[Federal Register Volume 88, Number 157 (Wednesday, August 16, 2023)]
[Proposed Rules]
[Pages 55586-55601]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-17372]


 ========================================================================
 Proposed Rules
                                                 Federal Register
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 This section of the FEDERAL REGISTER contains notices to the public of 
 the proposed issuance of rules and regulations. The purpose of these 
 notices is to give interested persons an opportunity to participate in 
 the rule making prior to the adoption of the final rules.
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  Federal Register / Vol. 88, No. 157 / Wednesday, August 16, 2023 / 
Proposed Rules  

[[Page 55586]]



OFFICE OF PERSONNEL MANAGEMENT

5 CFR Parts 300, 362, 410

[Docket ID: OPM-2023-0020]
RIN 3206-AO25


Pathways Programs

AGENCY: Office of Personnel Management.

ACTION: Proposed rule.

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SUMMARY: The Office of Personnel Management (OPM) is proposing to 
modify the regulations for the Pathways Programs to align the program 
to better meet the Federal Government's needs for recruiting and hiring 
interns and recent graduates. OPM proposes to update the regulations 
for the Pathways Programs to facilitate a better applicant experience, 
to improve developmental opportunities for Pathways Program 
participants, and to streamline agencies' ability to hire participants 
in the Pathways Programs, especially those who have successfully 
completed their Pathways requirements and are eligible for conversion 
to a term or permanent position in the competitive service. Robust 
Pathways Programs with appropriate safeguards to promote its use as a 
supplement to, and not a substitute for, the competitive hiring process 
is essential to boosting the Federal Government's ability to recruit 
and retain early career talent.

DATES: Comments must be received on or before October 2, 2023.

ADDRESSES: You may submit comments, identified by the Regulation 
Identifier Number (RIN) ``3206-AO25'', and title using following 
method:
     Federal eRulemaking Portal: https://www.regulations.gov. 
Follow the instructions for sending comments.
    The general policy for comments and other submissions from members 
of the public is to make these submissions available for public viewing 
at https://www.regulations.gov as they are received without change, 
including any personal identifiers or contact information.

FOR FURTHER INFORMATION CONTACT: Katika Floyd at (202) 606-0960, or by 
email at [email protected].

SUPPLEMENTARY INFORMATION: OPM is proposing to revise its regulations 
for the Pathways Programs. The proposed rule will clarify and update 
information on a variety of issues including reporting requirements, 
eligibility requirements, training requirements for Internship 
positions, and rotational assignments for Presidential Management 
Fellows. The proposed rule will also make changes to the public 
notification requirement for appointing Interns and Recent Graduates. 
Additionally, we propose to make several technical corrections to 
remove references to the former Student Career Program. OPM also 
invites feedback on potential modifications to several aspects of this 
rulemaking.
    OPM is adopting a 45-day comment period to balance the need for 
robust public comment with agencies' operational considerations 
regarding the timing for students and recent graduates recruitment and 
hiring. The traditional agency recruiting season for early career 
talent, including interns, begins as early as winter to allow for 
internships to begin in the spring/summer. Agencies also start 
extending offers for full-time positions in the spring to students who 
expect to graduate in the summer. Prospective interns and job 
applicants frequently choose between numerous offers and opportunities 
in the winter and spring; agencies can maximize their chances of 
attracting and hiring great candidates if their recruiting and hiring 
activities are strategically timed. Applicants also benefit from having 
greater certainty about employment decisions as soon as possible.
    To allow agencies a reasonable amount of time to modify their 
practices by the effective date of the final rule, OPM aims to review 
public comments on this proposed rule and make any necessary 
modifications expeditiously.

Background Information

    The Pathways Programs were established on December 27, 2010, with 
the issuance of E.O. 13562 (75 FR 82585) pursuant to 5 U.S.C. 3301 and 
3302. The programs are designed to provide students and recent 
graduates with the opportunity for Federal internships and potential 
careers in the Federal Government through three components.
     The Internship Program exposes current high school 
students, undergraduate students, including those enrolled in community 
and technical colleges, and graduate students to the work of government 
by providing paid opportunities to work in agencies and explore Federal 
careers while still in school.
     The Recent Graduates Program (Recent Graduates) provides 
opportunities for individuals who have received qualifying degrees or 
certificates within the previous two years (up to six years for 
qualifying veterans) to obtain entry-level developmental experience 
designed to lead to a career in the Federal Government after 
successfully completing the Program, which is generally one year in 
length and in certain cases may be two years in length.
     The Presidential Management Fellows Program (PMF) promotes 
careers in the Federal Government by offering leadership development 
opportunities to individuals who have received advanced degrees within 
the preceding two years.
    The Pathways Programs became effective on July 10, 2012.\1\ In the 
final implementing regulations, OPM identified five core principles 
shared by each of the programs to advance merit system principles and 
the policies established by the President in E.O. 13562:
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    \1\ Final regulations were issued on May 11, 2012, and the five 
core principles are outlined in the supplemental information 
accompanying the final regulations for the Pathways Programs. See 
Excepted Service, Career and Career-Conditional Employment; and 
Pathways Programs, 77 FR 28195 (2012).
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    (1) Transparency--In an effort to promote transparency, agencies 
have to provide OPM with information about Internship Program and 
Recent Graduates Program opportunities and how interested members of 
the public can apply so that OPM can inform potential applicants. OPM 
designated USAJOBS, a website used to announce Federal jobs in the 
competitive service, for the purpose of notifying the public of these 
opportunities and how to apply at each agency. For the PMF Program, OPM 
itself publishes the vacancy announcement in USAJOBS. Under the

[[Page 55587]]

discontinued Federal Career Intern Program (FCIP) and previous student 
programs, public notice using USAJOBS was not required, which created 
the appearance of restrictive, rather than open, recruitment practices.
    (2) Limited Scope--Agencies are to use the Pathways Programs as 
part of an overall workforce planning strategy to supplement 
competitive examining, rather than a substitute for it. If agencies are 
not using the hiring authorities as intended, OPM may place caps on the 
number of individuals who may be initially appointed to or converted 
from Pathways positions to positions in the competitive service.
    (3) Fairness to Veterans--The Pathways Programs honor and protect 
the rights of veterans in the Federal hiring process. Veterans' 
preference rules in the excepted service governed by sections 3308-
3318, title 5, U.S.C. pursuant to section 3320, apply to Pathways 
positions through the application of part 302 of OPM's regulations in 
title 5 of the CFR. Veterans also have greater flexibility in meeting 
eligibility requirements for the Recent Graduates Program in that those 
unable to apply due to military service obligations have up to six 
years from the date they completed their educational programs to apply, 
whereas non-veterans must apply within two years of completion. This 
flexibility, along with providing public notice and safeguarding 
veterans' preference, helps ensure the hiring process is fair and 
veteran-friendly.
    (4) Agency Investment--To meet the training and developmental 
requirements for the Pathways Programs, especially for the Recent 
Graduates and PMF Programs, agencies must commit resources to foster a 
positive experience that will help prepare their Pathways hires for 
potential conversion to the competitive service and success in their 
careers as Federal employees.
    (5) OPM Oversight--To use the Pathways Programs, agencies must 
enter into Memoranda of Understanding (MOUs) with OPM and report to OPM 
annually on their use of the Pathways authorities. Agencies are also 
subject to any caps OPM may place on initial appointments or 
conversions to positions in the competitive service. In addition, the 
use of Pathways Programs is subject to evaluation by OPM or the agency 
as part of its independent audit program.
    In general, these five principles, as outlined in the 2012 
implementing regulation, are retained throughout this proposal. 
However, OPM invites comments on whether we should consider 
modification to, or addition to, these principles.
    The Federal Government benefits from a diverse workforce that 
includes students and recent graduates, who contribute enthusiasm, 
talents, and unique perspectives. OPM assessed the Pathways regulations 
to consider the need for changes to make the regulations better advance 
the goals of E.O. 13562. It has also received substantial input from 
agencies that utilize Pathways.
    In August 2016, OPM published a special report titled, ``The 
Pathways Programs Their Use and Effectiveness Two Years After 
Implementation.'' \2\ This report documents a study OPM performed in 
fiscal year (FY) 2015 to determine how the Programs were being used and 
whether they were operating within the spirit and intent of the five 
core principles OPM identified in its implementing regulations: 
transparency, limited scope, fairness to veterans, agency investment, 
and OPM oversight. Additionally, OPM analyzed agencies' usage, 
highlighted notable practices, identified challenges and compliance 
concerns, and developed recommendations for improvement in the 
effective and efficient use of the Pathways Programs.
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    \2\ https://www.opm.gov/policy-data-oversight/hiring-information/students-recent-graduates/reference-materials/report-on-special-study-of-the-pathways-programs.pdf.
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    OPM has received qualitative feedback directly from agencies since 
the Programs' implementation. Between FY 2012 and FY 2016 OPM hosted 
monthly office hours meetings with agencies. During these office hours 
OPM and agencies discussed solutions and recommendations to challenges 
agencies encountered when using the Programs. Pathways Programs 
Officers and Presidential Management Fellows (PMF) Coordinators have 
and continue to contact OPM directly for advice and guidance on using 
the Programs since their inception. The Chief Human Capital Officers 
Council convened a working group to discuss challenges, issues, and 
successes of using the Pathways Programs during FY 2019. The working 
group also provided OPM staff with a number of ideas and 
recommendations for ways that the Programs could be improved.
    Based on agency feedback and OPM's own analysis, we are proposing 
several changes aimed at enhancing the robust usage of the Pathways 
Programs as a key source of early career talent in the Federal 
Government, as a supplement to, and not a substitute for, the 
competitive hiring process. Overall, the purpose of this proposal is to 
streamline the Pathways regulations, making it easier for agencies to 
recruit and hire Pathways program participants, and to optimize the 
Pathways program as a tool to recruit and retain diverse and highly-
qualified early career talent. The proposed changes, which are 
explained in greater detail below, cover a variety of issues related to 
the way agencies use the Pathways Programs to recruit and hire students 
and recent graduates including:
     Outlining the specific responsibilities of the 
Presidential Management Fellows (PMF) Coordinator;
     Expanding the time period for converting Pathways Interns 
from 120 to 180 days;
     Modifying the public notice requirement for vacancy 
announcements for Pathways Interns and Recent Graduates;
     Clarifying and streamlining the training and development 
requirements;
     Allowing Recent Graduate and Presidential Management 
Fellows participants to be converted to term or permanent positions in 
any agency, when appropriate;
     Clarifying the time period for required reporting;
     Allowing the use of part-time work schedules for PMFs in 
certain situations;
     Clarifying information about the use of developmental 
assignments for PMFs; and
     Expanding eligibility for the Recent Graduates Program to 
include those who have completed certain career or technical education 
programs.
    In addition to seeking comment on the proposed changes summarized 
above and discussed in greater detail throughout, please see the 
Request for Comment and Data section below for additional requests for 
data and additional comments on specific topics.

