USDA Ordered to Restore Telework Terms for 135 Union Employees

A third-party arbitrator has ordered the U.S. Department of Agriculture to restore telework and remote-work arrangements for 135 Rural Development employees represented by the American Federation of State, County and Municipal Employees after finding that the agency changed work terms without bargaining.

The award, issued August 19, 2026, does not mean restoration or reimbursement has already occurred. USDA may challenge the decision through the Federal Labor Relations Authority, creating uncertainty over when employees will see any practical changes.

What the award covers

The dispute involves employees covered by the 2019-2023 USDA Rural Development–AFSCME Local 3870 collective bargaining agreement, which is the agreement governing the dispute rather than a newly negotiated contract. Federal News Network reported that 46 of the 135 employees had remote work identified as a condition of employment.

The arbitrator ordered USDA to restore telework and remote-work arrangements that were in effect on April 22 and April 28, 2025, depending on the employee or work arrangement at issue. The award also directs the agency to negotiate with the union before making changes to telework or return-to-office provisions.

The decision turned on the agreement’s telework language. The contract says USDA employees are presumed eligible for telework, lists specific reasons a position or employee may be ineligible, and sets procedures for modifying, suspending or ending an approved arrangement. It also generally requires advance written notice when management changes a telework agreement.

Why the arbitrator ruled against USDA

The award found that USDA engaged in bad-faith bargaining, implemented a rule that conflicted with the existing agreement and effectively repudiated the contract. Those are the arbitrator’s findings in this labor dispute, not a court ruling or an FLRA decision.

The result shows why federal return-to-office disputes can turn on detailed contract language. Other federal employees may have different rights depending on their agency, bargaining unit and agreement. This award does not automatically change telework arrangements across the federal government.

Possible reimbursement for commuting costs

The remedy includes potential make-whole relief under the Back Pay Act and Travel Expense Act for qualifying transportation and related costs incurred over roughly the previous 18 months.

That relief is not automatic for every affected employee. Eligibility may depend on the collective bargaining agreement, the employee’s individual circumstances and whether the expense qualifies under the award and applicable law. Employees seeking relief may need receipts or other documentation if USDA begins an implementation process.

Employees should preserve records of potentially eligible costs and follow any instructions issued by USDA or AFSCME. The award does not guarantee reimbursement to every employee or establish that every commuting expense will qualify.

Why implementation may be delayed

Under the federal labor-relations process, an agency generally has 30 days after service of an arbitration award to file exceptions with the FLRA. A challenge could delay implementation while the agency seeks review. Further proceedings, including possible court action, could follow depending on the outcome.

FEDweek reported August 28 that agencies have been appealing similar arbitration decisions, leaving some return-to-office policies in place while disputes move through review or settlement. That broader pattern provides context, but the USDA dispute depends on its own agreement and facts.

What to watch next

The next important developments are any USDA filing with the FLRA, an agency implementation notice, negotiations with AFSCME over future telework rules and any later court proceedings.

For the 135 employees, the immediate question is whether the arrangements in place in April 2025 will be restored while the dispute continues. For other federal workers, the practical lesson is narrower: telework rights may depend on the exact language of their own contracts and the procedures their agencies must follow before changing them.

Sources

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