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Top Three News Stories:

1. FDIC Plans 20 Percent Workforce Cut

Internal emails reveal the Federal Deposit Insurance Corporation will reduce staff by roughly 1,250 positions—about 20 percent of its 6,900‑person workforce—as part of the administration’s broader downsizing push. Voluntary early‑out and buyout offers start immediately, with involuntary layoffs scheduled to begin after May 13 if targets aren’t met. Critical functions tied to failed‑bank resolution will be exempt, but most compliance, IT‑support, and administrative roles are on the list. Reuters

Legal Insight: 

Because the FDIC is a Title 12 independent agency, it must still follow RIF procedures in 5 C.F.R. Part 351, including retention registers and veterans’ preference calculations. Employees offered “voluntary” packages should insist on written terms detailing lump‑sum severance versus phased retirement pay to avoid Anti‑Deficiency Act problems if funds run short. Those in designated “critical” roles who are denied exit incentives should document disparity to preserve future constructive‑discharge claims.

2. Judge Orders Agencies to Retract “Sham” Rationale for Mass Probationary Firings

U.S. District Judge William Alsup directed six agencies to issue written statements admitting that February’s mass termination of nearly 17,000 probationary employees was not based on poor performance, calling the original justification a “total sham.” Although the Supreme Court stayed Alsup’s reinstatement order, agencies must correct personnel records by May 8 while litigation proceeds. Reuters

Legal Insight:

Formal retractions strengthen employees’ MSPB and EEO claims by dismantling the performance narrative often used to deny remedies. Agencies that re‑fire the same workers without individualized review risk violating Loudermill due‑process standards and could face contempt sanctions. Affected employees should request amended SF‑50s once notices issue; a clean record is essential for back‑pay calculations under 5 U.S.C. § 5596 and for clearing suitability flags in future background checks.

3. AFGE Moves to Dismiss Administration’s Pre‑emptive Union‑Rights Lawsuit

The American Federation of Government Employees asked a federal court to throw out the White House’s unusual suit seeking a declaratory judgment that its executive order stripping collective‑bargaining rights from two‑thirds of federal workers is lawful. AFGE argues the administration has no standing because it faces no imminent injury and merely seeks an advisory opinion. A related National Treasury Employees Union case will be heard later this week. Government Executive

Legal Insight:

Mindful Moment of the Day: