[Federal Register Volume 86, Number 157 (Wednesday, August 18, 2021)]
[Rules and Regulations]
[Pages 46103-46109]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-17638]



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 Rules and Regulations
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 This section of the FEDERAL REGISTER contains regulatory documents 
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  Federal Register / Vol. 86, No. 157 / Wednesday, August 18, 2021 / 
Rules and Regulations  

[[Page 46103]]



OFFICE OF PERSONNEL MANAGEMENT

5 CFR Parts 315, 316, and 330

RIN 3206-AN86


Hiring Authority for Post-Secondary Students

AGENCY: Office of Personnel Management.

ACTION: Interim rule with request for comments.

-----------------------------------------------------------------------

SUMMARY: The Office of Personnel Management (OPM) is issuing an interim 
rule, with an opportunity for comment, to amend its career and career-
conditional employment regulations. The revision is necessary to 
implement section 1108 of the John S. McCain National Defense 
Authorization Act (NDAA) for Fiscal Year (FY) 2019, which requires OPM 
to issue regulations, in interim final form, implementing hiring 
authorities that allow agencies to hire certain post-secondary students 
into positions at specified grades in the competitive service. The 
intended effect of the authority is to provide additional flexibility 
in hiring eligible and qualified individuals.

DATES: 
    Effective date: This interim rule is effective September 17, 2021.
    Comments due date: OPM must receive comments on or before October 
18, 2021.

ADDRESSES: You may submit comments, identified by the docket number or 
Regulation Identifier Number (RIN) for this proposed rulemaking, by the 
following method:
    Federal eRulemaking Portal: http://www.regulations.gov. Follow the 
instructions for sending comments.
    All submissions must include the agency name and docket number or 
RIN for this rulemaking. Please arrange and identify your comments on 
the regulatory text by subpart and section number; if your comments 
relate to the supplementary information, please refer to the heading 
and page number. All comments received will be posted without change, 
including any personal information provided. Please ensure your 
comments are submitted within the specified open comment period. 
Comments received after the close of the comment period will be marked 
``late,'' and OPM is not required to consider them in formulating a 
final decision. Before acting on this proposal, OPM will consider all 
comments we receive on or before the closing date for comments. Changes 
to this proposal may be made in light of the comments we receive.

FOR FURTHER INFORMATION CONTACT: Monica Butler at (202) 606-0960, by 
fax at (202) 606-4430, TDD at (202) 418-3134, or by email at 
[email protected].

SUPPLEMENTARY INFORMATION: On August 13, 2018, the President signed 
Public Law 115-232, the National Defense Authorization Act (NDAA) for 
Fiscal Year 2019 (i.e., the Act). Section 1108 of the Act established a 
new hiring authority, codified at 5 U.S.C. 3116, for appointing certain 
post-secondary students to certain positions in the competitive 
service. This section also directs OPM to issue regulations to 
implement this authority. Section 1108 of the Act also established a 
hiring authority for appointments of college graduates. OPM is issuing 
regulations to implement the hiring authority for college graduates in 
a separate notification. (New section 3116 was amended by Pub. L. 116-
92, the NDAA for Fiscal Year 2020, which modified 5 U.S.C. 3116(d)(1).)
    OPM is issuing interim regulations, with an opportunity for 
comments, that will create a new subpart I of part 316, title 5, Code 
of Federal Regulations (CFR), and revise part 330 Recruitment, 
Selection, and Placement (General).
    The interim rule for post-secondary students allows agencies to 
make time-limited appointments per the statute of eligible individuals 
directly into the competitive service, without regard to 5 U.S.C. 3309-
3319 and 3330. Readers should note that this new hiring authority is 
separate and distinct from the programs authorized under the Executive 
Order 13562 (establishing the Pathways Programs, which provide for 
appointments in the excepted service for Interns, Recent Graduates, and 
Presidential Management Fellows as described in 5 CFR part 362).
    When using this authority, agencies must provide public 
notification and follow merit system principles, in accordance with 
Section 1108, as codified at 5 U.S.C. 3116 (The merit system principles 
are codified at 5 U.S.C. 2301). Because section 1108 of the Act waives 
the requirement for OPM to post a vacancy to be filled under this 
authority that would otherwise apply (5 U.S.C. 3330), agencies are not 
required to use www.USAJOBS.gov (i.e., USAJOBS) to provide notice of 
these vacancies. Agencies may wish to use USAJOBS, nevertheless, in 
light of that system's ability to assist with the requirement to 
collect demographic information. Agencies must advertise positions in a 
manner that provides for ``diverse and qualified applicants,'' 5 U.S.C. 
3116(c)(2)(B), ``ensure[s] that potential applicants have appropriate 
information relevant to the position being filled,'' id. at 
3116(c)(2)(C), and adhere[s] to merit system principles,'' id. at 
3116(c)(2)(A). As indicated in 5 U.S.C. 3116, agencies must determine 
whether an applicant meets the eligibility requirements for the Post-
Secondary Students hiring authority before giving that applicant 
further consideration. Agencies must then assess whether an eligible 
applicant meets the government-wide (i.e., OPM-established) or OPM-
approved agency-specific minimum qualification standard for the 
position being filled.
    Agencies are not required to provide selection priority to eligible 
and qualified applicants entitled to selection priority in accordance 
with 5 CFR part 330, subparts F and G, pertaining to Agency Career 
Transition Assistance Plans (CTAP) and Interagency Career Transition 
Assistance Plans (ICTAP). OPM has revised these subparts to include 
exceptions to these provisions when appointments are made using this 
Post-Secondary Student authority.
    OPM has revised 5 CFR part 315, subpart G, to provide for non-
competitive conversion of Post-Secondary students.
    Section 1108 of the Act also allows agencies to make appointments 
without regard to any provision of 5 U.S.C. 3309 through 3319. An 
agency may select any eligible individual who meets each minimum 
qualification standard, without regard to the application of

