’’ 85 FR 65957
(Oct. 16, 2020). OPM’s response was
subsequently cited in Santos v. Nat’l.
Aeronautics and Space Admin., 990
F.3d 1355 (Fed. Cir. 2021), to support
the court’s implicit decision that an
agency must prove by substantial
evidence in a proceeding to challenge a
performance-based removal that the
employee was performing unacceptably
prior to the opportunity period (i.e.,
prior to being placed on a performance
improvement plan) as a prerequisite to
removing the employee for failing to
demonstrate acceptable performance
during the opportunity period. This is a
E:\FR\FM\04JAP1.SGM
04JAP1
tkelley on DSK125TN23PROD with PROPOSED RULES
Federal Register / Vol. 87, No. 2 / Tuesday, January 4, 2022 / Proposed Rules
misreading of OPM’s position.
Accordingly, OPM takes this
opportunity to make clear what OPM’s
position is so that OPM’s failure to
clarify its prior comments and address
Santos when making changes to the
same set of regulations will not be
interpreted as OPM’s endorsement of
the Santos standard. OPM’s reference to
determining whether an employee is
performing unacceptably concerns the
requirement that an agency provide
notice to an employee of unacceptable
performance—before placing him on a
PIP. OPM’s comment in the
supplemental information that the
requirement to demonstrate that an
employee was performing unacceptably
‘‘covers’’ the period prior to the
opportunity period should not be read
to mean that an agency must justify the
decision to place an employee on a PIP.
Rather, the comment refers to the
statutory provision that allows, but does
not require, an agency to rely on
unacceptable performance within 1 year
prior to the date of the proposal notice
to justify the removal itself. See 5 U.S.C.
4303(c)(2).
Therefore, OPM wishes to clarify that
the conclusion in Santos is contrary to
OPM’s comment in supplemental
information on which Santos relies and
OPM’s interpretation of 5 U.S.C.
4302(c)(6). OPM does not agree that 5
U.S.C. 4302(c)(6) means that the agency
must prove as part of its substantive
case or as a required procedure that an
employee performed unacceptably
before he or she was placed on a PIP.
Rather, the statute as interpreted by
OPM’s regulation at 5 CFR 432.104
provides that an agency may not take a
performance-based adverse action
against an employee whom the agency
determined was performing
unacceptably unless the agency first
provides the employee with notice and
an opportunity to improve, and the
employee continues to perform
unacceptably. The determination to be
reviewed on appeal to the Board and its
reviewing courts is the final
determination of unacceptable
performance following the PIP, not any
interim determination leading to the
PIP. This interpretation enables agencies
to address performance issues early
through the mechanism of a PIP without
concern that the employees who
ultimately are unable to demonstrate
acceptable performance despite early
and sustained assistance cannot be
removed because the MSPB or a court
might find that they were not
performing unacceptably when the PIP
began.
Section 432.105 addresses notice
requirements when an agency proposes
VerDate Sep<11>2014
18:47 Jan 03, 2022
Jkt 256001
to take action based on an employee’s
unacceptable performance during or
after the opportunity period once the
employee has been afforded an
opportunity to demonstrate acceptable
performance. An agency must afford the
employee a 30-day advance notice of the
proposed action that identifies both the
specific instances of unacceptable
performance by the employee on which
the proposed action is based and the
critical element(s) of the employee’s
position involved in each instance of
unacceptable performance. An agency
may extend this advance notice period
for a period not to exceed 30 days under
regulations prescribed by the head of
the agency. For the reasons listed in
§ 432.105(a)(4)(i)(B), an agency may
further extend this advance notice
period without OPM approval.
OPM proposes to revise the reason at
§ 432.105(a)(4)(i)(B)(6), which was
derived from 5 U.S.C. 1208(b) because
the statutory provision was repealed by
section 3(a)(8) of Public Law 101–12,
the Whistleblower Protection Act (WPA)
of 1989. Section 1208(b) granted
agencies the authority to extend the
advance notice period for a
performance-based action in order to
comply with a stay ordered by a
member of the Merit Systems Protection
Board. Concurrent with the repeal of 5
U.S.C. 1208(b), the WPA established 5
U.S.C. 1214(b)(1)(A)(i), wherein the
Office of Special Counsel is granted the
authority to request any member of the
Board to order a stay of any personnel
action for 45 days if the Special Counsel
determines that there are reasonable
grounds to believe that the personnel
action was taken, or is to be taken, as
a result of a prohibited personnel
practice. Further, under 5 U.S.C.
1214(b)(1)(B), the Board may extend the
period of any stay granted under
subparagraph (A) for any period which
the Board considers appropriate. If the
Board lacks a quorum, any remaining
member of the Board may, upon request
by the Special Counsel, extend the
period of any stay granted under
subparagraph (A). Therefore, OPM
proposes to change the reason at
subparagraph (B)(6) to read as follows:
‘‘[t]o comply with a stay ordered by a
member of the Merit Systems Protection
Board under 5 U.S.C. 1214(b)(1)(A) or
(B).’’
Section 432.108 Settlement
Agreements
Section 5 of E.O. 13839, established a
requirement that an agency shall not
agree to erase, remove, alter or withhold
from another agency any information
about a civilian employee’s performance
or conduct in that employee’s official
PO 00000
Frm 00004
Fmt 4702
Sfmt 4702
203
personnel records, including an
employee’s Official Personnel Folder
and Employee Performance File, as part
of, or as a condition to, resolving a
formal or informal complaint by the
employee or settling an administrative
challenge to an adverse personnel
action. Such agreements have
traditionally been referred to as ‘‘clean
record’’ agreements. Consistent with the
rescission of E.O. 13839 and pursuant to
its authorities under 5 U.S.C. 2951 to
maintain personnel records and under 5
U.S.C. 1103(a)(5) to execute, administer,
and enforce the law governing the civil
service, OPM proposes to rescind
§ 432.108, Settlement Agreements.
Due to continued objections raised
since the publication of the November
16, 2020, final rule, OPM believes that
the prohibition of clean record
agreements hampers agencies’ ability to
resolve informal and formal complaints
at an early stage and with minimal costs
to the agency. Notably, stakeholders
have stressed that the prohibition of
clean record agreements limits
resolution options; reduces the
likelihood of parties reaching a
mutually agreeable resolution of
informal or formal complaints;
potentially increases costly litigation
and arbitration; and crowds the dockets
of third-party investigators, mediators,
and adjudicators such as the Merit
Systems Protection Board (MSPB),
Office of Special Counsel (OSC), and
Equal Employment Opportunity
Commission. While agencies may derive
some value from having access to
unaltered personnel records when
making hiring decisions, OPM believes
it should place greater weight on
granting agencies a degree of flexibility
to resolve individual workplace
disputes. Therefore, OPM proposes to
delete § 432.108. The clean record
prohibition applied to actions taken
under parts 432 and 752. Accordingly,
the proposed rule would also rescind
§§ 752.104, 752.203(h), 752.407 and
752.607. The removal of the prohibition
on clean record agreements will allow
agencies discretion to resolve informal
and formal complaints and settle
administrative challenges in a manner
that balances the needs of the agency
and fairness to the employee. In doing
so, agencies should still adhere to the
principles of promoting high standards
of integrity and accountability within
the Federal workforce. In addition,
agencies are advised that, in any such
agreement, they have an obligation to
speak truthfully to Federal investigators
performing future background
investigations with respect to the
employee and may not agree to
E:\FR\FM\04JAP1.SGM
04JAP1
204
Federal Register / Vol. 87, No. 2 / Tuesday, January 4, 2022 / Proposed Rules
requirements related to settlement
agreements.
withhold information about the
circumstances of an individual’s
departure from the agency.
5 CFR Part 752—Adverse Actions
Subpart A—Discipline of Supervisors
Based on Retaliation Against
Whistleblowers
This subpart addresses mandatory
procedures for addressing retaliation by
supervisors for whistleblowing.
Section 752.101 Coverage
This section describes the adverse
actions covered and defines key terms
used throughout the subchapter. Section
752.101 includes a definition for the
term ‘‘business day.’’ The requirement
for taking an action within a proscribed
number of business days was derived
solely from Section 2(f) of E.O. 13839.
With the rescission of E.O. 13839 and
given that there is no other use for the
definition of ‘‘business day’’ in subpart
A, OPM proposes to revise the
regulation at § 752.101(b) to remove the
definition of ‘‘Business day’’.
tkelley on DSK125TN23PROD with PROPOSED RULES
Section 752.103 Procedures
This section establishes the
procedures to be utilized for actions
taken under this subpart. With the
rescission of E.O. 13839 and pursuant to
its congressionally granted authority to
regulate chapter 75 adverse actions,
OPM proposes to rescind the
requirement at § 752.103(d)(3) that an
agency should issue the decision on a
proposed removal under this subpart
within 15 business days of the
conclusion of the employee’s
opportunity to respond under paragraph
(d)(1) of this section. The 15-day
requirement was derived solely from
Section 2(f) of E.O. 13839. Although it
is good practice for agency deciding
officials to resolve proposed removals
promptly, some actions present multiple
issues, conflicting evidence, or other
complications that warrant full and fair
consideration over a longer period of
time, and careful crafting of the final
decision. Accordingly, it is not in the
Government’s best interests to force
decisions to be completed on an
arbitrary timetable that may not allow
for the deciding official to prepare a
thoughtful, well-reasoned decision
document.
Section 752.104 Settlement
Agreements
The language in this section
establishes the same requirements that
are detailed in § 432.108, Settlement
agreements. OPM proposes to remove
this requirement. Please see the
discussion at § 432.108 regarding the
proposed rescission of OPM
VerDate Sep<11>2014
18:47 Jan 03, 2022
Jkt 256001
Subpart B—Regulatory Requirements
for Suspensions for 14 Days or Less
This subpart addresses the procedural
requirements for suspensions of 14 days
or less for covered employees.
Section 752.202 Standard for Action
and Penalty Determination
This section sets forth the standard for
action applicable under this subpart and
the penalty determination provisions
that must be adhered to when taking
suspensions for 14 days or less.
Consistent with the rescission of E.O.
13839, under its congressionally granted
authority to regulate part 752, OPM
proposes to amend the regulation at
§ 752.202 to revise the section heading
to ‘‘Standard for Action’’ and rescind
paragraphs (c) through (f). These
paragraphs address the use of
progressive discipline; appropriate
comparators as the agency evaluates a
potential disciplinary action;
consideration of, among other factors,
an employee’s disciplinary record and
past work record; and the requirement
that a suspension should not be a
substitute for removal in circumstances
in which removal would be appropriate.
Specifically, paragraphs (c) through (f)
state:
‘‘(c) An agency is not required to use
progressive discipline under this
subpart. The penalty for an instance of
misconduct should be tailored to the
facts and circumstances. In making a
determination regarding the appropriate
penalty for an instance of misconduct,
an agency shall adhere to the standard
of proposing and imposing a penalty
that is within the bounds of tolerable
reasonableness. Within the agency, a
proposed penalty is in the sole and
exclusive discretion of a proposing
official, and a penalty decision is in the
sole and exclusive discretion of the
deciding official. Penalty decisions are
subject to appellate or other review
procedures prescribed in law.
(d) Employees should be treated
equitably. Conduct that justifies
discipline of one employee at one time
does not necessarily justify similar
discipline of a different employee at a
different time. An agency should
consider appropriate comparators as the
agency evaluates a potential
disciplinary action. Appropriate
comparators to be considered are
primarily individuals in the same work
unit, with the same supervisor, who
engaged in the same or similar
misconduct. Proposing and deciding
officials are not bound by previous
decisions in earlier similar cases, but
PO 00000
Frm 00005
Fmt 4702
Sfmt 4702
should, as they deem appropriate,
consider such decisions consonant with
their own managerial authority and
responsibilities and independent
judgment. For example, a supervisor is
not bound by his or her predecessor
whenever there is similar conduct. A
minor indiscretion for one supervisor
based on a particular set of facts can
amount to a more serious offense under
a different supervisor. Nevertheless,
they should be able to articulate why a
more or less severe penalty is
appropriate.
(e) Among other relevant factors,
agencies should consider an employee’s
disciplinary record and past work
record, including all applicable prior
misconduct, when taking an action
under this subpart.
(f) A suspension should not be a
substitute for removal in circumstances
in which removal would be appropriate.
Agencies should not require that an
employee have previously been
suspended or demoted before a
proposing official may propose removal,
except as may be appropriate under
applicable facts.’’
Given the revocation of E.O. 13839,
and under its congressionally granted
authority to regulate part 752, OPM
proposes to rescind §§ 752.202(c),
752.202(d), 752.202(e) and 752.202(f).
Though the penalty determination
guidelines of these subsections, as
discussed below, reflect established
principles, OPM believes that it is
unnecessary to enshrine the guidelines
in regulation, thus providing agencies
maximum flexibility.
