0:00
Hi, I'm Ian Smith with fedsmith.com and
0:03
today we're taking a closer look at a
0:05
new rule from the Office of Personnel
0:08
Management that affects federal
0:09
employees at the Department of Veterans
0:13
On July 25th, OPM issued a final rule in
0:17
the Federal Register set to go into
0:19
effect on August 25th, 2025
0:23
that outlines how VA employees, both
0:26
current and former, can appeal decisions
0:29
to recoup financial awards, bonuses, and
0:35
This rule stems from the VA
0:37
accountability and whistleblower
0:38
protection act of 2017
0:42
which gave the VA secretary authority to
0:45
claw back payments if misconduct, poor
0:48
performance, fraud, or malfeasants is
0:52
discovered after the fact. Here's what
0:55
federal employees need to know. If the
0:58
VA determines that an award or bonus was
1:01
paid in error, perhaps due to misconduct
1:04
that wasn't known at the time, they can
1:07
issue a recoupment order. The same
1:10
applies to relocation expenses that were
1:12
authorized based on fraudulent actions.
1:16
Before issuing a final order, the VA
1:19
must notify the employee and give him or
1:21
her 10 business days to respond. This is
1:25
the employees opportunity to provide
1:27
context or challenge the proposed
1:30
recoupment. If the VA proceeds with the
1:33
order, the employee can appeal to the
1:35
director of OPM. That appeal must be
1:38
submitted in writing within seven
1:40
business days and include key documents
1:43
such as the original order, the
1:45
employees response, and a written
1:48
explanation of why the order is
1:51
OPM will then review the appeal based
1:54
solely on the written record. They'll
1:56
issue a decision within 30 business days
1:59
and that decision is final. There's no
2:02
further administrative review from
2:07
It's important to note that OPM won't
2:09
revisit the underlying disciplinary
2:11
action. Their role is limited to
2:14
reviewing whether the VA followed proper
2:16
procedures in issuing the recruitment
2:18
order. So if an employee wants to
2:22
challenge the facts of the misconduct
2:24
itself, they'll need to pursue other
2:26
legal avenues. Also, the rule doesn't
2:30
specify whether judicial review is
2:32
available. OPM won't include an appeal
2:35
rights statement with its decision. So
2:38
employees may need to consult legal
2:40
counsel if they're considering further
2:42
action. The burden of proof lies with
2:45
the employee. You must show that your
2:48
appeal is timely and that the VA's order
2:50
was issued in error. If you miss a
2:53
deadline or fail to provide the required
2:55
information, OPM may hold the VA's
2:58
decision by default. So, what's the
3:02
This rule provides a structured
3:04
framework for appeals, but it also
3:06
places a heavy responsibility on
3:08
employees to act quickly and thoroughly.
3:11
If you're facing a recruitment order,
3:14
it's essential to understand your
3:15
rights, gather documentation, and
3:18
respond within the required time frames.
3:21
To read the full article on this and see
3:24
the specific provisions, head over to
3:28
I'll include a link in the description
3:30
below. Thanks for listening, and if you
3:32
found this helpful, please consider
3:34
subscribing for more updates on current
3:37
events that impact federal employees.
