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Unions Urge Caution on Deferred Resignation; Question Legal Basis, Guarantees

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WASHINGTON, D.C. (FedWeek) — Federal employee unions and others are responding to the Trump Administration’s offer of deferred resignation – loosely being referred to as a “buyout” – questioning its legal basis and cautioning that the offer does not guarantee the promised benefits would be received, if taken.

“The so-called ‘deal’ is a hostile effort to disparage federal employees, weaken agencies and disrupt the valuable services that these employees provide to the public daily,” said NTEU National President Doreen Greenwald, in urging employees to pass.

“The OPM documents lack clarity about the exact terms of the offer, making it unreliable. We also question whether OPM has the legal authority to use a ‘deferred resignation’ to put people on extended administrative leave under these circumstances,” she added.

While workforce reductions would certainly impact the rolls of federal employee unions, federals employees themselves have taken to social media to question the offer and preach caution. Asked what legal issues could emerge, attorney Michael Fallings at Tully Rinckey PLLC pointed out “there could be legal challenges on whether the executive has the authority to try to reduce the workforce through this program, whether the buyout violates the voluntary separation incentive payment authority of only providing payments up to 25k, and whether this actually creates a valid contract.”

Sen. Tim Kaine, speaking on the Senate floor Tuesday evening after two of his staffers received the emailed offer declared it “fake,” asserting that the President does not have authority to make it, adding that there is no budget line item to pay people in this manner.

“So my message to Federal employees who received this is, yeah, the President has tried to terrorize you for about a week and then gives you a little sweetheart offer: If you resign in the next week, we are just going to pay you for doing nothing for the next 7 months … Don’t be fooled. He has tricked hundreds of people with that offer. If you accept that offer and resign, he will stiff you.”

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