OPM Sets Appeals Process for VA Employees Ordered to Pay Back Bonuses

Some employees of the Department of Veterans Affairs (VA) were ordered to pay back awards and bonuses, after being accused of poor performance. Now the federal government is putting words on paper to help employees appeal those decisions

The Office of Personnel Management (OPM) published an interim final rule that sets procedures for current and former VA employees to file an appeal to get the money back.

The employees were initially ordered to return the funds if they were judged poor performers under the 2017 VA Accountability and Whistleblower Protection Act.

Under that legislation, the VA can require an employee to repay all or part of an award or bonus, if the employee had engaged in misconduct and poor performance. Relocation expenses could also be recouped.

However, the Biden Administration stopped enforcing the law in 2023 after it was weakened by court decisions, the Merit Systems Protection Board (MSPB), and the Federal Labor Relations Authority (FLRA).

OPM is requesting comments through March 17, 2025, even though the interim final rule went into effect on Wednesday, January 15, 2025. Specifically, it requested opinions on whether VA bargaining unit employees can use grievance procedures to challenge a recoupment order instead of filing an appeal and if OPM should publish appeal decisions. 

Congressional Action Pending

Meanwhile Congressional Republicans are pushing forward on legislation that would strengthen the 2017 law, with the Restore VA Accountability Act reintroduced in both the House and Senate.

Supporters say the legislation will “close the gaps that courts have created in the 2017 Accountability Act by reinstating Congress’s intent to provide the VA with the authority necessary to swiftly remove, demote and suspend employees who do not serve the interests of veterans.”

The bill also holds VA managers accountable to the same disciplinary procedures as members of the Senior Executive Service.