VA and AFGE reach settlement agreement resolving litigation over discipline taken under the Department of Veterans Affairs Accountability and Whistleblower Protection Act of 2017

WASHINGTON – Today, the Department of Veterans Affairs announced a new settlement agreement with the American Federation of Government Employees (AFGE) that resolves litigation over adverse actions taken against former VA employees under the Department of Veterans Affairs Accountability and Whistleblower Protection Act of 2017. This settlement resolves the Federal Labor Relations Authority finding that VA failed to bargain with AFGE regarding the impact and implementation of the 2017 law.

As part of the agreement, many former VA employees will have the option either to return to work at VA or receive compensation in lieu of being reinstated. However, according to the terms of the agreement, hundreds of former VA employees who the VA and AFGE mutually agree were terminated for grievous misconduct will not be eligible to return to work. The total cost of this settlement is expected to be in the hundreds of millions of dollars, with the exact figure being determined over the coming years by how many former employees elect to return to VA. The associated costs represent a fair agreement between both parties.

This agreement allows AFGE and VA to move forward and continue our work to deliver world-class care and benefits to Veterans, their families, caregivers, and survivors without expending additional resources on legal challenges to VA’s application of the 2017 law. VA is no longer using the authority granted under section 714 of the 2017 law, which has been rendered ineffective and unusable by years of litigation and adverse administrative and court decisions following its passage. Even without this authority, VA is confident that it currently has the necessary authorities to manage its workforce and hold employees accountable for misconduct and poor performance.

“This agreement will allow VA and AFGE to move forward and focus on what matters most: delivering world-class care and benefits to Veterans, their families, caregivers, and survivors,” said VA Secretary Denis McDonough. “Union employees are the backbone of VA’s workforce, and we are proud to support them — today and every day in our shared mission to serve those who served.”   

VA has also reached a tentative agreement with the AFGE on a new master bargaining agreement. This agreement was ratified by AFGE members June 2, 2023 and will be signed by both parties soon. The new agreement will help VA’s dedicated public servants continue delivering more care and more benefits to more Veterans than ever before in our nation’s history. It will also help VA better retain employees, hire more quickly, and add the staff required to implement the PACT Act — the largest expansion of Veteran health care and benefits in decades.

This master bargaining agreement is a part of VA’s broader efforts to support bargaining unit employees and execute President Biden’s Executive Order on Worker Organizing and Empowerment. More than 79% of all VA’s public servants are bargaining unit employees, and VA is committed to supporting them as they serve the nation’s Veterans, their families, caregivers, and survivors.