Executive Order Revises Handling of Federal Employee Probationary Period
Our Privacy Policy has been updated! The Conference Board uses cookies to improve our website, enhance your experience, and deliver relevant messages and offers about our products. Detailed information on the use of cookies on this site is provided in our cookie policy. For more information on how The Conference Board collects and uses personal data, please visit our privacy policy. By continuing to use this Site or by clicking "OK", you acknowledge our privacy policy and consent to the use of cookies.  Our Privacy Policy has been updated! Detailed information on the use of cookies on this site is provided in our cookie policy and our privacy policy. 
TCB Tourch
Loading...
  • logoImage
  •  
    • US
    • EUROPE
    • ASIA
  • 2

    Close
    • Insights
        • Insights
        • Explore by Center
          • Explore by Center
          • CED
            Committee for Economic Development

          • Economy, Strategy & Finance

          • Governance & Sustainability

          • Human Capital

          • Marketing & Communications

        • Explore by Content Type
          • Explore by Content Type
          • Reports

          • Upcoming Webcasts

          • On Demand Webcasts

          • Podcasts

          • Charts & Infographics

        • Trending Topics
          • Trending Topics
          • Artificial Intelligence (AI)

          • Navigating Washington

          • Geopolitics

          • US Economic Forecast

          • Sustainability

          • Future of Work

    • Events
        • Events
        • Upcoming Events
          • Upcoming Events
          • People First: Opportunity and Access

          • CHRO Summit: Navigating through a Tsunami of Change

          • Future: People Asia

          • Executive Compensation in a Disruptive World

          • CED Distinguished Leadership Awards Celebration

          • The 2025 IBI/Conference Board Health and Productivity Forum

          • Explore all Upcoming Events

        • Member-Exclusive Programs
          • Member-Exclusive Programs
          • Center Briefings

          • Experts Live

          • Roundtables

          • Working Groups

          • Expert Briefings

    • Data
        • Data
        • Consumer Confidence Index

        • Data Central

        • TCB Benchmarking

        • Employment Trends Index

        • Global Economic Outlook

        • Leading Economic Indicators

        • Help Wanted OnLine

        • Labor Markets

        • Measure of CEO Confidence

        • Human Capital Benchmarking &
          Data Analytics

        • CMO+CCO Meter Dashboard

    • Centers
        • Centers
        • Our Centers
          • Our Centers
          • Committee for Economic Development

          • Economy, Strategy & Finance

          • Governance & Sustainability

          • Human Capital

          • Marketing & Communications

        • Center Membership
          • Center Membership
          • What Is a Center?

          • Benefits of Center Membership

          • Join a Center

    • Councils
        • Councils
        • Find a Council
          • Find a Council
          • Economy, Strategy & Finance

          • Governance & Sustainability

          • Human Capital

          • Marketing & Communications

        • Council Membership
          • Council Membership
          • What is a Council?

          • Benefits of Council Membership

          • Apply to a Council

    • Membership
        • Membership
        • Why Become a Member?
          • Why Become a Member?
          • Benefits of Membership

          • Check if Your Organization is a Member

          • Speak to a Membership Associate

        • Types of Membership
          • Types of Membership
          • Council

          • Committee for Economic Development

          • Economy, Strategy & Finance

          • Governance & Sustainability

          • Human Capital

          • Marketing & Communications

          • Insights

        • Already a Member?
          • Already a Member?
          • Sign In to myTCB®

          • Executive Communities

          • Member-Exclusive Programs

    • About Us
        • About Us
        • Who We Are
          • Who We Are
          • About Us

          • In the News

          • Press Releases

          • Our History

          • Support Our Work

          • Locations

          • Contact Us

        • Our Community
          • Our Community
          • Our Leadership

          • Our Experts

          • Trustees

          • Voting Members

          • Global Counsellors

          • Careers

          • This Week @ TCB

    • Careers
    • This Week @ TCB
    • Sign In to myTCB®
      • US
      • EUROPE
      • ASIA
    • Insights
      • Insights
      • Explore by Center
        • Explore by Center
        • CED
          Committee for Economic Development