[[Page 46104]]

veterans' preference, but, in accordance with new section 
3116(c)(2)(A), must adhere to merit system principles, 5 U.S.C. 2301, 
in so doing. Agencies may appoint individuals under this authority to 
time-limited appointments in the competitive service at the grade 
levels specified in 5 U.S.C. 3116.
    OPM is adding a new Sec.  316.901 Agency authority establishing 
that an agency may noncompetitively appoint an eligible and qualified 
post-secondary student to any position in the competitive service, on a 
time-limited basis, at the General Schedule (GS) 11 level or below (or 
equivalent). An agency may appoint individuals, on a time-limited 
basis, to a temporary appointment (for an initial period not to exceed 
1 year), or a term appointment (for an initial period expected to last 
more than 1 year but less than 4 years), to coincide with the 
individual's academic curriculum and calendar. In either case, an 
agency may extend an initial appointment for a period that will allow 
the student to complete his or her degree requirements, provided the 
criteria for the student appointment continue to be met. Appointments 
made under this authority, however, are nevertheless subject to the 
time limitations in 5 CFR part 316, unless the agency obtains OPM's 
permission to extend in individual cases. For example, an agency hires 
a student who is expected to complete his or her degree within 8 
months. The agency would place the student on a temporary appointment 
(i.e., the initial appointment is expected to last for up to 1 year). 
If the student takes longer than expected to complete his or her 
degree, the agency may extend the initial appointment for up to an 
additional year, for a total of 24 months. Any extensions beyond 24 
months would require OPM approval. As another example an agency hires a 
student who is expected to complete his or her degree within 18 months. 
The agency would place the student on a term appointment not to exceed 
4 years (i.e., the initial appointment is expected to last for more 
than 1 year but not more than 4 years). If the student takes longer 
than expected to complete his or her degree, the agency may extend the 
initial appointment up to the 4-year limit in increments determined by 
the agency. The public notification should state that the agency has 
the option of extending a term appointment made under these provisions 
up to the 4-year limit. Any extensions beyond the 4-year limit would 
require OPM approval. Following publication of this rule, OPM will 
consider crafting a proposed rule to permit delegation of such 
extensions to agency heads.
    Interim Sec.  316.902 Eligibility defines an eligible post-
secondary student as an individual who is enrolled or accepted for 
enrollment in an institution of higher education and pursuing a 
baccalaureate or graduate degree on at least a part-time basis as 
determined by the academic institution. An institution of higher 
education is an entity defined by the Higher Education Act of 1965, in 
a section codified at 20 U.S.C. 1001(a).
    Interim Sec.  316.903 Qualifications explains that individuals 
appointed under this authority must meet the government-wide OPM-
prescribed minimum qualification standard, or OPM-approved agency-
specific qualification standard, for the position being filled.
    Interim Sec.  316.904 Classification establishes that positions 
filled under this authority must be classified under the General 
Schedule or appropriate pay plan to the -99 series of the appropriate 
occupational group. This section also explains that positions filled 
under the Federal Wage System must be classified to the -01 series of 
the appropriate occupational group. Agencies may refer to OPM's, 
``Introduction to the Position Classification Standards'' at https://www.opm.gov/policy-data-oversight/classification-qualifications/classifying-general-schedule-positions/positionclassificationintro.pdf 
for a definition of these positions. In addition, agencies can refer to 
the ``Handbook of Occupational Groups and Families'' available at 
https://www.opm.gov/policy-data-oversight/classification-qualifications/classifying-general-schedule-positions/occupationalhandbook.pdf.
    Students may not be promoted while serving on the temporary 
appointment (i.e., an appointment not expected to exceed 1 year). 
Students may be converted to a new temporary appointment at a higher 
grade/band level provided the student meets the qualification 
requirements for the higher grade/band position.
    Interim Sec.  316.905 Public notification contains the public 
notification requirements agencies must follow when using this 
provision. This section explains that if an agency using this authority 
does not use USAJOBS to post the position, it must post a job 
announcement on its home page, or at a minimum, provide a link 
displayed on the hiring agency's website to the job announcement. 
Agencies are free to additionally post announcements directly on 3rd 
party recruitment boards, (e.g., LinkedIn, Monster, Yello) as long as 
the agency's homepage also includes a link to a specific announcement. 
This section also explains that the job announcement must include 
information about the position being filled to include: The position's 
title, series, grade level, minimum qualifications, and geographic 
location; the position's salary; whether the position will be filled on 
a temporary or term basis (and in the case of a term appointment 
whether they agency will extend the appointment up to the 4-year 
limit); whether individuals in the position will be eligible for 
promotion; the potential for conversion to the agency's permanent 
workforce; and any pertinent flexibilities that may be offered in 
conjunction with the position (e.g., telework opportunities or student 
loan repayments); and information on how to apply. This section also 
requires the agency to adhere to the merit system principles and 
perform appropriate recruiting and advertising activities to foster a 
diverse and qualified applicant pool when using the authority.
    Interim Sec.  316.906 Acquisition of competitive status explains 
that competitive status is acquired only upon completion of a 
probationary period (in accordance with 5 CFR part 315, subpart H), 
after any non-competitive conversion to a permanent appointment 
pursuant to this subpart. Time spent on a time-limited appointment 
under this subpart may count toward fulfillment of the probationary 
period in accordance with 5 CFR 315.802(b).
    Interim Sec.  316.907 Tenure upon appointment states that an 
individual appointed under this provision becomes a career or career-
conditional employee only upon completion of the individual's academic 
requirements and non-competitive conversion to a permanent appointment, 
unless the individual has already satisfied the requirements for career 
tenure or is exempt from the service requirement in Sec.  315.201.
    Interim Sec.  316.908 Break in program defines break in program as 
a period of time when a student is working but is unable to go to 
school or is neither attending classes nor working at the agency. The 
intent of the program is for students to either attend classes, work at 
the agency or both. An agency may use its discretion in either 
approving or denying a request for a break in program.
    Interim Sec.  316.909 Promotion explains that post-secondary 
students appointed for an initial period expected to last more than 1 
year but less than 4 years under this part may be promoted 
noncompetitively provided the

