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Federal Employee Return to Work Act
2/5/2025, 1:08 AM
Summary of Bill S 27
Under this legislation, telework employees who are deemed ineligible for certain annual pay adjustments would be prohibited from receiving them. The bill does not specify which specific pay adjustments would be affected, but it is likely aimed at preventing telework employees from receiving increases that are typically tied to factors such as cost of living adjustments or performance evaluations.
The rationale behind this bill is to ensure that telework employees are not unfairly advantaged or disadvantaged compared to their in-office counterparts. Proponents argue that telework employees already enjoy benefits such as flexibility and reduced commuting costs, and therefore should not receive the same pay increases as those who work in a traditional office setting. Critics of the bill argue that it could create disparities in pay and morale among telework employees, potentially leading to retention issues and decreased productivity. They also point out that telework has become increasingly common and necessary in today's digital age, and that penalizing telework employees in this way could hinder the growth of remote work opportunities. Overall, Bill 119 s 27 raises important questions about the future of telework and how pay should be structured for employees who work remotely. It will be important for lawmakers to carefully consider the potential impacts of this legislation on both telework employees and the broader workforce before making a decision on its passage.
Congressional Summary of S 27
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.
