Unions Tell Workers Not to Accept ‘Scam’ Buyout Offer

By Hank Russell

New York Attorney General Letitia James led a coalition of eleven other attorneys general warning federal employees about the Trump administration’s misleading “deferred resignation” program, which offers federal employees pay through September 30 if they resign by February 6. Meanwhile, government workers unions are urging their members not to accept the offer, calling it “a scam,” in that they might not receive such benefits if they put in their papers.

“From keeping our communities safe to ensuring Americans have access to health care, housing, and other vital services, the millions of workers who staff the federal government play essential roles in all of our lives,” James said. “President Trump’s so-called buyout offers are nothing more than the latest attack on federal workers and the services they provide. These supposed offers are not guaranteed. Federal employees should be cautious and follow the guidance of their unions to protect their rights. Attacking our federal workforce will only cause more chaos and confusion for Americans, and will diminish the quality of services our government provides. We will continue to fight back against any attempt to jeopardize the federal support and programs our states’ residents rely on.”

On January 28, the Office of Personnel Management (OPM) sent an email to millions of federal employees detailing a new deferred resignation program. Employees were told that if they accept the offer and resign, they would continue receiving all pay and benefits, and be exempt from in-person work requirements until September 30. The OPM sent another email to federal employees on January 30 reiterating the offer and urging them to find “higher productivity” jobs outside of government. The OPM emails instructed employees that they have until February 6 to decide to remain in their position or resign under the deferred resignation program, and warned that those who did not resign were not guaranteed to keep their jobs.

Immediately following OPM’s email, unions representing federal employees warned their members against accepting the offer. The American Federation of Government Employees (AFGE), the largest federal employees union, released information for its members warning them that employees who accepted the offer were not guaranteed its benefits. The National Federation of Federal Employees (NFFE) similarly warned its members against accepting the offer.

“Employees should not take the Program at face value,” the AFGE stated. “The Program documentation, including the introductory email, an associated guidance memorandum issued by the Office of Personnel Management (OPM) on January 28, 2025, and OPM-issued FAQs are riddled with inconsistencies and uncertainties. It is also unclear whether OPM has the legal authority to support the Program or its alleged benefits, and the eligibility criteria are vague.”

The AFGE emphasized that this is not a buyout, but rather a Voluntary Separation Incentive Payment (VISP) program. “[I]t purports to offer employees the ability to submit a deferred resignation and claims employees that do so will continue to receive pay, while still possibly working, until September 30, 2025,” the group said of the VISP, adding there are no guarantees that an employee’s resignation will be accepted, “[n]or does the Program guarantee that an employee’s whose resignation is accepted will receive the benefits that the Program purports to offer.”

NFFE President Randy Erwin called the program “a scam” and said the goal is to replace “nonpartisan federal workers” with Trump loyalists. “Unlike structured programs that the federal government offered in the past to decrease the number of federal employees, this maneuver is intended to panic civil servants into accepting what seems like a sweet deal but is probably a scam,” he said. “The offer is a scare tactic designed to pressure federal workers into quitting while promising under an illegal and unenforceable agreement to pay them until October. NFFE strongly urges our members and all federal employees to reject this offer. If employees accept it, they forfeit their due process rights and may forfeit any pay beyond their acceptance date.”