Federal agencies can keep workers on paid leave for 12 weeks under new rule

Federal agencies may now place employees on paid administrative leave for up to 12 weeks to support workforce realignment initiatives, according to a final rule published by the Office of Personnel Management on October 19.

The rule takes effect on November 18. It codifies practices the administration has used since early 2025 to shrink the federal workforce. OPM Director Scott Kupor sent a memo to agency human resources chiefs on October 22 outlining the specific changes.

Maryland faces a direct financial impact from the regulation. The state lost approximately 14,600 federal positions between January 2025 and September 2025. Federal employment in the state dropped from an estimated 163,100 to 148,500 during that period, a decline of about 9%, according to Maryland Department of Labor figures.

The new rule explicitly allows agencies to use administrative leave for deferred resignation programs. In these arrangements, employees agree to leave and remain on paid leave until their exit date. The regulation gives agencies sole and exclusive discretion to deny requests to withdraw a resignation if the employee has already received deferred resignation benefits.

Unions argue the rule circumvents a 10-day annual limit set by Congress in the Administrative Leave Act of 2016. OPM contends that the law does not define every situation where the cap applies and that Congress left details to OPM. Kupor stated that the deferred resignation program returns more than 400% on its cost.

The American Federation of Government Employees called the savings claim speculative. Robert Shriver of Democracy Forward described the remaining 10-day cap as largely optional and meaningless. The Government Accountability Office noted that OPM lacks data to calculate exact program costs and savings.

OPM will update its administrative leave fact sheet and policy templates in the coming weeks. The agency said it will notify federal offices when these documents are ready. Employees are directed to their specific agency human resources offices for questions regarding the new leave policies.

The regulation also clarifies that administrative leave generally cannot cover situations addressable by sick leave. Agencies may not use administrative leave for employees serving as poll workers or poll observers. Fitness activities are permitted only on a limited and conditional basis.