[[Page 46105]]

individual meets the qualification requirements for the higher grade 
position and time in grade requirements in 5 CFR part 300, subpart F, 
and the job announcement used to fill the original position mentioned 
the possibility of promotions to higher grade levels. Students on 
initial appointments for less than 1 year are not eligible for 
promotion.
    Interim Sec.  316.910 Conversion establishes that an agency may 
convert a post-secondary student to a permanent appointment in the 
competitive service, within that same agency, without further 
competition if the student has completed the course of study leading to 
a baccalaureate or graduate degree and meets the qualification 
standards for the position to which converted. We have added Sec.  
315.201(b)(1)(xvii) to indicate that upon conversion, the time served 
by a post-secondary student under this authority is creditable toward 
career tenure and may count towards fulfillment of the probationary 
period in accordance with Sec.  315.802(b).
    Interim Sec.  316.911 Reduction in Force (RIF), specifies the 
tenure groups that post-secondary students are placed in for purposes 
of 5 CFR part 351. Individuals whose initial appointment is for a 
period not to exceed 1 year are placed in tenure group 0. Individuals 
whose initial appointment is for a period expected to last more than 1 
year are placed in tenure group III for purposes of 5 CFR part 351.
    Interim Sec.  316.912 Termination explains that any appointment 
made under this authority expires upon the not-to exceed date of that 
appointment, unless the agency extends the appointment prior to 
expiration, if not earlier. An agency must terminate the appointment of 
a student after completion of the individual's academic course of 
study, unless the student is noncompetitively converted to a permanent 
position in the competitive service as specified in interim Sec.  
316.914.
    Interim Sec.  316.913 Numerical limit on the number of appointments 
describes the restrictions on the number of appointments an agency may 
make using this authority in a fiscal year (FY). Section 1115 of the 
NDAA for FY2020 amended 5 U.S.C. 3116(d), limiting the total number of 
students eligible to be appointed under the expedited hiring authority 
for post-secondary students. This section specifies that the number of 
appointments in any FY may not exceed 15 percent of the number of 
students appointed during the previous fiscal year to positions at the 
GS-11 level, or below (or equivalent). An appointing agency may not 
count appointments made using direct hire authorities, non-competitive 
authorities, excepted service authorities (except Pathways Internship 
Program appointments under Sec.  213.3402 (a) and 5 CFR part 362, 
subpart B), or selections under merit promotion authorities, when 
establishing the limit for a given fiscal year. An agency must count 
hires through programs that provide for conversion to the competitive 
service after a trial period, such as the Pathways Intern Program. In 
calculating this limitation agencies may round up or down to the 
nearest whole number, if necessary, to eliminate a decimal place. 
Values ending in ``.5'' or more may be rounded up to the nearest whole 
number in determining an agency's cap limitation. Values ending in less 
than ``.5'' should be rounded down to the nearest whole number in 
determining an agency's limitation. For example, 15% of 217 is 32.55, 
which should be rounded up to 33 or 15% of 235 is 35.25, which should 
be rounded down to 35. This section also provides that OPM may 
establish a lower percentage limitation based on any factor OPM deems 
appropriate. OPM shall notify agencies via the OPM website and other 
venues (such as the Chief Human Capital Officer's Council) of any 
changes to the numerical limitation, applicable governmentwide. Changes 
to the numerical limit for an individual agency will be communicated 
directly to the agency.
    Interim Sec.  316.914 Reporting Requirements, in paragraph (a), 
describes the type of data and frequency at which agencies must provide 
information to the Congress and OPM on their use of this authority. 
Agencies will be required to provide data on the total number of 
appointments; the grade levels and occupational series of the positions 
filled; the numerical limit established for the authority; the number 
of those appointed who have been separated; recruitment activities; and 
any difficulties encountered in using the authority. OPM will provide 
written guidance, around the time this rule is published, describing 
the means by which agencies should collect this information, the timing 
of such collections, and the groups as to which information should be 
collected.
    Interim Sec.  316.914(b) establishes that OPM may request from 
agencies any additional information it deems necessary to further 
evaluate the impact and effectiveness of this authority.
    Interim Sec.  316.915 describes the special provisions on the use 
of the authority by Department of Defense (DoD) in relation to other 
DoD specific hiring authorities.

