Full Breakdown
OPM Finalizes Rule Expanding Suitability Authority, Centralizing Federal Employee Discipline
7/2/2026, 1:12:50 AM
Rule Overview
The Office of Personnel Management (OPM) issued a final rule effective July 30 that lets OPM and agencies remove federal employees for post-appointment conduct deemed unsuitable. The rule adds three suitability categories—failure to file tax returns on time, refusal to sign or breach a government-wide non-disclosure agreement, and theft, misuse or negligent loss of government resources. MSPB retains appellate jurisdiction, while OPM has proposed moving some appeal functions to its own office.
Historical Context
Since the 1978 Civil Service Reform Act, agencies have used Chapter 75 procedures to discipline employees after a one-year probation, with MSPB providing independent review. The new rule revives a pre-1978 model of centralized control, echoing President Nixon’s authority, and follows a 2025 memo from President Donald Trump directing OPM to create a post-appointment suitability system.
Implications for Governance and Workforce
The rule makes it easier to bar employees for past misconduct than for identical current misconduct, expanding executive power and raising fears of politicized discipline. Critics note OPM may lack the budget, staff, and expertise to handle the larger appeals docket, and the new NDA provision could chill whistleblowers.
Official Statements & Responses
OPM confirmed the July 30 start date, affirmed MSPB’s continued appellate role, and signaled a decision on moving some appeal functions in-house. The House Oversight Committee announced a probe of tax delinquency among federal workers under the new criteria.
Criticism & Opposition
Dan Meyer called the regulation “a pretty aggressive agenda to roll back the Civil Service Reform Act,” arguing it restores Nixon-era centralized control. Jenny Mattingly warned OPM may lack budget, staff, and skill sets. Republican lawmakers said the broad criteria are open to interpretation and could politicize removals. Mattingly and Meyer voiced concerns.
Verbatim Quotes
- “This is a pretty aggressive agenda to roll back the Civil Service Reform Act,” — Dan Meyer, Partner, Tully Rinckey PLLC
- “[This] is what this is trying to do: to bring back centralized control . . . This administration is as if Nixon got three terms: all the agenda items from 1969 through 1971 are moving forward. That’s why [Arthur] Schlesinger called it ‘The Imperial Presidency,’ because of the centralization of power.” — Dan Meyer, Partner, Tully Rinckey PLLC
- “At this point there are multiple appeals processes—not just suitability—that are being pulled into OPM,” — Jenny Mattingly, Vice President, Partnership for Public Service
- “The question we keep raising is: does OPM even have the capacity or the capability to handle these types of things? It’s unclear whether OPM has the budget, the people or the skillsets to actually manage all of these things.” — Jenny Mattingly, Vice President, Partnership for Public Service
Next Steps
The House Oversight Committee will launch its tax-delinquency investigation, OPM will finalize its plan to internalize appeals, and stakeholders anticipate legal challenges as the rule reshapes federal employment protections.
