Federal Employee Return to Work Act
Federal Employee Return to Work Act
Plain Language Summary
# Federal Employee Return to Work Act Summary **What the Bill Would Do** This bill would prevent federal employees who work from home at least one day per week from receiving certain annual pay raises. Currently, all federal employees receive yearly pay adjustments through two mechanisms: a general raise based on private sector wage trends, and an additional "locality pay" increase if there's a significant gap between federal and private sector salaries in their area (like the higher pay rates in Washington, DC). The bill would block teleworking employees from getting these increases, effectively freezing their pay while office-based colleagues continue to receive raises. **Who It Affects and Key Details** The bill targets federal employees across all executive agencies who telework at least one day weekly (or 20% of their time on alternative schedules). This could impact hundreds of thousands of federal workers, from administrative staff to engineers.
The bill would take effect the first fiscal year after it becomes law. For example, a teleworking employee in a high-cost area like DC would no longer receive locality pay increases, potentially creating significant pay gaps between similar workers doing the same job—one remote, one in-office. **Current Status** The bill is currently in committee and has not yet passed either chamber of Congress. It was introduced by Representative Dan Newhouse (R-WA) in the 119th Congress.
CRS Official Summary
Federal Employee Return to Work ActThis 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.
Latest Action
Referred to the House Committee on Oversight and Government Reform.