Section by Section Analysis

Part 300 Employment (General)

Section 300.301 Authority

    OPM is proposing to modify the regulations in 5 CFR 300.301(b) to 
allow agencies to detail employees appointed under the Pathways 
Programs (Schedule D of the excepted service) to positions in the 
competitive service without approval from OPM. Current regulations 
under Schedule A, Schedule B, or the Veterans Recruitment Appointment 
authority allow an agency to detail an employee in an excepted service 
position under those authorities without approval from OPM. Prior to 
the creation of the Pathways Programs, both

[[Page 55588]]

the former Student Education Employment Program (SEEP) and the 
predecessor to the PMF Program were a part of Schedules A and B of the 
excepted service. However, the Pathways Internship Program, which 
replaced the SEEP, and the PMF Program are now filled under Schedule D 
of the excepted service, which currently requires OPM approval for 
details to the competitive service. OPM is proposing to modify the 
Schedule D regulations to allow agencies to detail Pathways employees 
to positions in the competitive service without approval from OPM, 
similar to how details were executed under the SEEP.

Part 362 Pathways Programs

Subpart A General Provisions

Section 362.102 Definitions

    OPM is proposing to revise the definition of an advanced degree and 
certificate program in Sec.  362.102. We are proposing that the 
definition of advanced degree be revised to mean a master's degree, 
professional degree, doctorate degree, or other formal degree pursued 
after completing a bachelor's degree. We believe that the revised 
definition may lead to less confusion among applicants and agencies 
about the types of degrees required for eligibility under the Pathways 
Programs. We are proposing to revise the definition of a certificate 
program to include a qualifying career or technical education program 
that awards a recognized postsecondary credential or industry-
recognized credential.
    OPM is also proposing to add definitions for terms related to 
career and technical education. These terms are: certificate of 
completion of a Registered Apprenticeship Program; industry-recognized 
credential; qualifying career or technical education program; 
recognized postsecondary credential; and Registered Apprenticeship 
Program. These definitions are being proposed as a part of the proposed 
changes to the eligibility criteria for the Internship and Recent 
Graduate Programs, as discussed more extensively in the Supplemental 
Information related to Sec.  362.302.
    We are proposing to define certificate of completion of a 
Registered Apprenticeship Program to mean documentation (i.e., an 
official record) given to an individual who has successfully completed 
a registered apprenticeship program (29 CFR parts 29 and 30).
    The term career or technical education program is used in section 3 
and section 4 of E.O. 13562 but is not currently defined in the 
regulation. We are proposing to define qualifying career or technical 
education program to mean:
     An organized educational program, administered through a 
Federal agency, that focuses on providing rigorous academic content and 
relevant technical knowledge and skills needed to prepare the 
individual for further education and a career in a current or emerging 
profession and provides technical skill proficiency, and a recognized 
postsecondary credential (which may include an industry-recognized 
credential, a certificate, or an associate degree); or
     A Registered Apprenticeship Program; or
     Service in a federally administered local, state, 
national, or international volunteer service program or organization 
designed to give individuals work and or educational experiences in 
volunteer programs that benefit the Federal Government or local 
communities.
    This proposed definition is based in part on the definition found 
in 20 U.S.C. 2302(5). Examples of eligible programs would include the 
Department of Labor Job Corps programs, Registered Apprenticeship 
Programs, the Peace Corps, and AmeriCorps.
    We are proposing to define industry-recognized credential as either 
a certificate or credential developed and offered by, or endorsed by, a 
nationally- or regionally recognized industry association or 
organization representing a sizeable portion of the industry sector, or 
credential that is sought or accepted by companies within the industry 
sector for purposes of hiring or recruitment, which may include 
credentials from vendors of certain products.
    We are proposing to define recognized postsecondary credential to 
mean documentation of an industry-recognized certificate or 
certification, a certificate of completion of a Registered 
Apprenticeship Program, a license recognized by the State involved or 
Federal Government, or an associate or baccalaureate degree. This 
proposed definition is based on the definition found in 29 U.S.C. 
3102(52). Our intent in incorporating these definitions is to provide 
agencies clarity that both career and technical education programs and 
industry recognized credentials, as defined herein, are suitable 
demonstrations of relevant experience for Pathways purposes.
    We are proposing to define Registered Apprenticeship Program as a 
program that meets the requirements in 29 CFR part 29. Approval of 
registration would be evidenced by a Certificate of Registration or 
other written documentation as provided by the respective career or 
technical education establishment. This proposed definition would align 
with DOL regulations.
    We are proposing these changes based on the authority given to OPM 
in E.O. 13562 to promulgate regulations for the implementation and use 
of the Pathways Programs and the statutory authority in 5 U.S.C. 3301 
and 3302.

Section 362.104 Agency Requirements

    Currently, an agency must execute a memorandum of understanding 
(MOU) with OPM before using the Pathways Programs. The original 
Pathways regulations contained this requirement because the MOU was the 
mechanism for OPM to obtain from agencies a listing in advance of the 
positions the agencies intended to fill through Pathways Programs. The 
MOU requirement allows for OPM to play a role in considering and 
approving those positions, a key oversight safeguard that promotes the 
use of these programs as supplements to, and not substitutes for, 
competitive hiring. OPM is proposing to replace the use of an MOU with 
a requirement that an agency must have a Pathways Policy in accordance 
with Sec.  362.104 in order to make appointments under the Pathways 
authority. Similar to the MOU, the agency policy will outline the 
parameters under which the agency will use the Pathways Programs. In 
lieu of the MOU, OPM will tie oversight to agency compliance with its 
Pathways Policy in revised Sec.  362.108(b)(1). OPM may limit an 
agency's use of this authority if we determine the agency is not in 
compliance with its Pathways Policy in accordance with revised Sec.  
362.104, or E.O. 13562 in general. This proposed change will do what 
the MOU would otherwise require, and we think it is an appropriate 
modification based on 10 years of experience overseeing the Pathways 
Programs that will streamline administration.
    If this proposed change is adopted, each agency would be required 
to submit a copy of its Pathways Policy to OPM within 120 days of the 
effective date of the final rule. Once approved, the submission of an 
updated policy would only be required when the agency made substantive 
or significant changes to the policy. This is in line with how OPM 
approves delegated examining for agencies in the regular competitive 
hiring process. Agencies with existing Pathways MOUs \3\ may

[[Page 55589]]

continue to use the Pathways Programs subject to the new regulations in 
lieu of an updated Pathways Policy while they are developing and 
updating their policies in accordance with the new regulations. 
Agencies without existing MOUs must submit a copy of their agency 
Pathways Policy before they begin making Pathways appointments.
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    \3\ A sample MOU is available online in the Pathways Transition 
and Implementation Guidance at https://www.opm.gov/policy-data-oversight/hiring-information/students-recent-graduates/reference-materials/pathways-transition-and-implementation-guidance.pdf.
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    OPM is also proposing to clarify the role of the Presidential 
Management Fellows Coordinator in Sec.  362.104(a)(8) to outline the 
specific responsibilities of the role. We have found that there is 
inconsistency in the importance that agencies place on this role. The 
PMF Program is the premier leadership development program for the 
Federal Government. Each year, the best qualified candidates are 
selected through a rigorous assessment process. Then, the PMF finalists 
apply for placement to PMF-designated positions at Federal agencies. 
But placement rates vary year-to-year, and many years, hundreds of 
finalists do not get placed. Moreover, for those who are placed in 
agencies, the experience varies widely, as some agencies are more 
highly invested in the professional development of their PMFs. By 
bolstering the role of the PMF Coordinator, OPM seeks to offer agencies 
a better way to share information about the PMF Program throughout 
agencies and standardized practices associated with the use of the 
Program. This increased communication and added consistencies in 
practice may help agencies place more PMF finalists and provide a more 
positive developmental experience for those finalists who get placed. 
Accordingly, we are proposing that an agency must have at least one PMF 
Coordinator in a position at the agency's headquarters, in a position 
at or higher than grade 12 of the General Schedule (GS) or other 
equivalent pay and classification system. In addition, OPM recommends 
building the capacity within agencies, by designating PMF Coordinators 
at the headquarters level of a departmental component or sub-agency 
level. Additionally, we are proposing that the PMF Coordinator will be 
responsible for administering the agency's PMF Program including 
coordinating the recruitment of PMF finalists, coordinating and 
overseeing the on-boarding and certification processes for PMF Program 
Participants, coordinating the agency's PMF Program plan to ensure it 
is integrated with agency-wide workforce plans, and reporting to OPM on 
the agency's implementing of its PMF program. If an agency chooses to 
use more than one PMF Coordinator, at least one must be at the 
headquarters level and in a position at the GS-12 level or higher. If 
an agency designates multiple PMF Coordinators, they must work 
collaboratively to administer the agency's PMF Program. For example, a 
large agency may have a GS-12 PMF Coordinator at the headquarters level 
and additional coordinators in the component level offices may be at 
whatever grade level the agency finds appropriate.

Section 362.107 Conversion to the Competitive Service

    OPM is proposing to revise Sec.  362.107(c)(2) to allow a Recent 
Graduate, who has successfully completed program requirements, to be 
converted to a position in the competitive service within the employing 
agency or another agency within the Federal Government. This change 
will provide agencies additional flexibilities to capitalize on the 
Federal Government's investment in training and development of a Recent 
Graduate when the employing organization has determined resource 
restrictions prevent the agency from converting a Recent Graduate to a 
permanent or term position within the agency.
    OPM continues to expect an eligible Recent Graduate to convert to a 
position at the agency that hired them as a Recent Graduate (either in 
the organization in which they are employed, or another component 
within the same Department or agency) before the Recent Graduate may 
convert to a different Department or agency. Indeed, agencies who hire 
Recent Graduates are required to have engaged in sufficient strategic 
workforce planning to allow for a plan to convert the Recent Graduate 
to a permanent position in the agency upon successful completion of the 
program. This is an important safeguard to protect against the 
possibility of agencies becoming overly reliant on Recent Graduates who 
cycle through every few years but never land permanent positions with 
the agency.
    Nonetheless, it is reasonable to expect that an agency may 
encounter obstacles that prevent conversion within the agency. For 
example, unforeseen budgetary constraints may affect the agency's 
ability to convert the Recent Graduate. New priorities brought about by 
a new law or policy could require agencies to shift resources and focus 
away from the jobs to which the Recent Graduate is eligible to convert. 
OPM believes that, given the nature of such unexpected obstacles, it is 
in the interests of efficient and effective administration of the civil 
service to provide for opportunities for Recent Graduates who have 
successfully completed their program and meet the requirements for 
conversion to be able to convert at agencies other than the one that 
initially hired them as a Recent Graduate. Such conversion can occur 
for any position for which the Recent Graduate is qualified and at the 
grade level to which the Recent Graduate would have been converted 
within the agency that appointed them had the opportunity been 
available. The position in another component of the same agency or at 
the new agency must have a full performance level that is equivalent or 
less than the position at the prior agency. The initial agency has 
invested in the development of the Recent Graduate and, if it is unable 
to convert them, other agencies should have that opportunity so that 
the investment in the Recent Graduate is not lost to the Federal 
Government. OPM proposes that the employing agency should determine 
within a reasonable period of time (e.g., 90 to 120 days before 
conversion deadline) whether or not they intend to convert the Recent 
Graduate to a position in either the component or the broader agency. 
If the agency is unable to convert the eligible Recent Graduate, then 
the Recent Graduate may be converted to a position in a different 
agency.
    We welcome comments on how to balance an agency right of first 
refusal in converting their Recent Graduates with Recent Graduates 
choosing whether to convert if there are opportunities at other 
agencies. We are also interested in comments on whether conversion at 
other agencies should be limited to situations where the employing 
agency is unable to convert due to a lack of resources or if conversion 
should occur at another agency for any reason. Comments in favor of 
conversion at another agency for any reason should address the types of 
reasons or situations where conversion at another agency may be 
allowed.
    For the same reasons stated above with respect to eligible Recent 
Graduates, OPM is also proposing to allow eligible Presidential 
Management Fellows to be converted to a position in the competitive 
service either within the employing agency or at another agency within 
the Federal Government. For reader clarity we are proposing to move the 
revised provision on PMFs to proposed Sec.  362.107(c)(3).

