Federal Employee Return to Work Act

The Federal Employee Return to Work Act proposes to limit pay increases for federal employees who work remotely. Under current law, most federal workers receive annual pay adjustments based on private-sector labor costs and additional 'locality pay' to account for the cost of living in specific geographic areas. This bill would make any executive agency employee who teleworks at least one day a week, or 20% of their schedule, ineligible for these specific pay raises.

If enacted, the bill would create a financial distinction between federal employees who work entirely in person and those who utilize flexible work arrangements. For example, a teleworking employee would be barred from receiving the standard yearly cost-of-living increase and the extra pay typically granted to those living in expensive metropolitan areas. These restrictions would take effect at the start of the first fiscal year following the bill's passage.

The proposal aims to incentivize a return to physical offices by tying financial compensation to in-person attendance. For everyday citizens, this could impact the recruitment and retention of federal staff in their communities and potentially change how federal agencies manage their office space and remote work policies.