Sponsors (22)
The bill clarifies and stabilizes locality pay and eligibility for a defined group of teleworking federal employees and trims near-term payroll growth, but it excludes many worker categories, withholds annual pay adjustments for covered employees—risking reduced pay, lower morale, and added administrative complexity.
Federal employees who telework at least one day per week (or 20% under alternate schedules) are explicitly defined and covered using existing statutory definitions, creating clear, consistent eligibility for any telework-related provisions.
Covered federal employees receive a predictable locality pay rate tied to the 'Rest of U.S.' from their date of coverage and are protected from future locality reclassifications that would reduce their locality-adjusted pay.
Taxpayers could see lower federal payroll growth because annual pay adjustments are prevented for the covered employees, reducing near-term personnel costs.
Many categories of workers who telework—such as federal law enforcement, active-duty Armed Forces, Foreign Service personnel, and certain employees with disability accommodations—are excluded, leaving them without the bill's protections or benefits.
Covered federal employees would be prevented from receiving an annual pay adjustment they might otherwise get, reducing their wages and purchasing power.
Withholding pay adjustments could worsen morale and retention among the affected employees, potentially degrading government service delivery.
Based on analysis of 5 sections of legislative text.
Teleworking federal employees (≥1 day/week) are frozen at the Rest of U.S. locality pay and barred from annual pay adjustments.
Official title: To prohibit certain telework employees from receiving certain annual adjustments to pay schedules, and for other purposes.
Introduced January 7, 2025 by Daniel Milton Newhouse · Last progress January 7, 2025
Limits annual pay increases and local pay adjustments for federal employees who telework at least one day per week (or 20% under an alternate schedule). It sets those "covered employees" to receive the basic pay for the "Rest of U.S." locality pay area as of the date they become covered and bars later adjustments to that locality designation. The law excludes certain groups (employees receiving disability accommodations, Foreign Service, federal law enforcement, active-duty armed forces, and employees with nonstandard official worksites). It takes effect on the first day of the first full fiscal year after enactment.