Federal Telework Policy 2026: What You Need to Know About Return to Office
90% of feds are back in office. Learn the 2026 telework rules, locality pay impacts, and your options if facing return-to-office mandates.
Federal Telework Policy 2026: What You Need to Know About Return to Office
Last Updated: January 17, 2026 Reading Time: 7 min
If you're a federal employee wondering about your telework options in 2026, here's the reality: about 90% of the federal workforce is now back in the office full-time. OPM's latest guidance makes clear that remote work should be the exception, not the rule.
But exceptions still exist. And if you're facing a return-to-office mandate, understanding the rules, including how they affect your locality pay, can help you make informed decisions.
Key Takeaways
- 90% of federal employees are now working on-site full-time per OPM
- December 2025 OPM guidance says telework should be used "sparingly"
- Telework vs remote work distinction matters for your locality pay
- Exemptions exist for disabilities, medical conditions, and military spouses
- 317,000 federal workers left their jobs in 2025
The Current State of Federal Telework
OPM's December 2025 "Guide to Telework and Remote Work in the Federal Government" sets the tone clearly: federal employees should generally be "working full-time, in-person."
The guidance doesn't ban telework entirely. Instead, it positions remote work as a case-by-case tool that agencies should use "sparingly." More importantly, agencies must now have procedures for verifying that employees are actually working on-site.
What changed from pre-2025:
- Telework is no longer a default option for most positions
- Agencies must track and verify in-office attendance
- Remote work approvals require documented justification
- Situational telework has specific, limited use cases
Telework vs Remote Work: Why the Distinction Matters
These terms aren't interchangeable, and mixing them up could cost you thousands in locality pay.
| Status | Official Duty Station | Locality Pay Based On |
|---|---|---|
| Telework | Agency office (e.g., DC) | Agency office location |
| Remote Work | Your home | Your home location |
Teleworker example: You live in Richmond but your official duty station is Washington, DC. You telework 3 days a week but come into the DC office twice per pay period. You keep DC locality pay (33.94% in 2026).
Remote worker example: You're approved for full remote work from Richmond. Your SF-50 lists Richmond as your official duty station. You get the Richmond locality rate (22.28% in 2026), not DC.
The 2x per pay period rule: To keep your higher-cost office's locality pay while teleworking, you must report to that office at least twice each biweekly pay period. If you can't make that commute, you're effectively a remote worker and your locality pay must change.
How Return to Office Affects Your Pay
If you moved to a lower-cost area during the pandemic and were working remotely, the return-to-office mandate creates a tough choice:
- Return to your office location and keep your current salary
- Request remote work approval and accept lower locality pay
- Leave federal service if neither option works
For a GS-13 Step 5 employee, the difference between DC locality (33.94%) and "Rest of US" locality (17.06%) is roughly $14,000 per year.
Use our GS Pay Calculator to see exactly how different locality areas affect your salary.
Who Can Still Get Telework or Remote Work Approval
OPM's guidance allows exceptions for:
Disability accommodations: Employees with documented disabilities may qualify for remote work as a reasonable accommodation under the Rehabilitation Act.
Medical conditions: Qualifying medical conditions can justify telework, though agencies set their own approval processes.
Military and Foreign Service spouses: These employees working overseas are exempt from on-site work requirements.
Compelling agency needs: Some positions may require remote work due to mission requirements, though this is increasingly rare.
Situational telework: Short-term telework is still allowed for:
- Inclement weather when federal facilities close
- Short-term illness or injury
- Religious observance
What "Situational Telework" Actually Means
The December 2025 guidance clarifies when situational telework is appropriate. It's not a loophole for regular work-from-home.
Situational telework should only be authorized when there's a "compelling agency need" and it doesn't "diminish agency operations."
Acceptable uses:
- Federal facilities closed due to weather
- Employee has short-term illness (not serious enough for sick leave)
- Religious observance conflicts with on-site schedule
Not acceptable:
- Routine preference for working from home
- Childcare or eldercare convenience
- Avoiding commute
The Locality Pay Problem for Remote Workers
If you're approved for remote work, your official worksite becomes your home. That location should appear on your SF-50.
Why this matters:
- Your locality pay adjusts to your home location
- Travel reimbursement calculations change
- A mismatch between actual work location and SF-50 can trigger overpayment recovery
OPM has been clear: if your SF-50 says DC but you're actually working from Montana full-time, you may have been overpaid. The government can and does recover those funds.
Impact on the Federal Workforce
The return-to-office mandate has had measurable effects:
- 317,000 federal workers left their jobs in 2025
- The US Patent and Trademark Office reported an 800,000+ application backlog partly attributed to the policy
- GAO raised concerns that OPM canceled guidance requiring agencies to assess remote work's effects on recruitment and retention
Whether you view these as positive efficiency gains or talent loss depends on your perspective. But the numbers are real.
Your Options If You're Facing RTO
If returning to office doesn't work for your situation, consider these paths:
1. Request a reasonable accommodation If you have a documented disability or medical condition, submit a formal accommodation request. Document everything.
2. Explore internal transfer Some agencies and positions still have remote work. Use USAJobs to search for "remote" positions in your series.
3. Calculate the financial trade-offs If you're considering taking a remote position at lower locality pay, run the numbers. A $10,000 pay cut might be worth it if you're saving $15,000 in housing costs.
4. Consider early retirement or separation If you're near retirement eligibility, review your FERS pension estimate. The numbers might work better than you think.
5. Look at the private sector Federal skills transfer. Many former feds find remote-friendly positions in the private sector, sometimes at higher pay.
Calculate Your Locality Pay Impact
Considering a move or wondering how different locations affect your salary? Use our GS Pay Calculator to compare locality rates across all 58 pay areas.
Enter your grade, step, and location to see your exact base pay, locality adjustment, and total salary.
Frequently Asked Questions
Can federal employees still telework in 2026?
Limited telework is still possible but rare. OPM's December 2025 guidance states employees should generally work "full-time, in-person." Telework should be used "sparingly" and only for approved exceptions like disabilities, medical conditions, or compelling agency needs.
What is the difference between telework and remote work for federal employees?
Telework means you have an agency office as your official duty station and work from home some days. Remote work means your home IS your official duty station. This distinction matters for locality pay: teleworkers keep their office's locality rate, while remote workers get the rate for their home location.
Will I lose locality pay if I work remotely?
It depends on your status. If you telework and report to a DC office at least twice per pay period, you keep DC locality pay. If you're approved for full remote work, your locality pay changes to match your home location, which could mean a pay cut if you live in a lower-cost area.
What are the exceptions to the return-to-office mandate?
Agencies can grant exceptions for employees with disabilities, qualifying medical conditions, or other compelling reasons. Military spouses and Foreign Service spouses working overseas are also exempt. Situational telework is allowed for inclement weather, short-term illness, or religious observance.
What percentage of federal employees are back in the office?
According to OPM Director Scott Kupor, approximately 90% of federal employees are now working on-site full-time, nearly a year after the January 2025 return-to-office executive order.
Related Resources
- GS Pay Calculator: See how locality affects your salary
- GS Pay Guide 2026: Complete guide to federal pay
- FERS Retirement Calculator: Estimate your pension if considering early out
- VERA/VSIP Guide 2026: Early retirement and buyout options
Sources
Calculate Your 2026 Numbers
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