7,000 IRS workers ‘reinstated’ — but not yet returning to work

The federal government will pay about 7,000 IRS probationary employees, who were laid off less than a month ago, not to work while lawsuits over layoffs wind their way through the court system, the agency said Tuesday in an email.

Acting IRS Commissioner Melanie Krause said in the email sent to all IRS employees that the probationary workers, who were laid off Feb. 20, would be reinstated and placed on administrative leave until further notice.

The email sent to probationary workers advised them “not [to] report to duty or perform any work until receiving further guidance.” The email cited an order from a U.S. District Court judge in Maryland that 18 federal agencies, including Treasury, reinstate “certain probationary workers” at least temporarily.

Court documents filed Monday showed that the government was ordered to rehire 24,000 workers across the 18 agencies, media outlets reported. The IRS workers make up about 30% of that total.

The order, in State of Maryland et al v. United States Department of Agriculture et al,No. 1:25-CV-00748(Md. 3/13/25), was one of two issued last week regarding the rehiring of the probationary employees. In the other case, a bench order covered six federal agencies, including Treasury, in American Federation of Government Employees, AFL-CIO et al v. United States Office of Personnel Management et al, No.3:25-cv-01780-WHA (N.D. Cal. 3/13/25).

In the latter case, an order issued Monday said that placing employees on administrative leave was not permitted by the court’s injunction.

“The Court has read news reports that, in at least one agency, probationary employees are being rehired but then placed on administrative leave en masse,” the order said. “This is not allowed by the preliminary injunction, for it would not restore the services the preliminary injunction intends to restore.”

Probationary employees who sought details about the administrative leave received a second email that said the workers will receive back pay and that all benefits, such as life insurance and health, vision, and dental coverage, will be reinstated.

In the latter case, an order issued Monday said that placing employees on administrative leave was not permitted by the court’s injunction.

“The Court has read news reports that, in at least one agency, probationary employees are being rehired but then placed on administrative leave en masse,”  the order said. “This is not allowed by the preliminary injunction, for it would not restore the services the preliminary injunction intends to restore.”

“The administrative leave you are being placed on is paid,” the second email said. Workers also will continue to accrue annual leave and sick leave, it said.

Meanwhile, other job losses loom at the IRS, Krause’s email said.

The IRS has not yet received a reduction-in-force and reorganization plan from Treasury, she said. “We continue to engage with Treasury regarding potential reduction levels, other workforce reshaping tools, and other important considerations regarding timelines,” she said.

Her email ended with a reminder that IRS employees should bookmark the page that provides workforce updates and gather important documents and verify all personnel information. Employees also should “recognize that mental health and wellness is a crucial component to our overall well-being,” she said.

— To comment on this article or to suggest an idea for another article, contact Martha Waggoner at Martha.Waggoner@aicpa-cima.com.