In § 752.202(c), OPM made clear that
an agency is not required to use
progressive discipline under this
subpart. As we have previously said
regarding progressive discipline and
tables of penalties, each action stands
on its own footing and demands careful
consideration of facts, circumstances,
context, and nuance. OPM reminds
agencies to calibrate discipline to the
unique facts and circumstances of each
case, which is consistent with the
flexibility afforded agencies under the
‘‘efficiency of the service’’ standard for
imposing discipline contained in the
Civil Service Reform Act. Proposing and
deciding officials should consult with
the agency counsel and the agency’s
human resources office to determine the
most appropriate penalty.
Further, in § 752.202(d), OPM
adopted the test articulated by the Court
of Appeals for the Federal Circuit in
Miskill v. Social Security
Administration, 863 F.3d 1379 (Fed. Cir.
2017). We clarified that appropriate
comparators are primarily individuals
in the same work unit, with the same
E:\FR\FM\04JAP1.SGM
04JAP1
tkelley on DSK125TN23PROD with PROPOSED RULES
Federal Register / Vol. 87, No. 2 / Tuesday, January 4, 2022 / Proposed Rules
supervisor, who engaged in the same or
similar misconduct. The adoption of the
Miskill test reinforced the key principle
that each case stands on its own factual
and contextual footing. However, OPM
believes that agencies can be sufficiently
guided by Miskill and other applicable
case law without a regulatory
amendment.
In § 752.202(e), OPM adopted
formally by regulation the standard
applied by MSPB in Douglas v. Veterans
Administration, 5 M.S.P.R. 280 (1981) to
removals, suspensions, and demotions,
including suspensions of fewer than 15
days. Specifically, OPM adopted the
requirement that agencies should
propose and impose a penalty that is
within the bounds of tolerable
reasonableness. However, OPM believes
that it is unnecessary to regulate a
principle that is already embedded
deeply in Federal civil-service law,
thereby allowing greater flexibility for
agencies. Douglas provides an adequate
and useful template for arriving at
reasonable penalty determinations.
Douglas requires that, among other
relevant factors, an agency should
consider an employee’s disciplinary
record and past work record, including
all prior misconduct, when taking an
action under this subpart. Many
agencies apply this standard not only to
those actions taken under 5 U.S.C. 7513
but also to those taken under 5 U.S.C.
7503 as well.
In § 752.202(f), OPM stated that
suspension should not be a substitute
for removal in circumstances in which
removal would be appropriate. This is a
straightforward principle that OPM
believes agencies can apply without
regulation. It is vital that supervisors
use independent judgment, take
appropriate steps in gathering facts, and
conduct a thorough analysis to decide
the appropriate penalty. If a penalty is
disproportionate to the alleged violation
or is unreasonable, it is subject to being
reduced or reversed even when the
charges are sustained. While OPM
proposes to remove § 752.202(f) and
defer to agency management in selecting
an appropriate penalty, OPM reminds
agencies that imposing a suspension
when removal is appropriate may
adversely impact employee morale and
productivity and hamper the agency’s
ability to achieve its mission and
promote effective stewardship.
Because of the revocation of E.O.
13839, and in light of OPM’s
independent regulatory authority under
chapter 75, we propose to remove the
penalty selection guidelines at
§§ 752.202(c) through (f). OPM reminds
agencies that supervisors are
responsible for ensuring that a
VerDate Sep<11>2014
18:47 Jan 03, 2022
Jkt 256001
disciplinary penalty is fair, reasonable,
and appropriate to the facts and
circumstances. In doing so, supervisors
will address misconduct in a manner
that has the greatest potential to avert
harm to the efficiency of the service.
Section 752.203 Procedures
The language in this section discusses
the requirements for a proposal notice
issued under this subpart. The language
in this section also establishes the same
requirements that are detailed in
§ 432.108, Settlement agreements. OPM
proposes to remove the requirement set
forth in § 752.203(h). Please see the
discussion at § 432.108 regarding the
proposed rescission of OPM
requirements related to settlement
agreements.
Subpart D—Regulatory Requirements
for Removal, Suspension for More Than
14 Days, Reduction in Grade or Pay, or
Furlough for 30 Days or Less
This subpart addresses the procedural
requirements for removals, suspensions
for more than 14 days, including
indefinite suspensions, reductions in
grade, reductions in pay, and furloughs
of 30 days or less for covered
employees.
Section 752.401 Coverage
This section discusses adverse actions
and employees covered under this
subpart. The National Defense
Authorization Act (NDAA) for Fiscal
Year 2017 added MSPB appeal rights for
National Guard military technicians for
certain adverse actions taken against
them when they are not in a military
pay status or when the issue does not
involve fitness for duty in the reserve
component. In § 752.401(b), OPM
proposes to add an exclusion for an
action taken against a technician in the
National Guard as provided in section
709(f)(4) of title 32, United States Code.
In § 752.401(d), OPM proposes to
remove from the list of employees
excluded from coverage of this subpart
‘‘a technician in the National Guard
described in section 8337(h)(1) of title 5,
United States Code, who is employed
under section 709(a) of title 32, United
States Code.’’ OPM proposes to remove
this because the NDAA of 2017 removed
the exclusion from 5 U.S.C. 7511(b)(1)
and this language was derived from
section 7511(b)(1).
Section 752.402 Definitions
This section defines key terms used
throughout the subchapter. Section
752.402 includes a definition for the
term ‘‘business day.’’ The requirement
for taking an action within a proscribed
number of business days for this section
PO 00000
Frm 00006
Fmt 4702
Sfmt 4702
205
was derived solely from Section 2(f) of
E.O. 13839. With the rescission of E.O.
13839 and given that there is no other
use for the definition of ‘‘business day’’
in subpart D, OPM proposes to revise
the regulation at § 752.402 to remove the
definition of ‘‘Business day’’.
Section 752.403 Standard for Action
and Penalty Determination
As with the proposed rule changes for
the regulatory amendments to § 752.202,
the proposed regulatory change to
§ 752.403 revises the heading to
‘‘Standard for Action’’ and rescinds
paragraphs (c) through (f).
Given the rescission of E.O. 13839
and under its congressionally granted
authority to regulate part 752, as with
§§ 752.202(c), 752.202(d), 752.202(e)
and 752.202(f), OPM proposes to
rescind §§ 752.403(c),
752.403(d),752.403(e), and 752.403(f).
Please see the discussion at § 752.202.
Section 752.404 Procedures
Section 752.404(b) discusses the
requirements for a notice of proposed
action issued under this subpart.
Specifically, the requirements in
§ 752.404(b)(1) include that, to the
extent an agency, in its sole and
exclusive discretion deems practicable,
agencies should limit written notice of
adverse actions taken under this subpart
to the 30 days prescribed in 5 U.S.C.
7513(b)(1), as well as the requirement
that any notice period greater than 30
days must be reported to OPM. The
requirement was derived solely from
Section 2(g) of E.O. 13839. In addition,
we have come to the conclusion
independently that there may be
appropriate circumstances that warrant
a notice period, and we no longer see a
reason to burden agencies with a
requirement to report to OPM every
time they grant longer notice.
OPM proposes to remove the
following language in § 752.404(b)(1):
‘‘However, to the extent an agency in its
sole and exclusive discretion deems
practicable, agencies should limit a
written notice of an adverse action to
the 30 days prescribed in section
7513(b)(1) of title 5, United States Code.
Advance notices of greater than 30 days
must be reported to the Office of
Personnel Management.’’
Additionally, § 752.404(g) discusses
the requirements for an agency decision
issued under this subpart. Under its
authority to regulate 5 CFR part 752,
OPM proposes to rescind
§ 752.404(g)(3). The requirement of
§ 752.404(g)(3) was derived solely from
Section 2(f) of E.O. 13839. Specifically,
§ 752.404(g)(3) includes language that,
to the extent practicable, an agency
E:\FR\FM\04JAP1.SGM
04JAP1
206
Federal Register / Vol. 87, No. 2 / Tuesday, January 4, 2022 / Proposed Rules
should issue the decision on a proposed
removal under this subpart within 15
business days of the conclusion of the
employee’s opportunity to respond. As
discussed above with respect to section
752.103(d)(3) and the rescinding of the
15-day requirement to issue a decision
on a proposal, although it is good
practice for agency deciding officials to
resolve proposed removals promptly,
some actions present complications that
warrant a longer period of time to
achieve careful crafting of the final
decision.
Notwithstanding these proposed
changes to the notice and decision
requirements, agencies are reminded
that misconduct should be addressed as
soon as possible in each case. Prompt
action helps promote changed behavior
whereas failure to act promptly can
damage morale and productivity, and
failure to remove employees who
should be removed can do the same.
Section 752.407 Settlement
Agreements
The language in this section
establishes the same requirements that
are detailed in 432.108, Settlement
agreements. OPM proposes to remove
this requirement. Please see the
discussion at § 432.108 regarding the
proposed rescission of OPM
requirements related to settlement
agreements.
Subpart F—Regulatory Requirements
for Taking Adverse Actions Under the
Senior Executive Service
This subpart addresses the procedural
requirements for suspensions for more
than 14 days and removals from the
civil service as set for in 5 U.S.C. 7542.
tkelley on DSK125TN23PROD with PROPOSED RULES
Section 752.602 Definitions
This section defines key terms used
throughout the subchapter. Section
752.602 includes a definition for the
term ‘‘business day.’’ The requirement
for taking an action within a proscribed
number of business days for this section
was derived solely from Section 2(f) of
E.O. 13839. With the rescission of E.O.
13839 and given that there is no other
use for ‘‘business day’’ in subpart F,
OPM proposes to revise the regulation at
§ 752.402 to remove the definition of
‘‘Business day’’.
Section 752.603 Standard for Action
and Penalty Determination
As with the proposed rule changes for
the regulatory amendments to § 752.202
and § 752.403, the proposed regulatory
change to § 752.603 revises the heading
to ‘‘Standard for Action’’ and rescinds
paragraphs (c) through (f). Please see the
discussion at § 752.202.
VerDate Sep<11>2014
18:47 Jan 03, 2022
Jkt 256001
Given the rescission of E.O. 13839
and under its congressionally granted
authority to regulate part 752, as with
§§ 752.202(c), 752.202(d), 752.202(e),
and 752.202(f) and §§ 752.403(c),
752.403(d), 752.403(e), and 752.403(f),
OPM proposes to rescind §§ 752.603(c),
752.603(d),752.603(e), and 752.603(f).
See discussion above with respect to
section 752.202.
Section 752.604 Procedures
This section discussed requirements
for a notice of proposed action. Due to
the revocation of E.O. 13839 and under
its congressionally granted authority to
regulate 5 CFR part 752, as with the rule
changes proposed for § 752.103(d)(3)
and § 752.404(b)(1), and for the same
reasons, OPM proposes to rescind the
language at § 752.604(b)(1) that requires
to the extent an agency in its sole and
exclusive discretion deems practicable,
agencies should limit a written notice of
an adverse action to the 30 days
prescribed in section 7543(b)(1) of title
5, United States Code. As well, OPM
proposes to remove the language in
§ 752.604(b)(1) that requires that
advance notices of greater than 30 days
must be reported to OPM. These
requirements were derived solely from
Section 2(g) of E.O. 13839.
OPM proposes to rescind
§ 752.604(g)(3), which requires agencies
to issue decisions, to the extent
practicable, within 15 business days of
the conclusion of the employee’s
opportunity to respond under paragraph
of this section. This requirement was
derived solely from Section 2(f) of E.O.
13839. Thus, as with the discussion
concerning the 15-day requirement for
issuance of decisions in section
752.103(d)(3) and section 752.404(g),
while recognizing it is good practice for
agency deciding officials to resolve
proposed removals promptly, some
actions present complexities that
necessitate a longer period of time to
prepare the final decision.
Section 752.607 Settlement
Agreements
The language in this section
establishes the same requirements that
are detailed in § 432.108, Settlement
agreements. OPM proposes to remove
this requirement. Please see the
discussion at § 432.108 regarding the
proposed rescission of OPM
requirements related to settlement
agreements.
Expected Impact of This Proposed Rule
OPM is issuing this proposed rule to
implement requirements of E.O. 14003
and new statutory requirements for
procedural and appeal rights for dual
PO 00000
Frm 00007
Fmt 4702
Sfmt 4702
status National Guard technicians for
certain adverse actions. E.O. 14003
requires OPM to rescind portions of the
OPM final rule published at 85 FR
65940 which implemented certain
requirements of E.O. 13839. In addition,
section 512(a)(1)(C) of the 2017 NDAA
provides appeal rights under 5 U.S.C.
7511, 7512, and 7513 to dual status
National Guard technicians for certain
adverse actions.
OPM believes that portions of the
final rule which became effective on
November 16, 2020, and which
implemented certain requirements of
E.O. 13839, are inconsistent with the
current policy of the United States to
protect, empower and rebuild the career
Federal workforce as well as its current
policy to encourage employee
organizing and collective bargaining.
The proposed revisions implement
applicable statutory mandates and
provide agencies the necessary tools and
flexibility to address matters related to
unacceptable performance and
misconduct or other behavior contrary
to the efficiency of the service by
Federal employees when they arise,
consistent with the policies of E.O.
14003.