Waiver of Proposed Rulemaking

    Section 3116 of title 5, U.S. Code, as enacted by section 1108 of 
Public Law 115-232, the John S. McCain National Defense Authorization 
Act (NDAA) for Fiscal Year (FY) 2019, directs this rulemaking shall be 
through ``interim regulations, with an opportunity to comment.'' 
Therefore, the general notice of proposed rulemaking typically required 
under 5 U.S.C. 553(b) and 1103(b) is statutorily waived for this rule.

Expected Impact of This Interim Rule

    This statute provides Federal agencies with authority to hire 
interns under a new scheme designed to facilitate an effective pipeline 
of new prospects for potential permanent appointment to help sustain 
the Federal workforce. OPM is issuing this rule to implement 5 U.S.C. 
3116. This statute establishes a hiring authority for interns into 
positions at specified grade levels in the competitive service. This 
regulation allows agencies to make appointments of post-secondary 
students directly into the competitive service positions, without 
regard to rating, ranking, veterans' preference, and public notice 
provisions in 5 U.S.C. 3309-3319 and 3330. The purpose of the authority 
is to provide a useful tool as part of an overall strategy to implement 
strategic workforce and recruitment plans.

Costs

    This interim final rule will affect the operations of over 80 
Federal agencies--ranging from cabinet-level departments to small 
independent agencies. We estimate that this rule will require 
individuals employed by these agencies to develop policies and 
procedures to implement the rule and perform outreach and recruitment 
activities when using the authority. For the purpose of this cost 
analysis, the assumed average salary rate of Federal employees 
performing this work will be the rate in 2021 for GS-14, step 5, from 
the Washington, DC, locality pay table ($138,866 annual locality rate 
and $66.54 hourly locality rate). We assume that the total dollar value 
of labor, which includes wages, benefits, and overhead, is equal to 200 
percent of the wage rate, resulting in an assumed labor cost of $133.08 
per hour.
    In order to comply with the regulatory changes in this interim 
final rule, affected agencies will need to review the rule and update 
their policies and procedures. We estimate that, in the first year 
following publication of the final rule, this will require an average 
of 250 hours of work by employees with an

[[Page 46106]]

average hourly cost of $133.08. This would result in estimated costs in 
that first year of implementation of about $33,270 per agency, and 
about $2,661,600 in total Governmentwide. We do not believe this rule 
will substantially increase the ongoing administrative costs to 
agencies (including the administrative costs of administering the 
program and hiring and training new staff).

Benefits

    This authority will allow agencies to use strategic recruiting to 
hire post- secondary students to fill professional and administrative 
positions at general schedule (GS) 11 level and below. When using the 
authority agencies will have additional flexibility in how these 
students are hired. Federal agencies would determine recruitment 
sources and processes for the solicitation of applications and would be 
held responsible for merit-based selections. This authority when 
combined with agencies strategic recruitment plans may help agencies 
better recruit to fill mission critical occupations.
    This flexibility is critical to agencies' ability to continue to 
meet current and future mission needs. Intern programs allow agencies 
to hire students, while in school, and provide them with on-the-job 
training to prepare them for a career in the Federal Government. It 
also introduces students to the wide range of occupations and 
employment opportunities that the Federal Government employs and 
offers. In FY 2020, the Federal Government hired fewer than 5,925 
students Government-wide (a small portion of the number of interns 
hired under other authorities). The low number of intern hires is 
insufficient to build the pipeline needed to sustain the Federal 
Workforce.

