Supreme Court’s landmark ruling entitles federal employees who serve as military reservists to their full civilian salaries during military leave, potentially triggering billions in back pay claims against government agencies.
Key Takeaways
- The Supreme Court ruled federal employees are entitled to differential pay when serving on active duty in military reserves during national emergencies
- Reservists no longer need to prove their service was directly connected to a specific emergency to receive their full civilian salary
- The ruling potentially benefits thousands of current and former federal employees who can now claim back pay
- Federal agencies must now compensate reservist employees for up to 22 additional days of paid military leave per year
Supreme Court Expands Pay Rights for Federal Employee Reservists
In a significant victory for military reservists employed by the federal government, the Supreme Court has ruled that these individuals are entitled to receive differential pay when serving on active duty during a national emergency. This landmark decision ensures that federal employees who are called to serve their country in military operations will not suffer financial hardship due to reduced income. The ruling specifically addresses the differential pay statute passed in 2008, which was designed to protect federal employees from income loss when fulfilling their military reserve obligations during times of national emergency.
The case, Feliciano v. Department of Transportation, has resulted in the Supreme Court vacating the Federal Circuit’s previous ruling and remanding it for reconsideration. This decision represents a substantial shift in how federal agencies must compensate their employees who serve in the military reserves. Previously, many reservists were denied differential pay because agencies required them to demonstrate a direct connection between their service and a specific national emergency. The Supreme Court has now clarified that such a connection is not necessary.
A recent Supreme Court ruling could lead to numerous pay claims for federal employees also serving as military reservists. https://t.co/NZNb34qgN1
— NEWSMAX (@NEWSMAX) June 18, 2025
Additional Military Leave Entitlements Clarified
The Supreme Court’s decision further solidifies that federal employees who serve in the military reserves are entitled to 22 days of compensated leave per year from their civilian employer when called to active duty for a “contingency operation.” This entitlement is mandated under 5 U.S.C. § 6323(b). Many federal agencies had previously interpreted this provision narrowly, depriving reservists of their rightful paid leave. The recent ruling clarifies that these entitlements should be broadly applied, benefiting thousands of current and former federal employees who may have been improperly charged leave or forced to use annual leave when performing military service.
“During a national emergency” is the key phrase that the Federal Circuit and United States Supreme Court emphasized in their ruling, making it clear that the timing of service relative to a declared emergency is what matters for differential pay eligibility.
The Court’s interpretation builds upon previous cases like O’Farrell v. Department of Defense, which established a broad interpretation of support for contingency operations. In that case, the Federal Circuit overturned a Merit Systems Protection Board (MSPB) decision, granting O’Farrell 22 additional days of paid military leave. Similarly, the Butterbaugh v. Department of Justice case required agencies to compensate employees for improperly charged military leave prior to December 2000, setting an important precedent for these types of claims.
Financial Implications and Claims Process
This Supreme Court decision has significant financial implications for both federal employees and government agencies. For reservists who did not receive differential pay during their military service, this ruling opens the door to potential back pay claims. Current federal employees may be entitled to restored annual leave, while retired or separated employees could receive lump-sum payments. These claims, when successful, could amount to substantial sums depending on the duration of military service and the difference between military and civilian pay.
“Federal employees are entitled to differential pay if the reservist’s service temporally coincides with a declared national emergency without any showing that the service bears a substantive connection to a particular emergency,” stated the Supreme Court in their ruling.
For federal employees seeking to claim these benefits, the process involves filing with the MSPB or seeking legal assistance from firms specializing in federal employment law. Both Terrell Marshall Law Group and Tully Rinckey PLLC are offering consultations for affected employees, with no up-front fees in many cases. The time-sensitive nature of these claims means that current and former federal employees who served in the reserves should act promptly to determine their eligibility and initiate the claims process before any applicable deadlines pass.
