Opinion

Treasury, Interested Terminated Probationary Employees v. Office of Personnel Management

Court
Merit Systems Protection Board
Filed
Jun 18, 2026
Status
Unpublished
Cited by
0 cases

The opinion

NITED STATES OF AMERICA

MERIT SYSTEMS PROTECTION BOARD

INTERESTED TERMINATED DOCKET NUMBER

PROBATIONARY EMPLOYEES - CB-1205-25-0028-U-1

TREASURY,

Petitioners,

v.

OFFICE OF PERSONNEL DATE: June 18, 2026

MANAGEMENT,

Agency.

and

DEPARTMENT OF THE TREASURY,

Agency.

THIS FINAL ORDER IS NONPRECEDENTIAL 1

Debra D’Agostino , Esquire, Ricardo Pitts-Wiley , Esquire,

Joanna Friedman , Esquire, and Heather White , Esquire,

Washington, D.C., for the petitioners.

D. Black , Esquire, Eyana Esters , Esquire, Michele Bloom , Esquire,

Allison Kidd-Miller , Esquire, and Alex Ehler , Esquire,

Washington, D.C., for the Office of Personnel Management.

Richard F. Johns , Esquire, Washington, D.C.,

for the Department of the Treasury.

1

A nonprecedential order is one that the Board has determined does not add

significantly to the body of MSPB case law. Parties may cite nonprecedential orders,

but such orders have no precedential value; the Board and administrative judges are not

required to follow or distinguish them in any future decisions. In contrast, a

precedential decision issued as an Opinion and Order has been identified by the Board

as significantly contributing to the Board’s case law. See 5 C.F.R. § 1201.117(c).

2

BEFORE

Henry J. Kerner, Vice Chairman

James J. Woodruff II, Member

FINAL ORDER

The petitioners, interested probationary employees terminated from the

Department of the Treasury (Treasury), request that the Board review under

5 U.S.C. § 1204(f) whether 10 Federal agencies, including Treasury, invalidly

implemented Office of Personnel Management (OPM) regulations when they

terminated the petitioners and thousands of similarly situated employees during

their probationary periods on and shortly after February 14, 2025. 2 For the

reasons discussed below, we DENY the request for regulation review.

BACKGROUND

On January 20, 2025, OPM issued a memorandum to agency heads

directing them to identify “all employees on probationary periods, who have

served less than a year in a competitive service appointment, or who have served

less than two years in an excepted service appointment” and to “promptly

determine whether those employees should be retained at the agency.” Request

File (RF), Tab 1 at 18-20. On January 28, 2025, OPM sent an email to all Federal

2

The request for regulation review was submitted on behalf of 55 interested individuals

who were terminated during their probationary periods from 1 of 10 employing

agencies: Department of Commerce, Department of Energy, Department of Health and

Human Services, Department of Homeland Security, U.S. Agency for International

Development, Department of the Interior, Department of Transportation, Department of

the Treasury, Department of Veterans Affairs, and Department of Agriculture. Request

File (RF), Tab 1 at 1, 15-16. The Board grouped the interested individuals by

employing agency and docketed separate requests for regulation review for each group,

resulting in a separate regulation review request for each agency alleged to have

invalidly implemented the regulations. See RF, Tab 2 at 1. The instant request,

Interested Terminated Probationary Employees – Treasury v. OPM and Treasury ,

MSPB Docket No. CB-1205-25-0028-U-1, has been docketed on behalf of interested

individuals terminated from Treasury, as identified by Exhibit 1 of the request for

regulation review. Id.; RF, Tab 1 at 15-16.

3

employees titled “Fork in the Road,” offering a “deferred resignation” program

and stating that “the majority of federal agencies are likely to be downsized,”

including through reductions in force and furloughs. Id. at 22-24. Approximately

2 weeks later, on February 14, 2025, the Chief Human Capital Officers (CHCO)

Council emailed the agency CHCOs and Deputy CHCOs, stating that “[w]e have

asked that you separate probationary employees that you have not identified as

mission-critical no later than end of the day Monday, 2/17” and attaching a

template letter. Id. at 5, 26-27. According to the petitioners, “[b]eginning that

very day, February 14, 202[5], upon receipt of this email, agencies terminated the

interested persons and thousands of similarly situated probationers.” Id. at 6.

The petitioners noted that the termination notices were all similar and cited, as

examples, notices from four different agencies issued from February 14-20, 2025.

