Will Employees Who Resign Have a Remedy?

The federal government's recently announced "deferred resignation program" allows over two million employees to resign effective September 30, 2025, while receiving continued pay and benefits. However, the legality of this program is questionable, as it may violate the Anti-Deficiency Act, which prohibits federal agencies from committing funds that have not been appropriated. Employees must announce their resignation by February 6, 2025, but there are concerns that the government may not fulfill its promises. The program's structure resembles a previous offer made to Twitter employees, some of whom did not receive promised severance payments. If the government fails to uphold the agreement, employees may assume they can pursue legal remedies similar to private sector contract disputes. However, courts are unlikely to view the situation through the lens of contract law due to the unique legal framework governing federal agencies. The Supreme Court has historically ruled against estopping the government from denying obligations based on erroneous information. Therefore, employees may find themselves without a viable legal remedy if the government does not honor the deferred resignation program, especially if Congress does not appropriate sufficient funds to support it.

- The deferred resignation program offers federal employees a chance to resign with benefits but raises legal concerns.

- The program may violate the Anti-Deficiency Act, limiting the government's ability to fulfill its promises.

- Employees may not have legal recourse if the government fails to uphold the agreement.

- Historical court rulings suggest the government is not bound by erroneous information regarding employee benefits.

- The program's future depends on congressional appropriations, which may not guarantee employee compensation.