Section 362.108 Oversight

    OPM is proposing to revise Sec.  362.108 by amending Sec.  
362.108(b)(1) to remove the reference to an MOU and replace it

[[Page 55590]]

with a reference to the agency's Pathways Policy in accordance with the 
proposed change at Sec.  362.104 described above.

Section 362.109 Reporting Requirements

    The regulations in Sec.  362.109 require agencies to provide OPM 
with information on workforce planning strategies and their use of the 
Pathways Programs on an annual basis. OPM is proposing to clarify this 
requirement by modifying Sec.  362.109 to indicate that reporting is 
required on a fiscal year basis. OPM proposes starting the updated 
requirement in FY 2024 because that is the target fiscal year for 
publication of the final rule. In addition, since FY 2010, OPM has 
required reporting on an annual basis. Because the Pathways rules and 
programs have been effective since that time and OPM receives regular 
feedback on these programs on an on-going basis, we believe a 3-year 
reporting cycle is more appropriate and will reduce any administrative 
burdens this requirement may present to agency Pathways users. 
Accordingly, we are proposing to modify the reporting requirement to 
once every three years, i.e., beginning in FY 2024 and then again in FY 
2027, and so on.

Section 362.111 Severability

    Severability is an important remedial doctrine that arises in cases 
challenging the legality of statutes and agency rules. When reviewing a 
rule, if a court determines that a particular provision is unlawful, 
severability addresses whether judicial relief should extend to the 
entire rule or whether it can be limited to the invalid provision, 
leaving in effect the remainder of the rule.\4\ OPM is proposing to add 
a new Sec.  362.11 to address the issue of severability. OPM intends 
and expects that if any part or section is held to be invalid or 
unenforceable as applied to any person or circumstance, that part or 
section shall be construed so as to continue to give the maximum effect 
to the provision permitted by law, including as applied to persons not 
similarly situated or to dissimilar circumstances, unless such holding 
is that the provision is invalid and unenforceable in all 
circumstances, in which event the provision shall be severable from the 
remainder of this Part and shall not affect the remainder thereof. We 
have come to this determination because the Pathways Programs 
encompassed three discrete programs with different implementing 
provisions. Should provisions related to one of the programs be held to 
be invalid we believe that the other programs should be severable and 
would not be impacted.
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    \4\ https://www.acus.gov/sites/default/files/documents/tailoring-the-scope-of-judicial-remedies-in-administrative-law-final-report.pdf.
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Subpart B Internship Program

362.202 Definitions

    OPM is proposing to include a definition for Intern not-to-exceed 
(Intern NTE). We are proposing this change because it is the general 
way that Interns and agencies refer to Interns who have been appointed 
for an initial period of up to one year.
    OPM is also proposing to modify the definition of student to 
include individuals enrolled or accepted for enrollment in a qualifying 
career or technical education program. We are proposing this change to 
make the Pathways Internship Program more inclusive of individuals in 
career or technical education programs that award a post-secondary 
certification or credential. Eligible career or technical education 
programs would include programs such as Registered Apprenticeship 
programs and the Job Corps programs. Section 3 of E.O. 13562 states 
that the Internship Program shall provide opportunities for, ``. . . 
students in high schools, community colleges, 4-year colleges, trade 
schools, career and technical education programs, and other qualifying 
educational institutions and programs, as determined by OPM . . .''. 
Consistent with the direction in E.O. 13562, OPM has determined that 
career and technical education programs that provide a recognized post-
secondary credential such as Registered Apprenticeships and Jobs Corps 
programs meet the criteria of career and technical education programs 
expressed in E.O. 13562.

362.203 Filling Positions

    Since the implementation of the Pathways Internship Program in 
2012, OPM, through administrative guidance, has required that agencies 
must post internship positions on USAJOBS.gov before filling these 
positions. Over the years, agencies have noted that this requirement 
can substantially lengthen the hiring process and can hinder agencies' 
ability to effectively recruit and retain early career talent. 
Therefore, OPM is proposing changes to this requirement to give 
agencies greater flexibility to recruit and retain early career talent 
and therefore to advance the goals of E.O. 13562. It should be noted 
that the flexibility to recruit in an efficient manner must be balanced 
with the agency's responsibility to uphold fair and open competition.
    OPM proposes that agencies can meet the public notice requirement 
in one of two ways: (1) posting a searchable announcement on 
www.USAJOBS.gov, as is currently required; or (2) posting job 
information on the agency's public facing career or job information web 
page with a link to a USAJOBS custom posting.
    With respect to this second option, a USAJOBS custom posting 
generates a unique URL that agencies can use for the job announcement. 
An agency can create a custom job posting in its talent acquisition 
system (TAS). OPM will have the posting stored within USAJOBS, and 
therefore can use USAJOBS to collect applicant data analytics for trend 
reporting and applicant flow data purposes, but the custom job posting 
will not appear in USAJOBS searches. Therefore, to facilitate 
applicants' access to these internship opportunities, OPM will provide 
a centralized source through which applicants can be directed to the 
locations on agency-specific web pages where applicants can learn about 
these opportunities.
    For either of these two options--either a searchable announcement 
on USAJOBS or a link to a USAJOBS custom posting on the agency's public 
career or job information web page--agencies can promote the job 
posting on third party websites and recruitment boards or recruiting 
platforms, social media platforms, in trade publications, and at 
college and university events.
    OPM is proposing these changes to assist agencies in their 
recruitment and retention efforts and as informed by the public 
notification requirements provided in recent statutory changes for 
early career hiring authorities for Post-Secondary Students and College 
Graduates (5 U.S.C. 3116 and 3115). OPM specifically invites comments 
regarding these changes and whether they will assist agencies and 
ultimately improve the hiring experience for Interns and Recent 
Graduates, thereby better advancing the purposes of E.O. 13562.
    OPM is proposing to revise Sec.  362.203(d) to remove the reference 
to an MOU and replace it with a reference to the agency's Pathways 
Policy. The conforming change is necessary due the proposed change in 
Sec.  362.104 described above.
    Both agencies and employees have asked for clarity on the ability 
of an agency to promote Interns. Eligibility for promotion is 
determined based on the type of appointment given. Employees

[[Page 55591]]

on temporary appointments (initial appointments of not-to-exceed one 
year) are not eligible for promotions. Employees on non-temporary 
appointments (initial appointments of more than one year made without a 
not-to-exceed date) are eligible for promotion. For this reason, we are 
revising Sec.  362.203(e) to reflect that those Interns whose 
appointments are expected to last more than one year without a not-to-
exceed date may be promoted when they meet the qualification 
requirements for a higher graded position. The change also provides 
that Interns NTEs (on temporary appointments not-to-exceed one year) 
are not eligible for promotions.
    Agencies participating in the Pathways Internship Program are 
required to provide Interns with meaningful developmental work and set 
clear expectations regarding the work experience of the Intern as 
indicated in Sec.  362.104. Identifying and allowing Interns to 
participate in training opportunities such as job training activities, 
formal training classes, mentoring sessions, testing products or tools, 
organizing work activities or functions, and assisting colleagues with 
projects or tasks will help ensure that Interns have meaningful work 
experiences that will help to adequately prepare Interns for Federal 
service. For this reason, we are proposing to modify the regulations at 
Sec.  362.203 by adding a new paragraph (i) that requires agencies to 
provide Interns with meaningful onboarding activities and training and 
development opportunities. Agencies should document training 
information using training plans, Individual Development Plans (IDP) or 
the Pathways Participant Agreement. Appropriate training opportunities 
may include but are not limited to on-the-job training activities, 
formal training classes, mentoring sessions, testing products or tools, 
organizing work activities or functions, and assisting colleagues with 
projects or tasks.

Section 362.204 Conversion to the Competitive Service

    Currently, agencies must convert an Intern to a permanent position 
in the competitive service within 120 days of the Intern's completion 
of a degree and the program requirements. Agencies have indicated that 
they face challenges in completing additional background investigations 
and adjudications that may be required to encumber the position 
following conversion. OPM is proposing to extend this time for 
conversion from 120 calendar days to 180 calendar days in Sec.  
362.204(b)(2). Though we are extending the timeline to assist agencies 
and Interns in securing conversion, we continue to urge agencies to 
move promptly to complete conversion upon the Intern's completion of 
the degree or qualifying career or technical education program and 
program requirements. Lengthy delays in conversion can pose a financial 
hardship on the Intern and lead to them seeking employment elsewhere.
    Currently, an Intern must complete a minimum of 640 hours of work 
experience while in the Internship Program to be eligible for 
conversion. Under Sec.  362.204(c) an agency may credit time served in 
comparable non-Federal Internships, in which an Intern is working in, 
but not for, a Federal agency, for up to half of that time (320 hours) 
when that service occurred prior to an Internship appointment. OPM 
proposes to modify the provisions in Sec.  362.204(c) to allow agencies 
to also credit time served in a Registered Apprenticeship Program at a 
Federal agency prior to the appointment as an Intern toward the 640-
hour requirement. As with the time served in non-Federal internships, 
time served in Registered Apprenticeship Program can count for up to 
half of the minimum 640 hours. We are also proposing that an agency may 
count time spent in a Department of Labor Job Corps program, prior to 
appointment as an Intern, toward the 640-hour work requirement. It is 
important to note that all time served by participants in Registered 
Apprenticeship Programs or Job Corps Programs (after the publication of 
the final rule) while appointed as a Pathways Intern will be creditable 
toward the 640-hour requirement as allowed by Sec.  362.204(b). This 
provision for crediting time toward conversion would only be needed for 
those Interns who may have participated in a Registered Apprenticeship 
Program or Job Corps program prior to a current Intern appointment 
where eligibility was based on enrollment in a subsequent qualifying 
program after completing the Registered Apprenticeship Program. For 
example, an Intern currently enrolled in a bachelor's degree program 
has completed 320 work hours as an Intern prior to completing her 
degree. The Intern had participated in a Registered Apprenticeship 
Program at a Federal agency two years before their appointment as an 
Intern. Up to 320 hours from the prior Registered Apprenticeship 
Program may be credited toward the 640-hour requirement.
    OPM invites comments on other ways to strengthen the provisions 
that agencies may credit or waive up to 320 hours toward an Intern's 
640-hour service requirement.

