Second Verse, Same as the First
OPM Expands Suitability Rules to Reach Current Employees
Federal employees are held to high standards. They are expected to be loyal, trustworthy, and demonstrate good character and conduct. Federal agencies use a suitability adjudication process to examine applicants and decide whether they are “suitable” or “fit” for government service prior to their start date. You might not remember your initial suitability determination, but suitability just became a lot more relevant to your life as a federal employee.
On June 30, 2026, the Office of Personnel Management (OPM) issued revised regulations, which will go into effect later this month, that expand the suitability adjudication process to include current federal employees - not just applicants. This is a significant move that adds yet another way that federal employees can be removed from their positions, and puts more lasting career impacts, such as debarment from federal service, on the table.
In this post, we will take a deep dive into the current suitability adjudication process, the imminent changes, and what those changes could mean for your career.
Suitability Determinations: A Primer
The suitability adjudication process begins with a suitability or fitness determination. Suitability and fitness determinations typically occur after an individual has applied for a federal job, but prior to their start date. (“Suitability” is the term used when evaluating potential employees in the competitive service and “fitness” is used when evaluating potential employees in the excepted service. To simplify, I will use “suitability” throughout this post but be aware that both competitive and excepted service applicants and employees are impacted by these changes.)
The purpose of a suitability determination is to examine whether an individual is “suitable” for federal service, meaning their character or conduct would not adversely impact the integrity or efficiency of the federal service.
Suitability determinations must be based on one or more of the following nine factors:
Misconduct or negligence in employment;
Criminal conduct;
Material, intentional false statement, or deception or fraud, in examination or appointment;
Dishonest conduct;
Excessive alcohol use, without evidence of rehabilitation, of a nature and duration that suggests the applicant or appointee would be prevented from performing the duties of the position in question, or would constitute a direct threat to the property or safety of the applicant, appointee, or others;
Illegal use of narcotics, drugs, or other controlled substances, without evidence of rehabilitation;
Knowing and willful engagement in acts or activities designed to overthrow the U.S. Government by force;
Any statutory or regulatory bar that prevents the lawful employment of the individual in the position in question; and
Violent conduct.
5 CFR 731.202 (b)(1)-(9) (prior to June 30, 2026)
Most federal agencies have been delegated authority by OPM to examine these factors and make suitability determinations for job applicants and appointees, but OPM has ultimate responsibility for this process. There are also some egregious situations that only OPM can handle. For example, OPM handles cases that involve factors 3 and 7 above (material, intentional false statements/deception/fraud in examination or appointment and engagement in acts or activities designed to overthrow the U.S. government by force).
If an agency determines that an individual is not suitable for federal service, then a suitability action may be taken. Suitability actions include the following:
Cancellation of eligibility for the position the individual applied for.
Removal from federal service. (This could occur if the suitability determination was not complete prior to the individual’s start date.)
Cancellation of reinstatement eligibility.
Debarment. (This means the individual is barred from any federal position. This could be an agency-specific debarment or a government-wide debarment. Government-wide debarments must be referred to OPM for action. The debarment period could also have varying lengths of time.)
Generally, individuals who are subject to a suitability action must receive a notice of the proposed suitability action from either their agency or OPM, the right to respond to the notice, and a final written decision. Individuals also have the right to appeal suitability actions to the Merit Systems Protection Board (MSPB).
As you can see, suitability actions can have serious consequences – they can impact not only a current job application, but they could result in an individual being barred from future federal employment.
The New Rules of the Road
On March 20, 2025, President Trump directed OPM to expand the suitability adjudication process to include post-appointment conduct – meaning current federal employees will now be subject to suitability actions for things they did after they started their federal job. (March 20, 2025 Presidential Memorandum)
The final regulations implementing these changes were issued on June 30, 2026, and they will take effective on July 30, 2026. (June 30, 2026 Final Rule on Suitability and Fitness) As directed by the President, these regulations expand the suitability process to include current employees and their post-appointment conduct, but they also expand the list of factors that agencies and OPM may consider in making suitability determinations for applicants, appointees, and now - current employees.