Executive Order 12866

    Executive Order 12866 directs agencies to assess all costs and 
benefits of available regulatory alternatives and, if regulation is 
necessary, to select regulatory approaches that maximize net benefits 
(including potential economic, environmental, public health and safety 
effects, distributive impacts, and equity). In accordance with the 
provisions of Executive Order 12866, this rule was reviewed by the 
Office of Management and Budget as a significant, but not economically 
significant rule.

Regulatory Flexibility Act

    The Director of the Office of Personnel Management certifies that 
this rule will not have a significant economic impact on a substantial 
number of small entities.

Federalism

    This regulation will not have substantial direct effects on the 
States, on the relationship between the National Government and the 
States, or on distribution of power and responsibilities among the 
various levels of government. Therefore, in accordance with Executive 
Order 13132, it is determined that this rule does not have sufficient 
federalism implications to warrant preparation of a Federalism 
Assessment.

Civil Justice Reform

    This regulation meets the applicable standard set forth in 
Executive Order 12988.

Unfunded Mandates Reform Act of 1995

    This rule will not result in the expenditure by state, local, and 
tribal governments, in the aggregate, or by the private sector, of $100 
million or more in any year and it will not significantly or uniquely 
affect small governments. Therefore, no actions were deemed necessary 
under the provisions of the Unfunded Mandates Reform Act of 1995.

Congressional Review Act

    Subtitle E of the Small Business Regulatory Enforcement Fairness 
Act of 1996 (known as the Congressional Review Act or CRA) (5 U.S.C. 
801 et seq.) requires rules to be submitted to Congress before taking 
effect. OPM will submit to Congress and the Comptroller General of the 
United States a report regarding the issuance of this rule before its 
effective date, as required by 5 U.S.C. 801. The Office of Information 
and Regulatory Affairs in the Office of Management and Budget has 
determined that this rule is not a major rule as defined by the CRA (5 
U.S.C. 804). The Office of Information and Regulatory Affairs in the 
Office of Management and Budget has determined that this rule is not a 
major rule as defined by the CRA (5 U.S.C. 804).

Paperwork Reduction Act of 1995 (44 U.S.C. 3501-3521)

    This final regulatory action will not impose any additional 
reporting or recordkeeping requirements under the Paperwork Reduction 
Act.

List of Subjects in 5 CFR Parts 315, 316 and 330

    Government employees.

Office of Personnel Management.
Steve Hickman,
Federal Register Liaison.
    Accordingly, OPM is amending parts 315, 316, and 330 of title 5, 
Code of Federal Regulations, as follows:

PART 315--CAREER AND CAREER-CONDITIONAL EMPLOYMENT

0
1. The authority citation for part 315 continues to read as follows:

    Authority: 5 U.S.C. 1302, 2301, 2302, 3301, and 3302; E.O. 
10577, 3 CFR, 1954-1958 Comp. p. 218, unless otherwise noted; E.O. 
13162, and E.O. 13839. Secs. 315.601 and 315.609 also issued under 
22 U.S.C. 3651 and 3652. Secs. 315.602 and 315.604 also issued under 
5 U.S.C. 1104. Sec. 315.603 also issued under 5 U.S.C. 8151. Sec. 
315.605 also issued under E.O. 12034, 3 CFR, 1978 Comp. p.111. Sec. 
315.606 also issued under E.O. 11219, 3 CFR, 1964-1965 Comp. p. 303. 
Sec. 315.607 also issued under 22 U.S.C. 2506. Sec. 315.608 also 
issued under E.O. 12721, 3 CFR, 1990 Comp. p. 293. Sec. 315.610 also 
issued under 5 U.S.C. 3304(c). Sec. 315.611 also issued under 5 
U.S.C. 3304(f). Sec. 315.612 also issued under E.O. 13473. Sec. 
315.708 also issued under E.O.13318, 3 CFR, 2004 Comp. p. 265. Sec. 
315.710 also issued under E.O. 12596, 3 CFR, 1987 Comp. p. 229. 
Subpart I also issued under 5 U.S. C. 3321, E.O. 12107, 3 CFR, 1978 
Comp. p. 264.

Subpart B--The Career-Conditional Employment System

0
2. Amend Sec.  315.201 by:
0
a. Removing the word ``and'' at the end of paragraph (b)(1)(xv);
0
b. Removing the period at the end of paragraph (b)(1)(xvi) and adding 
``; and'' in its place; and
0
c. Adding paragraph (b)(1)(xvii).
    The addition reads as follows:


Sec.  315.201  Service requirement for career tenure.

* * * * *
    (b) * * *
    (1) * * *
    (xvii) The date of a time-limited post-secondary student 
appointment under subpart F of this part provided the appointment is 
converted to career or career-conditional appointment under 5 CFR part 
316, subpart I.
* * * * *

Subpart G--Conversion to Career or Career-Conditional Employment 
From Other Types of Employment

0
3. Add Sec.  315.714 to read as follows:


Sec.  315.714  Conversion based on service in a post-secondary student 
appointment under part 316, subpart I, of this chapter.

