OPM Exempts Schedule C, G Employees from Performance Reviews
Federal workers in Schedule C and Schedule G will be exempt from performance appraisal requirements, according to a new memo from the Office of Personnel Management (OPM).
“Schedule C and Schedule G GS employees serve in the excepted service under political appointments and thus are effectively ‘at-will’ employees. As such, retention and removal actions for these employees do not depend on formal performance ratings,” stated the memo.
It also notes that the ongoing freeze on political appointees receiving bonuses and other incentive payments, removes the need for formal performance evaluations.
However, employees under Schedules C and G are eligible for regular within-grade pay increases, if the employee’s work is “at an acceptable level of competence.” Agencies were told to establish their own procedures for making those determinations, without a formal review process.
This could signal a broader shift for career employees who are reclassified into Schedule Policy/Career positions, which will be at-will positions. Despite the final rule taking effect in March, workers have yet to be classified into the new career category. Approximately 50,000 positions could be impacted as agencies compile their lists and send them to President Trump for approval.
Performance Review Overhaul
The move comes amid a broader overhaul of the performance review process as OPM seeks to end “ratings inflation.”
OPM has proposed ending the ban on forced distributions of employee evaluations, meaning that agencies are free to set limits on how many workers can be rated in the highest categories.
In its proposal, OPM noted that in 2024, nearly 43 percent of employees below the senior levels received the highest grade possible- “outstanding”- while another 22 percent were rated “exceeds fully successful.”
“Agencies continue to struggle with ensuring that an employee’s performance is accurately measured and aligns with the agency’s mission,” stated OPM.
Critics say the move could hurt collaboration and an agency’s ability to fulfill its mission.
“The latest research indicates that forced distribution systems are likely to degrade, rather than enhance, organizational performance by effectively pitting employees against one another in open competition, reducing incentives for collaboration and knowledge-sharing,” wrote Rep. Robert Garcia (D-CA), ranking member of the House Oversight and Government Reform Committee, in a letter to OPM Director Scott Kupor.
