Federal unions sue Trump administration over new employee suitability and performance rules

Aug 25, 2026

A coalition of federal unions, including the AFGE and AFSCME, filed a lawsuit on August 24, 2026, to block two new Office of Personnel Management rules. The regulations allow OPM to fire current civil servants deemed "unsuitable" and force agencies to grade employees on a curve. Unions argue these changes violate the Civil Service Reform Act of 1978, strip workers of independent appeal rights to the Merit Systems Protection Board, and replace merit-based employment with political patronage.

OPM suitability rule changes

▪Prior to the June 2026 rule change, the Office of Personnel Management could only evaluate federal workers for suitability during the initial hiring process or during a probationary employment period.
▪The Office of Personnel Management finalized a rule in June 2026 that allows federal agencies to apply the same suitability and fitness standards used for job applicants to current, incumbent federal employees.

Performance evaluation forced distribution

▪The unions argue that a forced distribution system violates the Civil Service Reform Act's requirement that performance appraisals be based on objective criteria, calling ranking relative to others inherently subjective.
▪The Office of Personnel Management finalized a rule in July 2026 that permits federal agencies to use a forced distribution system, or a curve, to evaluate employee performance rather than judging them individually.

Union lawsuit against OPM

▪The plaintiffs in the lawsuit against the Office of Personnel Management include the American Federation of Government Employees, the American Federation of State, County and Municipal Employees, the International Federation of Professional and Technical Engineers, and the National Federation of Federal Employees.
▪A coalition of federal employee unions filed a lawsuit on August 24, 2026, in the U.S. District Court for the Northern District of California to block two new Office of Personnel Management regulations.

Civil Service Reform Act violations

▪The lawsuit alleges that the Office of Personnel Management exceeded its statutory authority and violated both the Civil Service Reform Act of 1978 and the Administrative Procedure Act.
▪The unions contend that the Office of Personnel Management's regulations unlawfully bypass Congress' intended separation of the former Civil Service Commission into two distinct, independent agencies.

Expanded federal employee firing authority

▪The unions argue that the suitability rule and performance curve will make it easier for the federal government to fire civil servants and will limit employees' opportunities to challenge adverse actions.
▪The lawsuit highlights that the federal workforce shrunk by 12% between September 2024 and January 2026 as part of the Trump administration's broader efforts to overhaul the civil service.

Appeals process removal

▪A separate regulatory change removes the ability of federal employees to appeal suitability-related removals to independent panels, such as the Merit Systems Protection Board.
▪The Office of Personnel Management stated that its internal appeals process will remain independent by using separate staff to handle determinations and appeals, aiming to make the process more efficient.