New Lawsuit Challenges Changes to Federal Employee Performance Ratings and Suitability Rules

Federal employees are facing changes to how their performance may be rated and how certain conduct issues can affect their federal employment. Now, four federal employee unions are challenging those changes in court.

AFGE, AFSCME, NFFE, and IFPTE have filed a lawsuit challenging new federal rules involving employee performance ratings and the Office of Personnel Management’s expanded authority over employee suitability decisions.

NAGE is not a plaintiff in the lawsuit, but the issues being challenged could have broader implications for federal employees across government.

Changes to Performance Ratings

One of the biggest concerns involves how federal employees receive their annual performance ratings.

Under OPM’s new approach, agencies will use a process known as “calibration” to review and standardize ratings across the workforce.

OPM has not established a final governmentwide ratings distribution. However, recent guidance provided an example in which approximately 10 percent of employees would receive the highest rating, Level 5, while 20 percent would receive a Level 4 rating.

The unions challenging the policy argue that this could lead to some employees receiving lower ratings even when their individual performance would otherwise support a higher score.

In simple terms, the concern is that employees could be compared against one another instead of being evaluated only on how well they met the performance standards for their jobs.

That matters because performance ratings can affect recognition, awards, advancement opportunities, and other employment decisions.

Federal employees deserve a performance review process that is fair, clear, and based on the work they actually perform.

OPM’s Expanded Role in Employee Suitability

The lawsuit also challenges changes to OPM’s authority over employee suitability.

Suitability generally looks at whether a person’s character or conduct makes them appropriate for federal employment. Under rules that took effect July 30, OPM expanded its authority to take suitability actions based on certain conduct that occurs after an employee has already entered federal service.

These actions can have serious consequences, including removal from federal employment.

The unions argue that the new process could allow OPM to handle cases that would otherwise be addressed through established federal disciplinary procedures and employee protections.

OPM maintains that the new suitability rule applies to character and conduct issues, not employee performance.

The lawsuit will determine whether the new rules and OPM’s expanded authority are consistent with federal law.

What This Means for Federal Employees

For federal employees, this case is worth watching.

The outcome could affect how agencies evaluate employee performance and how certain conduct cases are handled.

Employees should continue to pay close attention to their performance plans and annual ratings. Keep copies of performance reviews, written feedback, awards, accomplishments, emails, and other records that document your work. If something in your evaluation does not match your actual performance, having documentation can be important.

Employees should also understand the procedures available to them if they believe a personnel decision is unfair or incorrect.

NAGE will continue monitoring changes to federal performance management, suitability rules, and other policies that could affect the federal workforce.

Federal employees deserve personnel decisions that are fair, transparent, and based on clear standards. As these policies continue to change, NAGE will work to keep our members informed about developments that could affect their jobs and workplace rights.