OPM Finalizes Rule Allowing Extended Paid Leave for Federal Layoffs
New regulations take effect Nov. 18, affecting over 100,000 federal workers in Maryland.
By Kevin Iyer ·
The federal government employs more than 100,000 people in Maryland, making the state highly sensitive to changes in Washington policy. The Office of Personnel Management (OPM) has finalized a rule that allows agencies to keep employees on paid administrative leave for workforce changes, including buyouts and layoff notices.
The rule takes effect on Nov. 18. It formalizes practices the administration has used since early 2025 to shrink the federal workforce. Agencies may now place staff on paid leave to support realignment initiatives like deferred resignation programs. The regulation also clarifies that agencies have sole discretion to accept or deny requests to withdraw a resignation. Receiving deferred benefits is a valid reason for an agency to say no.
Maryland’s federal workforce has shrunk by roughly 9% over the last year. Estimates show 163,100 federal jobs in January 2025 and about 148,500 by September of that year. Many of those departures used the deferred resignation program, where employees agreed to leave but remained on paid leave until their exit date. The new rule makes this arrangement an explicitly approved use of administrative leave for future rounds.
Critics argue the rule sidesteps a limit set by Congress. The Administrative Leave Act of 2016 limits certain paid leave to 10 days a year. OPM Director Scott Kupor stated that the law’s sponsors did not anticipate leave that produces long-term savings by shrinking the workforce. He has said the deferred resignation program returns more than 400% on its cost. Unions disagree, with the American Federation of Government Employees calling the savings claim speculative.
Robert Shriver of Democracy Forward described the remaining 10-day cap as largely optional and meaningless. The Government Accountability Office (GAO) noted that OPM lacks data to pin down the program’s exact costs. GAO official Dawn Locke said rehiring, overtime, and contractor costs must be counted against savings. The GAO has recommended that OPM track deferred-resignation leave separately.
The rule takes effect after the Nov. 3 general election. However, OPM’s 2025 template for agency leave policies already excluded poll workers from administrative leave. Employees should check their agency’s current policy before election day. OPM will update its fact sheet and template for agency policies. Separate guidance issued in 2025 generally limited realignment leave to 12 weeks, with longer periods requiring joint approval from OPM and the Office of Management and Budget.