        • Economy, Strategy & Finance

        • Governance & Sustainability

        • Human Capital

        • Marketing & Communications

      • Explore by Content Type
        • Explore by Content Type
        • Reports

        • Upcoming Webcasts

        • On Demand Webcasts

        • Podcasts

        • Charts & Infographics

      • Trending Topics
        • Trending Topics
        • Artificial Intelligence (AI)

        • Navigating Washington

        • Geopolitics

        • US Economic Forecast

        • Sustainability

        • Future of Work

    • Events
      • Events
      • Upcoming Events
        • Upcoming Events
        • People First: Opportunity and Access

        • CHRO Summit: Navigating through a Tsunami of Change

        • Future: People Asia

        • Executive Compensation in a Disruptive World

        • CED Distinguished Leadership Awards Celebration

        • The 2025 IBI/Conference Board Health and Productivity Forum

        • Explore all Upcoming Events

      • Member-Exclusive Programs
        • Member-Exclusive Programs
        • Center Briefings

        • Experts Live

        • Roundtables

        • Working Groups

        • Expert Briefings

    • Data
      • Data
      • Consumer Confidence Index

      • Data Central

      • TCB Benchmarking

      • Employment Trends Index

      • Global Economic Outlook

      • Leading Economic Indicators

      • Help Wanted OnLine

      • Labor Markets

      • Measure of CEO Confidence

      • Human Capital Benchmarking & Data Analytics

      • CMO+CCO Meter Dashboard

    • Centers
      • Centers
      • Our Centers
        • Our Centers
        • Committee for Economic Development

        • Economy, Strategy & Finance

        • Governance & Sustainability

        • Human Capital

        • Marketing & Communications

      • Center Membership
        • Center Membership
        • What is a Center?

        • Benefits of Center Membership

        • Join a Center

    • Councils
      • Councils
      • Find a Council
        • Find a Council
        • Economy, Strategy & Finance

        • Governance & Sustainability

        • Human Capital

        • Marketing & Communications

      • Council Membership
        • Council Membership
        • What is a Council?

        • Benefits of Council Membership

        • Apply to a Council

    • Membership
      • Membership
      • Why Become a Member?
        • Why Become a Member?
        • Benefits of Membership

        • Check if Your Organization is a Member

        • Speak to a Membership Associate

      • Types of Membership
        • Types of Membership
        • Council

        • Committee for Economic Development

        • Economy, Strategy & Finance

        • Governance & Sustainability

        • Human Capital

        • Marketing & Communications

        • Insights

      • Already a Member?
        • Already a Member?
        • Sign In to myTCB®

        • Executive Communities

        • Member-Exclusive Programs

    • About Us
      • About Us
      • Who We Are
        • Who We Are
        • About Us

        • In the News

        • Press Releases

        • This Week @ TCB

        • Our History

        • Support Our Work

        • Locations

        • Contact Us

      • Our Community
        • Our Community
        • Our Leadership

        • Our Experts

        • Trustees

        • Voting Members

        • Global Counsellors

        • Careers

        • This Week @ TCB

    • Careers
    • Sign In to myTCB®
    • Download TCB Insights App
  • Insights
    Insights

    Our research and analysis have helped the world's leading companies navigate challenges and seize opportunities for over 100 years.

    Explore All Research

    Economic Indicators

    • Explore by Center
    • CED
      Committee for Economic Development
    • Economy, Strategy & Finance
    • Governance & Sustainability
    • Human Capital
    • Marketing & Communications
    • Explore by Content Type
    • Reports
    • Upcoming Webcasts
    • On Demand Webcasts
    • Podcasts
    • Charts & Infographics
    • Trending Topics
    • Artificial Intelligence (AI)
    • Navigating Washington
    • Geopolitics
    • US Economic Forecast
    • Sustainability
    • Future of Work
  • Events
    Events

    Our in-person and virtual events offer unmatched opportunities for professional development, featuring top experts and practitioners.