Given that the November 16, 2020,
regulations OPM proposes to rescind
were in effect only for a brief period
before E.O. 14003 was issued on January
22, 2021, agencies had limited
opportunity to implement changes
under the regulations. With the issuance
of E.O. 14003, OPM discontinued
collecting agency data on performancebased actions, adverse actions, and
settlement agreements as was required
by Section 5 of E.O. 13839. OPM does
not otherwise collect agency data about
the matters covered by the November
2020 regulatory amendments that OPM
proposes to rescind (namely, the timing
and frequency of probationary period
expiration notifications; the timing and
nature of performance assistance for
employees who have demonstrated
unacceptable performance; penalty
determination guidelines; advance
notice and decision notice timeframes
for adverse action; and settlement
agreements). For these reasons, OPM
has virtually no data on the extent to
which adverse actions were pursued
under the regulations proposed for
rescission here. This proposed rule will
relieve agencies of the administrative
burden of implementing the November
2020 regulatory amendments to the
extent that agencies did not already
have such policies and practices in
place. Out of an abundance of caution,
we clarify that OPM still is requiring
that agencies submit to it arbitration
awards taken under 5 U.S.C. 4303 or 5
E:\FR\FM\04JAP1.SGM
04JAP1
Federal Register / Vol. 87, No. 2 / Tuesday, January 4, 2022 / Proposed Rules
tkelley on DSK125TN23PROD with PROPOSED RULES
U.S.C. 7512 of title 5 so that OPM can
efficiently carry out its authority under
5 U.S.C. 7703(d) to seek judicial review
of any arbitration award that the
Director of OPM determines is
erroneous and would have a substantial
impact on civil service law, rule, or
regulation affecting personnel
management that will have a substantial
impact on a civil service law, rule,
regulation, or policy directive.
Costs
This proposed rule will affect the
operations of over 80 Federal agencies—
ranging from cabinet-level departments
to small independent agencies.
Regarding implementation of E.O. 14003
requirements, we estimate that this
proposed rule will require individuals
employed by these agencies to revise
and rescind policies and procedures to
implement certain portions the OPM
final rule published at 85 FR 65940 to
the extent agencies have not already
done so. Section 3(e) of E.O. 14003
directs heads of agencies whose
practices were covered by E.O. 13839 to
review and identify existing agency
actions related to or arising from E.O.
13839 and ‘‘as soon as practicable,
suspend, revise, or publish for notice
and comment proposed rules
suspending, revising, or rescinding, the
actions identified in the review’’
described in Section 3(e). On March 5,
2021, OPM issued ‘‘Guidance for
Implementation of Executive Order
14003—Protecting the Federal
Workforce’’ to heads of agencies. In this
guidance, OPM advised that ‘‘agencies
should not delay in implementing the
requirements of Section 3(e) of E.O.
14003 as it relates to any changes to
agency policies made as a result of
OPM’s regulations.’’ Therefore, some
agencies may not need to make any
updates to agency policies as a result of
this revised OPM rule. For the purpose
of this cost analysis, the assumed
average salary rate of Federal employees
performing this work will be the rate in
2021 for GS–14, step 5, from the
Washington, DC, locality pay table
($138,66 annual locality rate and $66.54
hourly locality rate). We assume that the
total dollar value of labor, which
includes wages, benefits, and overhead,
is equal to 200 percent of the wage rate,
resulting in an assumed labor cost of
$133.08 per hour.
In order to comply with the regulatory
changes in this proposed rule, affected
agencies will need to review the rule
and update their policies and
procedures. We estimate that, in the first
year following publication of the final
rule, this will require an average of 200
hours of work by employees with an
VerDate Sep<11>2014
18:47 Jan 03, 2022
Jkt 256001
average hourly cost of $133.08. This
would result in estimated costs in that
first year of implementation of about
$26,616 per agency, and about
$2,129,280 in total Governmentwide.
We do not believe this proposed rule
will substantially increase the ongoing
administrative costs to agencies.
Regarding the portion of the proposed
rule regarding appeal rights under 5
U.S.C. 7511, 7512, and 7513 for dual
status National Guard technicians for
certain adverse actions, this only
impacts the Army National Guard and
Air National Guard for dual status
National Guard technicians that are
covered by policies of the National
Guard Bureau. Since this portion of the
proposed rule reflects statutory changes
in the 2017 NDAA which have been
effective for several years, these
statutory requirements should already
be applied by the National Guard
notwithstanding any regulatory changes
by OPM. However, for the purpose of
this cost analysis, the assumed average
salary rate of Federal employees
performing this work at the National
Guard Bureau will be the rate in 2021
for GS–14, step 5, from the Washington,
DC, locality pay table ($138,66 annual
locality rate and $66.54 hourly locality
rate). We assume that the total dollar
value of labor, which includes wages,
benefits, and overhead, is equal to 200
percent of the wage rate, resulting in an
assumed labor cost of $133.08 per hour.
In order to comply with the regulatory
changes in this proposed rule, the
affected agency will need to review the
rule and update its policies and
procedures. We estimate that, in the first
year following publication of the final
rule, this will require an average of 40
hours of work by employees with an
average hourly cost of $133.08. This
would result in estimated costs in that
first year of implementation of about
$5,323 for the impacted agency. We do
not believe this proposed rule will
substantially increase the ongoing
administrative costs to the National
Guard.
Executive Order 12866
Executive Order 12866 directs
agencies to assess all costs and benefits
of available regulatory alternatives and,
if regulation is necessary, to select
regulatory approaches that maximize
net benefits (including potential
economic, environmental, public health
and safety effects, distributive impacts,
and equity). In accordance with the
provisions of Executive Order 12866,
this proposed rule was reviewed by the
Office of Management and Budget as a
significant, but not economically
significant rule.
PO 00000
Frm 00008
Fmt 4702
Sfmt 4702
207
Regulatory Flexibility Act
The Director of the Office of
Personnel Management certifies that
this proposed rule will not have a
significant economic impact on a
substantial number of small entities.
Federalism
This regulation will not have
substantial direct effects on the States,
on the relationship between the
National Government and the States, or
on distribution of power and
responsibilities among the various
levels of government. Therefore, in
accordance with Executive Order 13132,
it is determined that this proposed rule
does not have sufficient federalism
implications to warrant preparation of a
Federalism Assessment.
Civil Justice Reform
This regulation meets the applicable
standard set forth in Executive Order
12988.
Unfunded Mandates Reform Act of
1995
This proposed rule will not result in
the expenditure by state, local, and
tribal governments, in the aggregate, or
by the private sector, of $100 million or
more in any year and it will not
significantly or uniquely affect small
governments. Therefore, no actions were
deemed necessary under the provisions
of the Unfunded Mandates Reform Act
of 1995.
Congressional Review Act
Subtitle E of the Small Business
Regulatory Enforcement Fairness Act of
1996 (known as the Congressional
Review Act or CRA) (5 U.S.C. 801 et
seq.) requires rules to be submitted to
Congress before taking effect. OPM will
submit to Congress and the Comptroller
General of the United States a report
regarding the issuance of this proposed
rule before its effective date, as required
by 5 U.S.C. 801. The Office of
Information and Regulatory Affairs in
the Office of Management and Budget
has determined that this proposed rule
is not a major rule as defined by the
CRA (5 U.S.C. 804). The Office of
Information and Regulatory Affairs in
the Office of Management and Budget
has determined that this proposed rule
is not a major rule as defined by the
CRA (5 U.S.C. 804).
Paperwork Reduction Act of 1995 (44
U.S.C. 3501–3521)
This regulatory action is not expected
to impose any additional reporting or
recordkeeping requirements under the
Paperwork Reduction Act.
E:\FR\FM\04JAP1.SGM
04JAP1
208
Federal Register / Vol. 87, No. 2 / Tuesday, January 4, 2022 / Proposed Rules
List of Subjects in 5 CFR Parts 315, 432
and 752
Government employees.
§ 432.102
Office of Personnel Management.
Stephen Hickman,
Federal Register Liaison.
PART 315—CAREER AND CAREERCONDITIONAL EMPLOYMENT
1. Revise the authority citation for part
315 to read as follows:
■
Authority: 5 U.S.C. 1302, 2301, 2302, 3301,
and 3302; E.O. 10577, 3 CFR, 1954–1958
Comp. p. 218, unless otherwise noted; and
E.O. 13162. Secs. 315.601 and 315.609 also
issued under 22 U.S.C. 3651 and 365. Secs.
315.602 and 315.604 also issued under 5
U.S.C. 1104. Sec. 315.603 also issued under
5 U.S.C. 8151. Sec. 315.605 also issued under
E.O. 12034, 3 CFR, 1978 Comp. p.111. Sec.
315.606 also issued under E.O. 11219, 3 CFR,
1964–1965 Comp. p. 303. Sec. 315.607 also
issued under 22 U.S.C. 2506. Sec. 315.608
also issued under E.O. 12721, 3 CFR, 1990
Comp. p. 293. Sec. 315.610 also issued under
5 U.S.C. 3304(c). Sec. 315.611 also issued
under 5 U.S.C. 3304(f). Sec. 315.612 also
issued under E.O. 13473. Sec. 315.708 also
issued under E.O. 13318, 3 CFR, 2004 Comp.
p. 265. Sec. 315.710 also issued under E.O.
12596, 3 CFR, 1987 Comp. p. 229. Subpart I
also issued under 5 U.S.C. 3321, E.O. 12107,
3 CFR, 1978 Comp. p. 264.
Subpart H—Probation on Initial
Appointment to a Competitive Position
2. Revise § 315.803(a) to read as
follows:
■
§ 315.803 Agency action during
probationary period (general).
(a) The agency shall utilize the
probationary period as fully as possible
to determine the fitness of the employee
and shall terminate his or her services
during this period if the employee fails
to demonstrate fully his or her
qualifications for continued
employment.
*
*
*
*
*
PART 432—PERFORMANCE BASED
REDUCTION IN GRADE AND
REMOVAL ACTIONS
3. The authority for part 432
continues to read as follows:
tkelley on DSK125TN23PROD with PROPOSED RULES
■
Authority: 5 U.S.C. 4303, 4305.
4. Amend § 432.102 by:
a. Revising paragraphs (b)(14) and
(15);
■ b. Adding paragraph (b)(16);
■ c. Removing paragraph (f)(12); and
■ d. Redesignating (f)(13) and (14) as
(f)(12) and (13).
■
■
18:47 Jan 03, 2022
Jkt 256001
Coverage.
*
Accordingly, for the reasons stated in
the preamble, OPM proposes to amend
5 CFR parts 315, 432 and 752 as follows:
VerDate Sep<11>2014
The revisions and additions read as
follows:
critical elements for which the
employee was afforded an opportunity
to demonstrate acceptable performance.
(4) * * *
(i) * * *
(B) * * *
(6) To comply with a stay ordered by
a member of the Merit Systems
Protection Board under 5 U.S.C.
1214(b)(1)(A) or (B).
*
*
*
*
*
*
*
*
*
(b) * * *
(14) A termination in accordance with
terms specified as conditions of
employment at the time the
appointment was made;
(15) An involuntary retirement
because of disability under part 831 of
this chapter; and
(16) An action against a technician in
the National Guard concerning any
activity under section 709(f)(4) of title
32, United States Code, except as
provided by section 709(f)(5) of title 32,
United States Code.
*
*
*
*
*
■ 4. Revise § 432.104 to read as follows:
§ 432.108
§ 432.104 Addressing unacceptable
performance.
Subpart A—Discipline of Supervisors
Based on Retaliation Against
Whistleblowers
At any time during the performance
appraisal cycle that an employee’s
performance is determined to be
unacceptable in one or more critical
elements, the agency shall notify the
employee of the critical element(s) for
which performance is unacceptable and
inform the employee of the performance
requirement(s) or standard(s) that must
be attained in order to demonstrate
acceptable performance in his or her
position. The agency should also inform
the employee that unless his or her
performance in the critical element(s)
improves to and is sustained at an
acceptable level, the employee may be
reduced in grade or removed. For each
critical element in which the
employee’s performance is
unacceptable, the agency shall afford
the employee a reasonable opportunity
to demonstrate acceptable performance,
commensurate with the duties and
responsibilities of the employee’s
position. As part of the employee’s
opportunity to demonstrate acceptable
performance, the agency shall offer
assistance to the employee in improving
unacceptable performance.
■ 5. Amend § 432.105 by revising
paragraphs (a)(1) and (a)(4)(i)(B)(6) to
read as follows:
§ 432.105 Proposing and taking action
based on unacceptable performance.
(a) * * *
(1) Once an employee has been
afforded a reasonable opportunity to
demonstrate acceptable performance
pursuant to § 432.104, an agency may
propose a reduction-in-grade or removal
action if the employee’s performance
during or following the opportunity to
demonstrate acceptable performance is
unacceptable in one or more of the
PO 00000
Frm 00009
Fmt 4702
Sfmt 4702
■
[Removed]
6. Remove § 432.108.
PART 752—ADVERSE ACTIONS
7. Revise the authority citation for part
752 to read as follows:
■
Authority: 5 U.S.C. 7504, 7514, and 7543,
Pub. L. 115–91, and Pub. L. 114–328.