Section 362.205 Reduction in Force (RIF) and Termination

    OPM is proposing to change the provision for termination of an 
Intern appointment from 120 days after completion of a degree to 180 
days after the completion of a degree. This conforming change is 
necessary based on the proposed change in Sec.  362.204(b)(2) 
pertaining to the conversion window described above.
    We are also proposing to make conforming changes in this section to 
incorporate the new term Intern NTE.

Subpart C Recent Graduates Program

Section 362.301 Program Administration

    OPM is proposing to revise Sec.  362.301(a) to remove the reference 
to an MOU and replace it with a conforming reference to the agency's 
Pathways Policy in accordance with the proposed change at Sec.  
362.104.

Section 362.302 Eligibility

    One objective of E.O. 13562, as stated under section 1, is to 
enable the Federal Government to ``compete effectively'' for talent and 
avoid ``being at a competitive disadvantage compared to private-sector 
employees when it comes to hiring qualified applicants for entry level 
positions.'' In the years since the creation of the Pathways Programs, 
employment trends in other sectors have shifted to better recognize the 
value of and utilize skills-based hiring over reliance on degrees. The 
Governors of Colorado,\5\ Alaska,\6\ and Pennsylvania \7\ among others, 
have issued Executive orders to promote skills-based hiring for state 
government jobs and reduce or eliminate degree requirements. According 
to a Burning Glass Institute report, major companies in the technology 
services field are dropping degree requirements for a significant share 
of their entry-level and

[[Page 55592]]

above positions.\8\ Federal policies have also started to change, as 
demonstrated by E.O. 13932 of June 26, 2020, Modernizing and Reforming 
the Assessment and Hiring of Federal Job Candidates, which directed the 
Federal Government to increase its use of skills-based hiring to fill 
positions. Consistent with E.O. 13562's objective of enabling the 
Federal Government to compete effectively for qualified applicants to 
fill entry-level positions under current workforce and job marketplace 
conditions, OPM is proposing to modify the eligibility criteria for the 
Recent Graduate Program in Sec.  362.302 to include individuals who 
have completed a career or technical education program.
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    \5\ Executive Order D-2022-015: Concerning Skills-based Hiring 
for the State Workforce (https://www.colorado.gov/governor/sites/default/files/inline-files/D%202022%20015%20Skills%20Based%20Hiring%20EO.pdf).
    \6\ Administrative Order No. 343 (https://gov.alaska.gov/admin-orders/administrative-order-no-343/).
    \7\ Executive Order 2023-03: Creating Opportunities by 
Prioritizing Work Experience for State Government Jobs (https://www.oa.pa.gov/Policies/eo/Documents/2023-03.pdf).
    \8\ The Emerging Degree Reset (https://static1.squarespace.com/static/6197797102be715f55c0e0a1/t/6202bda7f1ceee7b0e9b7e2f/1644346798760/The+Emerging+Degree+Reset+%2822.02%29Final.pdf).
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    The current regulation includes a definition of the term 
``qualifying educational institutions'' under Sec.  362.102 but does 
not include a definition of ``qualifying career or technical education 
program.'' As noted in the discussion of Sec.  362.102, we are 
proposing a definition of career or technical education programs to 
include programs such as Registered Apprenticeship Programs, the 
Department of Labor-administered Job Corps, the Peace Corps, and 
AmeriCorps. Individuals who have completed such career or technical 
education programs, much like college graduates who have graduated from 
a qualifying educational institution, may be at a disadvantage for 
competitive service hiring, as they lack significant previous work 
experience. See E.O. 13562, Sec. 1 (noting that existing competitive 
hiring process favors job applicants who have significant previous work 
experience and therefore finding it necessary to create an excepted 
hiring authority for the Pathways Programs).
    OPM has specifically identified four Federal programs that meet the 
criteria under this definition of ``qualifying career or technical 
education program'': Registered Apprenticeship Programs, the Department 
of Labor-administered Job Corps Programs, the Peace Corps, and 
AmeriCorps. Graduates and alumni from these programs are uniquely 
positioned to apply for Federal positions because they have been 
accepted into a government-administered program that is regulated by 
specific standards, and the Federal Government has already invested 
funding and personnel resources toward their success. Many of these 
participants have been pre-screened with background checks or 
investigations before joining these programs, and they have already 
demonstrated an inclination toward government service through their 
participation. Additionally, these programs attract more diverse 
participants relative to the broader U.S. workforce and creating a more 
robust applicant pipeline from these programs to Pathways Programs 
would help further the objective of E.O. 13562 to draw from all parts 
of American society. OPM believes that overtly defining this term will 
assist agencies as they seek to access additional talent pools that 
they can draw upon to meet their missions.
    OPM invites comments regarding the inclusion of career and 
technical education programs in the eligibility criteria for the Recent 
Graduate Program. OPM is particularly interested whether we should 
establish restrictions or criteria for the types of programs that would 
meet the eligibility criteria.

Section 362.303 Filling Positions

    For the reasons discussed above regarding Sec.  362.203, OPM is 
proposing to revise Sec.  362.303(a)--the job posting requirements for 
Recent Graduates--in the same manner as has been proposed for Interns 
in Sec.  362.203(a). OPM believes that these changes will enable 
agencies to better recruit and retain early career talent and therefore 
advance the goals of E.O. 13562. OPM invites comments on these changes, 
as discussed above.
    OPM is proposing to revise Sec.  362.303(b)(1) and (c) to remove 
the reference to an agency's MOU and replace it with a reference to the 
agency's Pathways Policy. The conforming change is necessary due the 
proposed change in Sec.  362.104.
    OPM's qualification standards for white collar jobs allows 
education alone to be qualifying for non-research positions at the GS-
11 level and below. The standards also allow education alone to be 
qualifying at the GS-12 level for research positions. For this reason, 
OPM is proposing to revise Sec.  362.303(b)(i) to allow initial 
appointments of a Recent Graduate to any position filled under the 
authority up the GS-11 level. The existing provisions in the 
regulations to allow appointments at the GS-12 level for research 
positions in Sec.  362.303(b)(iv) remains unchanged.

Section 362.305 Conversion to the Competitive Service

    OPM is proposing to modify Sec.  362.305 to permit conversion to a 
term or permanent position in a different agency. The proposed change 
adds a new paragraph (c) which provides that conversion at a different 
agency may only occur when the employing agency documents it is unable 
to convert the Recent Graduate. An agency may determine that it is 
unable to convert the Recent Graduate for reasons related to a lack of 
available positions for which the Recent Graduate is qualified due to 
unforeseen funding or budgetary constraints or limitations, 
reorganizations, abolishment of positions, or other appropriate 
reasons. It is important to note that a Recent Graduate is not entitled 
to conversion at the employing agency or another agency. Conversions 
may only be offered to those Recent Graduates who have successfully 
completed the Recent Graduate Program requirements and demonstrated 
successful job performance resulting in a rating of record (or summary 
rating) of at least Fully Successful or equivalent and have a 
recommendation for conversion from the first level supervisor. Recent 
Graduates who do not meet these criteria or have misconduct issues or 
unsuccessful performance may not be converted to a position in the 
employing agency or another agency. Additionally, such a conversion 
must occur on or before the end of the agency prescribed Program 
period, plus any agency-approved extension, and the position at the new 
agency must have a career ladder or full promotion potential that is 
the same or lower than the position at the former agency.

Subpart D Presidential Management Fellows Program

Section 362.401 Definitions

    OPM is proposing to revise the definition of Agency PMF Coordinator 
in Sec.  362.401. This conforming change is necessary due to the 
proposed change in Sec.  362.104(a)(8).

Section 362.404 Appointment and Extension

    OPM is proposing to revise Sec.  362.404(a)(1) and (b) to remove 
the references to an agency's MOU and replace it with a reference to 
the agency's Pathways Policy. This conforming change is necessary due 
to the proposed change in Sec.  362.104.
    Presidential Management Fellows (Fellows) are generally given full-
time work schedules. However, there are times when an agency may need 
the flexibility to offer a part-time work schedule to Fellows for 
limited periods of time. For example, as a reasonable accommodation due 
to a medical condition, illness, or injury, or

[[Page 55593]]

caregiving responsibilities for family members, an agency could 
authorize a part-time work schedule for a period of 3 to 6 months while 
the Fellow recovers. For this reason, OPM is proposing to modify Sec.  
362.404 by adding paragraph (e) to provide agencies with the discretion 
to authorize a part-time work schedule for limited period of up to 6 
months during the program if the agency and Fellow have determined that 
it would not negatively impact the Fellow's ability to meet all program 
requirements by the expiration of the Fellow's appointment. An agency 
is not required to approve a part-time schedule. When a part-time 
schedule is being approved, it should be approved for the shortest 
amount of time necessary because the Fellow must complete all program 
requirements within the two-year program period and any approved 
extension. In situations where the Fellow may have entitlements under 
the Family Medical Leave Act, the use of a part-time work schedule may 
supplement those entitlements.

