Advertisements
Home News Federal Workers Weigh Trump’s Deferred Resignation Offer: Is It Legal or a Good Deal?

Federal Workers Weigh Trump’s Deferred Resignation Offer: Is It Legal or a Good Deal?

by Celia

The Trump administration has given federal workers about a week to decide whether to accept an offer to resign and receive pay for months. However, experts are advising caution, citing many unknowns about the offer’s terms and legality.

Advertisements

Employment lawyers, financial advisers, and federal employee unions are urging workers to be cautious about the offer, which they say lacks clarity and legal backing. “Overall and generally speaking, no, I don’t see this as a good deal,” said Menaka Fernando, a partner at Outten & Golden, who has represented many executives and tech-sector workers in their exits.

Advertisements

Federal workers have until February 6 to decide whether to accept the offer. Those who accept will resign by that date and stop working but continue to receive pay and benefits for eight months through September 30. This is part of the Trump administration’s efforts to reduce the federal workforce.

Advertisements

The offer might appeal to workers planning to retire soon, those already considering resigning, or those fearing job cuts under executive orders. However, the legality of the offer is questionable, and workers should approach it with great caution, according to federal employee unions and employment lawyers.

Michael Fallings, a partner at Tully Rinckey, advised against accepting the offer. “Given that this could be deemed illegal, a worker who agrees to resign might not receive the benefit and also lose their job,” he said.

The National Treasury Employees Union (NTEU) is urging its members to reject the offer, calling it a “hostile effort to disparage federal employees, weaken agencies, and disrupt valuable services.” The union is also suing Trump over his executive order targeting civil-service rules.

Democratic lawmakers are also advising federal workers to remain at their posts. Sen. Tim Kaine of Virginia argued that the president has no authority to make the offer and that there is no budget line item to pay people who are not working.

Experts argue that the offer is not a legitimate “buyout” because the Trump administration lacks the legal authority to make such offers. The government is currently operating under a continuing resolution that funds operations at 2024 levels through March 14. Jacqueline Simon, policy director at the American Federation of Government Employees, said the government cannot promise full pay and benefits until the end of the fiscal year.Elaine Kamarck, who ran President Bill Clinton’s National Partnership for Reinventing Government in the 1990s, warned that accepting the offer could lead to an implementation crisis and rob the president of significant political capital.

Even if this effort fails to significantly reduce the federal workforce, there will likely be other attempts, according to John Hatton, staff vice president of policy and programs at NARFE, an organization for retired and active federal workers.

Financial planner Alvin Carlos advises federal workers to learn more before making a decision. “Given the lack of clarity, we don’t think this buyout offer is attractive at all,” he said. Workers should consider whether they can get the money in a lump sum and what it means for their pensions. They should also assess whether they have the skills to transition to the nonprofit or private sector and whether they have enough retirement savings to sustain themselves.

Despite the offer’s financial attractiveness, federal workers are not rushing to accept it, Carlos said, noting that government jobs offer good health insurance and pensions upon retirement.

Read more:

Advertisements

You may also like

logo

Bilkuj is a comprehensive legal portal. The main columns include legal knowledge, legal news, laws and regulations, legal special topics and other columns.

「Contact us: wougua@gmail.com」

© 2023 Copyright bilkuj.com