§ 752.101
[Amended]
8. Amend § 752.101(b) by removing
the definition for ‘‘Business day’’.
■
§ 752.103
[Amended]
9. Amend § 752.103 by removing
paragraph (d)(3).
■
§ 752.104
■
[Removed]
10. Remove § 752.104.
Subpart B—Regulatory Requirements
for Suspensions for 14 Days or Less
11. Amend § 752.202 by revising the
section heading and removing
paragraphs (c) through (f) to read as
follows:
■
§ 752.202
*
*
§ 752.203
Standard for action.
*
*
*
[Amended]
12. Amend § 752.203 by removing
paragraph (h).
■
Subpart D—Regulatory Requirements
for Removal, Suspension for More
Than 14 Days, Reduction in Grade or
Pay, or Furlough for 30 Days or Less
13. Amend § 752.401 by:
a. Revising paragraphs (b)(15) and
(16);
■ b. Adding paragraph (b)(17);
■ c. Removing paragraph (d)(5); and
■ d. Redesignating paragraphs (d)(6)
through (13) as paragraphs (d)(5)
through (12).
The revisions and additions read as
follows:
■
■
§ 752.401
Coverage.
*
*
*
*
*
(b) * * *
(15) Reduction of an employee’s rate
of basic pay from a rate that is contrary
E:\FR\FM\04JAP1.SGM
04JAP1
Federal Register / Vol. 87, No. 2 / Tuesday, January 4, 2022 / Proposed Rules
to law or regulation, including a
reduction necessary to comply with the
amendments made by Public Law 108–
411, regarding pay-setting under the
General Schedule and Federal Wage
System and regulations implementing
those amendments;
(16) An action taken under 5 U.S.C.
7515.; or
(17) An action taken against a
technician in the National Guard
concerning any activity under section
709(f)(4) of title 32, United States Code,
except as provided by section 709(f)(5)
of title 32, United States Code.
*
*
*
*
*
§ 752.402
[Amended]
14. Amend § 752.402 by removing the
definition for ‘‘Business day’’.
■ 15. Amend § 752.403 by revising the
section heading and removing
paragraphs (c) through (f) to read as
follows:
■
§ 752.403
Standard for action.
*
*
*
*
*
■ 16. Amend § 752.404 by revising
paragraph (b)(1), and removing
paragraph (g)(3) to read as follows:
§ 752.404
Procedures.
*
*
*
*
*
(b) * * *
(1) An employee against whom an
action is proposed is entitled to at least
30 days’ advance written notice unless
there is an exception pursuant to
paragraph (d) of this section. The notice
must state the specific reason(s) for the
proposed action and inform the
employee of his or her right to review
the material which is relied on to
support the reasons for action given in
the notice. The notice must further
include detailed information with
respect to any right to appeal the action
pursuant to section 1097(b)(2)(A) of
Public Law 115–91, the forums in which
the employee may file an appeal, and
any limitations on the rights of the
employee that would apply because of
the forum in which the employee
decides to file.
*
*
*
*
*
§ 752.407
tkelley on DSK125TN23PROD with PROPOSED RULES
■
[Removed]
17. Remove § 752.407.
Subpart F—Regulatory Requirements
for Taking Adverse Action Under the
Senior Executive Service
§ 752.602
[ Amended]
18. Amend § 752.602 by removing the
definition for ‘‘Business day’’.
■ 19. Amend § 752.603 by revising the
section heading and removing
paragraphs (c) through (f) to read as
follows:
■
VerDate Sep<11>2014
18:47 Jan 03, 2022
Jkt 256001
§ 752.603
*
*
§ 752.604
Standard for action.
*
*
*
[Amended]
20. Amend § 752.604 by revising
paragraph (b)(1), and removing
paragraph (g)(3) to read as follows:
■
§ 752.604
Procedures.
*
*
*
*
*
(b) * * *
(1) An appointee against whom an
action is proposed is entitled to at least
30 days’ advance written notice unless
there is an exception pursuant to
paragraph (d) of this section. The notice
must state the specific reason(s) for the
proposed action and inform the
appointee of his or her right to review
the material that is relied on to support
the reasons for action given in the
notice. The notice must further include
detailed information with respect to any
right to appeal the action pursuant to
section 1097(b)(2)(A) of Public Law
115–91, the forums in which the
employee may file an appeal, and any
limitations on the rights of the employee
that would apply because of the forum
in which the employee decides to file.
*
*
*
*
*
§ 752.607
■
[Removed]
21. Remove § 752.607.
[FR Doc. 2021–28205 Filed 1–3–22; 8:45 am]
BILLING CODE 6325–39–P
ENVIRONMENTAL PROTECTION
AGENCY
40 CFR Part 271
[EPA–R01–RCRA–2020–0175; FRL 8892–
01–R1]
Massachusetts: Final Authorization of
State Hazardous Waste Management
Program Revisions
Environmental Protection
Agency (EPA).
ACTION: Proposed rule.
AGENCY:
Massachusetts has applied to
the EPA for final authorization of
revisions to its hazardous waste
program under the Resource
Conservation and Recovery Act (RCRA),
as amended. The EPA proposes to grant
final authorization to Massachusetts for
these revisions by a direct final rule,
which can be found in the ‘‘Rules and
Regulations’’ section of this issue of the
Federal Register. We have explained the
reasons for this authorization in the
preamble to the direct final rule. Unless
the EPA receives written comments that
oppose this authorization during the
comment period, the direct final rule
SUMMARY:
PO 00000
Frm 00010
Fmt 4702
Sfmt 4702
209
will become effective on the date it
establishes, and the EPA will not take
further action on this proposal.
DATES: Send your written comments by
February 3, 2022.
ADDRESSES: Submit your comments,
identified by Docket ID No. EPA–R01–
RCRA–2020–0175, at https://
www.regulations.gov/. Follow the online
instructions for submitting comments.
Once submitted, comments cannot be
edited or removed from
www.regulations.gov. The EPA may
publish any comment received to its
public docket. Do not submit
electronically any information you
consider to be Confidential Business
Information (CBI) or other information
whose disclosure is restricted by statute.
Multimedia submissions (audio, video,
etc.) must be accompanied by a written
comment. The written comment is
considered the official comment and
should include discussion of all points
you wish to make. The EPA will
generally not consider comments or
comment contents located outside of the
primary submission (i.e., on the web,
cloud, or other file sharing system). For
additional submission methods, the full
the EPA public comment policy,
information about CBI or multimedia
submissions, and general guidance on
making effective comments, please visit
https://www2.epa.gov/dockets/
commenting-epa-dockets.
FOR FURTHER INFORMATION CONTACT: Sara
Kinslow, RCRA Waste Management,
UST, and Pesticides Section; Land,
Chemicals, and Redevelopment
Division; U.S. EPA Region 1, 5 Post
Office Square, Suite 100 (Mail code 07–
1), Boston, MA 02109–3912; phone:
617–918–1648; email: kinslow.sara@
epa.gov.
SUPPLEMENTARY INFORMATION: In the
‘‘Rules and Regulations’’ section of this
issue of the Federal Register, the EPA
is authorizing the revisions by a direct
final rule. The EPA did not make a
proposal prior to the direct final rule
because we believe this action is not
controversial and do not expect
comments that oppose it. We have
explained the reasons for this
authorization in the preamble of the
direct final rule. Unless the EPA
receives adverse written comments that
oppose this authorization during the
comment period, the direct final rule
will become effective on the date it
establishes, and the EPA will not take
further action on this proposal. If the
EPA receives comments that oppose this
action, we will withdraw the direct final
rule, and it will not take effect. The EPA
will then respond to public comments
in a later final rule based on this
E:\FR\FM\04JAP1.SGM
04JAP1
Agencies
[Federal Register Volume 87, Number 2 (Tuesday, January 4, 2022)]
[Proposed Rules]
[Pages 200-209]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-28205]
========================================================================
Proposed Rules
Federal Register
________________________________________________________________________
This section of the FEDERAL REGISTER contains notices to the public of
the proposed issuance of rules and regulations. The purpose of these
notices is to give interested persons an opportunity to participate in
the rule making prior to the adoption of the final rules.
========================================================================
Federal Register / Vol. 87, No. 2 / Tuesday, January 4, 2022 /
Proposed Rules
[[Page 200]]
OFFICE OF PERSONNEL MANAGEMENT
5 CFR Parts 315, 432, and 752
RIN 3206-AO23
Probation on Initial Appointment to a Competitive Position,
Performance-Based Reduction in Grade and Removal Actions and Adverse
Actions
AGENCY: Office of Personnel Management.
ACTION: Proposed rule.
-----------------------------------------------------------------------
SUMMARY: The Office of Personnel Management (OPM) is issuing proposed
regulations governing probation on initial appointment to a competitive
position, performance-based reduction in grade and removal actions, and
adverse actions. The proposed rule would rescind certain regulatory
changes made effective on November 16, 2020 and implements new
statutory requirements for procedural and appeal rights for dual status
National Guard technicians for certain adverse actions. OPM believes
the proposed revisions would support implementation of an Executive
Order to empower agencies to rebuild the career Federal workforce and
protect the civil service rights of their employees, while preserving
appropriate mechanisms for pursuing personnel actions where warranted.
DATES: Comments must be received on or before February 3, 2022.
ADDRESSES: You may submit comments, identified by the docket number or
Regulation Identifier Number (RIN) for this proposed rulemaking, via
the Federal eRulemaking Portal: https://www.regulations.gov. Follow the
instructions for sending comments.
Instructions: All submissions must include the agency name and
docket number or RIN for this rulemaking. Please arrange and identify
your comments on the regulatory text by subpart and section number; if
your comments relate to the supplementary information, please refer to
the heading and page number. All comments received will be posted
without change, including any personal information provided. Please
ensure your comments are submitted within the specified open comment
period. Comments received after the close of comment period will be
marked ``late,'' and OPM is not required to consider them in
formulating a final decision. Before acting on this proposal, OPM will
consider and respond to all comments within the scope of the
regulations that we receive on or before the closing date for comments.
Changes to this proposal may be made in light of the comments we
receive.
FOR FURTHER INFORMATION CONTACT: Timothy Curry by email at
[email protected] or by telephone at (202) 606-2930.
SUPPLEMENTARY INFORMATION: On October 16, 2020, the Office of Personnel
Management (OPM) published a final rule governing probation on initial
appointment to a competitive position, performance-based reduction in
grade and removal actions, and adverse actions. 85 FR 65940 (Oct. 16,
2020). The final rule implemented a provision of Public Law 115-91
concerning the inclusion of appeals rights information in proposal
notices for personnel actions, and amended the regulations in parts
315, 432, and 752 of title 5, Code of Federal Regulations to
incorporate certain requirements of Executive Order (E.O.) 13839, other
statutory changes, and technical revisions.
On January 22, 2021, President Biden issued E.O. 14003 on
``Protecting the Federal Workforce'' which, among other things, revoked
E.O. 13839 and directed agencies to ``as soon as practicable, suspend,
revise, or rescind, or publish for notice and comment proposed rules
suspending, revising, or rescinding, the actions'' implementing various
E.O.s, including E.O. 13839, ``as appropriate and consistent with
applicable law.'' E.O. 14003 states that ``[c]areer civil servants are
the backbone of the Federal workforce, providing the expertise and
experience necessary for the critical functioning of the Federal
Government. It is the policy of the United States to protect, empower,
and rebuild the career Federal workforce. It is also the policy of the
United States to encourage employee organizing and collective
bargaining. The Federal Government should serve as a model employer.''
After consideration and review, OPM has concluded that portions of
the final rule which became effective on November 16, 2020, and which
implemented certain requirements of E.O. 13839, are inconsistent with
the current policy of the United States to protect, empower and rebuild
the career Federal workforce as well as its current policy to encourage
employee organizing and collective bargaining. Therefore, in accordance
with E.O. 14003, OPM proposes to rescind portions of the final rule
published at 85 FR 65940 (October 16, 2020). The elements of the final
rule that OPM proposes to rescind are described in detail below,
together with the policy explanation in each instance. OPM is proposing
these regulations under its congressionally granted authority to
regulate the parts that it proposes to revise in accordance with 5
U.S.C. 3321, 4305, 4315, 7504, 7514, and 7543, and subject to the
notice-and-comment process set forth in the Administrative Procedure
Act, and mindful of the President's expressed policy direction.
Furthermore, pursuant to Public Law 114-328 (Dec. 23, 2016), OPM
proposes to revise its regulations on coverage for performance-based
actions and appealable adverse actions in accordance with statutory
changes that extend title 5 rights to dual status National Guard
technicians under certain conditions. Elements of the November 16,
2020, regulatory amendments that were due to statutory changes will
remain in effect, such as procedures for disciplinary action against
supervisors who retaliate against whistleblowers (5 U.S.C. 7515) and
the inclusion of appeals rights information in proposal notices for
adverse actions (Pub. L. 115-91, section 1097(b)(2)(A)).