    See Everything Happening This Week

    Sponsor a Program

    • Upcoming Events
    • People First: Opportunity and Access

      June 12 - 13, 2025

      CHRO Summit: Navigating through a Tsunami of Change

      June 24, 2025

      Future: People Asia

      September 04 - 05, 2025

    •  
    • Executive Compensation in a Disruptive World

      September 16 - 17, 2025

      CED Distinguished Leadership Awards Celebration

      October 08, 2025

      The 2025 IBI/Conference Board Health and Productivity Forum

      October 16 - 17, 2025

    • Member-Exclusive Programs
    • Center Briefings
    • Experts Live
    • Roundtables
    • Working Groups
    • Expert Briefings
    • Explore by Type
    • Events
    • Webcasts
    • Podcasts
    • Member-Exclusive Programs
    • Center Briefings
    • Experts Live
    • Roundtables
    • Working Groups
    • Expert Briefings
  • Data
    Corporate Disclosure Data

    TCB Benchmarking

    Real-time data & analytical tools to benchmark your governance, compensation, environmental, human capital management (HCM) and social practices against US public companies.

    Economic Data

    All Data

    See current direction and trends across key indicators

    Consumer Confidence Index

    US consumers' thoughts on the economy, jobs, finances and more

    Data Central

    One-stop, member-exclusive portal for the entire suite of indicators

    Labor Markets

    Covering all aspects of labor markets, from monthly development to long-term trends

    Measure of CEO Confidence

    Examines the health of the US economy from the perspective of CEOs

     

    Recession & Growth Trackers

    See the current and future state of 16 economies.

    Global Economic Outlook

    Track the latest short-, medium-, and long-term growth outlooks for 77 economies

    Leading Economic Indicators

    Track the state of the business cycle for 12 global economies across Asia and Europe

    Help Wanted OnLine

    Track the status of job markets across the US through online job listings

    Other Featured Data

    Human Capital Analytics Tools

    Tools to understand human capital management and corporate performance

    CMO+CCO Meter Dashboard

    Tracks the impact, resources, and satisfaction of CMOs and CCOs

  • Centers
    Centers

    Centers offer access to world-class experts, research, events, and senior executive communities.

    Our Centers
    • Committee for Economic Development
    • Economy, Strategy & Finance
    • Governance & Sustainability
    • Human Capital
    • Marketing & Communications
    Center Membership
    • What Is a Center?
    • Benefits of Center Membership
    • Join a Center
  • Councils
    Councils

    Councils are invitation-only, peer-led communities of senior executives that come together to exchange knowledge, accelerate career development, and advance their function.

    Find a Council
    • Economy, Strategy & Finance
    • Governance & Sustainability
    • Human Capital
    • Marketing & Communications
    Council Membership
    • What Is a Council?
    • Benefits of Council Membership
    • Apply to a Council
  • Membership
    Membership

    Membership in The Conference Board arms your team with an arsenal of knowledge, networks, and expertise that's unmatched in scope and depth.

    • Why Become a Member?
    • Benefits of Membership
    • Check if Your Organization is a Member
    • Speak to a Membership Associate
    • Types of Membership
    • Council
    • Committee for Economic Development
    • Economy, Strategy & Finance
    • Governance & Sustainability
    • Human Capital
    • Marketing & Communications
    • Insights
    • Already a Member?
    • Sign in to myTCB®
    • Executive Communities
    • Member-Exclusive Programs
  • About Us
    About Us

    The Conference Board is the global, nonprofit think tank and business membership organization that delivers Trusted Insights for What's Ahead®. For over 100 years, our cutting-edge research, data, events and executive networks have helped the world's leading companies understand the present and shape the future.

    Learn more about Membership

    • Who We Are
    • About Us
    • In the News
    • Press Releases
    • Our History
    • Support Our Work
    • Locations
    • Contact Us
    • Our Community
    • Our Leadership
    • Our Experts
    • Trustees
    • Voting Members
    • Careers
    • This Week @ TCB
Check if You're a Member
Create Account
Forgot Your Password?

Members of The Conference Board get exclusive access to the full range of products and services that deliver Trusted Insights for What's Ahead ® including webcasts, publications, data and analysis, plus discounts to conferences and events.

