Federal Employee Return to Work Act

The Federal Employee Return to Work Act would change how federal employees receive annual pay adjustments. Currently, federal law requires automatic annual pay increases for General Schedule employees based on two factors: changes in private sector labor costs and differences between federal and private sector pay in their geographic area. If enacted, this bill would make teleworking federal employees ineligible for these pay increases if they work remotely at least one day per week (or 20% or more of their time under alternative work schedules).

The practical effect would be that federal employees who telework would see their salaries remain flat year-to-year, while their non-teleworking colleagues would continue receiving annual adjustments. For example, a federal employee in Washington, DC currently receiving locality-based pay increases would no longer qualify for those increases if they telework one or more days per week. The bill would take effect at the start of the fiscal year following its enactment, should it pass both chambers and be signed into law. Currently, the bill is in the early stages of the legislative process and has been referred to committee for consideration.