OPM invites the public to comment on any aspect of the proposed
changes, including whether members of the public believe that any
matters proposed for rescission instead should be retained in OPM's
regulations, consistent with OPM's statutory and regulatory
authorities. Ultimately, the purpose of the revisions is to implement
applicable statutory mandates and provide agencies the necessary tools
and flexibility to address matters related to unacceptable performance
and misconduct or other behavior contrary to the efficiency of the
service by Federal employees when they arise,
[[Page 201]]
consistent with the policies of E.O. 14003.
5 CFR Part 315, Subpart H--Probation on Initial Appointment to a
Competitive Position
The regulations at subpart H of 5 CFR part 315 provide information
regarding agency action during a probationary period. Under its
authority at 5 U.S.C. 3321, OPM proposes to rescind its November 16,
2020, amendment to regulations at Sec. 315.803(a) for two reasons.
First, E.O. 14003 directs OPM to rescind any regulations effectuated by
E.O. 13839, as appropriate and consistent with applicable law. Second,
OPM has concluded that the amendment to the regulations at Sec.
315.803(a) placed unnecessary requirements on agencies regarding how
agencies addressed probationary period matters. OPM believes these
requirements prevented agencies from implementing policies most
suitable for each respective agency based on their unique
circumstances. The November 2020 amendment requires agencies to notify
supervisors at least three months prior to expiration of the
probationary period that an employee's probationary period is ending,
and then again one month prior to expiration of the probationary
period, and to advise a supervisor to make an affirmative decision
regarding the employee's fitness for continued employment or otherwise
take appropriate action. While agencies are encouraged to notify
supervisors that an employee's probationary period is ending, OPM
believes the frequency and timing of notifications should be left up to
the discretion of each agency.
OPM guidance has stated previously that the probationary period is
the last and crucial step in the examination process. The probationary
period is intended to give the agency an opportunity to assess, on the
job, an employee's overall fitness and qualifications for continued
employment and permit the termination, without chapter 75 procedures,
of an employee whose performance or conduct does not meet acceptable
standards to deliver on the mission. Thus, it provides an opportunity
for supervisors to address problems expeditiously, with minimum burden
to the agency, and avoid long-term problems inhibiting effective
service to the American people. Employees may be terminated from
employment during the probationary period for reasons including
demonstrated inability to perform the duties of the position, lack of
cooperativeness, or other unacceptable conduct or poor performance. As
a matter of good administration, agencies should ensure that their
practices make effective use of the probationary period. While OPM is
proposing to rescind a government-wide requirement to notify
supervisors when an employee's probationary period is ending, agencies
would not be precluded from providing such notifications under their
own authorities and are strongly encouraged to do so.
5 CFR Part 432--Performance-Based Reduction in Grade and Removal
Actions
Part 432 applies to reduction in grade and removal of covered
employees based on performance at the unacceptable level. Chapter 43
provides a straightforward, though not exclusive, process for agencies
to use in taking action based on unacceptable performance.
Section 432.102 Coverage
Section 432.102 identifies actions and employees covered by this
part. The proposed rule at Sec. 432.102 updates coverage to align with
the National Defense Authorization Act (NDAA) for Fiscal Year 2017,
Public Law 114-328 (Dec. 23, 2016). Specifically, section 512(a)(1)(C)
of the 2017 NDAA provides appeal rights under 5 U.S.C. 7511, 7512, and
7513 to dual status National Guard technicians for certain adverse
actions. Section 512(c) repealed 5 U.S.C. 7511(b)(5), which excluded
National Guard technicians from the definition of ``employee.''
The repeal of 5 U.S.C. 7511(b)(5) and the coverage of National
Guard technicians under 5 U.S.C. 7511, 7512, and 7513 required that OPM
review 5 U.S.C. 4303. Section 4303(e) provides that any employee who is
a preference eligible, in the competitive service, or in the excepted
service and covered by subchapter II of chapter 75, and who has been
reduced in grade or removed under this section is entitled to appeal
the action to the MSPB under section 7701.
Accordingly, MSPB appeal rights must be extended to National Guard
technicians who are defined in section 4303(e). OPM proposes to revise
paragraphs (b) and (f) of Sec. 432.102 to reflect that certain
performance-based actions against dual status National Guard
technicians are no longer excluded. Specifically, OPM proposes to add
as an exclusion an action against a technician in the National Guard
concerning any activity under section 709(f)(4) of title 32, United
States Code, except as provided by section 709(f)(5) of title 32,
United States Code. In addition, the proposed rule removes the
exclusion at Sec. 432.102(f)(12): ``A technician in the National Guard
described in 5 U.S.C. 8337(h)(1), employed under section 709(b) of
title 32.'' The impact of the repeal of 5 U.S.C. 7511(b)(5) on adverse
actions taken under chapter 75 will be further discussed below in the
supplemental information for Sec. 752.401.
Section 432.104 Addressing Unacceptable Performance
This section provides requirements in chapter 43 of title 5 of the
United States Code for addressing unacceptable performance. While the
regulatory amendments to part 432 made effective November 16, 2020, are
within OPM's existing authority under 5 U.S.C. 4303 and 4305, E.O.
13839 was the catalyst for the changes. OPM proposes to amend the
regulation at Sec. 432.104 to remove the following language: ``The
requirement described in 5 U.S.C. 4302(c)(5) refers only to that formal
assistance provided during the period wherein an employee is provided
with an opportunity to demonstrate acceptable performance, as
referenced in 5 U.S.C. 4302(c)(6). The nature of assistance provided is
in the sole and exclusive discretion of the agency. No additional
performance assistance period or similar informal period shall be
provided prior to or in addition to the opportunity period provided
under this section.'' OPM will re-insert at Sec. 432.104 a statement
that was in the regulation prior to the November 2020 amendment: ``As
part of the employee's opportunity to demonstrate acceptable
performance, the agency shall offer assistance to the employee in
improving unacceptable performance.''
OPM believes that the amendment to the regulations at Sec. 432.104
placed unnecessary restrictions and limitations on agencies regarding
decisions on when performance assistance is provided to employees.
These restrictions and limitations removed previous flexibilities
enjoyed by agencies in how to address performance issues with their
employees under chapter 43. By placing these restrictions on agencies,
OPM believes it was not supporting agencies and supervisors in
determining the most effective assistance for struggling employees.
OPM proposes to revert to the language in Sec. 432.104 prior to
the November 2020 amendments regarding the agency's obligation to
provide assistance to an employee who has demonstrated unacceptable
performance. The proposed language restates the statutory requirement
described in 5 U.S.C. 4302(c)(5) that agencies are obligated to provide
[[Page 202]]
performance assistance during the opportunity period. OPM would
emphasize that the employee has a right to a reasonable opportunity to
improve, which includes assistance from the agency in improving
unacceptable performance.
OPM encourages efficient use of chapter 43 procedures and effective
delivery of agency mission while providing employees sufficient
opportunity to demonstrate acceptable performance as required by law.
Additionally, OPM advises agencies to act promptly and effectively to
address and resolve poor performance. Supervisors should draw upon
their skills and expertise to determine the most effective assistance
for a struggling employee and work in concert with the technical advice
received from their agency's human resources staff.
Section 432.105 Proposing and Taking Action Based on Unacceptable
Performance
This section specifies the procedures for proposing and taking
action based on unacceptable performance once an employee has been
afforded an opportunity to demonstrate acceptable performance. The
regulatory amendments to Sec. 432.105(a)(1) that became effective
November 16, 2020, were made for consistency with and promotion of the
principles of E.O. 13839. For consistency with and promotion of the
principles of E.O. 14003 and in accordance with its authority under 5
U.S.C. 4302, OPM proposes to revise the regulation at Sec.
432.105(a)(1).
The proposed regulatory change to Sec. 432.105(a)(1) removes the
language: ``For the purposes of this section, the agency's obligation
to provide assistance, under 5 U.S.C. 4302(c)(5), may be discharged
through measures, such as supervisory assistance, taken prior to the
beginning of the opportunity period in addition to measures taken
during the opportunity period. The agency must take at least some
measures to provide assistance during the opportunity period in order
to both comply with section 4302(c)(5) and provide an opportunity to
demonstrate acceptable performance under 4302(c)(6).''
OPM believes that the amendment to the regulations at Sec.
432.105(a)(1) placed too much emphasis on supervisory assistance taken
prior to the beginning of the opportunity period and placed too little
emphasis on supervisory assistance taken during the opportunity period
and could result in some agencies relying too much on supervisory
assistance outside of the opportunity period to support any
performance-based action taken against an employee.
Agencies are reminded that they must provide assistance during the
opportunity period in accordance with section 5 U.S.C. 4302(c)(5). OPM
has long encouraged agencies to act promptly to address performance
concerns as soon as they arise. Supervisors should continually monitor
performance, provide ongoing feedback, and assist employees who exhibit
performance issues. Agencies should also remain mindful that third
parties (for example, arbitrators and judges) place a strong emphasis
on a supervisor's effort to assist the employee in improving his or her
performance. Evidence that the supervisor engaged an employee in
discussion, counseling, training, or the like prior to the opportunity
period may assist the agency in developing a stronger case before a
third party that the employee was given a reasonable opportunity to
demonstrate acceptable performance before a performance-based action is
taken.
The supplemental information supporting the regulatory changes
issued pursuant to E.O. 13839, Probation on Initial Appointment to a
Competitive Position, Performance-Based Reduction in Grade and Removal
Action and Adverse Actions, 85 FR 65940 (October 16, 2020), and the
subsequent revocation of E.O. 13839 and consequent rescission of some
those regulations in this proposed rule, require clarification and
reaffirmation of an agency's obligations with regard to actions based
on unacceptable performance. Section 4302(c) states, in pertinent part,
that, ``Under regulations which the Office of Personnel Management
shall prescribe, each performance appraisal system shall provide for .
. . (5) assisting employees in improving unacceptable performance; and
(6) reassigning, reducing in grade, or removing employees who continue
to have unacceptable performance but only after an opportunity to
demonstrate acceptable performance.'' Section 4303(a) and (b)(1)(A)
provides that ``an agency may reduce in grade or remove an employee for
unacceptable performance'' subject to ``30 days advance written notice
of the proposed action which identifies--(i) specific instances of
unacceptable performance by the employee on which the proposed action
is based; and (ii) the critical elements of the employee's position
involved in each instance of unacceptable performance.'' Although the
statute is silent regarding an agency's determination in the first
instance that an employee's performance is unacceptable, OPM's
regulation is pellucid. Pursuant to its authority to promulgate
regulations, OPM issued 5 CFR 432.104, which it now proposes to
restore. That regulation states in pertinent part: ``At any time during
the performance appraisal cycle that an employee's performance is
determined to be unacceptable in one or more critical elements, the
agency shall notify the employee of the critical element(s) for which
performance is unacceptable and inform the employee of the performance
requirement(s) or standard(s) that must be attained in order to
demonstrate acceptable performance in his or her position. The agency
should also inform the employee that unless his or her performance in
the critical element(s) improves to and is sustained at an acceptable
level, the employee may be reduced in grade or removed. For each
critical element in which the employee's performance is unacceptable,
the agency shall afford the employee a reasonable opportunity to
demonstrate acceptable performance, commensurate with the duties and
responsibilities of the employee's position.'' (Emphasis added). This
language in 5 CFR 432.104 was unchanged in the final rule issued on
October 16, 2020.
The comments summarized in the October 16, 2020, final rule,
included concern that the amendment to 5 CFR 432.104 (which we are
proposing to remove) might give some managers the ability to remove
employees without factual evidence or deny them the ability to either
counter the agency's assessment or correct it through a mandated
improvement process. OPM responded to those concerns by saying, inter
alia, that ``The amended rule does not relieve agencies of the
responsibility to demonstrate that an employee was performing
unacceptably--which per statute covers the period both prior to and
during a formal opportunity period--before initiating an adverse action
under chapter 43.'' 85 FR 65957 (Oct. 16, 2020). OPM's response was
subsequently cited in Santos v. Nat'l. Aeronautics and Space Admin.,
990 F.3d 1355 (Fed. Cir. 2021), to support the court's implicit
decision that an agency must prove by substantial evidence in a
proceeding to challenge a performance-based removal that the employee
was performing unacceptably prior to the opportunity period (i.e.,
prior to being placed on a performance improvement plan) as a
prerequisite to removing the employee for failing to demonstrate
acceptable performance during the opportunity period. This is a
[[Page 203]]
misreading of OPM's position. Accordingly, OPM takes this opportunity
to make clear what OPM's position is so that OPM's failure to clarify
its prior comments and address Santos when making changes to the same
set of regulations will not be interpreted as OPM's endorsement of the
Santos standard. OPM's reference to determining whether an employee is
performing unacceptably concerns the requirement that an agency provide
notice to an employee of unacceptable performance--before placing him
on a PIP. OPM's comment in the supplemental information that the
requirement to demonstrate that an employee was performing unacceptably
``covers'' the period prior to the opportunity period should not be
read to mean that an agency must justify the decision to place an
employee on a PIP. Rather, the comment refers to the statutory
provision that allows, but does not require, an agency to rely on
unacceptable performance within 1 year prior to the date of the
proposal notice to justify the removal itself. See 5 U.S.C. 4303(c)(2).
