This bill denies annual pay increases and locality adjustments to federal employees who telework one day or more per week. It aims to incentivize federal workers to return to physical offices by withholding pay raises from remote workers.
Latest Action
Referred to the House Committee on Oversight and Government Reform.
AI Summary
Plain-English explanation of this bill
This bill denies annual pay increases and locality adjustments to federal employees who telework one day or more per week. It aims to incentivize federal workers to return to physical offices by withholding pay raises from remote workers.
Last updated: 1/5/2026
Official Summary
Congressional Research Service summary
<p><strong>Federal Employee Return to Work Act</strong></p><p>This bill prohibits providing certain annual or locality-based pay increases to teleworking federal employees.</p><p>Currently, federal law mandates annual adjustments to General Schedule (GS) pay rates according to (1) a formula based on the annual percentage change in the Employment Cost Index (a measure of labor costs in the private sector); and (2) the difference between public and private sector pay rates in an employee's locality, if that difference exceeds 5%. For example, in 2025, the default annual rate of pay for a GS-7 (step 1) employee is $49,960; the adjusted annual rate of pay for a GS-7 (step 1) employee in the locality pay area that includes Washington, DC, is $57,164. </p><p>The bill makes executive agency employees who telework at least one day each week (or, in the case of an alternative work schedule, 20% or more each week) ineligible for these payments.</p><p>The bill is effective on the first day of the fiscal year beginning after the bill's enactment. </p><p> </p>
Key Points
Main provisions of the bill
Denies pay increases to teleworking federal employees
Applies if teleworking 1 or more days per week
Affects annual General Schedule adjustments
Removes locality pay for remote workers
Incentivizes return to physical offices
How This Impacts Americans
Potential effects on citizens and communities
Federal employees who telework would lose out on annual cost of living increases and locality pay adjustments that can add thousands to their salaries. This pressures workers to return to offices or accept stagnant pay.
Policy Areas
Primary Policy Area
Government Operations and Politics
Related Subjects
Commuting
Computers and information technology
Government employee pay, benefits, personnel management
Scope & Jurisdiction
Jurisdiction Level
federal
Congressional Session
119th Congress
Citation Reference
236, 119th Congress (2025). "Federal Employee Return to Work Act". Source: Voter's Right Platform. https://votersright.org/bills/118-hr-236