    (a) Agency authority. An agency may convert to a career or career-
conditional appointment from a time-limited

[[Page 46107]]

appointment pursuant to 5 CFR part 316, subpart I, without further 
competition.
    (b) Eligibility. To be eligible for conversion the post-secondary 
student must:
    (1) Have completed the course of study leading to the baccalaureate 
or graduate degree (or certificate as appropriate);
    (2) Have completed not less than 640 hours of current continuous 
employment in an appointment under Sec.  316.902 of this chapter;
    (3) Meet the OPM qualification standards for the position to which 
the student will be converted; and
    (4) Meet the time-in-grade requirements in accordance with 5 CFR 
part 300, subpart F.
    (c) Tenure on conversion. An employee whose employment to career or 
career-conditional employment under this section becomes:
    (1) A career-conditional employee except as provided in paragraph 
(c)(2) of this section; or
    (2) A career employee when he or she has completed the service 
requirement for career tenure or is excepted from it by Sec.  
315.201(c).
    (d) Acquisition of competitive status. A post-secondary student 
converted from time limited employment under this section acquires 
competitive status upon completion of probation.

PART 316--TEMPORARY AND TERM EMPLOYMENT

0
4. Revise the authority citation for part 316 to read as follows:

    Authority: 5 U.S.C. 3116, 3301, 3302; E.O. 10577, 3 CFR, 1954-
1958 Comp., p. 218.

0
5. Add subpart I, consisting of Sec. Sec.  316.901 through 316.915, to 
read as follows:

Subpart I--Hiring Authority for Post-Secondary Students

Sec.
316.901 Appointment authority.
316.902 Eligibility.
316.903 Qualifications.
316.904 Classification.
316.905 Public notification.
316.906 Acquisition of competitive status.
316.907 Tenure upon appointment.
316.908 Breaks in program.
316.909 Promotion.
316.910 Conversion.
316.911 Reduction in force.
316.912 Termination.
316.913 Numerical limit on the number of appointments.
316.914 Reporting requirement.
316.915 Special provisions for Department of Defense.


Sec.  316.901  Appointment authority.

    In accordance with the provisions of this section, an agency may 
make a time-limited appointment of an eligible and qualified post-
secondary student, to any position in the competitive service, at the 
General Schedule (GS) 11 level or below (or equivalent), without regard 
to the provisions of 5 U.S.C. 3309 through 3319 and 3330. An agency may 
appoint an individual for an initial period not to exceed 1 year, or 
for an initial period expected to last more than 1 year but less than 4 
years, in accordance with Sec. Sec.  316.401(c)(1) and 316.301(a) and 
(b), respectively, to coincide with the individual's academic 
curriculum. In either case an agency may extend or seek extension from 
OPM, as appropriate in accordance with this part, of an initial 
appointment for a period that will allow the post-secondary student to 
complete his or her academic requirements leading to the awarding of a 
degree or certificate, as appropriate.


Sec.  316.902  Eligibility.

    A post-secondary student means an individual who:
    (a) Is enrolled or accepted for enrollment in an institution of 
higher education as defined by the Higher Education Act of 1965, in a 
section codified at 20 U.S.C.1001(a); and
    (b) Is pursuing a baccalaureate or graduate degree on at least a 
part-time basis, as determined by the institution of higher education; 
and
    (c) Meets the minimum qualification standards prescribed or 
approved by OPM for the position to which the individual is being 
appointed.


Sec.  316.903  Qualifications.

    Agencies must evaluate eligible post-secondary students using the 
government-wide OPM prescribed minimum qualification standard or an 
OPM-approved agency-specific qualification standard for the position 
being filled.


Sec.  316.904  Classification.

    Post-secondary student positions under the General Schedule or 
appropriate pay plan must be classified to the -99 series of the 
appropriate occupational group. Federal Wage System positions filled 
under the authority in this subpart must be classified to the -01 
series of the appropriate occupational group. Agencies may refer to 
OPM's, ``Introduction to the Position Classification Standards'' at 
https://www.opm.gov/policy-data-oversight/classification-qualifications/classifying-general-schedule-positions/positionclassificationintro.pdf for a definition of these positions. In 
addition, agencies can refer to the ``Handbook of Occupational Groups 
and Families'' available at https://www.opm.gov/policy-data-oversight/classification-qualifications/classifying-general-schedule-positions/occupationalhandbook.pdf.


Sec.  316.905  Public notification.

