Yakima Times

On January 8, 2025, Representative Dan Newhouse introduced the Federal Employee Return to Work Act. This legislation aims to reduce government spending and encourage federal employees to return to in-person work. Currently, federal employees who telework receive annual locality bonuses even if they do not attend their offices located in high-cost areas.

Senator Bill Cassidy of Louisiana has presented similar legislation in the U.S. Senate. Representative Newhouse stated, “For the last four years, D.C. bureaucrats have abused telework policies and exploited locality bonuses while our federal agencies’ buildings sit empty. This legislation is very clear; show up to where you are being paid to work so we can end this abuse of taxpayer dollars.”

Senator Cassidy added, “Federal employees get paid extra to work in higher-cost cities. But why should they get paid that rate if they don’t go into work and live somewhere other than DC? If you don’t show up for work, your pay should reflect that.”

The U.S. Government Accountability Office (GAO) reported that at the beginning of 2023, 17 out of 24 federal agencies were using only 25% or less of their headquarters' capacity. Additionally, six agencies were identified as being on average 91% vacant while their employees continued receiving a 16.44% locality bonus regardless of attendance.

The bill proposes excluding teleworking federal employees from receiving raises and special locality bonuses tied to high-cost office locations unless they physically attend those locations. Locality pay is an additional salary percentage based on an employee’s workplace location.

Exemptions are included for federal employees with disabilities requiring reasonable accommodation, members of the Foreign Service, Federal law enforcement officers, or active-duty Armed Services members.