CED Newsletters & Policy Alerts

Timely Public Policy insights for what's ahead

  • Email
  • Linkedin
  • Facebook
  • Twitter
  • Copy Link

Action: On April 24, the President issued an Executive Order replacing parts of the regulation governing the evaluation of Federal employees in their probationary periods. The Order revises the regulation so that it requires a determination as to whether a person’s continued employment “advances the public interest.” Additionally, the employee now “bears the burden of demonstrating why their continuation in employment through the finalization of their appointment to the Federal service is in the public interest.” Among the factors agencies may use in determining whether continued employment is in the public interest is an evaluation of “whether the employee’s continued employment would advance organizational goals of the agency or the Government.”

Key Insights

  • The Administration has made reducing the size of the Federal workforce a key priority; however, these efforts have been complicated by a range of legal constraints governing the dismissal of Federal employees “without cause.” Attempts to fire probationary employees en masse on claims of poor performance have been challenged in court, with one judge stating that “it was a sham in order to try to avoid statutory requirements.”
  • Newly hired Federal employees are generally subject to a one or two year probationary period. Regulations superseded by the President’s Order specified that agencies would use the probationary period to determine the fitness of the employee and terminate their service if they fail to demonstrate the requisite qualifications for continued employment and, if an agency decides to terminate a probationary employee for unsatisfactory performance or conduct, it must explain its conclusions about the employee’s performance.
  • The Order thus shifts the purpose of the probationary evaluation from merely assessing performance adequacy to requiring a positive demonstration that continued employment serves the public interest as defined by the agency. The Order also shifts the burden of proof to the probationary employee rather than the Agency itself. Guidance issued by the Office of Personnel Management following the Order states that “agencies may decide not to finalize a probationer’s employment for reasons unrelated to their personal performance or conduct.” The Order does not require that agencies disclose to the employee the reason for termination, making litigation against the decision more difficult.
  • In addition, the Order’s requirement for an assessment of whether an individual’s employment “advances the organizational goals of the agency or the Government” could be interpreted as a test of the individual’s support of the policy goals of the Administration in power. 
  • The Order also claims that the regulations in subpart H of part 315 of title 5 that “purport to limit agency action” regarding probationary employees are “not statutorily required.” The Order does not state which provisions “limit agency action,” though the Administration's rationale may be that, since the statute authorizing the probationary period for Federal employees states that the President “may” issue regulations governing the probationary period, it does not actually require that agencies issue such regulations. This would be a significant change in interpretation of the law.
  • The Order is notable not only for its effects on the Federal workforce, but also because it asserts the President’s authority to repeal and establish regulations without the notice and comment typically required by the Administrative Procedure Act (APA). While the APA does allow agencies to forgo the notice and comment period for “good cause,” the legal standards for what constitutes good cause are vague, and this Order did not invoke the provision.

Executive Order Revises Handling of Federal Employee Probationary Period

May 02, 2025

Action: On April 24, the President issued an Executive Order replacing parts of the regulation governing the evaluation of Federal employees in their probationary periods. The Order revises the regulation so that it requires a determination as to whether a person’s continued employment “advances the public interest.” Additionally, the employee now “bears the burden of demonstrating why their continuation in employment through the finalization of their appointment to the Federal service is in the public interest.” Among the factors agencies may use in determining whether continued employment is in the public interest is an evaluation of “whether the employee’s continued employment would advance organizational goals of the agency or the Government.”

