New federal rule allows agencies to keep workers on paid leave for up to 12 weeks

Federal employees in Maryland face new rules starting Nov. 18 that allow their agencies to place them on paid administrative leave for longer periods during workforce changes. The Office of Personnel Management finalized these regulations on Oct. 19, formalizing practices used since early 2025. The changes specifically permit paid leave for deferred resignation programs and reduction-in-force notice periods.

Maryland holds a large share of the federal workforce, with a 2023 state report counting 269,000 residents working for the government. The state had an estimated 163,100 federal jobs in January 2025, a number that dropped to about 148,500 by September of that year. This represents a loss of roughly 14,600 positions, or 9 percent, according to figures from the Maryland Department of Labor. Many of these departures involved the deferred resignation program, where employees leave but remain on paid leave until their exit date.

The new rule designates this arrangement as an approved use of administrative leave for future workforce realignments. OPM Director Scott Kupor sent a memo to agency human resources chiefs on Oct. 22 outlining the specific changes. The memo states that agencies have sole discretion to accept or deny requests to withdraw a resignation. Receiving deferred resignation benefits, such as paid leave, is cited as a valid reason for an agency to say no.

The regulations also clarify when administrative leave can be used during a reduction-in-force. Agencies may choose whether to keep employees at work or send them home on paid leave during the notice period. The rule generally bars the use of administrative leave for illnesses or medical appointments that sick leave could cover. It also prevents employees from using this leave to serve as poll workers or poll observers. Agency-approved physical fitness activities are allowed on a limited and conditional basis.

Critics argue the rule sidesteps a limit set by Congress in 2016. The Administrative Leave Act caps certain uses of paid administrative leave at 10 days a year. OPM contends that the law does not define every situation where the cap applies and that Congress left details to the agency. Kupor has stated that the deferred resignation program returns more than 400% on its cost. However, Dawn Locke of the Government Accountability Office said OPM lacks the data to pin down exact costs and total savings. She noted that rehiring, overtime, and contractor costs must be counted against the savings.

Unions and watchdog groups disagree with OPM’s interpretation. The American Federation of Government Employees called the savings claim speculative. The National Treasury Employees Union described the process as backwards, arguing OPM was blessing policies it had already put in place. Public Employees for Environmental Responsibility said the rule reopens the door to long paid leave periods for workers facing layoffs. Robert Shriver of Democracy Forward described the remaining 10-day cap as largely optional and meaningless.

The memo directs employees and supervisors to their agency’s human resources office for questions, rather than to OPM directly. OPM will update its administrative leave fact sheet and template for agency policies. Separate guidance issued in 2025 generally limited realignment leave to 12 weeks. Longer periods require joint approval from OPM and the Office of Management and Budget.

For Maryland employees, the rule takes effect after the Nov. 3 general election. However, OPM’s 2025 template for agency leave policies already excluded poll workers. Employees should check their agency’s current policy before Election Day. The rule sits alongside other disputes between the state and the administration, including the fight over the Joint Base Andrews golf course.