Commerce failed to uphold promised healthcare benefits for probationers as claimed by the Democratic Oversight Committee.
The U.S. Commerce Department is under fire for alleged violations of healthcare rights for terminated probationary federal employees under the Federal Employees Health Benefits Program (FEHBP). Rep. Stephen Lynch, D-Mass., has accused Commerce Secretary Howard Lutnick of these violations.
According to reports, many newly hired or promoted federal workers have been terminated this year, including some who were still on probationary status. Federal law stipulates that these tenured yet recently promoted employees retain their full Title 5 removal protections, but many were fired nevertheless.
The Commerce Department restored health benefits access and collected premiums from paychecks of reinstated employees in March. However, the department reportedly ended FEHBP coverage in April, despite continued payroll deductions. This decision left some former employees without health coverage during the 31-day post-employment period, a requirement under FEHBP.
In a letter to Secretary Lutnick, Rep. Lynch expressed concern about the department's failure to provide documentation to former employees regarding their terminations. This lack of documentation has caused issues with applying for unemployment benefits and acquiring new employment.
The Housing and Urban Development Department (HUD) appears to be facing similar issues. HUD reportedly refused to offer reinstated employees back pay in March, which appears to be a violation of federal law. The department also encouraged employees to sign up for Temporary Continuation of Coverage instead of paying the employer's share of FEHBP premiums.
The House Oversight and Government Reform Committee has accused the Commerce Department of illegally reneging on probationary employees' health benefits during the Trump administration. The committee has called for the department to rectify these issues, particularly with regard to documentation, to allow former employees to access benefits and new employment immediately.
Some former Commerce employees have reported that they were denied health care during the 31-day post-employment period, leaving them without coverage. An employee with over a decade of service at Commerce, classified as 'probationary' after a promotion, was told health insurance premiums paid to FEHBP would not be refunded, despite early cancellation without notice.
Rep. Lynch wrote that employees were fired with just hours' notice and denied health coverage for which they had already paid. He also expressed concern about the department's failure to provide Temporary Continuation of Coverage to eligible employees.
The issues with the termination process at the Commerce Department and HUD may extend to other forms of owed compensation, such as payment for earned leave and credit hours. The Department of Commerce has not processed the firing of some employees, leaving them in an unpaid leave status.
The ongoing investigation into these alleged violations is a reminder of the importance of upholding the rights and benefits of federal employees, particularly during times of transition and change.
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