First, factor one (misconduct or negligence in employment) has been expanded to include the following language:
(i) Theft or misuse of Government resources and equipment, or negligent loss of material Government resources and equipment during employment with, or on behalf of, the Federal Government or a state, territorial, or local government; and
(ii) Refusal to certify compliance with any applicable non-disclosure obligations consistent with 5 U.S.C. 2302(b)(13) and failure to adhere to those compliance obligations in the course of Federal employment.
5 CFR 731.202(1)(i)-(ii) (after June 30, 2026)
The new section (ii) is especially timely given OPM’s recent announcement that they intend to issue a government-wide non-disclosure agreement. (You can read more about OPM’s proposed non-disclosure agreement here: Everything Old is New Again) This change means that failure to certify compliance with this proposed agreement could result in a suitability action against you.
Next, the revised regulations include a new factor five, which states the following:
(5) Failure to comply with financial obligations or generally applicable civil legal obligations, such as timely filing of tax returns.
5 CFR 731.202(5) (after June 30, 2026)
This factor is consistent with recent efforts by the Internal Revenue Service (IRS) to target federal employees and retirees for tax enforcement. (Treasury Inspector General for Tax Administration (TIGTA) recently reported that over 571,000 employees and retirees owed approximately $6.3 billion in unpaid taxes as of Fiscal Year 2024 (June 25, 2026 House Oversight Committee Press Release)).
Finally, a new factor ten was introduced. It updates the old factor eight and states the following:
(10) Any statutory or regulatory bar or any other provision of law, regulation, Executive order, or other binding legal authority that prevents the lawful employment of the individual in the position in question, such as citizenship or nationality requirements
5 CFR 761.202(10) (after June 30, 2026)
The new regulations also state that OPM retains final authority to take a suitability action against a current employee for post-appointment misconduct. Agencies are expected to make initial assessments, but they must refer cases to OPM for evaluation. If OPM determines that a suitability action is appropriate, it will instruct the agency to remove the employee within five workdays.
Wait – There’s More?
Yes! The changes don’t stop here. OPM also has plans in the works to move employee appeals of suitability actions from the MSPB to OPM itself. (Remember - I mentioned above that individuals who are subject to a suitability action currently have the right to appeal that action to the MSPB). OPM issued proposed regulations for this change on February 6, 2026, and the public comment period closed on March 9, 2026. (February 6, 2026 Proposed Rule on Suitability Appeals)
We are still waiting on the final regulations to be issued, but we should expect movement in the coming months. If the proposed regulations are implemented, individuals (which now include current federal employees) would no longer be able to appeal a suitability action to the MSPB, and they would therefore lose their right to a hearing. Instead, individuals would have to file an appeal directly with OPM. Appeal requests would be adjudicated by OPM personnel, and a hearing would only be granted if OPM determines there is an insufficient written record to decide the appeal.
What Does This Mean for Me?
Bottomline - OPM’s revised regulations create new ways for employees to be removed from federal service and they now put debarment on the table.
You might be asking yourself why these new regulations are necessary. Couldn’t an agency discipline for post-appointment conduct under the regular adverse action procedures in 5 USC Chapter 75? (Read more about adverse action procedures here). The answer is yes – agencies can absolutely still discipline employees (including removal from federal service) for post-appointment conduct, and this concern was raised during the public comment period for these regulations. OPM’s response was that Chapter 75 procedures do not go far enough. With the new regulations, not only can an employee be removed from federal service, but they can now be barred from future government employment.
Further, if OPM’s proposed regulations on suitability appeals become a reality later this year, your appeal rights will change as well. As of today, you can still appeal suitability actions to the MSPB, but if OPM’s additional proposal is implemented, you will be required to route your appeal to OPM (not the MSPB) and you will not be guaranteed a hearing.
If you receive a notice of a suitability action under these new regulations, it is wise to reach out to federal employment law attorney to help navigate this new and evolving landscape. Changes continue to come on multiple fronts. As always, staying informed and seeking help when needed is your best defense!