    An agency must adhere to merit system principles and thus must 
provide public notification in a manner that recruits qualified 
individuals from appropriate sources in an endeavor to draw from all 
segments of society, before filling a position under the authority in 
this subpart. An agency may, but is not required to, use USAJOBS for 
this purpose. If the agency does not use USAJOBS to meet the 
requirements in this section, it must, at a minimum, publicly display 
information about the position to be filled on its public facing home 
page. An agency may, alternatively, provide an actual job announcement 
on its public facing home page or provide a link to the job 
announcement on its public facing home page. The agency should consider 
whether additional recruitment and advertisement activities are 
necessary or appropriate to further merit system principles. A job 
announcement must include, at a minimum, the following information:
    (a) The position title, series, grade level;
    (b) The geographic location where the position will be filled;
    (c) The starting salary of the position;
    (d) The minimum qualifications of the position;
    (e) Whether the individual in the position will be eligible for 
promotion to higher grade levels;
    (f) The time-limit applicable to the position, and in the case of a 
term appointment the vacancy announcement must state that the agency 
has the option of extending the term appointment up to the 4-year limit 
(if applicable);
    (g) The potential for conversion to the agency's permanent 
workforce;
    (h) Any other relevant information about the position such as 
telework opportunities, recruitment incentives, etc.; and
    (i) Specific information instructing applicants on how to apply for 
the position.


Sec.  316.906  Acquisition of competitive status.

    Time spent on a time-limited appointment under this part may count 
toward fulfillment of a probation period

[[Page 46108]]

in accordance with Sec.  315.802(b) of this chapter. A student 
appointed under Sec.  316.901 acquires competitive status only upon 
completion of probationary period after any conversion, in accordance 
with the provisions of 5 CFR part 315, subpart H.


Sec.  316.907  Tenure upon appointment.

    An individual appointed under Sec.  316.901 becomes a career-
conditional employee upon completion of academic requirements and 
noncompetitive conversion to a permanent appointment in accordance with 
Sec.  316.910, unless the individual has already satisfied the 
requirements for career tenure or is exempt from the service 
requirement pursuant to Sec.  315.201 of this chapter.


Sec.  316.908  Breaks in program.

    A break in program is defined as a period of time when a student is 
working for the agency but is unable to go to school, or is neither 
attending classes nor working for the agency. An agency may use its 
discretion in either approving or denying a request for a break in 
program.


Sec.  316.909  Promotion.

    An agency may promote a student appointed for an initial period 
expected to last more than 1 year but less than 4 years provided the 
student meets the qualification requirements for the higher graded 
position, time in grade requirements in 5 CFR part 300, subpart F, and 
the public notification for the position filled by the student stated 
the potential for promotion and specified a career ladder.


Sec.  316.910  Conversion.

    An agency may convert a student serving in an appointment under the 
authority in this subpart, prior to the expiration date of the 
appointment, to a permanent position in the competitive service within 
the agency without further competition if the student:
    (a) Has completed the course of study leading to the baccalaureate 
or graduate degree (or certificate as appropriate);
    (b) Has completed not less than 640 hours of current continuous 
employment in an appointment under Sec.  316.902;
    (c) Meets the OPM qualification standards for the position to which 
the student will be converted; and
    (d) Meets the time-in-grade requirements in accordance with 5 CFR 
part 300, subpart F.


Sec.  316.911  Reduction in force.

    (a) Reduction in force. Post-secondary students are covered by part 
351 of this chapter for purposes of reduction in force (RIF).
    (1) Students whose initial appointment was for a period of 1 year 
or less are not assigned a tenure group and do not compete with other 
employees in a RIF.
    (2) Students whose initial appointment was for a period expected to 
last more than 1 year are placed in Tenure Group III for purposes of 
part 351 of this chapter.
    (b) [Reserved]


Sec.  316.912  Termination.

    (a) Any appointment made under the authority in this subpart 
expires on the not-to-exceed date of that appointment unless the agency 
extends the appointment prior to expiration.
    (b) An agency must terminate any student without regard to any 
provision of 5 U.S.C. chapter 35 or 75, who:
    (1) Does not maintain eligibility in accordance with Sec. Sec.  
316.902 and 316.910; or
    (2) Is not converted in accordance with Sec.  316.910.


Sec.  316.913  Numerical limit on the number of appointments.

    (a) Except as provided in paragraph (b) of this section, the total 
number of students that an agency may appoint under this section during 
a fiscal year may not exceed the number equal to 15 percent of the 
number of students the agency head appointed during the previous fiscal 
year to a position at the GS-11 level or below (or equivalent). An 
appointing agency may not count appointments made using direct hire 
authorities, non-competitive authorities, excepted service authorities 
other than Pathways Internship Program appointments under Sec.  
213.3402(a) of this chapter and 5 CFR part 362, subpart B, or 
selections under merit promotion authorities, when establishing the 
limit for a given fiscal year.
    (b) OPM may establish a lower limitation on the number of students 
that may be appointed by an agency under paragraph (a) of this section 
during a fiscal year based on any factor OPM considers appropriate. OPM 
shall notify agencies via the OPM website and other venues (such as the 
Chief Human Capital Officer's Council) of any changes to the numerical 
limitation, applicable governmentwide. Changes to the numerical limit 
for an individual agency will be communicated directly to the agency.


Sec.  316.914  Reporting requirement.