Section 362.405 Development, Evaluation, Promotion, and Certification

    Currently, Sec.  362.405(a) provides that a Fellow must (1) have an 
Individual Development Plan (IDP) in place within 45 days upon entering 
on duty, (2) have a Mentor in place within 90 days, and (3) be able to 
consult the Mentor in the development of the IDP. The different time 
frames for developing an IDP and identifying a mentor creates a 
situation where most Fellows do not have a Mentor in place prior to and 
during the initial development of their IDP. For this reason, we are 
proposing to modify Sec.  362.405(a) to require an IDP within 90 days. 
This will allow the Mentor to participate in the development of the IDP 
with the Fellow and the manager. OPM encourages agencies and Fellows to 
identify Mentors and create IDPs as soon as practicable but no later 
than 90 days after the appointment.
    OPM is proposing to modify Sec.  362.405(b)(1) to reflect that OPM 
will provide leadership development activities and general program 
resources instead of an orientation program. Years of experience with 
the PMF program has led us to conclude that the agency-specific PMF 
orientation is far more valuable to individuals selected as Fellows 
than a centrally provided orientation program. Fellows are going to 
work for a particular agency. While there are centrally managed 
activities for Fellows, the employing agency is primarily responsible 
for the day-to-day activities of their PMF Fellow cohort. Fellows need 
to learn about their agency and where their job fits into it. 
Clarifying that agencies are responsible for PMF orientation--which 
many already are providing--reduces confusion between agencies and OPM 
about responsibilities and provides a better on-boarding experience for 
Fellows. OPM views its role as providing meaningful leadership 
development activities and resources throughout the program lifecycle. 
This proposed change will better reflect the reality of how the program 
is administered today, which is a model that will lead to a better on-
boarding experience for Fellows.
    Currently, Sec.  362.405(b)(4)(i) requires agencies to provide for 
a minimum of one developmental assignment of 4 to 6 months' duration. 
It also allows that as an alternative to this developmental assignment 
Fellows may choose to participate in an agency-wide, Presidential or 
Administration initiative that will provide experience comparable to 
the developmental assignment. Fellows and agencies have found this 
description of an alternative to be confusing and duplicative. 
Accordingly, we are instead providing examples that we expect will 
assist agencies and Fellows alike. Specifically, we note that 
developmental assignments could include projects requiring 
implementation of a new Executive order, major piece of legislation, 
agency reorganization, or cross-agency collaboration on a major 
Administration initiative. Cross-agency collaboration on a new program 
or service, establishment of a new program or office, or drafting a 
report would be additional types of projects that could serve as a 
developmental assignment. We welcome further comment on other examples.
    Agencies may also provide Fellows with an additional short term 
rotational assignment of up to 6 months. Over the years, Fellows and 
agencies have inquired about whether such assignments are limited to 
the employing agency or if they may also occur in other agencies. To 
clarify this matter OPM is proposing to revise Sec.  362.405(b)(4)(ii) 
to indicate that short term rotational assignments may take place 
within the Fellow's organization, in another component of the agency, 
or in another Federal agency at the employing agency's discretion.
    OPM is proposing to clarify the information about Executive 
Resource Board (ERB) certification of completion to indicate how 
certification relates to the eligibility for conversion in the current 
agency or a different agency. We are proposing to modify Sec.  
362.405(d)(2) and (4) to indicate that a Fellow who is successfully 
certified may be converted in accordance with Sec.  362.409 and that a 
Fellow who is not approved for ERB certification is not eligible for 
conversion. This change is necessitated by the change in Sec.  362.107 
to allow the conversion of a Fellow in the employing agency or a 
different agency. The losing agency is responsible for the ERB 
certification.

Section 362.409 Conversion to the Competitive Service

    OPM is proposing to modify in Sec.  362.409 to allow conversion to 
a term or permanent position in a different agency. The proposed change 
adds a new paragraph (c), which would require that conversion at 
another agency is allowed only when the employing agency documents that 
there no available positions in the current organizational unit or 
elsewhere in the employing agency (including its various components) 
for which the Fellow is qualified. An agency may determine that it is 
unable to convert the Fellow for reasons related to a lack of available 
positions for which the Fellow is qualified due to unforeseen funding 
or budgetary constraints or limitations, reorganizations, abolishment 
of positions, or other appropriate reasons. It is important to note 
that a Fellow is not entitled to conversion at the employing agency or 
another agency. Conversions may only be offered to those Fellows who 
have successfully completed the PMF Program requirements including the 
performance and developmental expectations set forth in the Fellow's 
performance plan and IDP; and has received ERB-certification of 
completion. Fellows who do not meet this criteria or have misconduct 
issues or unsuccessful performance may not be converted to a position 
in the employing agency or another agency. The proposed change would 
also require that such conversion must occur on or before the end of 
the agency prescribed Program period, plus any agency-approved 
extension, and the position at the new agency must have a career ladder 
or full promotion potential that is the same or lower than the position 
at the former agency.
    OPM welcomes comments on whether the employing agency should have 
priority in converting their Recent Graduates or Fellows or if, 
instead, the Recent Graduates or Fellows should be able to choose where 
to convert if there are opportunities at other agencies.

[[Page 55594]]

Part 410 Training

Section 410.306 Selecting and Assigning Employees to Training

    OPM is proposing to replace the outdated reference to the former 
Student Career Experience Program (SCEP) program in 5 CFR 10.306(c) 
with a reference to the Pathways Internship Program.

Expected Impact of This Proposed Rule

A. Statement of Need

    OPM is proposing these regulations to update the Pathways Programs 
to facilitate a better applicant experience, to improve developmental 
opportunities for Pathways Programs participants, and to streamline 
agencies' ability to hire Pathways Program participants and convert to 
permanent employment those that have successfully completed their 
Pathways requirements. Robust Pathways Programs with appropriate 
safeguards to promote its use as a supplement to, and not a substitute 
for, the competitive hiring process is essential to boosting the 
Federal Government's ability to recruit and retain early career talent.

B. Impact

    The proposed rule modifies existing regulations for the Pathways 
Programs for hiring Interns and Recent Graduates and for the 
Presidential Management Fellowship Program. We anticipate that these 
changes will improve and enhance the effectiveness of the Pathways 
Programs consistent with E.O. 13562, which requires OPM to support 
agency use of programs to recruit students and recent graduates.
    In fiscal year 2021, agencies made 8,039 new appointments using the 
Pathways Programs hiring authorities (4,873 Interns, 2,828 Recent 
Graduates and 338 Presidential Management Fellows). It is important to 
note that, while these proposed changes may enhance the way the 
agencies use the program, they are only one of several factors 
impacting whether the number of appointments made will increase or 
decrease. Other factors not addressed or impacted by these regulations 
such as agency resources available for hiring and recruiting will also 
need to be considered when evaluating the effectiveness of the programs 
in helping agencies reach their recruiting and hiring goals.

C. Costs

    This proposed rule will affect the operations of over 80 Federal 
agencies--ranging from cabinet-level departments to small independent 
agencies. We estimate that this proposed rule will require individuals 
employed by these agencies to modify 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 2022 for GS-14, step 5, from the Washington, DC, locality 
pay table ($143,064 annual locality rate and $68.55 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 $137.10 per hour.
    In order to comply with the regulatory changes in this NPRM, 
affected agencies would need to review the final rule and update their 
policies and procedures. We estimate that, in the first year following 
publication of the final rule, this would require an average of 250 
hours of work by employees with an average hourly cost of $137.10. This 
would result in estimated costs in that first year of implementation of 
about $34,275 per agency, and about $2,742,000 in total Governmentwide. 
We do not believe this proposed rule will substantially increase the 
ongoing administrative costs to agencies (including the administrative 
costs of administering the programs and hiring and training new staff). 
This is because the proposed rule is modifying existing programs and 
recruitment of students and recent graduates is an ongoing need.

D. Benefits

    The proposed changes will boost the Federal Government's ability to 
recruit and retain early career talent. For example, the proposed 
change to modify the public notice requirement will provide agencies 
with additional flexibility when recruiting and may also lead to a 
better applicant experience. The proposed changes to allow the 
conversion of eligible Recent Graduates and Presidential Management 
Fellows to competitive service positions in the employing agency or 
another agency will provide flexibility when resource restrictions 
would otherwise prevent conversion. When an agency is unable to convert 
the eligible Recent Graduate or Presidential Management Fellow the 
agency and the government lose the expertise and knowledge the 
participant has gained during the program. However, the opportunity for 
conversion at another agency may prevent that loss. The extension of 
the 120-day period for the conversion of Interns to 180 days provides 
agencies the benefit of being able to convert those interns who may 
have been separated when the background investigation or vetting 
process exceeded the 120-day limit.
    Executive Order 14035 of June 25, 2021, Diversity, Equity, 
Inclusion, and Accessibility in the Federal Workforce, establishes an 
initiative on diversity, equity, inclusion, and accessibility (DEIA) in 
the Federal workforce. As part of OPM's work, a Government-Wide 
Strategic Plan to Advance Diversity, Equity, and Accessibility in the 
Federal Workforce was released in November 2021.\9\ This plan directs 
agencies to prioritize a number of efforts to support sustainability 
and continued improvement on DEIA matters. This includes seeking 
opportunities to promote paid internships, fellowships, and 
apprenticeships. The proposed updates to the Pathways Programs will 
help inform and support agency efforts to use and promote paid 
internships.
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    \9\ https://www.whitehouse.gov/wp-content/uploads/2021/11/Strategic-Plan-to-Advance-Diversity-Equity-Inclusionand-Accessibility-in-the-Federal-Workforce-11.23.21.pdf.
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E. Regulatory Alternative

    E.O. 13562 authorized OPM to establish regulations to implement the 
Pathways Programs. Over the years OPM has issued guidance in addition 
to these regulations to assist agencies in using the Programs. However, 
the proposed changes in this notice of proposed rulemaking (NPRM) 
address issues that require a modification of the existing regulations 
and cannot be changed by guidance alone. For example, OPM believes that 
agencies need additional flexibility to convert participants in the 
Recent Graduate and PMF programs to positions in another agency. The 
existing regulations limit the conversion of Recent Graduate or PMF 
participants to positions in the employing agency. We have determined 
that a change to these regulatory provisions is required to provide the 
additional flexibility agencies requested.

Request for Comment and Data

    In addition to the information contained in the regulatory 
analysis, OPM requests comment on whether to modify several aspects of 
this rulemaking. Such information will be useful for better 
understanding the impact of these regulations on hiring by Federal 
agencies. OPM welcomes the public's views on the following:
     Whether Recent Graduates and Presidential Management 
Fellows should be able to convert to positions at a different agency. 
OPM recognizes that agencies may encounter obstacles preventing the 
conversion of Recent Graduates and Presidential Management

[[Page 55595]]

