Fedweek

The Bush administration has decided not to appeal to the U.S. Supreme Court an appeals court ruling that held invalid several key parts of its planned new personnel system, MaxHR. Both a federal district court and the appeals court had held that DHS exceeded its authority in issuing rules to carry out its legal authority to craft an alternative personnel system, in particular in the areas of union rights, disciplinary procedures and employee appeal rights. The decision not to appeal further apparently sends the department back to the drawing board on those parts of MaxHR, potentially meaning discussions with unions that could cover a lengthy period. The court rulings did not block other parts of the MaxHR system, including its changes in how jobs are classified, how pay rates are set, and how performance is measured and linked to pay. DHS has been pushing ahead with planning in those areas and hoping to bring the first employees under MaxHR early in 2007, but specifics and scheduling are uncertain for now, since some aspects may now require bargaining, or at least consultation, with unions.