Federal Employee Return to Work Act

Introduced on January 7, 2025 by Daniel Milton Newhouse

This bill limits pay increases for certain federal workers who telework. It says these workers won’t get the usual yearly, across‑the‑board raise. It also sets their basic pay to the “Rest of U.S.” locality rate and keeps it from going up with locality adjustments. In short, if you are a covered telework employee, your base pay would be frozen at the national “Rest of U.S.” level instead of your area’s higher locality rate, and you wouldn’t receive the standard annual increase.

The changes would start on the first day of the first full federal fiscal year after the bill becomes law.

• Who is affected: Certain federal employees who telework (called “covered employees” in the bill).
• What changes: No standard annual raise; pay set to the “Rest of U.S.” locality and not adjusted for locality increases.
• When: Beginning the first day of the first full fiscal year after enactment.