FLRA Upholds Ruling Against HHS Telework Restrictions, Cites Errors in Agency’s Legal Brief

The Federal Labor Relations Authority (FLRA) upheld a third-party arbitrator’s finding that the Department of Health and Human Services’ (HHS) removal of telework options violated its contract with the National Treasury Employees Union (NTEU).  

The decision affirms a January 2026 ruling by arbitrator Michael Falvo, who determined that HHS committed an unfair labor practice when it unilaterally canceled telework and remote work options. Under the agency's collective bargaining agreement (CBA) with NTEU, HHS can generally cancel telework and remote work only for cause, such as a specific emergency or employee misconduct.

In its appeal, HHS argued that Falvo exceeded his authority by seeking to “nullify” President Trump’s return to office memo.

However, the FLRA did not agree, saying that the return-to-office mandate must be “implemented consistent with applicable law.”

Criticism Over Apparent AI Use

The FLRA also criticized HHS for appearing to use generative artificial intelligence (AI) tools to write its legal brief in the case, calling 22 of the 29 HHS footnotes and 35 of 42 citations  “fictitious, erroneous, or irrelevant.” 

“While nothing prohibits parties from using AI tools when preparing filings for submission to the Authority, we caution those who do so to be aware that AI continues to present significant risks of error,” the authority wrote.

HHS has until December 21 to appeal the decision.

NTEU called the decision a “big win for telework rights” but stated that HHS employees are unlikely to see immediate changes in their telework status, due to the appeal deadline.