Id. at 6-9.

On March 7, 2025, the petitioners filed the instant request for regulation

review, arguing that the agencies, including Treasury, invalidly implemented

OPM regulations at 5 C.F.R. §§ 315.803(a), .804(a) in conducting the

government-wide probationary terminations. RF, Tabs 1, 16. These provisions,

as they existed at the time of the challenged terminations, provided: 3

The agency shall utilize the probationary period as fully as possible

to determine the fitness of the employee and shall terminate his or

her services during this period if the employee fails to demonstrate

fully his or her qualifications for continued employment.

5 C.F.R. § 315.803(a);

Subject to § 315.803(b), when an agency decides to terminate an

employee serving a probationary or trial period because his work

performance or conduct during this period fails to demonstrate his

3

On April 24, 2025, President Trump issued Executive Order 14284 declaring the

regulations at 5 C.F.R. part 315, subpart H, which includes 5 C.F.R. §§ 315.803-.804,

“inoperative and without effect.” Exec. Order No. 14284, Strengthening Probationary

Periods in the Federal Service, 90 Fed. Reg. 17729 (Apr. 24, 2025). OPM formally

eliminated these provisions by final rule on June 24, 2025. Strengthening Probationary

Periods in the Federal Service, 90 Fed. Reg. 26727-01, 26729 (June 24, 2025).

4

fitness or his qualifications for continued employment, it shall

terminate his services by notifying him in writing as to why he is

being separated and the effective date of the action. The information

in the notice as to why the employee is being terminated shall, as a

minimum, consist of the agency’s conclusions as to the inadequacies

of his performance or conduct.

5 C.F.R. § 315.804(a).

The petitioners argue that the agencies violated these provisions by:

(1) failing to conduct the individualized assessments required by 5 C.F.R.

§ 315.803(a) to determine whether each probationary employee “fail[ed] to

demonstrate fully his or her qualifications for continued employment”; and

(2) terminating probationary employees for reasons not permitted under 5 C.F.R.

§ 315.804(a)—namely, to downsize the Federal workforce, rather than for an

individual’s “work performance or conduct during this period [that] fails to

demonstrate his fitness or his qualifications for continued employment.” RF,

Tab 1 at 4-6, Tab 16 at 7-13. The petitioners further argue that the en masse

termination of probationary employees amounted to an unlawful reduction in

force (RIF), taken without regard to the requirements of 5 C.F.R. part 351. RF,

Tab 1 at 4-8. Lastly, they argue that the agencies’ actions constituted a

prohibited personnel practice under 5 U.S.C. § 2302(b)(12). 4 Id. at 9-10.

In their oppositions to the petitioners’ request for regulation review, OPM

and Treasury argue that the request must be dismissed for lack of jurisdiction or,

4

Under 5 U.S.C. § 2302(b)(12), it is a prohibited personnel practice to take personnel

action that violates a law, rule, or regulation implementing, or directly concerning, a

merit system principle. The petitioners assert that 5 C.F.R. §§ 315.803-.804 and

5 C.F.R. part 351 are regulations that directly concern the merit system principles,

including 5 U.S.C. § 2301(b)(5) (“The Federal work force should be used efficiently

and effectively”); (b)(6) (“Employees should be retained on the basis of the adequacy of

their performance, inadequate performance should be corrected, and employees should

be separated who cannot or will not improve their performance to meet required

standards”); and (b)(8)(A) (“Employees should be (A) protected against arbitrary

action, personal favoritism, or coercion for partisan political purposes”).

5

in the alternative, for failure to meet the Board’s prudential criteria for review. 5

RF, Tabs 12-13. Treasury additionally argues that the request must be dismissed

as moot because it canceled the February 2025 probationary terminations and

reinstated, or offered to reinstate, the affected employees with back pay and

benefits, including the interested persons named in the regulation review request.

RF, Tab 12 at 10-13. The petitioners concede that “it appears” that Treasury has

canceled the challenged probationary terminations and provided all the relief they

were seeking. RF, Tab 16 at 4-5.

ANALYSIS

Under 5 U.S.C. § 1204(f), the Board has original jurisdiction to review

rules and regulations issued by OPM and to declare such provisions invalid on

their face or invalidly implemented by any agency. Tabradillo v. Office of

Personnel Management, 93 M.S.P.R. 257, ¶ 3 (2003). The Board will declare a

regulation “invalidly implemented by any agency, if the Board determines that

such provision, as it has been implemented by the agency through any personnel

action taken by the agency or through any policy adopted by the agency in

conformity with such provision, has required any employee to violate

section 2302(b).” 5 U.S.C. § 1204(f)(2)(B).