    (a) Not later than September 30 of each of the first three (3) 
fiscal years beginning after August 13, 2018, when 5 U.S.C. 3116 was 
enacted, an agency that makes an appointment under this subpart must 
submit a report to Congress and OPM on the impact of its use of the 
authority in this subpart during the fiscal year in which the report is 
submitted. OPM will provide written guidance describing the means by 
which agencies should collect this information, the timing of such 
collections, and the groups as to which information should be 
collected. The report must contain the following information:
    (1) The total number of individuals appointed by the agency under 
the authority in this subpart by position title, series, grade, and 
geographic location of the position, and type of appointment;
    (2) The number of individuals appointed under the authority in this 
subpart by the items identified in 5 U.S.C. 3116(h), and in OPM 
guidance;
    (3) The number of veterans appointed, as defined in 5 U.S.C. 2108;
    (4) Any numerical limitation established by the agency in 
accordance with Sec.  316.913;
    (5) The recruitment sources and methods used by the agency to fill 
positions;
    (6) The total number of individuals appointed by the agency during 
the applicable fiscal year to a position in the competitive service 
classified in a professional or administrative occupational category at 
the GS-11 level or below (or equivalent);
    (7) The number of individuals appointed under the authority that 
have been separated;
    (8) Information on difficulties encountered when using the 
authority; and
    (9) The number of employees converted to permanent positions under 
the authority in this subpart.
    (b) OPM may request additional information from agencies on their 
use of the authority in this subpart. An agency must include in its 
report to Congress and OPM any additional information required by OPM 
under this section.


Sec.  316.915  Special provisions for Department of Defense.

    This subpart does not preclude the Secretary of Defense from 
exercising authority to appoint a post-secondary student under Public 
Law 114-328, Section 1106. Additionally, this subpart does not apply to 
the Department of Defense during the period that Public Law 114-328, 
Section 1106, is effective.

[[Page 46109]]

PART 330--RECRUITMENT, SELECTION, AND PLACEMENT (GENERAL)

0
6. Revise the authority citation for part 330 to read as follows:

    Authority: 5 U.S.C. 1104, 1302, 3116, 3316, 3301, 3302, 3304, 
and 3330; E.O. 10577, 19 FR 7521, 3 CFR, 1954-58 Comp., p. 218; 
Section 330.103 also issued under 5 U.S.C. 3327; Section 330.104 
also issued under sec. 2(d), Pub. L. 114-137, 130 Stat. 310; Subpart 
B also issued under 5 U.S.C. 3315 and 8151; Section 330.401 also 
issued under 5 U.S.C. 3310; Subparts F and G also issued under 
Presidential Memorandum on Career Transition Assistance for Federal 
Employees, September 12, 1995; Subpart G also issued under 5 U.S.C. 
8337(h) and 8456(b); Section 330.707 also issued under 5 U.S.C. 3115 
and 3116.

Subpart F--Agency Career Transition Assistance Plan (CTAP) for 
Local Surplus and Displaced Employees

0
7. Amend Sec.  330.609 by:
0
a. Removing the word ``and'' at the end of paragraph (e)(2);
0
b. Adding the word ``and'' at the end of paragraph (e)(3);
0
c. Adding paragraph (e)(4);
0
d. Removing the word ``or'' at the end of paragraph (cc);
0
e. Removing the period at the end of paragraph (dd) and adding a 
semicolon in its place;
0
f. Removing the period at the end of paragraph (ee) and adding ``; or'' 
in its place; and
0
g. Adding reserve paragraph (ff) and paragraph (gg).
    The additions read as follows:


Sec.  330.609  Exceptions to CTAP selection priority.

* * * * *
    (e) * * *
    (4) A post-secondary student appointment under 5 U.S.C. 3116 and 
part 316, subpart I, of this chapter;
* * * * *
    (gg) Make an appointment using the post-secondary student hiring 
authority under 5 U.S.C. 3116 and part 316, subpart I, of this chapter.

Subpart G--Interagency Career Transition Assistance Plan (ICTAP) 
for Displaced Employees

0
8. Amend Sec.  330.707 by:
0
a. Removing the word ``and'' at the end of paragraph (h)(2);
0
b. Adding the word ``and'' at the end of paragraph (h)(3);
0
c. Adding paragraph (h)(4);
0
d. Removing the word ``or'' at the end of paragraph (u);
0
e. Removing the period at the end of paragraph (v) and adding ``; or'' 
in its place; and
0
f. Adding reserve paragraphs (w) and (x) and paragraph (y).
    The additions read as follows:


Sec.  330.707   Exceptions to ICTAP selection priority.

* * * * *
    (h) * * *
    (4) A post-secondary student appointment under 5 U.S.C. 3116 and 
part 316, subpart I, of this chapter;
* * * * *
    (y) Make an appointment using the post-secondary student hiring 
authority under 5 U.S.C. 3116 and part 316, subpart I, of this chapter.

[FR Doc. 2021-17638 Filed 8-17-21; 8:45 am]
BILLING CODE 6325-39-P