Fellows. OPM believes that given the nature of such unexpected 
obstacles, it is in the interests of efficient and effective 
administration to provide for opportunities for Recent Graduates and 
Presidential Management Fellows who have successfully completed their 
program and meet the requirements for conversion to be able to convert 
at agencies other than the one that initially hired them as a Recent 
Graduate. The initial agency has invested in the development of the 
Recent Graduate and Presidential Management Fellow and, if it is unable 
to convert them, other agencies should have that opportunity so that 
the investment in the Recent Graduate or Presidential Management Fellow 
is not lost to the Federal Government.
     Whether the employing agency should have a right of first 
refusal in converting their Recent Graduates and Presidential 
Management Fellows, as currently proposed, or if, instead, the Recent 
Graduates and Presidential Management Fellows should be able to choose 
where to convert if they have multiple offers.
     How could OPM structure the Pathways Intern conversion 
process to maximize the Federal enterprise's ability to recruit and 
retain qualified interns following the conclusion of their internship? 
Should OPM consider alternative conversion timelines (e.g., greater 
than 180 days), alternative internship service requirements, 
alternative interagency conversion rules, or specific waiver/exception 
conditions?
     Whether the proposed public notice options for filling 
positions under the Internship Program and Recent Graduates Program 
will enable agencies to more effectively recruit and retain early 
career talent than the current process. In addition to allowing 
agencies to post searchable job opportunities at USAJOBS, OPM is also 
proposing to allow agencies to post job information with a link to a 
USAJOBS custom posting on their agency websites, with OPM providing a 
centralized place where applicants can be directed to those postings on 
the agency websites. OPM specifically invites comments on these changes 
and whether they will assist agencies with better advancing the 
purposes of E.O. 13562.
     Ways to strengthen the proposed provision that allows 
agencies to waive or credit up to 320 hours toward an Intern's 640-hour 
service requirement for these programs. OPM encourages commenters to 
provide examples of alternate criteria that could be used for the 
credit or waiver provisions. Are there practical considerations or 
specific waiver/exception conditions OPM should consider when setting 
the 640-hour requirement? Should agencies be able to consider and 
credit work experience from non-Federal Internships for up to 320 
hours? Comments in favor of crediting non-Federal experience should 
address the types of criteria and documentation that could be used to 
evaluate such experiences.
     Whether OPM should consider making a change to the 640-
hour service requirement that must be met for conversion of an Intern. 
Although this proposal retains the existing 640-hour Pathways hours of 
service requirement to be eligible for non-competitive conversion, OPM 
is open to adopting a different hourly requirement in the final rule. 
OPM is interested in learning more about non-Federal entities' best 
practices with regard to internship conversion pipelines, especially if 
there are innovative programs that integrate specific internship 
requirements (hours of service, content, skill-based assessment) with 
defined pathways into career paths. OPM encourages commenters who 
suggest a different length for the work hour requirement to discuss the 
advantages and/or disadvantages of such a change.
     Whether to revise the PMF regulations by clarifying the 
developmental assignment requirement by providing examples that we 
expect will assist agencies and Fellows alike. Projects requiring 
implementation of a new Executive order, major piece of legislation, 
agency reorganization, or cross-agency collaboration on a major 
Administration initiative would be the sorts of projects that could 
serve as a developmental assignment. OPM welcomes further comments and 
other examples that could satisfy this requirement from the public.
    OPM invites comments regarding the inclusion of career and 
technical education programs as meeting the eligibility criteria for 
the Recent Graduate Program. In this proposed regulation, the 
definition includes Federal programs: Job Corps, Registered 
Apprenticeship Programs, Peace Corps, and AmeriCorps. We are interested 
in comments as to whether these programs are appropriate. We are also 
interested in whether we should include non-Federal programs in the 
definition of career and technical education programs. Comments that 
advocate for inclusion of non-Federal programs should address the types 
of criteria and documentation that could be used to justify why those 
who complete such programs should be eligible for the Recent Graduates 
Program. OPM welcomes data showing the effectiveness and comparability 
to Federal programs that could support an expansion of eligibility.

Executive Orders 13563, 12866, and 14094 Regulatory Review

    Executive Orders 13563, 12866, and 14094 direct 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). Executive 
Order 13563 emphasizes the importance of quantifying both costs and 
benefits, of reducing costs, of harmonizing rules, and of promoting 
flexibility. In accordance with the provisions of Executive Order 
12866, this proposed rule was reviewed by the Office of Management and 
Budget as a significant, but not significant under section (3)(f)(1), 
rule.

Regulatory Flexibility Act

    The Director of the Office of Personnel Management certifies that 
this proposed rule will not have a significant economic impact on a 
substantial number of small entities because it applies only to Federal 
agencies and employees.

E.O. 13132 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 proposed rule does not have 
sufficient federalism implications to warrant preparation of a 
Federalism Assessment.

E.O. 12988 Civil Justice Reform

    This regulation meets the applicable standard set forth in section 
3(a) and (b)(2) of Executive Order 12988.

Unfunded Mandates Reform Act of 1995

    This proposed rule will not result in the expenditure by State, 
local, or tribal governments, in the aggregate, or by the private 
sector, of more than $100 million annually. Thus, no written assessment 
of unfunded mandates is required.

[[Page 55596]]

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

    Notwithstanding any other provision of law, no person is required 
to respond to, nor shall any person be subject to a penalty for failure 
to comply with, a collection of information subject to the requirements 
of the Paperwork Reduction Act of 1995 (44 U.S.C. 3501 et seq.) (PRA), 
unless that collection of information displays a currently valid Office 
of Management and Budget (OMB) Control Number. This proposed rule 
involves the following OMB-approved collections of information subject 
to the PRA: OMB Control Number 3206-0219, USAJOBS 3.0 and OMB Control 
Number 3206-0082, OPM 1300 (PMF Program Annual Application) OPM 
believes any additional burden associated with this proposed rule falls 
within the existing estimates currently associated with these control 
numbers. We do not anticipate that the implementation of this proposed 
rule will increase the cost burden to members of the public. Additional 
information regarding these collections of information--including all 
background materials--can be found at https://www.reginfo.gov/public/do/PRAMain by using the search function to enter either the title of 
the collection or the OMB Control Number.

List of Subjects

5 CFR Part 300

    Government employees.

5 CFR Part 362

    Administrative practice and procedure, Colleges and universities, 
Government employees.

5 CFR Part 410

    Education, Government employees.

Office of Personnel Management.
Kayyonne Marston,
Federal Register Liaison.

    For reasons stated in the preamble, the Office of Personnel 
Management proposes to amend 5 CFR parts 300, 315, 362, and 410 as 
follows:

PART 300--EMPLOYMENT (GENERAL)

0
1. The authority citation for part 300 continues to read as follows:

    Authority:  5 U.S.C. 552, 2301, 2302, 3301, and 3302; E.O. 
10577, 3 CFR 1954-1958 Comp., page 218, unless otherwise noted.

    Secs. 300.101 through 300.104 also issued under 5 U.S.C. 7201, 
7204, and 7701; E.O. 11478, 3 CFR 1966-1970 Comp., page 803, E.O. 
13087; and E.O. 13152.
    Secs. 300.401 through 300.408 also issued under 5 U.S.C. 
1302(c).
    Secs. 300.501 through 300.507 also issued under 5 U.S.C. 
1103(a)(5).
    Sec. 300.603 also issued under 5 U.S.C. 1104.

Subpart C--Details of Employees

0
2. Revise Sec.  300.301(b) to read as follows:


Sec.  300.301  Authority.

* * * * *
    (b) In accordance with 5 U.S.C. 3341, an agency may detail an 
employee in the excepted service to a position in the excepted service 
and may also detail an excepted service employee serving under Schedule 
A, Schedule B, Schedule D, or a Veterans Recruitment Appointment, to a 
position in the competitive service.
* * * * *

PART 362--PATHWAYS PROGRAMS

0
3. The authority citation for part 362 continues to read as follows:

    Authority:  E.O. 13562, 75 FR 82585. 3 CFR, 2010 Comp., p. 291.

Subpart A--General Provisions

0
4. Amend Sec.  362.102 by:
0
a. Revising the definition for ``Advanced degree'';
0
b. Adding the definition for ``Certificate of completion of a 
Registered Apprenticeship Program'' in alphabetical order;
0
c. Revising the definition for ``Certificate program''; and
0
d. Adding the definitions for ``Industry-recognized credential'', 
``Qualifying career or technical education program'', ``Recognized 
postsecondary credential'', and ``Registered Apprenticeship Program'' 
in alphabetical order.
    The revisions and additions read as follows:


Sec.  362.102  Definitions.

* * * * *
    Advanced degree means a master's degree, professional degree, 
doctorate degree, or other formal degree pursued after completing a 
bachelor's degree.
* * * * *
    Certificate of completion of a Registered Apprenticeship Program 
means the documentation given to individuals who have successfully 
completed a Registered Apprenticeship Program.
    Certificate program means post-secondary education in a:
    (1) Qualifying educational institution, equivalent to at least one 
academic year of full-time study that is part of an accredited post-
secondary, technical, trade, or business school curriculum; or
    (2) Qualifying career or technical education program that awards a 
recognized postsecondary credential or industry recognized credential.
* * * * *
    Industry-recognized credential means:
    (1) A credential or certificate that is developed and offered by, 
or endorsed by, a nationally or regionally recognized industry 
association or organization representing a sizeable portion of the 
industry sector, or
    (2) A credential that is sought or accepted by companies within the 
industry sector for purposes of hiring or recruitment, which may 
include credentials from vendors of certain products.
* * * * *
    Qualifying career or technical education program means:
    (1) An organized educational program, administered through a 
Federal agency, that focuses on providing rigorous academic content and 
relevant technical knowledge and skills needed to prepare the 
individual for further education and/or a career in a current or 
emerging profession and provides technical skill proficiency and a 
recognized postsecondary credential (which may include an industry-
recognized credential, a certificate, or an associate degree); or
    (2) A Registered Apprenticeship Program; or
    (3) Service in a Federally-administered local, state, national, or 
international volunteer service program or organization designed to 
give individuals work and or educational experiences in volunteer 
programs that benefit the Federal Government or local communities. 
Qualifying volunteer service must be documented with written 
information from the federally sponsored program of successful 
completion of at least one year of volunteer service.
* * * * *
    Recognized postsecondary credential means documentation (e.g., 
official record) of an industry-recognized certificate or 
certification, a certificate of completion of a Registered 
Apprenticeship Program, a license recognized by the State involved or 
Federal Government, or an associate's or baccalaureate degree.
    Registered Apprenticeship Program means a program that meets the 
requirements in 29 CFR part 29. Approval of registration is evidenced 
by a Certificate of Registration or other written documentation as 
provided by the respective career or technical education establishment.
0
5. Revise Sec.  362.104 to read as follows:

[[Page 55597]]

Sec.  362.104  Agency requirements.

    (a) Agency policy. In order to make any appointment under a 
Pathways authority, an agency must establish a Pathways Policy. The 
Pathways Policy must:
    (1) Include information about any agency-specific program labels 
that will be used, subject to the Federal naming conventions identified 
in Sec.  362.101 (e.g., OPM Internship Program);
    (2) State the delegations of authority for the agency's use of the 
Pathways Programs (e.g., department-wide vs. bureaus or components);
    (3) Include any implementing policy or guidance that the agency 
determines would facilitate successful implementation and 
administration for each Pathways Program;
    (4) Prescribe criteria and procedures for agency-approved 
extensions for Recent Graduates and PMFs, not to exceed 120 days. 
Extension criteria must be limited to circumstances that would render 
the agency's compliance with the regulations impracticable or 
impossible;
    (5) Describe how the agency will design, implement, and document 
formal training and/or development, as well as the type and duration of 
assignments;
    (6) Include a commitment from the agency to:
    (i) Provide to OPM any information it requests on the agency's 
Pathways Programs;
    (ii) Adhere to any caps on the Pathways Programs imposed by the 
Director;
    (iii) Provide information to OPM about opportunities for 
individuals interested in participating in the Pathways Programs, upon 
request from OPM;
    (iv) Provide a meaningful on-boarding process for each Pathways 
Program;
    (7) Identify the agency's Pathways Programs Officer (PPO), who:
    (i) Must be in a position at the agency's headquarters level, or at 
the headquarters level of a departmental component, in a position at or 
higher than grade 12 of the General Schedule (GS) (or the equivalent 
under the Federal Wage System (FWS) or another pay and classification 
system);
    (ii) Is responsible for administering the agency's Pathways 
Programs, including coordinating the recruitment and on-boarding 
process for Pathways Programs Participants, and coordinating the 
agency's Pathways Programs plan with agency stakeholders and other 
hiring plans (e.g., merit promotion plans, and agency plans pursuant to 
Executive Order (E.O.) 14035, ``Diversity, Equity, Inclusion, and 
Accessibility (DEIA) in the Federal Workforce'');
    (iii) Serves as a liaison with OPM by providing updates on the 
agency's implementation of its Pathways Programs, clarifying technical 
or programmatic issues, sharing agency best practices, and other 
similar duties; and
    (iv) Reports to OPM on the agency's implementation of its Pathways 
Programs and individuals hired under these Programs, in conjunction 
with the agency's Pathways Policy; and
    (8) Identify the agency's Presidential Management Fellows (PMF) 
Program Coordinator who:
    (i) Must be in a position at the agency's headquarters level, or at 
the headquarters level of a departmental component, or sub-agency 
level, in a position at or higher than grade 12 of the General Schedule 
(GS) (or the equivalent under the Federal Wage System (FWS) or another 
pay and classification system);
    (ii) Is responsible for administering the agency's PMF Program 
including coordinating the recruitment, on-boarding, and certification 
processes for PMF Program Participants, and coordinating the agency's 
PMF Program plan to ensure it is integrated with agency-wide workforce 
plans;
    (iii) Serves as a liaison with OPM by providing updates on the 
agency's implementation of its PMF Program, clarifying technical or 
programmatic issues, sharing agency best practices, and other similar 
duties; and
    (iv) Reports to OPM on the agency's implementation of its PMF 
Program and individuals hired under the PMF Program.
    (b) Submission of agency policies to OPM. Beginning in FY 2024 an 
agency must make an initial submission of the agency's Pathways Policy 
to OPM as required in paragraph (a) of this section. Submission of an 
updated policy is required only when the agency makes substantive 
changes to the policy.
0
6. Amend Sec.  362.107 by revising paragraph (c)(2) and adding 
paragraph (c)(3) to read as follows:


