Federal employees in deferred resignation programs and those receiving reduction-in-force notices face new limits on administrative leave starting November 18, as the Office of Personnel Management converts previously non-binding guidance into enforceable regulation and caps deferred-resignation leave at 12 weeks per individual instance.
The rule takes effect November 18, and fills a gap left by a December 17, 2024 rule that created the administrative leave framework but never enumerated what agencies could or could not do with it.
OPM estimated that deferred-resignation program separations in 2025 represented a workforce reduction of over six percent, contributing to an overall federal workforce reduction of over 12 percent from December 2024 to March 2026. OPM says the rule supports a "leaner, less expensive, less wasteful, more efficient, and more mission-focused Federal workforce."
GAO estimated deferred-resignation leave cost agencies at least $6.7 billion in 2025, below the $11 billion figure commenters cited and above the $4.5 billion salary-and-benefits figure they also cited, while OPM Director Scott Kupor called the cost a good investment in view of long-term savings.
OPM estimated that one-time deferred-resignation administrative leave costs represent less than three percent of total basic payroll for federal employees, and said it does not project the rule itself will produce costs or savings approaching the $100 million annual significance threshold because it codifies policies already operating across the government.
Under the final rule, agencies have sole and exclusive discretion to accept or deny an employee's request to withdraw a resignation before its effective date. An employee's acceptance of benefits under a deferred-resignation agreement, including paid administrative leave, is now codified as a valid reason to deny that withdrawal request. OPM said the number of resignation-withdrawal cases affected by this change "would be very small."
For employees receiving reduction-in-force notices, agencies may place a worker on administrative leave for all or part of the period between receipt of the notice and the separation date when the agency determines it is in the government's best interests, but are not required to do so. All reduction-in-force procedural requirements, including retention registers, veterans' preference, and appeal rights, continue to apply in full.
The rule also adds three new binding prohibitions: agencies may not use administrative leave for investigative purposes once an employee has reached the statutory 10-workday calendar-year limit, for any purpose for which sick leave could be used unless specifically approved by OPM or presidential policy, or to cover service by poll workers or poll observers.
Unions and employee advocacy groups argued in comments that using administrative leave for workforce restructuring bypasses the legal safeguards built into reduction-in-force procedures, and that the statutory authority OPM relies on cannot fund what one group called "a massive governmentwide paid separation benefit." OPM responded that deferred-resignation administrative leave is voluntary, does not displace any reduction-in-force requirement, and is a lawful exercise of its statutory authority.
OPM received 30 comments during the 30-day comment period on the June 29 proposed rule, from individuals, one agency, two unions, and three employee advocacy groups. The agency made one substantive change from the proposal in response to comments, adding a provision permitting limited administrative leave for approved physical fitness activities.
FEDweek reported that some participants in the 2025 deferred-resignation program remained on leave for six months or more; the 12-week cap codified in the final rule applies beginning calendar year 2026, with a higher threshold available only if OPM and the Office of Management and Budget jointly approve it.
The rule takes effect November 18; comments on docket OPM-2026-0397 are available at regulations.gov.
Access the Legis1 platform for comprehensive political news, data, and insights.
Spot something wrong? Report an issue with this article
