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HHS Telework Order Blocked by Arbitration Ruling

collective bargaining federal employment flra return to office telework rights Jan 22, 2026

Federal employees received a notable reality check this week: a presidential return-to-office memo does not automatically override negotiated union contracts. In a significant arbitration decision, the Department of Health and Human Services (HHS) was ordered to rescind its blanket return-to-office directive for thousands of employees represented by the National Treasury Employees Union (NTEU) and to immediately reinstate their telework and remote work agreements.

This outcome matters well beyond HHS. It reinforces a foundational principle of federal labor law—contracts still matter, even during politically driven workforce shifts.

Why the HHS RTO Directive Failed

HHS is a party to a five-year collective bargaining agreement covering 2023 through 2028. That agreement permits the agency to terminate telework or remote work arrangements only “for cause,” such as an emergency or performance below the “fully satisfactory” level. Despite those negotiated limits, HHS terminated telework and remote work agreements across the board, citing the President’s return-to-office memorandum.

A third-party arbitrator, Michael J. Falvo, found that approach unlawful. The decision held that HHS committed an unfair labor practice by disregarding its contractual obligations. As a remedy, the arbitrator ordered HHS to reinstate telework and remote work agreements and to post a signed notice admitting it violated the Federal Service Labor-Management Relations Statute. The ruling also noted that the union may pursue additional remedies.

The Legal Principle at Work

The decision turns on a key provision of federal labor law: 5 U.S.C. § 7116(a)(7). That statute prohibits an agency from enforcing a rule or regulation that conflicts with an existing collective bargaining agreement. Importantly, the arbitrator relied on long-standing Federal Labor Relations Authority (FLRA) precedent holding that a presidential memorandum is not automatically a “governmentwide rule or regulation” capable of nullifying negotiated employee protections.

In plain terms, management cannot simply flip a switch for an entire bargaining unit when the contract sets limits on how workplace changes must occur.

What This Does—and Does Not—Mean

This ruling does not guarantee telework or remote work for all federal employees. Agencies may still modify or end such arrangements when permitted by contract or law. What it does mean is that agencies must follow the rules they negotiated. Blanket directives that ignore “for cause” standards, notice requirements, or bargaining obligations are vulnerable to challenge.

Practical Next Steps for Employees

For bargaining-unit employees, three immediate actions are worth considering:

Review the contract. Locate the telework or remote work article and pay close attention to “for cause” language, notice provisions, and bargaining requirements.
Document management instructions. Obtain return-to-office directives in writing and preserve them. Documentation is critical if a grievance becomes necessary.
Engage the union early. Grievance timelines are short, and early coordination can preserve rights.

Although this is an arbitration award—and agencies may attempt to challenge it at the FLRA—it sends a strong signal. A return-to-office memo is not a magic wand, and negotiated protections remain enforceable until lawfully changed.

Legal Disclaimer: The information provided in this article is for informational purposes only and should not be construed as legal advice. While I am a federal employment attorney, this post does not create an attorney-client relationship. Every situation is unique, and legal outcomes depend on specific facts and circumstances.

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