FR 2024-29139

Overview:

The Office of Personnel Management (OPM) has introduced a new rule, stemming from the Administrative Leave Act of 2016. The rule establishes clear guidelines for the use of particular types of paid leave for federal employees: administrative leave, investigative leave, and notice leave. These guidelines are effective from January 2025. The primary aim is to ensure that these leaves are used appropriately, recorded accurately, and reported consistently across federal agencies. This initiative seeks to improve transparency, efficiency, and accountability in handling employee leave, particularly in scenarios involving investigations or potential workplace disruptions.

Significant Issues and Concerns:

One of the most noticeable issues is the complexity and density of the document's language, which might impede comprehension for those not well-versed in federal leave policies. This complexity could make it challenging for some to fully grasp the implications and requirements of the new rule.

The cost estimation and justification for the rule's implementation are somewhat vague. The document outlines average salaries and anticipated costs but does not adequately detail specific assumptions, such as the average time needed for agencies to modify their systems and policies.

There are also potential legal concerns. For instance, the possibility of a "constructive suspension" arises if an employee is placed on unpaid leave after exhausting the ten-day limit for administrative leave linked to investigations. This situation could provoke legal challenges.

Furthermore, the rule delegates discretion to various agency officials regarding leave policy execution, potentially leading to inconsistent application across different federal agencies. This variability might cause disputes over inequitable applications of the rules.

Impact on the Public:

Broadly, the new rule should enhance government transparency regarding employee leave, potentially leading to more efficient use of taxpayer funds by curbing excessive leave periods. The improved record-keeping could also aid in maintaining government accountability, providing the public with assurance that employee leave is managed effectively.

However, the complexity and stringency of these new rules could lead to administrative challenges that might inadvertently increase inefficiency in some cases. For instance, the processes required for investigative leave extensions could prove cumbersome, resulting in bureaucratic delays.

Impact on Specific Stakeholders:

Federal employees subjected to investigations will be directly impacted, as their leave status and working conditions during such investigations may change. The requirement for "prompt" readiness to return to duty is presently vague, leading to potential inconsistencies in how agencies enforce this rule.

Agencies face the significant burden of updating their policies and systems to comply with the new reporting and coordination demands, particularly around telework as an option instead of investigation-related leave. This might require additional investments in technology infrastructure and staff training.

Legal and human resources departments within federal agencies will likely see an increase in workload due to new approvals and reporting mandates. They may also need to respond to potentially higher volumes of Prohibited Personnel Practice complaints as noted in the estimated rise over pre-pandemic levels.

Overall, while the rule aims to create robust and consistent leave management practices, its implications call for careful consideration and execution to ensure that it does not inadvertently introduce inefficiencies or legal complications.

The final rule discusses several financial aspects regarding the implementation and impact of the new federal leave policies under the Administrative Leave Act of 2016. These financial references provide insights into the estimated costs and implications of these leave policies on federal agencies and the government as a whole.

Cost Estimations and Assumptions

The document provides an estimate of the $1.4 billion annual cost of administrative leave, including weather and safety leave, reflecting 0.61% of total basic salary costs for all full-time and part-time Federal employees. This estimate is based on previous data assessments and represents a significant portion of salary expenses attributed to paid leave. Additionally, it highlights the implementation of significant accountability and transparency measures to reduce unwarranted use of administrative leave.

For the cost analysis of regulatory changes, the assumed average salary rate for the employees involved in updating systems and policies is set at the 2024 GS-14, step 5 rate for the Washington, DC area, which is $157,982 annually or $75.70 per hour. The total labor cost, inclusive of wages, benefits, and overheads, is estimated to double to $151.40 per hour. These assumptions highlight a lack of granularity, as some specifics, such as the average number of hours needed for system updates, are not detailed, potentially influencing the precision of cost forecasts.

Implementation Costs

The first-year cost of implementation is estimated at about 160 hours of work per agency with an average hourly cost leading to an estimated $24,224 per agency. Overall, this translates to an anticipated total Governmentwide cost of $2.9 million for implementing the final rule. These costs pertain to necessary adjustments in agencies' policies, procedures, and data systems, highlighting the potential administrative burden placed on agencies.

Operational Costs and Agency Impacts

In terms of managing investigative and notice leave, there are projected costs for administrative and investigative leave and notice leave totaling $37.8 million annually Governmentwide. Specifically, administrative and investigative leave costs are calculated to be $31.4 million, while notice leave costs are estimated at $6.4 million. This substantial financial allocation suggests a need for careful management to mitigate excessive leave use, an issue underscored by the document.

In particular, for specific agency types, the financial impact varies: a cabinet-level agency incurs $24 million in administrative and investigative leave costs and $4.9 million in notice leave costs. At the same time, costs for large, medium, and small independent agencies are commensurately lower, but collectively contribute significantly to overall expenses.

Potential for Increased Costs

There is a recognition of a potential increase in Prohibited Personnel Practice (PPP) complaints due to new leave rules—a 1% increase over pre-pandemic complaint levels is anticipated, equating to roughly 40 new complaints. With each incident costing about $6,728, this could result in an approximate $269,120 increase in governmentwide costs. This projection underscores the risk of unforeseen administrative expenses that could contribute to the financial burden.

Overall Impact

The discussion of financial allocations and costs in the document reveals a complex landscape of administrative and operational expenses associated with federal leave reforms. The strategic considerations and potential implications call for careful credential management to ensure the policy objectives are met without disproportionate financial impact or administrative inefficiency.