Assignment involving displacement.

(a) General. When a competitive service tenure group employee with a current annual performance rating of record of minimally satisfactory (Level 2) or equivalent, or higher, is released from a competitive level, an agency must offer assignment, rather than furlough or separation, in accordance with paragraph (b) of this section to another competitive position that requires no reduction, or the least possible reduction, in representative rate. The employee must be qualified for the offered position. The offered position must be in the same competitive area and have the same type of work schedule ( e.g., full-time, part-time, intermittent, or seasonal) as the position from which the employee is released. Upon accepting an offer of assignment, or displacing another employee under this part, an employee retains the same status and tenure in the new position. The promotion potential of the offered position is not a consideration in determining an employee's right of assignment. (b) Assignment rights. In accordance with paragraph (a) of this section, a released employee shall be assigned to a position: (1) That is held by another employee with lower retention standing in the same tenure group; and (2) That is not more than three grades (or appropriate grade intervals or equivalent) below the position from which the employee was released, except that for a preference eligible employee with a compensable service-connected disability of 30 percent or more the limit is five grades (or appropriate grade intervals or equivalent). (The agency uses the grade progression of only the released employee's position of record to determine the applicable grades (or appropriate grade intervals or equivalent) of the employee's assignment right. The agency does not consider the grade progression of the position to which the employee has an assignment right); and (3) For which the released employee is qualified, pursuant to the criteria set forth in § 351.702 and § 351.703. (c) Pay rates. (1) The determination of equivalent grade intervals shall be based on a comparison of representative rates. (2) Each employee's assignment rights shall be determined on the basis of the pay rates in effect on the date of issuance of specific reduction in force notices, except that when it is officially known on the date of issuance of notices that new pay rates have been approved and will become effective by the effective date of the reduction in force, assignment rights shall be determined on the basis of the new pay rates. (d)(1) In determining applicable grades (or grade intervals) under paragraph (b)(2) of this section, the agency uses the grade progression of the released employee's position of record to determine the grade (or interval) limits of the employee's assignment rights. (2) For positions covered by the General Schedule, the agency must determine whether a one-grade, two-grade, or mixed grade interval progression is applicable to the position of the released employee. (3) For positions not covered by the General Schedule, the agency must determine the normal line of progression for each occupational series and grade level to determine the grade (or interval) limits of the released employee's assignment rights. If the agency determines that there is no normal line of progression for an occupational series and grade level, the agency provides the released employee with assignment rights to positions within three actual grades lower on a one-grade basis. The normal line of progression may include positions in different pay systems. (4) For positions where no grade structure exists, the agency determines a line of progression for each occupation and pay rate and provides assignment rights to positions within three grades (or intervals) lower on that basis. (5) If the released employee holds a position that is less than three grades above the lowest grade in the applicable classification system ( e.g., the employee holds a GS-2 position), the agency provides the released employee with assignment rights up to three actual grades lower on a one-grade basis in other pay systems. (e) If a competitive area includes more than one local commuting area, the agency determines assignment rights under this part on the basis of the representative rates for one local commuting area within the competitive area ( i.e., the same local commuting area used to establish competitive levels under § 351.403(c)(4), (5), and (6)). (f) If a competitive area includes positions under one or more pay bands, a released employee shall be assigned in accordance with paragraphs (a) and (b) of this section to a position in an equivalent pay band or one pay band lower, as determined by the agency, than the pay band from which released. A preference eligible with a service-connected disability of 30 percent or more must be assigned in accordance with paragraphs (a) and (b) of this section to a position in an equivalent pay band or up to two pay bands lower, as determined by the agency, than the pay band from which released. (g) If a competitive area includes positions under one or more pay bands, and other positions not covered by a pay band ( e.g., GS and/or FWS positions), the agency provides assignment rights under this part by: (1) Determining the representative rate of positions not covered by a pay band, consistent with § 351.203; (2) Determining the representative rate of each pay band, or competitive level within the pay band(s), consistent with § 351.203; (3) As determined by the agency, providing assignment rights under paragraph (b) of this section, consistent with the grade intervals covered in paragraph (b)(2) of this section, and the pay band intervals in paragraph (f) of this section. [91 FR 49225, Aug. 3, 2026]