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Federal workers who accept buyout must waive their right to legal action, contract says

1:23
Over 20K federal workers have taken Trump administration’s buyout offer
Mandel Ngan/AFP via Getty Images
ByWill Steakin, Benjamin Siegel, and Anne Flaherty
February 04, 2025, 9:45 PM

Federal employees who have been offered a buyout as part of President Donald Trump's effort to trim the size of the government have begun receiving an emailed copy of the contract they must sign in order to accept the offer.

The buyouts, which are being offered to two million government employees in the form of a deferred resignation offer, are part of DOGE head Elon Musk's effort to cut the federal government workforce under Trump's direction. The program offers to continue to pay federal employees through Sept. 30, 2025, if they resign by Feb. 6.

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MORE: What happens when a federal worker accepts Trump's deferred resignation offer?

Federal employees have started receiving an email from their specific agency's HR department that contains a PDF contract version of the deferred resignation offer that was sent around last week by the U.S Office of Personnel Management, according to multiple federal employees across multiple agencies who shared the emails with ABC News.

The contract largely lays out what OPM has previously stated would be offered if an employee accepts the deal -- with one major addition: The contract states that by signing, the employee "forever waives" the right to take legal action against the agency regarding their employment or the deferred resignation offer.

The agreement states that the employee, in accepting the deferred resignation offer, waives their right to future claims by themselves or their union.

This Feb. 4, 2025 photo shows the Office of Personnel Management (OPM) in Washington.
Mandel Ngan/AFP via Getty Images

Some employment lawyers have questioned whether the deferred resignation offer is lawful because Congress, not the White House, is responsible for authorizing workers' paychecks. On Friday, senior officials at the various federal agencies sent memos to staffers assuring them the offers were valid and lawful.

Many federal employees have expressed concerns over the uncertainly of exactly who is eligible for the offer and whether there will really be severance payments, which could be delayed by litigation.

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