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Home»Finance News»What federal employees need to consider when evaluating offer to resign
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What federal employees need to consider when evaluating offer to resign

January 31, 2025No Comments4 Mins Read
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A “Do not cross” sign is illuminated at a crosswalk outside of U.S. Capitol building in Washington, US, November 10, 2024. 

Hannah Mckay | Reuters

The Trump administration emailed more than 2 million federal workers this week, giving them the option to resign now and get pay and benefits through Sept. 30.

Workers have until Feb. 6 to accept the “deferred resignation” offer.

The payouts come on the heels of President Donald Trump’s executive order to end DEI programs. On Wednesday, he said federal workers need to return to the office five days a week “or be terminated.”

“We think a very substantial number of people will not show up to work, and therefore our government will get smaller and more efficient,” Trump said at the signing of an immigration detention law.

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Experts advise federal employees to take their time before accepting the offer. By accepting the resignation, tenured federal employees could lose certain rights they may have.

“If you resign, it’s deemed voluntary,” said Michael L. Vogelsang, Jr., a principal of The Employment Law Group, P.C. “If you are a permanent, tenured employee in the government and the administration wants you out, laws still exist that federal employees cannot just be fired on a whim.”

Meanwhile, some lawmakers question whether the president can make this offer without Congressional approval.

Sen. Tim Kaine, D-Virginia, said federal employees should not be “fooled” by Trump’s proposal.

“If you accept that offer and resign, he’ll stiff you,” Kaine said. “He doesn’t have any authority to do this.” 

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The Voluntary Separation Incentive Payment Authority gives federal agencies the authority to offer buyout incentives for some employees to resign or retire, but it is capped at $25,000.

Asked for more detail on the payouts, including what authority the president has to offer to pay through September 30, the White House referred back to its statement given on Tuesday.

“If they don’t want to work in the office and contribute to making America great again, then they are free to choose a different line of work and the Trump Administration will provide a very generous payout of eight months,” White House press secretary Karoline Leavitt said in a statement.

There is already uncertainty around current funding for the federal government. It’s operating under a short-term continuing resolution passed in December. Unless Congress acts, the federal government could shut down on March 14. 

Unlike with corporate buyouts, federal employees who received this offer can’t appeal for a better deal, experts say.

“Usually with buyouts, I think of more severance, and usually it’s sort of some kind of negotiation. This isn’t really negotiation. It’s sort of a unilateral offer,” Vogelsang said.

Still, some of the factors to consider for weighing the government’s deferred resignation offer are similar to what one would weigh in a corporate buyout, experts say:

Consider how much your position is at risk

For federal employees who aren’t permanent, Vogelsang says they should consider how much their position is at risk and if their skills make it likely they’ll be able to find another job. 

“I think there’s enough executive orders out there that people in DEI, probationary employees, IRS employees, environmental employees, can probably read between the lines that their positions may be at risk moving forward,” he said.

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Research job alternatives 

Career experts advise not waiting to begin the job search.

“Start thinking about your search now, because it’s going to be longer than you think, especially with people flooding the market,” said Caroline Ceniza-Levine, a career coach and founder of Dream Career Club. 

Prepare for a job search by updating your LinkedIn profile, identifying your accomplishments and reflecting on professional achievements so you can explain them clearly and concisely. “You don’t get every job that you apply for, and that can be a very frustrating and emotionally draining process,” said Ron Seifert, senior client partner at the staffing firm Korn Ferry. 

Consider the work culture if you stay

Think about the culture and career implications of rejecting the offer. A question to ask yourself is, “If I’m still here after this is done, what will this place feel like?” Seifert said. “Is this a place where I have opportunity?”

“I would caution people against making decisions when they’re in the panic zone,” said Connie Whittaker Dunlop, principal of Monarch Consulting Group. “There are a fair number of unknowns, but if you can kind of ground yourself in what you know, what you value, and then make that, make a decision from that space, I think,  people will be better served.” 

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