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This bill would limit pay increases for certain federal employees who telework. It says that employees who work from home or another remote location at least one day a week, or at least 20% of the week under an alternate schedule, would not get the normal yearly pay adjustment. It would also require these employees to be paid using the “Rest of U.S.” locality pay rate instead of a higher local rate. Some workers are not covered, including disabled employees with reasonable accommodations, Foreign Service members, federal law enforcement officers, active-duty military members, and some others whose official worksite is outside the usual locality pay system.
- Applies to federal employees who telework at least one day a week, or at least 20% of the week under an alternate work schedule.
- Stops covered employees from receiving the annual across-the-board pay adjustment normally given under federal pay law.
- Requires covered employees to be paid using the “Rest of U.S.” locality pay area, and that pay rate would not be updated under the usual locality pay rules.
- Takes effect on the first day of the first full fiscal year after the bill becomes law.
Official Summaries
Federal Employee Return to Work Act
This bill prohibits providing certain annual or locality-based pay increases to teleworking federal employees.
Currently, federal law mandates annual adjustments to General Schedule (GS) pay rates according to (1) a formula based on the annual percentage change in the Employment Cost Index (a measure of labor costs in the private sector); and (2) the difference between public and private sector pay rates in an employee's locality, if that difference exceeds 5%. For example, in 2025, the default annual rate of pay for a GS-7 (step 1) employee is $49,960; the adjusted annual rate of pay for a GS-7 (step 1) employee in the locality pay area that includes Washington, DC, is $57,164.
The bill makes executive agency employees who telework at least one day each week (or, in the case of an alternative work schedule, 20% or more each week) ineligible for these payments.
The bill is effective on the first day of the fiscal year beginning after the bill's enactment.
Current Full Text
[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 27 Introduced in Senate (IS)]
<DOC>
119th CONGRESS
1st Session
S. 27
To prohibit certain telework employees from receiving certain annual
adjustments to pay schedules, and for other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
January 7, 2025
Mr. Cassidy introduced the following bill; which was read twice and
referred to the Committee on Homeland Security and Governmental Affairs
_______________________________________________________________________
A BILL
To prohibit certain telework employees from receiving certain annual
adjustments to pay schedules, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Federal Employee Return to Work
Act''.
SEC. 2. DEFINITIONS.
In this Act:
(1) Covered employee.--The term ``covered employee''--
(A) means an employee who teleworks not fewer than
1 day, or in the case of an alternative work schedule,
not less than 20 percent, a week; and
(B) does not include an employee who--
(i) teleworks not fewer than 1 day a week;
and
(ii) is--
(I) is disabled and receives
reasonable accommodations;
(II) a member of the Foreign
Service of the United States;
(III) a Federal law enforcement
officer;
(IV) a member of the Armed Forces
on active duty; or
(V) any other employee, the
official worksite of whom is not
described in section 531.605(a)(1) of
title 5, Code of Federal Regulations
(or any corresponding similar
regulation or ruling).
(2) Employee.--The term ``employee'' has the meaning given
the term in section 2105 of title 5, United States Code.
(3) Telework.--The term ``telework'' has the meaning given
the term in section 6501 of title 5, United States Code.
SEC. 3. ANNUAL ADJUSTMENTS TO PAY SCHEDULES.
No covered employee may receive an annual adjustment under section
5303 of title 5, United States Code.
SEC. 4. PAY LOCALITIES.
Each covered employee shall be paid at the rate of basic pay under
the applicable grade and step for that employee under the locality pay
area designated as ``Rest of U.S.''--
(1) as of the date on which the employee becomes a covered
employee; and
(2) which shall not be adjusted under section 5304 of title
5, United States Code.
SEC. 5. EFFECTIVE DATE.
This Act shall take effect on the first day of the first full
fiscal year beginning after the date of enactment of this Act.
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