Sec.  362.107  Conversion to the competitive service.

* * * * *
    (c) * * *
    (2) A Recent Graduate may be converted to a position within the 
employing agency or any other agency within the Federal Government. 
Conversion to a different agency may occur when the employing agency is 
unable to convert the Recent Graduate to a term or permanent position 
in the competitive service in the agency (including its various 
components).
    (3) A Presidential Management Fellow (Fellow) may be converted 
within the employing agency or any other agency within the Federal 
Government. Conversion to a different agency may occur when the 
employing agency is unable to convert the Fellow to a term or permanent 
position in the competitive service in the employing agency (including 
its various components).
* * * * *
0
7. Amend Sec.  362.108 by revising paragraph (b)(1) to read as follows:


Sec.  362.108  Program oversight.

* * * * *
    (b) * * *
    (1) An agency's compliance with its Pathways Policy;
* * * * *
0
8. Revise Sec.  362.109 to read as follows:


Sec.  362.109  Reporting requirements.

    Agencies must provide information requested by OPM regarding 
workforce planning strategies that includes:
    (a) Information on the entry-level occupations targeted for filling 
positions under this part in the coming three fiscal years;
    (b) The percentage of overall hiring expected in the coming three 
fiscal years under the Internship, Recent Graduates, and Presidential 
Management Fellows Programs; and
    (c) Every three fiscal years beginning with fiscal year (FY)--2024 
(i.e., FY24 and then again in FY27, etc.):
    (1) The number of individuals initially appointed under each 
Pathways Program;
    (2) The percentage of the agency's overall hires made from each 
Pathways Program;
    (3) The number of Pathways Participants, per Program, converted to 
the competitive service; and
    (4) The number of Pathways Participants.
0
9. Add Sec.  362.111 to read as follows:


Sec.  362.111  Severability.

    Any provision of part 362 held to be invalid or unenforceable as 
applied to any person or circumstance shall be construed so as to 
continue to give the maximum effect to the provision permitted by law, 
including as applied to persons not similarly situated or to dissimilar 
circumstances, unless such holding is that the provision is invalid and 
unenforceable in all circumstances, in which event the provision shall 
be severable from the remainder of this part and shall not affect the 
remainder thereof.

[[Page 55598]]

Subpart B--Internship Program

0
10. Revise Sec.  362.202 to read as follows:


Sec.  362.202  Definitions.

    In this subpart:
    Intern Not-to-Exceed (Intern NTE) means an Intern appointed for an 
initial period not to exceed one year.
    Student means an individual who is:
    (1) Accepted for enrollment or enrolled and seeking a degree 
(diploma, certificate, etc.) in a qualifying educational institution, 
on a full or half-time basis (as defined by the institution in which 
the student is enrolled), including awardees of the Harry S. Truman 
Foundation Scholarship Program under Public Law 93-842. Students need 
not be in physical attendance, so long as all other requirements are 
met. An individual who needs to complete less than the equivalent of 
half an academic/vocational or technical course-load immediately prior 
to graduating is still considered a student for purposes of this 
Program; or
    (2) Enrolled or accepted for enrollment in a qualifying career or 
technical education program that awards a recognized postsecondary 
credential.
0
11. Amend Sec.  362.203 by:
0
a. Revising paragraphs (a), (d)(1) and (e); and
0
b. Adding paragraph (i).
    The revisions and addition read as follows:


Sec.  362.203  Filling positions.

    (a) Announcement--(1) Public notice requirement. An agency must 
adhere to merit system principles and thus must provide public 
notification in a manner designed to recruit qualified individuals from 
appropriate sources in an endeavor to draw from all segments of 
society. For the purposes of this paragraph (a), ``agency'' means an 
Executive agency as defined in 5 U.S.C. 105 and the Government Printing 
Office. An Executive department may treat each of its bureaus or 
components (i.e., the first major subdivision that is separately 
organized and clearly distinguished from other bureaus or components in 
work function and operation) as a separate agency or as part of one 
agency but must do so consistent with its Delegated Examining 
Agreement.
    (2) Meeting the public notice requirement. An agency may use the 
following options for meeting the public notice requirement:
    (i) Posting a searchable announcement on www.USAJOBS.gov; or
    (ii) Posting job information with a link to a USAJOBS custom job 
announcement on the agency's public facing career or job information 
web page. This custom posting must provide applicants with information 
about how to apply or seek additional information about the position(s) 
being filled, while also providing information regarding that job 
announcement to OPM.
    (iii) The agency may also consider whether additional recruitment 
and advertisement activities to supplement paragraphs (a)(2)(i) and 
(ii) of this section, such as posting to third-party websites, are 
necessary or appropriate to further support merit system principles.
    (3) Contents of announcements. Announcements used to meet the 
public notice requirement must include:
    (i) Position information. Position title, series, and grade;
    (ii) Position location. Geographic location where the position will 
be filled;
    (iii) Appointment length. Duration of the appointment;
    (iv) Salary information. The starting salary of the position;
    (v) Qualifications. The minimum qualifications of the position;
    (vi) Promotion potential. Whether the individual in the position 
will be eligible for promotion to higher grade levels;
    (vii) Conversion information. The potential for conversion to the 
agency's permanent workforce;
    (viii) How to apply. A public source (e.g., a link to the location 
on the agency's website with information on how to apply) for 
interested individuals to seek further information about how to apply 
for Intern opportunities;
    (ix) Equal employment information. Equal employment opportunity 
statement (Agencies may use the recommended equal employment 
opportunity statement located on OPM's USAJOBS website);
    (x) Reasonable accommodation information. Reasonable accommodation 
statement;
    (xi) Other relevant information. Any other relevant information 
about the position such as telework opportunities, recruitment 
incentives, etc.; and
    (xii) Other requirements. Any other information OPM considers 
appropriate.
    (4) Other information. OPM will publish information on Internship 
opportunities in such form as the Director may determine.
* * * * *
    (d) * * *
    (1) An agency may make Intern appointments, pursuant to its 
Pathways Policy, under Schedule D of the excepted service in accordance 
with part 302 of this chapter.
* * * * *
    (e) Promotion. An agency may promote an Intern, on an initial 
appointment expected to last more than one year (without a not to 
exceed (NTE) date) who meets the qualification requirements for the 
position. An Intern NTE on a temporary appointment is not eligible for 
promotion. This provision does not confer entitlement to promotion.
* * * * *
    (i) Required developmental activities. Agencies are required to 
provide appropriate training and development activities to Interns 
regardless of the length of the appointment. OPM recommends that 
agencies ensure, within 45 days of appointment, that each Intern, 
appointed for an initial period expected to last more than 1 year, or 
an Intern NTE appointed for more than 90 days, an agency documents its 
planned use of training activities in a training plan, Individual 
Development Plan (IDP), or the Pathways Participant Agreement that is 
approved by his or her supervisor. Documenting of training activities 
for is also recommended for an Intern NTE appointed for an initial 
period less than 90 days. Appropriate training opportunities may 
include but are not limited to on-the-job training activities, formal 
training classes, mentoring sessions, testing products or tools, 
organizing work activities or functions, and assisting colleagues with 
projects or tasks.
0
12. Amend Sec.  362.204 by:
0
a. Revising paragraph (b)(2);
0
b. Revising paragraph (c)(1)(ii) and (iii);
0
c. Adding paragraph (c)(1)(iv); and
0
d. Revising paragraph (c)(2).
    The revisions and addition to read as follows:


Sec.  362.204  Conversion to the competitive service.

* * * * *
    (b) * * *
    (2) Completed a course of academic study, within the 180-day period 
preceding the appointment, at a qualifying educational institution 
conferring a diploma, certificate, or degree; or successful completion 
in a qualifying career or technical educational program.
* * * * *
    (c) * * *
    (1) * * *
    (ii) Worked in, but not for, a Federal agency, pursuant to a 
written contract with a third-party internship provider officially 
established to provide internship experiences to students that are 
comparable to the Internship Program under this subpart;

[[Page 55599]]

    (iii) Served as an active-duty member of the armed forces 
(including the National Guard and Reserves), as defined in 5 U.S.C. 
2101, provided the veteran's discharge or release is under honorable 
conditions; or
    (iv) Worked in a Registered Apprenticeship Program at a Federal 
Agency (prior to appointment as an Intern).
    (2) Student volunteer service under part 308 of this chapter, and 
other Federal programs designed to give internship experience to 
students (e.g., fellowships and similar programs) including a 
Department of Labor Job Corps Program prior to an intern appointment 
may be evaluated, considered, and credited under this section when the 
agency determines the experience is comparable to experience gained in 
the Internship Program.
* * * * *
0
13. Revise Sec.  362.205 to read as follows:


Sec.  362.205  Reduction in force (RIF) and termination.

    (a) Reduction in force. Interns and Interns NTE are covered by part 
351 of this chapter for purposes of RIF.
    (1) Tenure Groups. (i) An Intern serving under an appointment for 
an initial period expected to last more than 1 year is in excepted 
service Tenure Group II.
    (ii) An Intern NTE who has not completed 1 year of service, is in 
excepted service Tenure Group 0.
    (iii) An Intern NTE serving under a temporary appointment not to 
exceed 1 year, who has completed 1 year of current, continuous service, 
is in excepted service Tenure Group III.
    (2) [Reserved]
    (b) Termination--(1) Intern. As a condition of employment an Intern 
appointment expires 180 calendar days after completion of the 
designated academic course of study, unless the Participant is selected 
for noncompetitive conversion under Sec.  362.204.
    (2) Intern NTE. As a condition of employment an Intern NTE 
appointment expires upon expiration of the temporary Internship 
appointment, unless the Participant is selected for noncompetitive 
conversion under Sec.  362.204.

