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Today at a Glance

• Discipline and Removal Rules: OPM and the MSPB have jointly proposed scrapping the 45-year-old Douglas factors for a vaguer “totality of the circumstances” test, and a former MSPB member says the agencies have misdiagnosed the problem.

• Education Department Oversight: AFGE and former leaders of the Office of Career, Technical and Adult Education have asked the Education Department’s inspector general to investigate the transfer of that office’s functions to the Labor Department.

• Student Loan Repayment: With the SAVE plan gone, federal employees pursuing Public Service Loan Forgiveness must actively choose a new repayment plan this year, and the rules around Parent PLUS loans have changed for the worse.

Top Stories:

1. OPM and MSPB’s Push to Scrap the Douglas Factors Draws Fire From a Former Board Member

Source: Government Executive, July 7, 2026

TL;DR: The Office of Personnel Management and the Merit Systems Protection Board have jointly proposed retiring the Douglas factors, the 12-factor test agencies have used since 1981 to justify discipline and removal decisions, in favor of a “totality of the circumstances” standard. OPM and MSPB argue agencies apply the current factors too mechanically, which discourages managers from pursuing discipline. Raymond Limon, who served as an MSPB member until February 2025, told Government Executive the proposal misdiagnoses the problem: Douglas already calls for flexible, non-mechanical application, and agencies win more than 80% of adverse-action appeals under the existing standard. Federal employment attorney Michael Fallings said the new “totality” standard is vague enough to let agencies disregard factors that currently favor employees. The same rule would cap performance improvement plans at 30 days, bar settlement agreements that remove documented misconduct or poor-performance findings from personnel files, and require more frequent supervisor training. The public comment period on the joint proposal closes in early August.

For federal employees, this means:

• If you are proposed for discipline or removal after this rule takes effect, the agency will no longer have to walk through all 12 Douglas factors, including your work record, length of service, and rehabilitation potential, before deciding your penalty.
• A performance improvement plan could be capped at 30 calendar days, leaving less time to demonstrate improvement than under current practice.
• If you want your experience with the current system on the record, submit a comment before the docket closes in early August. Public comments become part of the file the agencies must consider before finalizing the rule.

Legal Insight:

The Douglas factors trace to Douglas v. Veterans Administration, 5 M.S.P.R. 280 (1981), and currently govern the Board’s review of adverse-action penalties under 5 U.S.C. § 7513. The proposed rule would replace that framework with a “totality of the circumstances” test at a new 5 C.F.R. § 1201.56(b)(3) and expand annual supervisor training requirements under 5 C.F.R. § 412.202(b). If you are facing a pending adverse action, consult a federal employment attorney now, since the standard governing your penalty could change while your case is still moving through the process.

2. AFGE and Former Education Officials Ask a Watchdog to Investigate the OCTAE Transfer to Labor

Source: Government Executive, July 14, 2026

TL;DR: The American Federation of Government Employees and former leaders of the Education Department’s Office of Career, Technical and Adult Education (OCTAE) asked the Education Department’s inspector general to examine the interagency agreement that moved OCTAE’s functions to the Labor Department. OCTAE administers career and technical education, adult literacy, and community college programs. The letter argues the transfer created undocumented costs, including overhauling grant-management systems and relocating staff, and could slow decisions because grantees must now navigate both departments’ systems. Education’s workforce has fallen from more than 4,200 employees in 2024 to nearly 2,300 today, according to OPM workforce data, and the department’s own inspector general has already reported that staffing reductions hindered legally required functions. House Republicans introduced a package of 10 bills on July 9 that would codify these interagency transfers by statute; the Education and Workforce Committee was scheduled to mark them up July 15. AFGE Local 252 says the bills would add red tape rather than remove it, while the committee chairman says they cut unnecessary bureaucracy.

For federal employees, this means:

• If your program moved to another agency through an interagency agreement rather than by statute, document any confusion over your grants-management system, supervisory chain, or personnel rules in writing as it happens.
• An IG investigation, if opened, could examine whether the transfer complied with the department’s statutory duties and whether affected positions and duties were properly classified.
• Watch the House bills that would formally authorize these transfers. If enacted, they could change which agency’s personnel policies, grievance procedures, and union contract govern your position going forward.

