On July 8, 2025, the U.S. Supreme Court ruled that federal agencies can resume conducting reductions in force (RIFs) in compliance with the Trump Administration’s directive to substantially reduce the size of the federal workforce. In doing so, the Court suspended a preliminary injunction issued by the U.S. District Court for the Northern District of California, which had prevented enforcement of President Trump’s Executive Order No. 14210 and a joint memorandum from the Office of Management and Budget (OMB) and Office of Personnel Management (OPM) implementing that Executive Order on the basis that they were unlawful.
The Supreme Court disagreed. In its order suspending (or “staying”) the preliminary injunction, the Court wrote:
“Because the Government is likely to succeed on its argument that the Executive Order and Memorandum are lawful—and because the other factors bearing on whether to grant a stay are satisfied—we grant the application [to stay enforcement of the preliminary injunction].”
Importantly, however, the Court also made clear that it “express[ed] no view on the legality of any Agency RIF and Reorganization Plan produced or approved pursuant to the Executive Order and Memorandum.” Thus, RIFs conducted pursuant to Executive Order No. 14210 and the OMB and OPM’s joint memorandum remain subject to the federal laws and regulations that have long been in place—at least for now. With this in mind, here is an overview of what federal employees need to know about their legal rights during (and after) the reduction in force process:
Understanding When Federal Layoffs Constitute a Reduction in Force (RIF)
For federal employees who are at risk of losing their jobs, it is critical to understand whether their agency’s action qualifies as a reduction in force (RIF). This is because different laws and regulations apply to RIFs and non-RIF terminations.
So, what is a RIF?
As the OPM explains, “[a]n agency must use the RIF regulations before separating or demoting an employee because of an organizational reason such as reorganization, including lack of work, shortage of funds, insufficient personnel ceiling, or the exercise of certain reemployment or restoration rights.” As the OPM also explains, “[w]hen an agency must abolish positions, the RIF regulations [Title 5, Code of Federal Regulations, Part 351] determine whether an employee keeps his or her present position, or whether the employee has a right to a different position.”
In short, a RIF occurs when a federal agency eliminates positions within its ranks. This includes eliminating positions in response to directives from the White House, the OMB, and the OPM.
Understanding the Federal Regulations that Govern Reductions in Force (RIFs)
As the OPM makes clear, “[f]ederal agencies must follow the procedures contained in the Code of Federal Regulations when conducting a RIF.” The relevant regulations address various aspects of the RIF process, including (but not limited to):
- Notice and timing requirements for federal employee terminations
- Furloughs and other employment actions in lieu of terminations (which may still constitute RIFs)
- The establishment of “competitive areas” and “competitive levels” for RIFs
- “Retention factors” for determining priority in RIFs (including type of employment, length of service, performance ratings, and veterans’ preference)
- Benefits available to separated employees
The retention factors referenced above play a key role in federal reductions in force, and as a federal employee, it is important to make sure you understand how these factors apply to you. If you lose your federal job and your agency has not applied the retention factors correctly, this—among other issues—could provide you with grounds to pursue legal action.
What if Your Agency Wrongfully Terminated Your Employment During a RIF?
While federal agencies have broad authority to conduct RIFs in accordance with the relevant federal regulations and OPM guidelines, RIFs still can—and often do—violate federal employees’ rights. Some examples of potential violations during the RIF process include:
- Conducting a reduction in force for an unlawful purpose or on unlawful grounds
- Failing to provide the required notice (which is 60 days’ advance written notice in most cases)
- Failing to properly apply one or more of the mandatory retention factors
- Failing to properly apply the federal priority reemployment rules
- Otherwise failing to take the steps necessary to conduct a federally compliant RIF
Additionally, during the RIF process, the anti-discrimination provisions that prohibit adverse employment actions based on employees’ protected characteristics (including age, color, disability, genetic information, political affiliation, race, religion, sex, and sexual orientation) still apply. This means that federal agencies cannot violate the protections afforded under Title VII of the Civil Rights Act of 1964 (Title VII), the Age Discrimination in Employment Act (ADEA), the Rehabilitation Act, or other federal laws when conducting reductions in force. Regardless of the overarching circumstances, unlawful discrimination provides clear grounds for terminated federal employees to seek appropriate remedies.
If your federal agency wrongfully terminated your employment during a reduction in force (or a purported reduction in force), the steps you need to take to seek appropriate remedies depend on the specific violation at issue. In some cases, terminated federal employees will need to file appeals with the Merit Systems Protection Board (MSPB). In others, they will need to file complaints with the U.S. Equal Employment Opportunity Commission (EEOC) or the Office of Special Counsel (OSC). There are other possibilities as well, and to ensure that you are taking the correct steps to assert your legal rights, you will want to consult with an experienced New York federal employment attorney as soon as possible.
Discuss Your Legal Rights with a New York Federal Employment Attorney at Bell Law Group
If you lost your job during a federal reduction in force, or if you have concerns about losing your job during a federal reduction in force, our attorneys can explain everything you need to know. To discuss your legal rights with an experienced New York federal employment attorney at Bell Law Group, give us a call at 516-280-3008 or request a confidential initial consultation online today.