Therefore, OPM wishes to clarify that the conclusion in Santos is
contrary to OPM's comment in supplemental information on which Santos
relies and OPM's interpretation of 5 U.S.C. 4302(c)(6). OPM does not
agree that 5 U.S.C. 4302(c)(6) means that the agency must prove as part
of its substantive case or as a required procedure that an employee
performed unacceptably before he or she was placed on a PIP. Rather,
the statute as interpreted by OPM's regulation at 5 CFR 432.104
provides that an agency may not take a performance-based adverse action
against an employee whom the agency determined was performing
unacceptably unless the agency first provides the employee with notice
and an opportunity to improve, and the employee continues to perform
unacceptably. The determination to be reviewed on appeal to the Board
and its reviewing courts is the final determination of unacceptable
performance following the PIP, not any interim determination leading to
the PIP. This interpretation enables agencies to address performance
issues early through the mechanism of a PIP without concern that the
employees who ultimately are unable to demonstrate acceptable
performance despite early and sustained assistance cannot be removed
because the MSPB or a court might find that they were not performing
unacceptably when the PIP began.
Section 432.105 addresses notice requirements when an agency
proposes to take action based on an employee's unacceptable performance
during or after the opportunity period once the employee has been
afforded an opportunity to demonstrate acceptable performance. An
agency must afford the employee a 30-day advance notice of the proposed
action that identifies both the specific instances of unacceptable
performance by the employee on which the proposed action is based and
the critical element(s) of the employee's position involved in each
instance of unacceptable performance. An agency may extend this advance
notice period for a period not to exceed 30 days under regulations
prescribed by the head of the agency. For the reasons listed in Sec.
432.105(a)(4)(i)(B), an agency may further extend this advance notice
period without OPM approval.
OPM proposes to revise the reason at Sec. 432.105(a)(4)(i)(B)(6),
which was derived from 5 U.S.C. 1208(b) because the statutory provision
was repealed by section 3(a)(8) of Public Law 101-12, the Whistleblower
Protection Act (WPA) of 1989. Section 1208(b) granted agencies the
authority to extend the advance notice period for a performance-based
action in order to comply with a stay ordered by a member of the Merit
Systems Protection Board. Concurrent with the repeal of 5 U.S.C.
1208(b), the WPA established 5 U.S.C. 1214(b)(1)(A)(i), wherein the
Office of Special Counsel is granted the authority to request any
member of the Board to order a stay of any personnel action for 45 days
if the Special Counsel determines that there are reasonable grounds to
believe that the personnel action was taken, or is to be taken, as a
result of a prohibited personnel practice. Further, under 5 U.S.C.
1214(b)(1)(B), the Board may extend the period of any stay granted
under subparagraph (A) for any period which the Board considers
appropriate. If the Board lacks a quorum, any remaining member of the
Board may, upon request by the Special Counsel, extend the period of
any stay granted under subparagraph (A). Therefore, OPM proposes to
change the reason at subparagraph (B)(6) to read as follows: ``[t]o
comply with a stay ordered by a member of the Merit Systems Protection
Board under 5 U.S.C. 1214(b)(1)(A) or (B).''
Section 432.108 Settlement Agreements
Section 5 of E.O. 13839, established a requirement that an agency
shall not agree to erase, remove, alter or withhold from another agency
any information about a civilian employee's performance or conduct in
that employee's official personnel records, including an employee's
Official Personnel Folder and Employee Performance File, as part of, or
as a condition to, resolving a formal or informal complaint by the
employee or settling an administrative challenge to an adverse
personnel action. Such agreements have traditionally been referred to
as ``clean record'' agreements. Consistent with the rescission of E.O.
13839 and pursuant to its authorities under 5 U.S.C. 2951 to maintain
personnel records and under 5 U.S.C. 1103(a)(5) to execute, administer,
and enforce the law governing the civil service, OPM proposes to
rescind Sec. 432.108, Settlement Agreements.
Due to continued objections raised since the publication of the
November 16, 2020, final rule, OPM believes that the prohibition of
clean record agreements hampers agencies' ability to resolve informal
and formal complaints at an early stage and with minimal costs to the
agency. Notably, stakeholders have stressed that the prohibition of
clean record agreements limits resolution options; reduces the
likelihood of parties reaching a mutually agreeable resolution of
informal or formal complaints; potentially increases costly litigation
and arbitration; and crowds the dockets of third-party investigators,
mediators, and adjudicators such as the Merit Systems Protection Board
(MSPB), Office of Special Counsel (OSC), and Equal Employment
Opportunity Commission. While agencies may derive some value from
having access to unaltered personnel records when making hiring
decisions, OPM believes it should place greater weight on granting
agencies a degree of flexibility to resolve individual workplace
disputes. Therefore, OPM proposes to delete Sec. 432.108. The clean
record prohibition applied to actions taken under parts 432 and 752.
Accordingly, the proposed rule would also rescind Sec. Sec. 752.104,
752.203(h), 752.407 and 752.607. The removal of the prohibition on
clean record agreements will allow agencies discretion to resolve
informal and formal complaints and settle administrative challenges in
a manner that balances the needs of the agency and fairness to the
employee. In doing so, agencies should still adhere to the principles
of promoting high standards of integrity and accountability within the
Federal workforce. In addition, agencies are advised that, in any such
agreement, they have an obligation to speak truthfully to Federal
investigators performing future background investigations with respect
to the employee and may not agree to
[[Page 204]]
withhold information about the circumstances of an individual's
departure from the agency.
5 CFR Part 752--Adverse Actions
Subpart A--Discipline of Supervisors Based on Retaliation Against
Whistleblowers
This subpart addresses mandatory procedures for addressing
retaliation by supervisors for whistleblowing.
Section 752.101 Coverage
This section describes the adverse actions covered and defines key
terms used throughout the subchapter. Section 752.101 includes a
definition for the term ``business day.'' The requirement for taking an
action within a proscribed number of business days was derived solely
from Section 2(f) of E.O. 13839. With the rescission of E.O. 13839 and
given that there is no other use for the definition of ``business day''
in subpart A, OPM proposes to revise the regulation at Sec. 752.101(b)
to remove the definition of ``Business day''.
Section 752.103 Procedures
This section establishes the procedures to be utilized for actions
taken under this subpart. With the rescission of E.O. 13839 and
pursuant to its congressionally granted authority to regulate chapter
75 adverse actions, OPM proposes to rescind the requirement at Sec.
752.103(d)(3) that an agency should issue the decision on a proposed
removal under this subpart within 15 business days of the conclusion of
the employee's opportunity to respond under paragraph (d)(1) of this
section. The 15-day requirement was derived solely from Section 2(f) of
E.O. 13839. Although it is good practice for agency deciding officials
to resolve proposed removals promptly, some actions present multiple
issues, conflicting evidence, or other complications that warrant full
and fair consideration over a longer period of time, and careful
crafting of the final decision. Accordingly, it is not in the
Government's best interests to force decisions to be completed on an
arbitrary timetable that may not allow for the deciding official to
prepare a thoughtful, well-reasoned decision document.
Section 752.104 Settlement Agreements
The language in this section establishes the same requirements that
are detailed in Sec. 432.108, Settlement agreements. OPM proposes to
remove this requirement. Please see the discussion at Sec. 432.108
regarding the proposed rescission of OPM requirements related to
settlement agreements.
Subpart B--Regulatory Requirements for Suspensions for 14 Days or Less
This subpart addresses the procedural requirements for suspensions
of 14 days or less for covered employees.
Section 752.202 Standard for Action and Penalty Determination
This section sets forth the standard for action applicable under
this subpart and the penalty determination provisions that must be
adhered to when taking suspensions for 14 days or less. Consistent with
the rescission of E.O. 13839, under its congressionally granted
authority to regulate part 752, OPM proposes to amend the regulation at
Sec. 752.202 to revise the section heading to ``Standard for Action''
and rescind paragraphs (c) through (f). These paragraphs address the
use of progressive discipline; appropriate comparators as the agency
evaluates a potential disciplinary action; consideration of, among
other factors, an employee's disciplinary record and past work record;
and the requirement that a suspension should not be a substitute for
removal in circumstances in which removal would be appropriate.
Specifically, paragraphs (c) through (f) state:
``(c) An agency is not required to use progressive discipline under
this subpart. The penalty for an instance of misconduct should be
tailored to the facts and circumstances. In making a determination
regarding the appropriate penalty for an instance of misconduct, an
agency shall adhere to the standard of proposing and imposing a penalty
that is within the bounds of tolerable reasonableness. Within the
agency, a proposed penalty is in the sole and exclusive discretion of a
proposing official, and a penalty decision is in the sole and exclusive
discretion of the deciding official. Penalty decisions are subject to
appellate or other review procedures prescribed in law.
(d) Employees should be treated equitably. Conduct that justifies
discipline of one employee at one time does not necessarily justify
similar discipline of a different employee at a different time. An
agency should consider appropriate comparators as the agency evaluates
a potential disciplinary action. Appropriate comparators to be
considered are primarily individuals in the same work unit, with the
same supervisor, who engaged in the same or similar misconduct.
Proposing and deciding officials are not bound by previous decisions in
earlier similar cases, but should, as they deem appropriate, consider
such decisions consonant with their own managerial authority and
responsibilities and independent judgment. For example, a supervisor is
not bound by his or her predecessor whenever there is similar conduct.
A minor indiscretion for one supervisor based on a particular set of
facts can amount to a more serious offense under a different
supervisor. Nevertheless, they should be able to articulate why a more
or less severe penalty is appropriate.
(e) Among other relevant factors, agencies should consider an
employee's disciplinary record and past work record, including all
applicable prior misconduct, when taking an action under this subpart.
(f) A suspension should not be a substitute for removal in
circumstances in which removal would be appropriate. Agencies should
not require that an employee have previously been suspended or demoted
before a proposing official may propose removal, except as may be
appropriate under applicable facts.''
Given the revocation of E.O. 13839, and under its congressionally
granted authority to regulate part 752, OPM proposes to rescind
Sec. Sec. 752.202(c), 752.202(d), 752.202(e) and 752.202(f). Though
the penalty determination guidelines of these subsections, as discussed
below, reflect established principles, OPM believes that it is
unnecessary to enshrine the guidelines in regulation, thus providing
agencies maximum flexibility.
In Sec. 752.202(c), OPM made clear that an agency is not required
to use progressive discipline under this subpart. As we have previously
said regarding progressive discipline and tables of penalties, each
action stands on its own footing and demands careful consideration of
facts, circumstances, context, and nuance. OPM reminds agencies to
calibrate discipline to the unique facts and circumstances of each
case, which is consistent with the flexibility afforded agencies under
the ``efficiency of the service'' standard for imposing discipline
contained in the Civil Service Reform Act. Proposing and deciding
officials should consult with the agency counsel and the agency's human
resources office to determine the most appropriate penalty.
Further, in Sec. 752.202(d), OPM adopted the test articulated by
the Court of Appeals for the Federal Circuit in Miskill v. Social
Security Administration, 863 F.3d 1379 (Fed. Cir. 2017). We clarified
that appropriate comparators are primarily individuals in the same work
unit, with the same
[[Page 205]]
supervisor, who engaged in the same or similar misconduct. The adoption
of the Miskill test reinforced the key principle that each case stands
on its own factual and contextual footing. However, OPM believes that
agencies can be sufficiently guided by Miskill and other applicable
case law without a regulatory amendment.
In Sec. 752.202(e), OPM adopted formally by regulation the
standard applied by MSPB in Douglas v. Veterans Administration, 5
M.S.P.R. 280 (1981) to removals, suspensions, and demotions, including
suspensions of fewer than 15 days. Specifically, OPM adopted the
requirement that agencies should propose and impose a penalty that is
within the bounds of tolerable reasonableness. However, OPM believes
that it is unnecessary to regulate a principle that is already embedded
deeply in Federal civil-service law, thereby allowing greater
flexibility for agencies. Douglas provides an adequate and useful
template for arriving at reasonable penalty determinations. Douglas
requires that, among other relevant factors, an agency should consider
an employee's disciplinary record and past work record, including all
prior misconduct, when taking an action under this subpart. Many
agencies apply this standard not only to those actions taken under 5
U.S.C. 7513 but also to those taken under 5 U.S.C. 7503 as well.
In Sec. 752.202(f), OPM stated that suspension should not be a
substitute for removal in circumstances in which removal would be
appropriate. This is a straightforward principle that OPM believes
agencies can apply without regulation. It is vital that supervisors use
independent judgment, take appropriate steps in gathering facts, and
conduct a thorough analysis to decide the appropriate penalty. If a
penalty is disproportionate to the alleged violation or is
unreasonable, it is subject to being reduced or reversed even when the
charges are sustained. While OPM proposes to remove Sec. 752.202(f)
and defer to agency management in selecting an appropriate penalty, OPM
reminds agencies that imposing a suspension when removal is appropriate
may adversely impact employee morale and productivity and hamper the
agency's ability to achieve its mission and promote effective
stewardship.