Subpart C--Recent Graduate Program

0
14. Amend Sec.  362.301 by revising paragraph (a) to read as follows:


Sec.  362.301  Program administration.

* * * * *
    (a) Identify in its Pathways Policy the duration of its Recent 
Graduates Program, including any criteria used to determine the need 
for a longer and more structured training program that exceeds 1 year;
* * * * *
0
15. Amend Sec.  362.302 by revising paragraph (a) to read as follows:


Sec.  362.302  Eligibility.

    (a) A Recent Graduate is an individual who obtained a qualifying 
associate's, bachelor's, master's, professional, doctorate, vocational 
or technical degree or certificate from a qualifying educational 
institution or completed a qualifying career or technical education 
program within the previous 2 years or other applicable period provided 
below.
* * * * *
0
16. Amend Sec.  362.303 by revising paragraphs (a), (b)(1), and 
(b)(3)(i) to read as follows:


Sec.  362.303  Filling positions.

    (a) Announcement--(1) Public notice requirement. An agency must 
adhere to merit system principles and thus must provide public 
notification in a manner designed to recruit qualified individuals from 
appropriate sources in an endeavor to draw from all segments of 
society. For the purposes of this paragraph (a), ``agency'' means an 
Executive agency as defined in 5 U.S.C. 105 and the Government Printing 
Office. An Executive department may treat each of its bureaus or 
components (i.e., the first major subdivision that is separately 
organized and clearly distinguished from other bureaus or components in 
work function and operation) as a separate agency or as part of one 
agency but must do so consistent with its Delegated Examining 
Agreement.
    (2) Meeting the public notice requirement. An agency may use the 
following options for meeting the public notice requirement:
    (i) Posting a searchable announcement on www.USAJOBS.gov; or
    (ii) Posting job information with a link to a USAJOBS custom job 
announcement on the agency's public facing career or job information 
web page. This custom posting must provide applicants with information 
about how to apply or seek additional information about the position(s) 
being filled, while also providing information regarding that job 
announcement to OPM.
    (iii) The agency may also consider whether additional recruitment 
and advertisement activities to supplement paragraphs (a)(2)(i) and 
(ii) of this section, such as posting on third-party websites, are 
necessary or appropriate to further support merit system principles.
    (3) Contents of announcements. Announcements used to meet the 
public notice requirement must include:
    (i) Position information. Position title, series, and grade;
    (ii) Position location. Geographic location where the position will 
be filled;
    (iii) Salary information. The starting salary of the position;
    (iv) Qualifications information. The minimum qualifications of the 
position;
    (v) Promotion potential. Whether the individual in the position 
will be eligible for promotion to higher grade levels;
    (vi) Conversion information. The potential for conversion to the 
agency's permanent workforce;
    (vii) How to apply. A public source (e.g., a link to the location 
on the agency's website with information on how to apply) for 
interested individuals to seek further information about how to apply 
for Recent Graduate opportunities; and
    (viii) Equal employment information. Equal employment opportunity 
statement (Agencies may use the recommended equal employment 
opportunity statement located on OPM's USAJOBS website);
    (ix) Reasonable accommodation information. Reasonable accommodation 
statement;
    (x) Other relevant information. Any other relevant information 
about the position such as telework opportunities, recruitment 
incentives, etc.; and
    (xi) Other requirements. Any other information OPM considers 
appropriate.
    (4) Other Information. OPM will publish information on Recent 
Graduate opportunities in such form as the Director may determine.
    (b) * * *
    (1) An agency may make appointments to the Recent Graduates Program 
pursuant to its Pathways Policy under Schedule D of the excepted 
service in accordance with part 302 of this chapter.
* * * * *
    (3)(i) An agency may make an initial appointment of a Recent 
Graduate to any position filled under this authority for which the 
Recent Graduate qualifies, up to the GS-11 level (or equivalent under 
another pay and classification system, such as the Federal Wage 
System), except as provided in paragraphs (b)(3)(ii) through (iv) of 
this section.
* * * * *
0
17. Amend Sec.  362.305 by adding paragraph (c) to read as follows:

[[Page 55600]]

Sec.  362.305  Conversion to the Competitive Service.

* * * * *
    (c) A Recent Graduate may be converted to a permanent or term 
position at a different agency when the following conditions are met:
    (1) The employing (or losing) agency documents that the agency is 
unable to convert the Recent Graduate to a term or permanent position 
in the competitive service in the current organizational unit of the 
employing agency or another component within the same Department or 
agency. The documentation of this must address the reason(s) why 
conversion did not occur in the agency. These reasons may include 
unforeseen budgetary constraints; reorganizations; abolishment of 
positions; or other appropriate reasons. Such a conversion to another 
agency may not be due to issues related to misconduct, poor 
performance, or suitability.
    (2) Conversion must occur on or before the end of the agency 
prescribed Program period, plus any agency-approved extension; and
    (3) The position at the new agency must have a full performance 
level that is equivalent or less than the position at the prior agency.

Subpart D--Presidential Management Fellows Program

0
18. Amend Sec.  362.401 by removing the definition for ``Agency PMF 
Coordinator'' and adding the definition for ``Agency Presidential 
Management Fellows (PMF) Program Coordinator'' to read as follows:


Sec.  362.401  Definitions.

    Agency Presidential Management Fellows (PMF) Program Coordinator 
has the same meaning as described in Sec.  362.104(a)(8); is an 
individual, at the appropriate agency component level, who coordinates 
the placement, development, and other Program-related activities of 
PMFs appointed in his or her agency. The agency Pathways Programs 
Officer may also serve as the PMF Coordinator.
* * * * *
0
19. Amend Sec.  362.404 by revising paragraph (a)(1) and adding 
paragraph (e) to read as follows.


Sec.  362.404  Appointment and extension.

    (a) Appointments. (1) An agency may make 2-year appointments to the 
PMF Program, pursuant to a Pathways Policy executed with the OPM, under 
Schedule D of the excepted service in accordance with part 302 of this 
chapter.
* * * * *
    (e) Work schedules. A Fellow will generally have a full-time work 
schedule. An agency may authorize a part-time work schedule for a 
limited period of up to 6 months during the PMF Program if the agency 
and Fellow have determined that it would not negatively impact the 
Fellow's ability to meet all program requirements by the expiration of 
the Fellow's appointment. An agency's Pathways Policy must outline the 
conditions under which a part-time work schedule may be authorized. The 
Fellow's Pathways Participant agreement should be updated with the new 
work schedule information when a part-time work schedule is approved.
0
20. Amend Sec.  362.405 by revising paragraphs (a), (b)(1), (4) and 
(5), (d)(2) and adding paragraph (d)(4)(iii) to read as follows:


Sec.  362.405  Development, evaluation, promotion, and certification.

    (a) Individual Development Plans. An agency must approve, within 90 
days, an Individual Development Plan (IDP) for each of its Fellows that 
sets forth the specific developmental activities that are mutually 
agreed upon by each Fellow and his or her supervisor. The IDP must be 
developed in consultation with the Agency PMF Coordinator and/or the 
mentor assigned to the Fellow under paragraph (b)(3) of this section.
    (b) Required developmental activities. (1) OPM will provide 
leadership development activities and general program resources for 
each class or cohort of Fellows and will provide information on 
available training opportunities known to it. Agencies must provide 
appropriate agency specific onboarding and employee orientation 
activities.
* * * * *
    (4) The agency must provide each Fellow with at least one 
rotational or developmental assignment with full-time management and/or 
technical responsibilities consistent with the Fellow's IDP. With 
respect to this requirement:
    (i) Each Fellow must receive at least one developmental assignment 
of 4 to 6 months in duration, with management and/or technical 
responsibilities consistent with the Fellow's IDP.
    (ii) The developmental assignment may be within the Fellow's 
organization, in another component of the agency, or in another Federal 
agency as permitted by the employing agency.
    (iii) Examples of appropriate developmental assignments may include 
projects implementing a new Executive order or, major piece of 
legislation, agency reorganization, or cross-agency collaboration on a 
major administration initiative.
    (5) The Fellow may receive other short-term rotational assignments 
of 1 to 6 months in duration, at the agency's discretion. A short-term 
rotational assignment may take place within the Fellow's organization, 
in another component of the agency, or in another Federal agency as 
permitted by the employing agency.
* * * * *
    (d) * * *
    (2) (i) The ERB must notify the Fellow of its decision regarding 
certification of successful completion.
    (ii) A Fellow who receives successful certification is eligible for 
conversion in accordance with Sec.  362.409.
* * * * *
    (4) * * *
    (iii) A Fellow who is not approved for certification and whose 
appeal to OPM is denied is not eligible for conversion in accordance 
with Sec.  362.409.
0
21. Amend Sec.  362.409 by revising paragraph (b) and adding paragraph 
(c) to read as follows:


Sec.  362.409  Conversion to the competitive service.

    (a) * * *
    (b) An agency may convert, without a break in service, an ERB-
certified Fellow to a competitive service term or permanent appointment 
in any position for which they are qualified.
    (c) A Fellow who is being converted to a permanent or term position 
at a different agency is subject to the following conditions:
    (i) The employing (or losing) agency documents that the agency is 
unable to convert the Fellow to a term or permanent position in the 
competitive service in the employing agency. The documentation must 
address the reason(s) why conversion did not occur in the agency. These 
reasons may include unforeseen funding or budgetary constraints or 
limitations, reorganizations, abolishment of positions, or other 
appropriate reasons. Such a conversion to another agency may not be due 
to issues related to failure to obtain certification from the agency's 
Executive Resources Board, misconduct, poor performance, or 
suitability.
    (ii) Conversion must occur on or before the end of the agency 
prescribed Program period, plus any agency-approved extension; and
    (iii) The position at the new agency must have a full performance 
level that is equivalent or less than the position at the losing 
agency.

PART 410--TRAINING

0
22. The authority citation for part 410 continues to read as follows:


[[Page 55601]]


    Authority:  5 U.S.C. 1103(c), 2301, 2302, 4101, et seq.; E.O. 
11348, 3 CFR, 1967 Comp., p. 275, E.O. 11478, 3 CFR 1966-1970 Comp., 
page 803, unless otherwise noted, E.O. 13087; and E.O. 13152.

0
23. Amend Sec.  410.306 by revising paragraph (c) to read as follows:


Sec.  410.306  Selecting and assigning employees to training.

* * * * *
    (c) Subject to the prohibitions of Sec.  410.308(a), an agency may 
pay all or part of the training expenses of students hired under the 
Pathways Internship Program (see 5 CFR part 362, subpart B).

[FR Doc. 2023-17372 Filed 8-15-23; 8:45 am]
BILLING CODE 6325-39-P