Attorneys for Federal Employees — Nationwide

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Today at a Glance

• MSPB Appeals Overhaul Faces Sharp Pushback: Former Merit Systems Protection Board (MSPB) officials, speaking at a Partnership for Public Service event, warned that OPM's three proposed rules transferring reduction-in-force, probationary, and suitability appeals from MSPB to OPM itself would cost federal employees neutral adjudication, hearings, discovery, and federal court review.

• IRS Overtime Climbs as Workforce Shrinks: A Treasury Inspector General for Tax Administration (TIGTA) report shows IRS overtime hours rose 12% and overtime costs increased $27 million in 2025 after the agency lost more than a quarter of its workforce; the IRS unilaterally rescinded its NTEU contract in February, removing the 12-hour-per-day cap.

• USPS Warns Cash Could Run Out in Early 2027: Postmaster General David Steiner told the USPS Board of Governors that layoffs, delivery cuts, and post office closures are "on the table" as the agency, with about 640,000 employees, has already suspended Federal Employees Retirement System (FERS) contributions to conserve cash.

Top Stories:

1. Former MSPB Officials Warn That OPM's Proposed Rules Would End Neutral Review of Federal Employee Appeals

Source: Federal News Network, May 19, 2026

TL;DR: The Office of Personnel Management has proposed three separate rules that would move jurisdiction over reduction-in-force (RIF), probationary, and suitability appeals away from the MSPB and into OPM's own Merit System Accountability and Compliance office. None of the rules has been finalized. At a May 13 Partnership for Public Service event, former MSPB member Raymond Limon and retired MSPB administrative judge Richard Vitaris said the changes would leave OPM "simultaneously writing the rules and judging your case under those rules" and would eliminate neutral adjudication, live-testimony hearings, and discovery. OPM senior adviser Noah Peters, in a May 5 Bloomberg Law opinion piece, argued the transfer is "lawful and necessary" and would reduce delay and cost. The proposed rules also limit reconsideration petitions and would replace discovery with an as-needed OPM-run "investigation or audit." Critics, including Democracy Forward, say the changes collapse the wall the 1978 Civil Service Reform Act built between OPM's workforce-policy role and MSPB's adjudicative role.

For federal employees, this means:

• If finalized, RIF, probationary, and suitability appeals would go to OPM rather than to an MSPB administrative judge — and OPM intends to decide most cases on the written record, without a hearing.

• Discovery, witness testimony, reconsideration rights, and federal court review of the agency action are all on the table to be cut or significantly limited.

• These are still proposed rules. Public comments, future rule challenges, and a final rule with an effective date will set the timeline; employees facing a possible RIF or probationary termination now should preserve documents and assess potential appeal routes under the current MSPB framework.

Legal Insight:
The MSPB has heard federal employee appeals since Congress created it in the Civil Service Reform Act of 1978, with appellate procedures codified at 5 U.S.C. § 7701 and adverse-action procedures at 5 U.S.C. § 7513. RIF retention rules sit at 5 U.S.C. § 3502 and 5 C.F.R. Part 351, and probationary appeal rights live at 5 C.F.R. § 315.806. OPM's proposal would not change those underlying statutes — it would change the regulatory forum, the procedures, and the depth of review. Anyone facing a current or imminent adverse action should not delay; appeal windows under 5 C.F.R. §§ 1201.22 and 1201.24 remain short, and the value of acting before any final rule takes effect is real. Consult a federal employment attorney before signing a separation agreement, releasing claims, or letting an appeal deadline lapse.

2. TIGTA: IRS Overtime Up 12% After Workforce Shrinks More Than 25% — Some Employees Reported Over 20 Hours in a Day

Source: Federal News Network, May 19, 2026

TL;DR: Two new TIGTA reports describe the workforce consequences of last year's IRS staffing cuts. Regular work hours fell 14% between 2024 and 2025 while overtime hours rose 12%, and the IRS spent about $27 million more on overtime in 2025 than in 2024. Some IRS divisions are now requiring mandatory weekend overtime to address backlogs. TIGTA identified roughly 300 IRS employees who reported working more than 12 hours in a day and 14 employees who reported working more than 20 hours in a single day; auditors did not determine whether the outlier entries were intentional or accidental but treated them as one-time occurrences. Frontline Taxpayer Services staff worked 87% of all overtime hours. The previous NTEU collective bargaining agreement (CBA) capped bargaining-unit overtime at 12 hours a day, but the IRS unilaterally rescinded that CBA in February 2026, and TIGTA notes the agency has not set any agency-wide overtime limits for non-bargaining-unit employees. A separate report found the agency's Zero Paper Initiative has scanned only about 5% of paper-return inventory despite $2.3 billion in contracts.