5

The Office of Special Counsel (OSC) submitted an amicus brief recommending that

the Board deny the petitioners’ request for review. RF, Tab 7. The petitioners moved

to strike the amicus brief because OSC lacked the authority to submit the brief under

5 U.S.C. § 1212(h)(1) and was not invited to submit it by the Board. RF, Tab 8. We

agree that OSC does not have a statutory right under section 1212(h)(1) to submit an

amicus brief in this administrative proceeding. See 5 U.S.C. § 1212(h)(1) (providing

that OSC has the right to appear as an amicus curiae “in any action brought in a court of

the United States related to section 2302(b)(8) or (9)” (emphasis added)). In addition,

OSC’s amicus brief is not permitted under the Board’s regulations because the Board

did not request it, and OSC did not request (or receive) permission to submit an amicus

brief. See 5 C.F.R. § 1203.13(b)-(c) (providing that, in a request for regulation review,

the Board will consider pleadings in addition to the request, a response to the request, a

reply, motions, and oppositions to those motions, “only if the Board requests them, or if

it grants a request that it consider them.”). Accordingly, we do not consider OSC’s

amicus brief.

6

The petitioners seek regulation review pursuant to 5 U.S.C.

§ 1204(f)(1)(B), which provides that an “interested person” may request

regulation review. The term “interested person” has not been defined in the

statute or in the relevant regulations. Jones v. Office of Personnel Management,

107 M.S.P.R. 115, ¶ 8 (2007); 5 C.F.R. §§ 1203.1-.22. However, the Board has

interpreted the plain meaning of that term to signify that the petitioning person

must have an interest in having the Board review the regulation or rule in

question because it has some applicability to him or her. Jones, 107 M.S.P.R.

115, ¶ 8. Thus, the question of whether a petitioner is an “interested person” is a

“standing” issue. Id., ¶ 9 (citing Senior Executives Association v. Office of

Personnel Management, 67 M.S.P.R. 643, 648 (1995)).

As noted above, Treasury stated in its response to the petitioners’ request

for regulation review that the probationary terminations at issue have been

canceled. RF, Tab 12 at 10-11. In support, Treasury provided declarations under

penalty of perjury attesting that all the probationary terminations effected

between February 19 and March 7, 2025, have been canceled, and the affected

employees reinstated or offered reinstatement with back pay and benefits for the

period of separation. Id. at 14-24. The petitioners replied that, based on

declarations provided by agency officials in Maryland v. U.S. Department of

Agriculture, No. 25-cv-00748 (D. Md.), “it appears these agencies [including

Treasury] have all rescinded the terminations of probationary employees done en

masse on or shortly after February 14, 2025.” RF, Tab 16 at 4-5. The petitioners

note that the Treasury official’s district court declaration states that Treasury has

reinstated 7,560 of the 7,611 terminated probationary employees, with the

remainder declining reinstatement. Id. at 5 n.10. Additionally, the petitioners

conceded that, “to the extent the agencies have rescinded in full the terminations

of probationary employees executed en mass [sic] on or shortly after February 14,

2025, the agencies have provided the relief sought in the [request for regulation

review].” Id. at 13.

7

Since the record reflects, and the parties appear to agree, that the

terminations underlying this request for regulation review have been rescinded,

the alleged invalid implementation of the regulations is no longer applicable to

the petitioners. As such, the petitioners do not qualify as “interested person[s]”

entitled to request Board review of OPM’s regulations under 5 U.S.C.

§ 1204(f)(1)(B). We therefore find that the petitioners do not have standing to

request regulation review in this case, and their petition must be denied on that

basis. Cf. Jones, 107 M.S.P.R. 115, ¶ 8.

ORDER

The petitioners’ request for regulation review is denied. Title 5 of the

Code of Federal Regulations, section 1203.12(a) (5 C.F.R. § 1203.12(a)).

FOR THE BOARD: ______________________________

Gina K. Grippando

Clerk of the Board

Washington, D.C.

This is a copy of a public record, reproduced as it was published. It is not legal advice, and it may not be the version a court would rely on. Check the official source before you cite it.

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