OPM's Merit System Accountability and Compliance (MSAC) adjudicates: federal employee classification appeals; Fair Labor Standards Act (FLSA) claims; compensation and leave claims; settlement of accounts for deceased employees; declination of reasonable offer; probation / trial period appeals; and reduction in force (RIF) appeals. These functions provide an external review of agency personnel and pay decisions.

Classification Appeals

Federal employees in General Schedule (GS) positions in disagreement with their job classification may directly appeal to OPM for adjudication of their position classification. Federal employees in the Federal Wage System (FWS) in disagreement with their job classification may appeal to OPM after they receive a final decision from their agency.

Fair Labor Standards Act (FLSA) Claims

In 1974, when the FLSA was extended to the Federal government, OPM assumed responsibility for FLSA claims with relevant law and regulation contained in 29 U.S.C. § 204 and 5 C.F.R. pt. 551. FLSA claims typically originate from employees disputing exemption status, hours worked, or overtime pay. OPM decisions are final and no further administrative review is available.

Compensation and Leave Claims

With the enactment of the Legislative Branch Appropriations Act of 1996, most leave claim functions were transferred from the Government Accountability Office (GAO) to the Office of Management and Budget (OMB). OMB further delegated adjudication authority for such claims to OPM. OPM leave claim adjudications are administratively final.

Settlement of Accounts for Deceased Employees

OPM adjudicates claims for unpaid compensation of deceased federal employees under § 5582 of title 5, United States Code, and claims for deceased beneficiaries of Veterans' benefits under 38 U.S.C. § 5122.

Declination of Reasonable Offer Appeals

OPM is responsible for adjudicating declination of reasonable offer appeals. These appeals provide Federal civilian employees with a means to contest the termination of retained grade or pay. The right to appeal arises when an employee believes they were not given a reasonable offer to a position for which the grade or pay was equal to or greater than the retained grade or pay. You must file your appeal with OPM no later than 20 calendar days after you are notified that your grade or pay retention benefits have been terminated. OPM's decision is final and there is no right of further appeal; the decision is subject to discretionary review only as provided in 5 C.F.R. § 536.402(f).

Probation / Trial Period Appeals

Effective September 2, 2026, OPM serves as the adjudicative agency for probationary and trial period appeals. Appeals may be filed when an employee believes the action was discriminatory based on partisan political reasons or marital status, or when the agency failed to follow required procedures in terminating an employee based on conditions arising before appointment.

Reduction in Force (RIF) Appeals

Effective September 2, 2026, OPM revised its regulations contained in 5 C.F.R. pt. 351 to transfer reduction in force (RIF) appeals from MSPB to OPM. The new procedures apply only to RIF actions for which the agency issued the specific RIF notice on or after September 2, 2026. Employees other than members of the Senior Executive Service may file when they assert the RIF action (i.e., a furlough of more than 30 calendar days or more than 22 workdays on a discontinuous basis, a separation, or a demotion due to a reduction in force) was conducted inconsistently with either statute or OPM regulations such that the employee would not have suffered the same or another reduction-in-force action.