For federal employees, this means:

• Document overtime exactly: keep contemporaneous records of hours worked, supervisor instructions, and any pressure to underreport time; overtime pay rights for most General Schedule employees are set by 5 U.S.C. § 5542 and 5 C.F.R. Part 550, Subpart A.

• Bargaining-unit IRS employees who were covered by the rescinded NTEU CBA's 12-hour-day limit should not assume the cap is gone everywhere; collateral protections in past arbitration awards, current Memoranda of Understanding, and Federal Service Labor-Management Relations Statute obligations may still apply.

• If you are being directed into prolonged or unsafe overtime, on-the-job injury risk rises — Federal Employees' Compensation Act (FECA) claims under 5 U.S.C. § 8101 et seq. depend on timely reporting (CA-1 for traumatic injury, CA-2 for occupational disease) and on documentation tying the condition to the duty hours.

Legal Insight:
The IRS's February 2026 unilateral rescission of the NTEU master CBA does not, by itself, suspend federal employees' overtime-pay rights under 5 U.S.C. § 5542 or eligibility for compensatory time off under 5 U.S.C. § 5543. The Federal Service Labor-Management Relations Statute, 5 U.S.C. §§ 7101–7135, still governs how unilateral mid-term contract changes are evaluated; alleged refusals to bargain in good faith or repudiation of binding contract provisions can be pursued as unfair labor practices under 5 U.S.C. § 7116, subject to ongoing executive-order and litigation developments. Employees worried about hours, safety, or injury should preserve their own time records and incident reports; consult a federal employment attorney before signing a waiver of accrued overtime, comp time, or FECA-eligible claims.

3. USPS Postmaster General Floats Congressional Aid as Cash Crisis Nears — Layoffs and Delivery Cuts on the Table

Source: Federal News Network, May 8, 2026

TL;DR: At the U.S. Postal Service (USPS) Board of Governors public meeting on Friday, May 8, 2026, Postmaster General David Steiner said USPS could run out of cash in early 2027 if it continues to pay its bills on time, and that congressional financial assistance is one option lawmakers should consider. Steiner told the House Oversight Committee in March that cutting delivery days, closing post offices, and laying off employees were all "on the table" if USPS approached insolvency. USPS reported a $2 billion net loss for the second quarter of fiscal 2026, an improvement over the $3.3 billion second-quarter loss a year earlier. To conserve cash, USPS has told OPM it will hold off on its contributions to the Federal Employees Retirement System (FERS) — a move USPS leaders have described publicly and that the Postal Regulatory Commission has, in past cycles, addressed by waiver. USPS is also asking OPM to recalculate Civil Service Retirement System (CSRS) contributions, asking Congress to lift its $15 billion Treasury borrowing cap, and seeking authority to invest pension funds beyond Treasury bonds. Several House Republicans have publicly resisted further aid, citing the 2022 Postal Service Reform Act, which already erased about $107 billion in USPS liabilities.

For federal employees, this means:

• USPS employees: a future workforce-reduction scenario at USPS would proceed under the Postal Reorganization Act's labor framework and USPS's existing collective bargaining agreements with NALC, APWU, NPMHU, and NRLCA — not under Title 5 RIF rules — so review your contract's reassignment, severance, and protected-employee provisions now.

• FERS-covered postal employees should not assume the suspended employer contributions affect individual annuity calculations; FERS benefits are governed by 5 U.S.C. § 8401 et seq. and accrue based on creditable service and high-3 salary, not on whether USPS's employer share is paid current or deferred — but watch the Postal Regulatory Commission and OPM filings for confirmation.

• Postal retirees and CSRS-covered employees should track USPS's CSRS recalculation request closely; the dispute concerns the agency's share, not vested CSRS annuities under 5 U.S.C. § 8331 et seq., but proposed legislative fixes could affect cost-of-living adjustments or surplus-allocation rules.

Legal Insight:
USPS is a self-funded independent establishment under 39 U.S.C. § 101 et seq., and the 2022 Postal Service Reform Act (Pub. L. No. 117-108) restructured retiree health funding and certain CSRS obligations but did not give USPS authority to unilaterally reduce annuity-related benefits earned under FERS or CSRS. If layoffs or facility closures advance, USPS bargaining-unit employees retain rights under their CBAs and under Title 39's labor-relations provisions; non-bargaining-unit postal employees should evaluate the limited Title 5 protections available to them (e.g., MSPB appellate jurisdiction over USPS preference-eligible removals under 39 U.S.C. § 1005(a)). Watch the next Board of Governors meeting and any FY 2027 appropriations action for the operative dates.

Legal Tip of the Day

When You Receive Counseling or a Written Warning 

Early discipline may seem minor, but it can build a record over time. These documents often become part of a larger narrative. Respond thoughtfully if given the opportunity, and keep copies of everything. Note any inaccuracies or missing context. Even informal actions can matter later.

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