On January 28, 2025, OPM issued an email to federal civil service employees offering an opportunity to elect a Deferred Resignation. Under the terms of the email announcement, federal employees have until February 6, 2025 to accept a Deferred Resignation. The email announcement states that if a federal employee accepts a Deferred Resignation, the employee may be placed on administrative leave, and the resignation will take effect on September 30, 2025.
The decision of federal employees about whether to accept a Deferred Resignation is a very personal matter. However, there are some considerations and risks that we recommend you take into account in deciding whether to accept a Deferred Resignation:
- The terms offered in the Deferred Resignation offer are not necessarily binding on the federal government. That is, if a federal agency does not honor its “promise” from the email announcement (for example, if the government stops paying an employee who accepted the Deferred Resignation offer), it is uncertain whether there is a way to enforce the terms in a court of law.
- The terms of the Deferred Resignation offer do not state that a federal employee who accepted a Deferred Resignation will not be subject to termination or a Reduction in Force (RIF or layoff) prior to September 30, 2025. The terms of the offer provide no explicit protection from a federal employee’s position being subject to elimination during the Deferred Resignation time period.
- The Deferred Resignation offer was not approved by Congress. The money that would presumably be used to pay employees who accept a Deferred Resignation would come from funds that were appropriated by Congress for other federal agency activities. This may trigger legal disputes or payment complications associated with the Deferred Resignation offer.
- We have heard from some federal employees that they feel that they will be terminated or laid off anyway, so they feel pressured to accept the Deferred Resignation. While we understand the threats posed by the Trump Administration to the federal civil service and federal employees, please understand that there have not yet been any widespread actions to lay off federal employees. Those efforts may come, and the efforts may withstand the legal challenges being filed by our law firm and others. But we encourage you to be considerate and careful in thinking through any significant decision, such as whether to resign from your federal position.
- Accepting the Deferred Resignation may impact your ability to receive Unemployment benefits at the end of your employment. Decisions on eligibility for Unemployment benefits varies from state to state. In many circumstances, a resignation may disqualify an individual from receiving Unemployment benefits. We recommend reviewing the state Unemployment benefits eligibility rules and Unemployment benefit limits as part of a consideration of the Deferred Resignation.
- An agreement to accept the Deferred Resignation may be binding on a federal employee. If an employee accepts the Deferred Resignation and then seeks to rescind the resignation, it would be up to the employee’s agency (possibly with involvement from OPM) to accept or reject the attempt to rescind the resignation. Federal agencies may not agree to allow an employee to rescind a resignation once the resignation has been submitted.
The decision about whether to accept or reject the offer of Deferred Resignation is a serious and personal matter. Your decision should be based on what you feel is best for you, your life, and your career. We hope the general considerations and possible risks noted above can help you think through your options and your personal decision.
For more information about your legal rights as a federal employee, please contact the attorneys of Kator, Parks, Weiser & Wright. If you accept the Deferred Resignation and, in the future, face issues with the Deferred Resignation, please contact our firm to discuss your specific concerns.