Because of the revocation of E.O. 13839, and in light of OPM's
independent regulatory authority under chapter 75, we propose to remove
the penalty selection guidelines at Sec. Sec. 752.202(c) through (f).
OPM reminds agencies that supervisors are responsible for ensuring that
a disciplinary penalty is fair, reasonable, and appropriate to the
facts and circumstances. In doing so, supervisors will address
misconduct in a manner that has the greatest potential to avert harm to
the efficiency of the service.
Section 752.203 Procedures
The language in this section discusses the requirements for a
proposal notice issued under this subpart. The language in this section
also establishes the same requirements that are detailed in Sec.
432.108, Settlement agreements. OPM proposes to remove the requirement
set forth in Sec. 752.203(h). Please see the discussion at Sec.
432.108 regarding the proposed rescission of OPM requirements related
to settlement agreements.
Subpart D--Regulatory Requirements for Removal, Suspension for More
Than 14 Days, Reduction in Grade or Pay, or Furlough for 30 Days or
Less
This subpart addresses the procedural requirements for removals,
suspensions for more than 14 days, including indefinite suspensions,
reductions in grade, reductions in pay, and furloughs of 30 days or
less for covered employees.
Section 752.401 Coverage
This section discusses adverse actions and employees covered under
this subpart. The National Defense Authorization Act (NDAA) for Fiscal
Year 2017 added MSPB appeal rights for National Guard military
technicians for certain adverse actions taken against them when they
are not in a military pay status or when the issue does not involve
fitness for duty in the reserve component. In Sec. 752.401(b), OPM
proposes to add an exclusion for an action taken against a technician
in the National Guard as provided in section 709(f)(4) of title 32,
United States Code.
In Sec. 752.401(d), OPM proposes to remove from the list of
employees excluded from coverage of this subpart ``a technician in the
National Guard described in section 8337(h)(1) of title 5, United
States Code, who is employed under section 709(a) of title 32, United
States Code.'' OPM proposes to remove this because the NDAA of 2017
removed the exclusion from 5 U.S.C. 7511(b)(1) and this language was
derived from section 7511(b)(1).
Section 752.402 Definitions
This section defines key terms used throughout the subchapter.
Section 752.402 includes a definition for the term ``business day.''
The requirement for taking an action within a proscribed number of
business days for this section was derived solely from Section 2(f) of
E.O. 13839. With the rescission of E.O. 13839 and given that there is
no other use for the definition of ``business day'' in subpart D, OPM
proposes to revise the regulation at Sec. 752.402 to remove the
definition of ``Business day''.
Section 752.403 Standard for Action and Penalty Determination
As with the proposed rule changes for the regulatory amendments to
Sec. 752.202, the proposed regulatory change to Sec. 752.403 revises
the heading to ``Standard for Action'' and rescinds paragraphs (c)
through (f).
Given the rescission of E.O. 13839 and under its congressionally
granted authority to regulate part 752, as with Sec. Sec. 752.202(c),
752.202(d), 752.202(e) and 752.202(f), OPM proposes to rescind
Sec. Sec. 752.403(c), 752.403(d),752.403(e), and 752.403(f). Please
see the discussion at Sec. 752.202.
Section 752.404 Procedures
Section 752.404(b) discusses the requirements for a notice of
proposed action issued under this subpart. Specifically, the
requirements in Sec. 752.404(b)(1) include that, to the extent an
agency, in its sole and exclusive discretion deems practicable,
agencies should limit written notice of adverse actions taken under
this subpart to the 30 days prescribed in 5 U.S.C. 7513(b)(1), as well
as the requirement that any notice period greater than 30 days must be
reported to OPM. The requirement was derived solely from Section 2(g)
of E.O. 13839. In addition, we have come to the conclusion
independently that there may be appropriate circumstances that warrant
a notice period, and we no longer see a reason to burden agencies with
a requirement to report to OPM every time they grant longer notice.
OPM proposes to remove the following language in Sec.
752.404(b)(1): ``However, to the extent an agency in its sole and
exclusive discretion deems practicable, agencies should limit a written
notice of an adverse action to the 30 days prescribed in section
7513(b)(1) of title 5, United States Code. Advance notices of greater
than 30 days must be reported to the Office of Personnel Management.''
Additionally, Sec. 752.404(g) discusses the requirements for an
agency decision issued under this subpart. Under its authority to
regulate 5 CFR part 752, OPM proposes to rescind Sec. 752.404(g)(3).
The requirement of Sec. 752.404(g)(3) was derived solely from Section
2(f) of E.O. 13839. Specifically, Sec. 752.404(g)(3) includes language
that, to the extent practicable, an agency
[[Page 206]]
should issue the decision on a proposed removal under this subpart
within 15 business days of the conclusion of the employee's opportunity
to respond. As discussed above with respect to section 752.103(d)(3)
and the rescinding of the 15-day requirement to issue a decision on a
proposal, although it is good practice for agency deciding officials to
resolve proposed removals promptly, some actions present complications
that warrant a longer period of time to achieve careful crafting of the
final decision.
Notwithstanding these proposed changes to the notice and decision
requirements, agencies are reminded that misconduct should be addressed
as soon as possible in each case. Prompt action helps promote changed
behavior whereas failure to act promptly can damage morale and
productivity, and failure to remove employees who should be removed can
do the same.
Section 752.407 Settlement Agreements
The language in this section establishes the same requirements that
are detailed in 432.108, Settlement agreements. OPM proposes to remove
this requirement. Please see the discussion at Sec. 432.108 regarding
the proposed rescission of OPM requirements related to settlement
agreements.
Subpart F--Regulatory Requirements for Taking Adverse Actions Under the
Senior Executive Service
This subpart addresses the procedural requirements for suspensions
for more than 14 days and removals from the civil service as set for in
5 U.S.C. 7542.
Section 752.602 Definitions
This section defines key terms used throughout the subchapter.
Section 752.602 includes a definition for the term ``business day.''
The requirement for taking an action within a proscribed number of
business days for this section was derived solely from Section 2(f) of
E.O. 13839. With the rescission of E.O. 13839 and given that there is
no other use for ``business day'' in subpart F, OPM proposes to revise
the regulation at Sec. 752.402 to remove the definition of ``Business
day''.
Section 752.603 Standard for Action and Penalty Determination
As with the proposed rule changes for the regulatory amendments to
Sec. 752.202 and Sec. 752.403, the proposed regulatory change to
Sec. 752.603 revises the heading to ``Standard for Action'' and
rescinds paragraphs (c) through (f). Please see the discussion at Sec.
752.202.
Given the rescission of E.O. 13839 and under its congressionally
granted authority to regulate part 752, as with Sec. Sec. 752.202(c),
752.202(d), 752.202(e), and 752.202(f) and Sec. Sec. 752.403(c),
752.403(d), 752.403(e), and 752.403(f), OPM proposes to rescind
Sec. Sec. 752.603(c), 752.603(d),752.603(e), and 752.603(f). See
discussion above with respect to section 752.202.
Section 752.604 Procedures
This section discussed requirements for a notice of proposed
action. Due to the revocation of E.O. 13839 and under its
congressionally granted authority to regulate 5 CFR part 752, as with
the rule changes proposed for Sec. 752.103(d)(3) and Sec.
752.404(b)(1), and for the same reasons, OPM proposes to rescind the
language at Sec. 752.604(b)(1) that requires to the extent an agency
in its sole and exclusive discretion deems practicable, agencies should
limit a written notice of an adverse action to the 30 days prescribed
in section 7543(b)(1) of title 5, United States Code. As well, OPM
proposes to remove the language in Sec. 752.604(b)(1) that requires
that advance notices of greater than 30 days must be reported to OPM.
These requirements were derived solely from Section 2(g) of E.O. 13839.
OPM proposes to rescind Sec. 752.604(g)(3), which requires
agencies to issue decisions, to the extent practicable, within 15
business days of the conclusion of the employee's opportunity to
respond under paragraph of this section. This requirement was derived
solely from Section 2(f) of E.O. 13839. Thus, as with the discussion
concerning the 15-day requirement for issuance of decisions in section
752.103(d)(3) and section 752.404(g), while recognizing it is good
practice for agency deciding officials to resolve proposed removals
promptly, some actions present complexities that necessitate a longer
period of time to prepare the final decision.
Section 752.607 Settlement Agreements
The language in this section establishes the same requirements that
are detailed in Sec. 432.108, Settlement agreements. OPM proposes to
remove this requirement. Please see the discussion at Sec. 432.108
regarding the proposed rescission of OPM requirements related to
settlement agreements.
Expected Impact of This Proposed Rule
OPM is issuing this proposed rule to implement requirements of E.O.
14003 and new statutory requirements for procedural and appeal rights
for dual status National Guard technicians for certain adverse actions.
E.O. 14003 requires OPM to rescind portions of the OPM final rule
published at 85 FR 65940 which implemented certain requirements of E.O.
13839. In addition, section 512(a)(1)(C) of the 2017 NDAA provides
appeal rights under 5 U.S.C. 7511, 7512, and 7513 to dual status
National Guard technicians for certain adverse actions.
OPM believes that portions of the final rule which became effective
on November 16, 2020, and which implemented certain requirements of
E.O. 13839, are inconsistent with the current policy of the United
States to protect, empower and rebuild the career Federal workforce as
well as its current policy to encourage employee organizing and
collective bargaining. The proposed revisions implement applicable
statutory mandates and provide agencies the necessary tools and
flexibility to address matters related to unacceptable performance and
misconduct or other behavior contrary to the efficiency of the service
by Federal employees when they arise, consistent with the policies of
E.O. 14003.
Given that the November 16, 2020, regulations OPM proposes to
rescind were in effect only for a brief period before E.O. 14003 was
issued on January 22, 2021, agencies had limited opportunity to
implement changes under the regulations. With the issuance of E.O.
14003, OPM discontinued collecting agency data on performance-based
actions, adverse actions, and settlement agreements as was required by
Section 5 of E.O. 13839. OPM does not otherwise collect agency data
about the matters covered by the November 2020 regulatory amendments
that OPM proposes to rescind (namely, the timing and frequency of
probationary period expiration notifications; the timing and nature of
performance assistance for employees who have demonstrated unacceptable
performance; penalty determination guidelines; advance notice and
decision notice timeframes for adverse action; and settlement
agreements). For these reasons, OPM has virtually no data on the extent
to which adverse actions were pursued under the regulations proposed
for rescission here. This proposed rule will relieve agencies of the
administrative burden of implementing the November 2020 regulatory
amendments to the extent that agencies did not already have such
policies and practices in place. Out of an abundance of caution, we
clarify that OPM still is requiring that agencies submit to it
arbitration awards taken under 5 U.S.C. 4303 or 5
[[Page 207]]
U.S.C. 7512 of title 5 so that OPM can efficiently carry out its
authority under 5 U.S.C. 7703(d) to seek judicial review of any
arbitration award that the Director of OPM determines is erroneous and
would have a substantial impact on civil service law, rule, or
regulation affecting personnel management that will have a substantial
impact on a civil service law, rule, regulation, or policy directive.
Costs
This proposed rule will affect the operations of over 80 Federal
agencies--ranging from cabinet-level departments to small independent
agencies. Regarding implementation of E.O. 14003 requirements, we
estimate that this proposed rule will require individuals employed by
these agencies to revise and rescind policies and procedures to
implement certain portions the OPM final rule published at 85 FR 65940
to the extent agencies have not already done so. Section 3(e) of E.O.
14003 directs heads of agencies whose practices were covered by E.O.
13839 to review and identify existing agency actions related to or
arising from E.O. 13839 and ``as soon as practicable, suspend, revise,
or publish for notice and comment proposed rules suspending, revising,
or rescinding, the actions identified in the review'' described in
Section 3(e). On March 5, 2021, OPM issued ``Guidance for
Implementation of Executive Order 14003--Protecting the Federal
Workforce'' to heads of agencies. In this guidance, OPM advised that
``agencies should not delay in implementing the requirements of Section
3(e) of E.O. 14003 as it relates to any changes to agency policies made
as a result of OPM's regulations.'' Therefore, some agencies may not
need to make any updates to agency policies as a result of this revised
OPM rule. For the purpose of this cost analysis, the assumed average
salary rate of Federal employees performing this work will be the rate
in 2021 for GS-14, step 5, from the Washington, DC, locality pay table
($138,66 annual locality rate and $66.54 hourly locality rate). We
assume that the total dollar value of labor, which includes wages,
benefits, and overhead, is equal to 200 percent of the wage rate,
resulting in an assumed labor cost of $133.08 per hour.
In order to comply with the regulatory changes in this proposed
rule, affected agencies will need to review the rule and update their
policies and procedures. We estimate that, in the first year following
publication of the final rule, this will require an average of 200
hours of work by employees with an average hourly cost of $133.08. This
would result in estimated costs in that first year of implementation of
about $26,616 per agency, and about $2,129,280 in total Governmentwide.
