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DoD’s deferred resignation program rollout lags as contracts add legal caveats

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WASHINGTON, D.C. (Federal News Network) — The Defense Department’s rollout of the Deferred Resignation Program has been marred by poor communication, with some civilian employees still waiting on their separation agreements and approvals as the May 1 administrative leave deadline approaches.

The Pentagon closed the program’s participation window on April 14, with the expectation that employees approved for the program will be placed on administrative leave “no earlier than” May 1.

While many civilians received their separation agreements last Thursday, some are still waiting on that email to accept or decline the offer — making the May 1 deadline unattainable for those who have already shaped major life decisions, like childcare and finances, around that timeline.

Civilian workers who got their separation agreements will find a clause that is slightly different from the language used in the original Deferred Resignation Program contracts.

The updated DoD contract states that employees will continue to accrue annual and sick leave during the Deferred Resignation Period and will receive a lump sum payment for any unused annual leave upon separation, but the payout is “subject to availability of funds.”

Legal experts say while the language is concerning as there is now a new caveat that raises the possibility that employees might not receive their lump sum leave payments, that is probably not the biggest risk.

Buried towards the end of the agreement is a clause that should raise concerns. It waives employees’ right to pursue any action against the agency related to their employment or the deferred resignation program.

“Employee forever waives and will not pursue through any judicial, administrative, or other process, any action against Agency or any other agency or instrumentality of the federal government that is based on, arising from, or related to Employee’s employment at Agency or the deferred resignation offer, including any and all claims that were or could have been brought concerning said matters, including but not limited to all claims for reinstatement, back pay, front pay, costs, attorney’s fees, expenses, and/or damages of any kind whatsoever,” the separation agreement states.

Michael Fallings, a managing partner at the Tully Rinckey law firm, said it’s unusual for separation agreements to include language like this.

“That’s the major concern for that clause, which basically says they can’t pursue anything, including anything concerning the deferred resignation program or their employment. What happens if I do get a payout of my annual leave, but it is not correct? What is the mechanism to enforce that? How does that intertwine with this paragraph saying I can’t do anything to make any claims against the government?” Fallings told Federal News Network.

“A lot of agreements that I have my client sign say, ‘If you believe the government has breached this contract, you file this complaint.’” he added. “Most of the DRP agreements I’ve seen don’t have that type of language. That’s been the major concern and appears to be the concern here.”

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