Republican legislators have recently introduced bills in both the House and Senate targeting the pay of federal workers who telework. These bills, if passed, would significantly reduce the pay of federal employees who work from home even just one day per week
Background on Locality Pay
Most federal workers receive locality pay on top of their base pay. This extra pay, determined by geographic location, is designed to make federal salaries competitive with the private sector in expensive metro areas
For example, federal workers in the Washington DC area can receive locality pay of over 30% of their base salary. Other expensive areas like New York City, San Francisco, and Honolulu also provide federal workers with sizable locality pay boosts.
This locality pay is not technically for covering commuting costs or compensating for a higher cost of living Rather, it aims to attract skilled workers by reducing the disparity between federal and private sector pay
The Proposed Legislation
In August 2024, Republican Senator Bill Cassidy of Louisiana introduced a bill called the Telework Pay Parity Act. This Senate bill would eliminate locality pay for any federal employee who teleworks at least one day per week.
Instead, teleworking federal workers would be placed in the “Rest of U.S.” locality pay area, slashing their pay by up to 30%. There are limited exceptions for employees with disabilities, law enforcement, and the military.
In October, Republican Representative Dan Newhouse of Washington introduced a companion bill in the House called the Federal Employee Return to Work Act. This legislation contains the same general provisions stripping teleworking federal employees of their locality pay.
Justifications from the Bills’ Sponsors
The justification provided for these bills is that the federal government should not pay for expensive office space in places like Washington DC if employees are working from home. Senator Cassidy said, “If you don’t show up for work, you don’t get paid at the same rate just for teleworking.”
The sponsors argue that teleworking federal employees are not commuting into cities daily, so they should not receive the pay boost intended to attract workers to high-cost metro areas.
Representative Newhouse referenced a 2023 GAO report showing low office utilization rates as evidence that agencies are wasting money on real estate with so many remote workers.
Potential Impact on Federal Workers
Federal employee unions and advocates have raised concerns about the impact these Republican bills could have on workers and agencies:
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Up to 30% pay cuts would significantly hurt employee morale, retention, and recruitment. This could lead to staffing issues at underpaid agencies.
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Most agencies now require at least some in-person work, so employees are still commuting at times. Blanket removal of locality pay is unfair.
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Locality pay is about aligning federal and private sector salaries regionally, not covering commuting costs. Remote federal workers would be underpaid.
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Low office utilization rates are a misleading justification, as policies have changed since that 2023 GAO report. Most agencies now require on-site work.
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Telework improves productivity and work-life balance. Penalizing it could have negative performance implications.
Outlook for the Bills
With Republicans taking control of the House in the 2024 midterms, bills targeting federal pay and benefits could gain more momentum. However, the White House has already expressed opposition to these efforts to cut teleworking employees’ pay.
The Federal Employee Return to Work Act currently has 4 Republican co-sponsors. The Telework Pay Parity Act has no cosponsors yet but is likely to gain more Republican backing in the new Congress.
It remains to be seen whether these bills can pass both chambers and overcome White House resistance. But the legislation represents a clear desire among some Republican legislators to roll back remote work flexibility and cut pay for teleworking federal employees.
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FAQ
What is the Back to Work Act of 2024?
What is the Federal Employee pay Act?
What is the bill for federal workers to return to work?
What is the Federal Employee Return to Work Act S. 4834?
Will federal employees get paid if they telework?
One bill, the Federal Employee Return to Work Act, would completely cut locality pay for federal employees who telework at least one day per week. Instead, according to the legislation, federal employees who telework would receive only their basic pay rates.
Will federal employees be paid at Locality pay?
Federal employees covered under the bill would be paid at the Rest of U.S. locality pay area rate under the General Schedule. The Federal Employee Locality Accountability in Retirement Act (S. 4833) would exclude locality pay when calculating retirement payments for federal employees enrolled in the Federal Employees Retirement System (FERS).
Will the federal employee return to Work Act reduce pay and retirement benefits?
The Federal Employee Return to Work Act and the Federal Employee Locality Accountability in Retirement Act, introduced by Sen. Bill Cassidy (R-La.), would significantly reduce pay and retirement benefits for federal employees who work remotely.
Will the federal employee return to work act remove locality pay?
If enacted, the Federal Employee Return to Work Act would remove locality pay for any federal employee who teleworks at least one day a week. Federal teleworkers would instead only receive their base pay rates. The House bill, introduced this week, comes after Senator Bill Cassidy (R-La.) introduced the legislation in August.
Will federal employee pay be cut?
By Ian Smith August 5, 2024 6:45 AM Federal Employee Pay News Leave a comment Recently introduced legislation would potentially cut pay for the majority of the federal workforce. The bills were introduced by Senator Bill Cassidy (R-LA) and target telework and locality pay.
Will federal teleworkers get locality pay?
Senate legislation targeting locality pay for federal teleworkers now has a companion bill in the House. If enacted, the Federal Employee Return to Work Act would remove locality pay for any federal employee who teleworks at least one day a week. Federal teleworkers would instead only receive their base pay rates.