We do not believe this proposed rule will substantially increase the
ongoing administrative costs to agencies.
Regarding the portion of the proposed rule regarding appeal rights
under 5 U.S.C. 7511, 7512, and 7513 for dual status National Guard
technicians for certain adverse actions, this only impacts the Army
National Guard and Air National Guard for dual status National Guard
technicians that are covered by policies of the National Guard Bureau.
Since this portion of the proposed rule reflects statutory changes in
the 2017 NDAA which have been effective for several years, these
statutory requirements should already be applied by the National Guard
notwithstanding any regulatory changes by OPM. However, for the purpose
of this cost analysis, the assumed average salary rate of Federal
employees performing this work at the National Guard Bureau will be the
rate in 2021 for GS-14, step 5, from the Washington, DC, locality pay
table ($138,66 annual locality rate and $66.54 hourly locality rate).
We assume that the total dollar value of labor, which includes wages,
benefits, and overhead, is equal to 200 percent of the wage rate,
resulting in an assumed labor cost of $133.08 per hour. In order to
comply with the regulatory changes in this proposed rule, the affected
agency will need to review the rule and update its policies and
procedures. We estimate that, in the first year following publication
of the final rule, this will require an average of 40 hours of work by
employees with an average hourly cost of $133.08. This would result in
estimated costs in that first year of implementation of about $5,323
for the impacted agency. We do not believe this proposed rule will
substantially increase the ongoing administrative costs to the National
Guard.
Executive Order 12866
Executive Order 12866 directs agencies to assess all costs and
benefits of available regulatory alternatives and, if regulation is
necessary, to select regulatory approaches that maximize net benefits
(including potential economic, environmental, public health and safety
effects, distributive impacts, and equity). In accordance with the
provisions of Executive Order 12866, this proposed rule was reviewed by
the Office of Management and Budget as a significant, but not
economically significant rule.
Regulatory Flexibility Act
The Director of the Office of Personnel Management certifies that
this proposed rule will not have a significant economic impact on a
substantial number of small entities.
Federalism
This regulation will not have substantial direct effects on the
States, on the relationship between the National Government and the
States, or on distribution of power and responsibilities among the
various levels of government. Therefore, in accordance with Executive
Order 13132, it is determined that this proposed rule does not have
sufficient federalism implications to warrant preparation of a
Federalism Assessment.
Civil Justice Reform
This regulation meets the applicable standard set forth in
Executive Order 12988.
Unfunded Mandates Reform Act of 1995
This proposed rule will not result in the expenditure by state,
local, and tribal governments, in the aggregate, or by the private
sector, of $100 million or more in any year and it will not
significantly or uniquely affect small governments. Therefore, no
actions were deemed necessary under the provisions of the Unfunded
Mandates Reform Act of 1995.
Congressional Review Act
Subtitle E of the Small Business Regulatory Enforcement Fairness
Act of 1996 (known as the Congressional Review Act or CRA) (5 U.S.C.
801 et seq.) requires rules to be submitted to Congress before taking
effect. OPM will submit to Congress and the Comptroller General of the
United States a report regarding the issuance of this proposed rule
before its effective date, as required by 5 U.S.C. 801. The Office of
Information and Regulatory Affairs in the Office of Management and
Budget has determined that this proposed rule is not a major rule as
defined by the CRA (5 U.S.C. 804). The Office of Information and
Regulatory Affairs in the Office of Management and Budget has
determined that this proposed rule is not a major rule as defined by
the CRA (5 U.S.C. 804).
Paperwork Reduction Act of 1995 (44 U.S.C. 3501-3521)
This regulatory action is not expected to impose any additional
reporting or recordkeeping requirements under the Paperwork Reduction
Act.
[[Page 208]]
List of Subjects in 5 CFR Parts 315, 432 and 752
Government employees.
Office of Personnel Management.
Stephen Hickman,
Federal Register Liaison.
Accordingly, for the reasons stated in the preamble, OPM proposes
to amend 5 CFR parts 315, 432 and 752 as follows:
PART 315--CAREER AND CAREER-CONDITIONAL EMPLOYMENT
0
1. Revise the authority citation for part 315 to read as follows:
Authority: 5 U.S.C. 1302, 2301, 2302, 3301, and 3302; E.O.
10577, 3 CFR, 1954-1958 Comp. p. 218, unless otherwise noted; and
E.O. 13162. Secs. 315.601 and 315.609 also issued under 22 U.S.C.
3651 and 365. Secs. 315.602 and 315.604 also issued under 5 U.S.C.
1104. Sec. 315.603 also issued under 5 U.S.C. 8151. Sec. 315.605
also issued under E.O. 12034, 3 CFR, 1978 Comp. p.111. Sec. 315.606
also issued under E.O. 11219, 3 CFR, 1964-1965 Comp. p. 303. Sec.
315.607 also issued under 22 U.S.C. 2506. Sec. 315.608 also issued
under E.O. 12721, 3 CFR, 1990 Comp. p. 293. Sec. 315.610 also issued
under 5 U.S.C. 3304(c). Sec. 315.611 also issued under 5 U.S.C.
3304(f). Sec. 315.612 also issued under E.O. 13473. Sec. 315.708
also issued under E.O. 13318, 3 CFR, 2004 Comp. p. 265. Sec. 315.710
also issued under E.O. 12596, 3 CFR, 1987 Comp. p. 229. Subpart I
also issued under 5 U.S.C. 3321, E.O. 12107, 3 CFR, 1978 Comp. p.
264.
Subpart H--Probation on Initial Appointment to a Competitive
Position
0
2. Revise Sec. 315.803(a) to read as follows:
Sec. 315.803 Agency action during probationary period (general).
(a) The agency shall utilize the probationary period as fully as
possible to determine the fitness of the employee and shall terminate
his or her services during this period if the employee fails to
demonstrate fully his or her qualifications for continued employment.
* * * * *
PART 432--PERFORMANCE BASED REDUCTION IN GRADE AND REMOVAL ACTIONS
0
3. The authority for part 432 continues to read as follows:
Authority: 5 U.S.C. 4303, 4305.
0
4. Amend Sec. 432.102 by:
0
a. Revising paragraphs (b)(14) and (15);
0
b. Adding paragraph (b)(16);
0
c. Removing paragraph (f)(12); and
0
d. Redesignating (f)(13) and (14) as (f)(12) and (13).
The revisions and additions read as follows:
Sec. 432.102 Coverage.
* * * * *
(b) * * *
(14) A termination in accordance with terms specified as conditions
of employment at the time the appointment was made;
(15) An involuntary retirement because of disability under part 831
of this chapter; and
(16) An action against a technician in the National Guard
concerning any activity under section 709(f)(4) of title 32, United
States Code, except as provided by section 709(f)(5) of title 32,
United States Code.
* * * * *
0
4. Revise Sec. 432.104 to read as follows:
Sec. 432.104 Addressing unacceptable performance.
At any time during the performance appraisal cycle that an
employee's performance is determined to be unacceptable in one or more
critical elements, the agency shall notify the employee of the critical
element(s) for which performance is unacceptable and inform the
employee of the performance requirement(s) or standard(s) that must be
attained in order to demonstrate acceptable performance in his or her
position. The agency should also inform the employee that unless his or
her performance in the critical element(s) improves to and is sustained
at an acceptable level, the employee may be reduced in grade or
removed. For each critical element in which the employee's performance
is unacceptable, the agency shall afford the employee a reasonable
opportunity to demonstrate acceptable performance, commensurate with
the duties and responsibilities of the employee's position. As part of
the employee's opportunity to demonstrate acceptable performance, the
agency shall offer assistance to the employee in improving unacceptable
performance.
0
5. Amend Sec. 432.105 by revising paragraphs (a)(1) and
(a)(4)(i)(B)(6) to read as follows:
Sec. 432.105 Proposing and taking action based on unacceptable
performance.
(a) * * *
(1) Once an employee has been afforded a reasonable opportunity to
demonstrate acceptable performance pursuant to Sec. 432.104, an agency
may propose a reduction-in-grade or removal action if the employee's
performance during or following the opportunity to demonstrate
acceptable performance is unacceptable in one or more of the critical
elements for which the employee was afforded an opportunity to
demonstrate acceptable performance.
(4) * * *
(i) * * *
(B) * * *
(6) To comply with a stay ordered by a member of the Merit Systems
Protection Board under 5 U.S.C. 1214(b)(1)(A) or (B).
* * * * *
Sec. 432.108 [Removed]
0
6. Remove Sec. 432.108.
PART 752--ADVERSE ACTIONS
0
7. Revise the authority citation for part 752 to read as follows:
Authority: 5 U.S.C. 7504, 7514, and 7543, Pub. L. 115-91, and
Pub. L. 114-328.
Subpart A--Discipline of Supervisors Based on Retaliation Against
Whistleblowers
Sec. 752.101 [Amended]
0
8. Amend Sec. 752.101(b) by removing the definition for ``Business
day''.
Sec. 752.103 [Amended]
0
9. Amend Sec. 752.103 by removing paragraph (d)(3).
Sec. 752.104 [Removed]
0
10. Remove Sec. 752.104.
Subpart B--Regulatory Requirements for Suspensions for 14 Days or
Less
0
11. Amend Sec. 752.202 by revising the section heading and removing
paragraphs (c) through (f) to read as follows:
Sec. 752.202 Standard for action.
* * * * *
Sec. 752.203 [Amended]
0
12. Amend Sec. 752.203 by removing paragraph (h).
Subpart D--Regulatory Requirements for Removal, Suspension for More
Than 14 Days, Reduction in Grade or Pay, or Furlough for 30 Days or
Less
0
13. Amend Sec. 752.401 by:
0
a. Revising paragraphs (b)(15) and (16);
0
b. Adding paragraph (b)(17);
0
c. Removing paragraph (d)(5); and
0
d. Redesignating paragraphs (d)(6) through (13) as paragraphs (d)(5)
through (12).
The revisions and additions read as follows:
Sec. 752.401 Coverage.
* * * * *
(b) * * *
(15) Reduction of an employee's rate of basic pay from a rate that
is contrary
[[Page 209]]
to law or regulation, including a reduction necessary to comply with
the amendments made by Public Law 108-411, regarding pay-setting under
the General Schedule and Federal Wage System and regulations
implementing those amendments;
(16) An action taken under 5 U.S.C. 7515.; or
(17) An action taken against a technician in the National Guard
concerning any activity under section 709(f)(4) of title 32, United
States Code, except as provided by section 709(f)(5) of title 32,
United States Code.
* * * * *
Sec. 752.402 [Amended]
0
14. Amend Sec. 752.402 by removing the definition for ``Business
day''.
0
15. Amend Sec. 752.403 by revising the section heading and removing
paragraphs (c) through (f) to read as follows:
Sec. 752.403 Standard for action.
* * * * *
0
16. Amend Sec. 752.404 by revising paragraph (b)(1), and removing
paragraph (g)(3) to read as follows:
Sec. 752.404 Procedures.
* * * * *
(b) * * *
(1) An employee against whom an action is proposed is entitled to
at least 30 days' advance written notice unless there is an exception
pursuant to paragraph (d) of this section. The notice must state the
specific reason(s) for the proposed action and inform the employee of
his or her right to review the material which is relied on to support
the reasons for action given in the notice. The notice must further
include detailed information with respect to any right to appeal the
action pursuant to section 1097(b)(2)(A) of Public Law 115-91, the
forums in which the employee may file an appeal, and any limitations on
the rights of the employee that would apply because of the forum in
which the employee decides to file.
* * * * *
Sec. 752.407 [Removed]
0
17. Remove Sec. 752.407.
Subpart F--Regulatory Requirements for Taking Adverse Action Under
the Senior Executive Service
Sec. 752.602 [ Amended]
0
18. Amend Sec. 752.602 by removing the definition for ``Business
day''.
0
19. Amend Sec. 752.603 by revising the section heading and removing
paragraphs (c) through (f) to read as follows:
Sec. 752.603 Standard for action.
* * * * *
Sec. 752.604 [Amended]
0
20. Amend Sec. 752.604 by revising paragraph (b)(1), and removing
paragraph (g)(3) to read as follows:
Sec. 752.604 Procedures.
* * * * *
(b) * * *
(1) An appointee against whom an action is proposed is entitled to
at least 30 days' advance written notice unless there is an exception
pursuant to paragraph (d) of this section. The notice must state the
specific reason(s) for the proposed action and inform the appointee of
his or her right to review the material that is relied on to support
the reasons for action given in the notice. The notice must further
include detailed information with respect to any right to appeal the
action pursuant to section 1097(b)(2)(A) of Public Law 115-91, the
forums in which the employee may file an appeal, and any limitations on
the rights of the employee that would apply because of the forum in
which the employee decides to file.
* * * * *
Sec. 752.607 [Removed]
0
21. Remove Sec. 752.607.
[FR Doc. 2021-28205 Filed 1-3-22; 8:45 am]
BILLING CODE 6325-39-P