Last Updated: August 1, 2026
The Office of Personnel Management signed three final rules on July 31, 2026, that change how federal layoffs work and where you can appeal one. All three rules publish in the Federal Register on August 3 and take effect September 2, 2026.
Rule 1: Performance over seniority (FR 2026-15665). When agencies conduct a reduction in force on or after September 2, your three most recent performance appraisals become the primary retention factor. The point system: Outstanding = 7 points, Exceeds Fully Successful = 5 points, Fully Successful = 3 points, Minimally Satisfactory or Unacceptable = 0 points. Three appraisals are totaled for a maximum of 21 points. Veterans preference is preserved as point additions, with +5 for 10-point veterans and +3 for 5-point veterans. But it is no longer categorical protection. A 5-year employee with three Outstanding ratings (21 points) now outranks a 20-year veteran with three Fully Successful ratings (9 points plus 3).
Rule 2: RIF appeals leave MSPB (FR 2026-15666). Currently, employees who believe a RIF was improper can appeal to the Merit Systems Protection Board and from there to federal courts. Under the final rule, RIF appeals go to OPM's own Office of Merit System Accountability and Compliance, with the OPM Director as the final reviewer. Federal court review is gone. OPM noted in the final rule that 99% of public commenters opposed this provision.
Rule 3: Probationary appeals streamlined (FR 2026-15654). Probationary and trial-period employees are already excluded from retention competition under Rule 1. This companion rule adjusts their appeal process as well.
These three rules connect directly to a fourth. OPM's performance appraisal final rule, effective August 6, introduced forced distribution of ratings across the federal workforce, which limits how many employees can receive top ratings. The RIF rule then uses those same ratings as the deciding factor in who stays. One agency writes the rating rules, administers the appeals, and controls the layoff order.
For a detailed breakdown of the RIF scoring system, see the full proposed-rule analysis at OPM RIF Performance Rule 2026.
To understand how forced ratings distribution connects to your RIF exposure, read OPM's Performance Appraisal Overhaul.
The RIF Survival Guide covers your rights under the current and incoming rules.
If you are weighing whether to retire before September 2, use the FERS Retirement Date Optimizer to compare timing scenarios.
Sources: GovExec, July 31, 2026 | Federal News Network, July 2026 | Federal Register 2026-15665, 2026-15666, 2026-15654