Legal Insight:

The Education Department retains statutory duties under the Department of Education Organization Act, 20 U.S.C. §§ 3401–3510, that an interagency agreement under the Economy Act, 31 U.S.C. § 1535, cannot lawfully transfer away. Inspectors general have independent authority to examine agency operations, including interagency agreements, under 5 U.S.C. §§ 401–424. If a transfer changed your duties, supervisory chain, or bargaining unit, consult a federal employment attorney about whether it affected your civil service protections or union representation.

3. The SAVE Plan Is Gone — Here’s What Federal Employees Repaying Student Loans Need to Do This Year

Source: FedSmith.com, June 18, 2026

TL;DR: With the SAVE repayment plan now closed, federal employees with outstanding student loans have three repayment options going forward, two of them new this year: a tiered standard plan with a fixed payment based on loan balance, and a new income-driven Repayment Assistance Plan (RAP) that sets payments as a percentage of adjusted gross income. Income-Based Repayment (IBR) remains available, but only for loans issued before July 1, 2026. Two older income-driven plans, PAYE and ICR, stay open only to borrowers already enrolled in them, and only until July 2028. For federal employees pursuing Public Service Loan Forgiveness (PSLF), the 120 qualifying payments must be made under an income-driven plan, RAP or IBR, so anyone who lets their loan sit in administrative forbearance is not building PSLF credit during that time. Parent PLUS loan holders lost the ability to consolidate into an income-driven plan, which closes off PSLF eligibility for those loans going forward.

For federal employees, this means:

• If you were on SAVE and are pursuing PSLF, choose RAP or IBR as soon as your servicer contacts you. Time spent in forbearance does not count toward the 120 qualifying payments you need.
• Your federal job continues to qualify you for PSLF regardless of these repayment-plan changes, for as long as you remain in qualifying government employment.
• If you hold a Parent PLUS loan, consolidation into an income-driven plan is no longer available, and that loan can no longer be forgiven. Plan your repayment accordingly.

Legal Insight:

PSLF remains governed by 20 U.S.C. § 1087e(m) and its implementing regulations at 34 C.F.R. § 685.219, which require 120 qualifying monthly payments under a qualifying repayment plan while working full-time for a qualifying employer. Confirm your repayment plan choice and employer certification through the Department of Education’s PSLF Help Tool well before the fall, since processing delays are common during plan transitions.

Legal Tip of the Day

When You’re Left Out of Meetings or Opportunities

Being left out of meetings, training, details, acting roles, or projects can quietly affect performance and advancement. Document what opportunities you missed, who was included, how decisions were made, and whether the exclusion affected your work or visibility. Ask professional questions when appropriate, such as whether there is a new selection process or whether you should still be involved. Avoid relying only on a general feeling of isolation; specific examples are much more useful. Pay attention if the exclusion began after protected activity or appears tied to protected status.

In Case You Missed It

A few quick hits from our recent posts:

Schedule Policy/Career: What You Lose, What Survives

OPM’s New Suitability Rule, and Why One Outlet Called It “Nixonian”

RIF’d From a Federal Job? Two Reemployment Rights You Already Have

Need Help with Discipline or Performance?

If you’ve just been put on a PIP, received a proposed suspension or removal, or are worried your “coaching” has turned into a paper trail, it’s time to get real advice—not just hallway rumors.

At Southworth PC, we represent federal employees nationwide in:

• Proposed discipline and removals

• Performance issues and PIPs

• EEO discrimination, harassment, and retaliation

• Whistleblower and civil rights matters

• MSPB, EEOC, and OSC cases

• OPM/FERS disability retirement applications (flat‑fee full‑service assistance)

In a free, confidential consultation, you speak directly with an attorney about your timeline, key documents, and options. Deadlines can be quick in the federal sector, so if you have a deadline, don’t wait.

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Disclaimer:

This briefing is for general informational purposes only and does not constitute legal advice or create an attorney‑client relationship. Federal employment law is fact‑specific and time‑sensitive; you should consult a qualified attorney about your own situation and deadlines. Past results do not guarantee future outcomes.

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