Key Insights

  • The Administration has made reducing the size of the Federal workforce a key priority; however, these efforts have been complicated by a range of legal constraints governing the dismissal of Federal employees “without cause.” Attempts to fire probationary employees en masse on claims of poor performance have been challenged in court, with one judge stating that “it was a sham in order to try to avoid statutory requirements.”
  • Newly hired Federal employees are generally subject to a one or two year probationary period. Regulations superseded by the President’s Order specified that agencies would use the probationary period to determine the fitness of the employee and terminate their service if they fail to demonstrate the requisite qualifications for continued employment and, if an agency decides to terminate a probationary employee for unsatisfactory performance or conduct, it must explain its conclusions about the employee’s performance.
  • The Order thus shifts the purpose of the probationary evaluation from merely assessing performance adequacy to requiring a positive demonstration that continued employment serves the public interest as defined by the agency. The Order also shifts the burden of proof to the probationary employee rather than the Agency itself. Guidance issued by the Office of Personnel Management following the Order states that “agencies may decide not to finalize a probationer’s employment for reasons unrelated to their personal performance or conduct.” The Order does not require that agencies disclose to the employee the reason for termination, making litigation against the decision more difficult.
  • In addition, the Order’s requirement for an assessment of whether an individual’s employment “advances the organizational goals of the agency or the Government” could be interpreted as a test of the individual’s support of the policy goals of the Administration in power. 
  • The Order also claims that the regulations in subpart H of part 315 of title 5 that “purport to limit agency action” regarding probationary employees are “not statutorily required.” The Order does not state which provisions “limit agency action,” though the Administration's rationale may be that, since the statute authorizing the probationary period for Federal employees states that the President “may” issue regulations governing the probationary period, it does not actually require that agencies issue such regulations. This would be a significant change in interpretation of the law.
  • The Order is notable not only for its effects on the Federal workforce, but also because it asserts the President’s authority to repeal and establish regulations without the notice and comment typically required by the Administrative Procedure Act (APA). While the APA does allow agencies to forgo the notice and comment period for “good cause,” the legal standards for what constitutes good cause are vague, and this Order did not invoke the provision.

Download
Great News!

You already have an account with The Conference Board.

Please try to login in with your email or click here if you have forgotten your password.

  • Download
  • Download Newsletters & Alerts

More From This Series

Newsletters & Alerts

Policy Alert: New Law Addresses Deepfake Abuse

May 22, 2025

Newsletters & Alerts

Policy Alert: California EV Mandate Targeted for Repeal

May 22, 2025

Newsletters & Alerts

Policy Alert: Revised EPA Regulations on “Forever Chemicals”

May 21, 2025

Newsletters & Alerts

Policy Alert: House Republicans Propose Excise Tax on Remittances

May 21, 2025

Newsletters & Alerts

Policy Alert: Incumbent Labor Party Wins Australian Election

May 15, 2025

Newsletters & Alerts

Policy Alert: Stablecoin Bill Fails Key Senate Vote

May 15, 2025

View Less View More

Conference Board Sample Web Chat
chatbot-Icon TCB Logo
chatbot-Icon
Navigating Washington - Sign up to receive the latest business insights related to executive orders, new laws, and changing regulations.
ABOUT US
  • Who We Are
  • Annual Report
  • Our History
  • Our Experts
  • Our Leadership
  • In the News
  • Press Releases
MEMBERSHIP
  • Become a Member
  • Sign In to myTCB®
  • Access Experts
  • Member-Only Events
  • Data & Benchmarking
  • Manage Account
EXPLORE
  • Centers
  • Councils
  • Latest Research
  • Events
  • Webcasts
  • Podcasts
  • This Week @ TCB
CONTACT US
  • Americas
    +1 212 759 0900
    customer.service@tcb.org
  • Europe/Africa/Middle East
    +32 2 675 5405
    brussels@tcb.org
  • Asia
    Hong Kong | +852 2804 1000
    Singapore | +65 8298 3403
    service.ap@tcb.org
CAREERS
  • See Open Positions
Terms Of Use | Privacy Policy | Event Code of Conduct | Trademarks
© 2025 The Conference Board Inc. All rights reserved. The Conference Board and torch logo are registered trademarks of The Conference Board.
The use of all The Conference Board data and materials is subject to the Terms of Use. Reprint requests are reviewed individually and may be subject to additional fees.The Conference Board reserves the right to deny any request.
Terms of Use | Privacy Policy | Event Code of Conduct | Trademarks
© 2025 The Conference Board Inc. All rights reserved. The Conference Board and torch logo are registered trademarks of The Conference Board.
The use of all data from The Conference Board data and materials is subject to the Terms of Use. Reprint requests are reviewed individually and may be subject to additional fees.The Conference Board reserves the right to deny any request.

Thank you for signing up. You will now receive CEO Insights for What's Ahead every Wednesday morning. You can unsubscribe at any time or manage your preferences to receive more content from The Conference Board.

Announcing The Conference Board AI Virtual Conference Series

Explore the Impact of AI on Your Business

Members receive complimentary registration - Learn more >>