OPM Moves to Take Over Federal Employee Termination Appeals

The U.S. Office of Personnel Management (OPM) is transforming the appeals process for federal workers facing termination, whether by reductions in force (RIFs), probationary firings, or suitability actions.

OPM proposes moving the adjudication of employee appeals from the Merit Systems Protection Board (MSPB) to itself. The MSPB has been the deciding entity for employee termination appeals since its establishment in 1979. The proposed changes would place OPM in charge of deciding cases where federal employees appeal termination decisions.

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At the end of 2025, OPM proposed a rule limiting the grounds of appeal for fired probationary employees as well as putting itself in charge of adjudicating employees’ cases, rather than the MSPB. If finalized, probationary workers would only be able to appeal their termination if they believe it was due to discrimination based on partisan political reasons, marital status, or if their agency deviated from standard termination procedures.

“These limited grounds of appeal for probationary terminations reflect the historical principle that probationary periods serve as a critical evaluation phase for new federal employees, and thus that agencies should enjoy great flexibility in separating employees serving probationary or trial periods,” OPM said. “MSPB procedures unnecessarily add complexity to a process designed for federal agencies to evaluate whether it is in the public’s interest to retain employees newly hired into the federal service.”

On Feb. 6, OPM proposed regulations that would remove employees’ ability to appeal to the MSPB for being fired for “suitability” reasons. Instead, federal workers would have to go to OPM to challenge these actions. Removing suitability appeals from MSPB “will result in faster resolution for individuals and agencies,” OPM said.

On Feb. 10, OPM issued another proposed rule that would transfer appeal rights from the MSPB to OPM for employees who have been furloughed more than 30 days, separated, or demoted by a RIF action. The agency expects the change to promote greater efficiency and reduce costs in managing RIFs.

The driving theme across the proposals is that the MSPB appeals process is too antiquated, cumbersome, and time-consuming.

OPM noted the MSPB’s potential lack of a quorum; at least two members are needed to address an annual caseload that runs into the thousands.

“During the 2017 to 2022 period when MSPB lacked a quorum, OPM had 14 appeals of its suitability actions impacted, where the individuals and agencies involved in the actions waited an average of five years and seven months between the time OPM took its suitability action and the date the board rendered a decision,” OPM said. “This situation leaves individuals and agencies in limbo for far too long.”

Resource: Federal Workforce

Opposition to the Rules

The Partnership for Public Service, a Washington, D.C.-based nonprofit that advocates for federal government workers and effective workforce practices, said OPM’s proposed transfer of authority will create a conflict of interest, erode due process, and remove transparency from appeal proceedings. The organization also expressed concern that OPM lacks the capacity and political independence to effectively adjudicate disputes.

“Eliminating independent review of federal RIF actions would not only make it harder for employees to challenge their proposed terminations but would essentially give the administration free rein to terminate huge swaths of the federal workforce without meaningful independent oversight,” said Everett Kelley, national president of the American Federation of Government Employees, the largest union representing federal workers.

“This is all part of a deliberate attempt to dismantle the nonpartisan civil service,” he said. “On their own, and taken together, these actions unlawfully concentrate removal authority in OPM and directly undermine the statutory framework Congress established to ensure an independent, professional, and nonpartisan civil service.”

The MSPB faced a surge in appeals during 2025 due to increased federal workforce reductions, while simultaneously experiencing its lowest staffing in years.

A temporary pause on federal layoffs, originally enacted by the U.S. Congress as part of end-of-year funding legislation, is scheduled to expire Feb. 13. The provision prohibited agencies from initiating or carrying out RIFs for approximately three months.

During the 43-day government shutdown in 2025, different agencies attempted to lay off around 4,000 employees. A federal judge and Congress paused those measures at agencies including the departments of Education, Health and Human Services, Homeland Security, and Treasury.

The Trump administration also recently finalized a rule creating a new classification for up to 50,000 federal employees in policy-influencing roles. The rule — which goes into effect March 9 — strips civil service protections from these employees, converting them to at-will status.