Full Breakdown
NTEU Sues Treasury and HHS Over Thousands of Stalled Telework Accommodation Requests
7/1/2026, 4:23:45 AM
Lawsuit Over Stalled Telework Accommodations
The National Treasury Employees Union (NTEU) filed a complaint Monday in the U.S. District Court for the District of Columbia against the Treasury Department, the Internal Revenue Service (IRS), and the Department of Health and Human Services (HHS). The union alleges violations of the Rehabilitation Act and the Administrative Procedure Act for failing to process thousands of reasonable-accommodation requests—primarily telework—since the Trump administration’s January 20 memo directing all federal workers to return to the office full-time.
Backlog Data and Agency Responses
Treasury’s May 2025 memo reported a backlog of more than 6,500 accommodation requests, including roughly 5,800 from IRS employees that have lingered for months, far beyond OPM’s 20-day standard. HHS disclosed a backlog of about 9,000 requests, estimating six to nine months for resolution. OPM Director Scott Kupor said roughly 10 % of the federal workforce holds exemptions from the return-to-office order. Treasury noted legal risk; HHS framed badge-swipe requirements as a security measure.
Union Criticism and Employee Impacts
NTEU says the agencies’ inaction shows “indifference” and “apathy” toward disabled employees, noting that long-standing telework accommodations were cancelled without individualized review. Treasury and IRS managers reportedly issued memos mandating blanket denial of all telework requests. HHS now requires senior officials to approve any telework, even when it is the only effective accommodation, further slowing approvals. A CDC employee with PTSD reported worsening symptoms after his telework accommodation was rescinded, leading to more crisis-line calls and medication. Other workers reported “suspended” or “cancelled” notices and were told to email documentation to senior officials to “bypass” procedures.
Conflicting Reports and Information Gaps
Sources do not provide the final count of approved versus denied requests or a timeline for court resolution. While OPM cites a 10 % exemption rate, backlogs suggest systemic delays. Data on employee terminations or resignations linked to the stalled accommodations remain unavailable.
Verbatim Quotes
- “This is a case about indifference: two federal agencies’ apathy toward their employees’ medical needs and those agencies’ disregard for the Rehabilitation Act and related regulations requiring employers to review and process requests for reasonable accommodations from workers with disabilities,” — NTEU complaint
- “Agencies must ensure the reasonable accommodation process works as the law intends, which is to support federal employees with disabilities,” — Doreen Greenwald, NTEU National President
- “HHS flat out failed to process RA requests for thousands of employees, causing them to lose pay, exhaust their leave and report to worksites while their requests remain pending,” — NTEU
- “A CDC worker, who is a service-disabled veteran diagnosed with post-traumatic stress disorder, told Federal News Network in March that his PTSD symptoms, which are triggered by dense groups of people and excessive noise, have gotten worse after the agency rescinded his reasonable accommodation for telework.” — CDC employee, service-disabled veteran
What’s Next
The lawsuit proceeds in court, seeking injunctive relief and compliance with the Rehabilitation Act. Treasury and HHS have signaled efforts to reduce backlogs and revise policies, but the court’s rulings will decide whether systemic changes are mandated.
