Over the past few months Republican legislators have introduced several bills aimed at reducing pay and benefits for federal workers. These bills primarily target federal employees’ locality pay retirement benefits, and ability to telework. The bills reflect Republican criticism of government spending and perceptions that federal workers are overcompensated.
Locality Pay Cuts For Teleworkers
In August 2024 Senator Bill Cassidy (R-LA) introduced the Federal Employee Remote Work Act, which would cut locality pay for federal workers who telework at least one day per week. These workers would be placed in the “Rest of U.S.” locality pay region, the area with the lowest locality pay.
This could amount to a pay cut of up to 30% for federal employees in high-cost cities like New York and San Francisco. In October, Rep. Dan Newhouse (R-WA) introduced a companion bill in the House.
Supporters of the bills argue that taxpayers shouldn’t supplement the salaries of teleworkers living in lower cost-of-living areas. However, federal worker unions counter that locality pay is designed to recruit skilled workers, not cover living expenses.
Retirement Benefit Cuts
Senator Cassidy introduced another bill in August that would exclude locality pay from pension calculations under the Federal Employees Retirement System (FERS) for all new hires.
Currently, FERS pension benefits are calculated using basic pay plus locality pay. By removing locality pay, new federal hires would receive significantly lower retirement benefits.
Cassidy argues this bill would save taxpayer money and stop encouraging federal employees to work in high-cost areas. However, federal unions contend it would hamper government recruitment of top talent.
Hiring Freeze and Pay Freeze
In December, Senator Marsha Blackburn (R-TN) introduced the Department of Government Efficiency (DOGE) Acts. This package of bills aligns with President-elect Donald Trump’s plans for reducing government spending.
One DOGE bill would impose a federal hiring freeze for 1 year and limit hires for the following 3 years. Another bill would freeze federal salaries for 1 year. Blackburn argues these measures are necessary to cut costs as federal offices sit empty due to increased telework.
However, the Biden administration has stressed the need to hire more tech professionals for roles in cybersecurity, IT, and artificial intelligence. A hiring and pay freeze could hamper these efforts.
Reinstating Schedule F
The DOGE Acts would also reinstate Schedule F, a controversial policy from the Trump administration that stripped civil service protections from certain federal positions.
Schedule F made it easier to fire employees in “policy-determining, policy-making, or policy-advocating” roles. Supporters said it improved accountability, but detractors argued it politicized the civil service.
By bringing back Schedule F, the DOGE Acts prioritize presidential powers over nonpartisan expertise. However, the bills would exempt public safety and national security agencies.
Outlook
While unlikely to pass the Democrat-controlled Senate, the Republican bills signal how a GOP White House could approach the federal workforce. Curbing hiring, pay, benefits, and job security for government employees remains popular with some conservatives.
However, federal unions and worker advocates argue these measures would sabotage recruitment and retention, especially for high-demand STEM roles. With divided government, compromises may be required to balance efficiency, costs, and competitiveness.
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FAQ
What is the Back to Work Act of 2024?
What is the Federal Employee pay Act?
What is the bill for federal workers to return to work?
What is the Federal Employee Return to Work Act S. 4834?
Will federal employees get paid if they telework?
One bill, the Federal Employee Return to Work Act, would completely cut locality pay for federal employees who telework at least one day per week. Instead, according to the legislation, federal employees who telework would receive only their basic pay rates.
Will federal employees be paid at Locality pay?
Federal employees covered under the bill would be paid at the Rest of U.S. locality pay area rate under the General Schedule. The Federal Employee Locality Accountability in Retirement Act (S. 4833) would exclude locality pay when calculating retirement payments for federal employees enrolled in the Federal Employees Retirement System (FERS).
Will the federal employee return to Work Act reduce pay and retirement benefits?
The Federal Employee Return to Work Act and the Federal Employee Locality Accountability in Retirement Act, introduced by Sen. Bill Cassidy (R-La.), would significantly reduce pay and retirement benefits for federal employees who work remotely.
Will the federal employee return to work act remove locality pay?
If enacted, the Federal Employee Return to Work Act would remove locality pay for any federal employee who teleworks at least one day a week. Federal teleworkers would instead only receive their base pay rates. The House bill, introduced this week, comes after Senator Bill Cassidy (R-La.) introduced the legislation in August.
Will federal employee pay be cut?
By Ian Smith August 5, 2024 6:45 AM Federal Employee Pay News Leave a comment Recently introduced legislation would potentially cut pay for the majority of the federal workforce. The bills were introduced by Senator Bill Cassidy (R-LA) and target telework and locality pay.
Will federal teleworkers get locality pay?
Senate legislation targeting locality pay for federal teleworkers now has a companion bill in the House. If enacted, the Federal Employee Return to Work Act would remove locality pay for any federal employee who teleworks at least one day a week. Federal teleworkers would instead only receive their base pay rates.
