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Top Three News Stories:

1. Fired, Rehired and Fired Again: Some Federal Workers Find They’re Suddenly Uninsured

Federal employees at the Commerce Department’s CHIPS for America program were fired, reinstated after a court order, and then fired again within weeks. During the reinstatement, officials told employees their FEHB health insurance would remain active, even issuing new insurance cards. Workers later learned their insurance had actually lapsed retroactively, leaving them responsible for major medical bills without warning. Many are now scrambling to secure costly temporary coverage and facing financial distress. Conflicting guidance and lack of transparency deepened the fallout across the workforce. NPR.org

Agencies must provide a full 31-day temporary extension of FEHB coverage after separation under 5 C.F.R. § 890.401. Retroactively terminating coverage without notice risks violating the Back Pay Act, which could entitle affected employees to reimbursement for medical expenses. Employees should immediately preserve all correspondence, SF-50s, and insurance records to protect potential claims. Miscommunication during separation and reinstatement processes may also give rise to claims under procedural due process principles if employees can show harm caused by the agency’s actions.

2. Black Federal Employees Brace for the New Wave of Layoffs

NPR reports that Black federal workers, who make up about 18 percent of the government’s workforce, are being disproportionately affected by recent layoffs and restructuring. Federal jobs have historically provided a critical path to middle-class stability for Black families, offering wages and benefits unavailable elsewhere. With DEI programs being rolled back and mass layoffs underway, many Black employees are seeing decades of progress threatened. Families are delaying home purchases and higher education plans, fearing financial instability. Advocates warn that this targeted impact could widen racial wealth gaps and erode longstanding diversity in the civil service. NPR.org

Legal Insight:

Title VII permits disparate impact claims where a facially neutral policy disproportionately harms a protected group. Affected employees must initiate EEO counseling within 45 days of any personnel action to preserve their rights. Requesting retention registers and RIF documentation early is critical to identifying patterns of discrimination. Statistical disparities, combined with evidence of rollback of diversity initiatives, may strengthen claims of systemic bias under Title VII and constitutional equal protection principles.

3. House GOP Floats Plan to Trim Federal Pensions

House Republicans have proposed legislation to raise employee pension contributions and shift the “high-three” salary calculation to a five-year average, effectively lowering federal retirement benefits. The plan would also reduce cost-of-living adjustments for CSRS and FERS retirees, while offering less generous formulas to new hires. Analysts predict the changes would cut lifetime retirement income for many career employees by tens of thousands of dollars. Federal unions and watchdogs warn that these cuts could worsen retention problems across critical agencies. A committee vote on the measure could happen as soon as next week, setting up a fast-moving legislative fight. Bloomberg

Legal Insight:

Mindful Moment of the Day: