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Amends 38 U.S.C. 714 to (a) add a new paragraph requiring the deciding employee to exclusively apply specified factors when determining removal, demotion, or suspension and requiring the Secretary to review and uphold initial decisions supported by substantial evidence; (b) strike specified text in subsection (c); (c) in subsection (d) prohibit administrative judges, the Merit Systems Protection Board, and courts from reviewing challenges to penalties except to the extent the appeal presents a constitutional issue and strike paragraph (10); (d) redesignate subsection (h) as (j); (e) insert new subsections (h) (stating these procedures supersede inconsistent collective bargaining agreements) and (i) (applying the section to performance or misconduct beginning on the date of enactment of Public Law 115–41); and (f) add a definition in redesignated subsection (j)(1) to include a supervisor or management official as defined in 5 U.S.C. 7103(a).
Amends 38 U.S.C. 7403(f)(3) by modifying the introductory language to add a cross-reference to a new subparagraph (B) and by adding subparagraph (B) providing that, with respect to any covered individual appointed to such positions, matters shall be resolved, at the Secretary’s sole discretion, under section 712, section 714, or under title 5 as though such individuals had been appointed under that title.
Adds a new section 712 to title 38, United States Code, after section 711 establishing rules for removal, demotion, or suspension of covered supervisors based on performance or misconduct, including procedures, timing, judicial review, whistleblower protections, and definitions.
Amends 38 U.S.C. 713 by (1) inserting new paragraphs in subsection (a) requiring the deciding Department employee to apply specified factors when making initial decisions on reprimand, suspension, involuntary reassignment, demotion, or removal and by requiring the Secretary to review and uphold initial decisions supported by substantial evidence; (2) adding a new paragraph to subsection (b) limiting judicial review of penalties except for constitutional issues; (3) redesignating subsection (d) as subsection (e); and (4) adding a new subsection (d) specifying that the section applies to misconduct or performance beginning on the date of enactment of Public Law 115–41.
Strengthens VA authority to discipline, demote, suspend, reassign, or remove certain supervisors, managers, and covered senior executives while setting specific procedural protections for employees and narrowing judicial and administrative review of those penalties. It requires deciding officials to apply a listed set of factors when imposing discipline, preserves whistleblower protections, sets short timing limits for decisions and appeals, and allows the VA Secretary discretion for handling discipline of certain Veterans Health Administration employees. The law also makes these disciplinary procedures take precedence over inconsistent collective bargaining provisions and limits the grounds and scope for court review of penalties, while directing internal review processes to uphold decisions supported by substantial evidence under the prescribed standards.
Secretary may remove from civil service, demote, or suspend a covered individual if the Secretary determines by substantial evidence that the covered individual’s performance or misconduct warrants such action.
When making the initial decision to remove, demote, or suspend, the deciding Department employee must exclusively apply these factors: (i) the nature and seriousness of the offense and its relation to duties, including whether it was intentional, technical, inadvertent, malicious, for gain, or frequently repeated; and (ii) the covered individual’s job level, type of employment, supervisory or fiduciary role, and prominence of the position.
The Secretary shall review the initial decision and uphold it if it is supported by substantial evidence.
A covered individual subject to action is entitled to advance written notice of the action and a file containing all evidence supporting the proposed action.
A covered individual is entitled to be represented by an attorney or other representative of their choice.
Who is affected and how:
VA supervisors, managers, and covered senior executives: Directly targeted; face a statutory process that can result in faster removals, demotions, suspensions, or reassignments. Decision makers must apply and document specified factors when imposing discipline.
VA non-supervisory staff and Veterans Health Administration clinical personnel: Indirectly affected. Faster or broader disciplinary action against supervisors and managers may change workplace dynamics, supervision quality, staffing stability, and morale. The Secretary’s discretion for certain VHA employees may produce different discipline outcomes across facilities.
Labor organizations and collective bargaining units: Affected because statutory procedures supersede inconsistent collective bargaining provisions for covered disciplinary actions; unions may need to adjust grievance strategies and could challenge the law on statutory or constitutional grounds.
VA leadership and human resources/legal offices: Will see increased responsibility to document factor-based decisions, meet tightened timelines, and defend decisions in internal reviews with more limited external review options.
Courts and oversight bodies: Receive fewer avenues for reviewing disciplinary penalties—limited to narrow legal/constitutional questions—potentially reducing litigation but increasing demand for thorough administrative records and internal appeal handling.
Overall effect:
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Read twice and referred to the Committee on Veterans' Affairs.
Introduced January 16, 2025 by Jerry Moran · Last progress January 16, 2025
Committee on Veterans' Affairs. Hearings held.
Read twice and referred to the Committee on Veterans' Affairs.
Introduced in Senate
