[Federal Register Volume 89, Number 72 (Friday, April 12, 2024)]
[Rules and Regulations]
[Pages 25751-25775]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-06810]



[[Page 25751]]

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OFFICE OF PERSONNEL MANAGEMENT

5 CFR Parts 300, 362, and 410

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


Pathways Programs

AGENCY: Office of Personnel Management.

ACTION: Final rule.

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SUMMARY: The Office of Personnel Management (OPM) is issuing this final 
rule to align the Pathways Programs with the Federal Government's needs 
for recruiting and hiring interns and recent graduates. Robust Pathways 
Programs, with appropriate safeguards to promote their use as a 
supplement to, and not a substitute for, the competitive hiring 
process, are essential to boosting the Federal Government's ability to 
recruit and retain early career talent.

DATES: This rule is effective June 11, 2024. Agencies must be in full 
compliance with this final rule not later than December 9, 2024.

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

SUPPLEMENTARY INFORMATION: 

Background Information

    The authority for the Pathways Programs in their current form was 
set forth on December 27, 2010, with the issuance of E.O. 13562 (75 FR 
82585) pursuant to 5 U.S.C. 3301 and 3302. The Pathways Programs became 
effective on July 10, 2012, following OPM's issuance of a final rule 
(77 FR 28194) implementing E.O. 13562. 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 (PMF) Program promotes 
careers in the Federal Government by offering leadership development 
opportunities to individuals who have received advanced degrees within 
the preceding two years.
    On August 16, 2023, OPM published a proposed rule with request for 
comments in the Federal Register at 88 FR 55586 proposing to modify the 
existing regulations for the Pathways Programs for students and recent 
graduates. Based on agency feedback and OPM's own analysis, OPM 
proposed several changes aimed at enhancing the robust usage of the 
Pathways Programs as a key source of early career talent in the Federal 
Government to supplement, but not substitute for, the competitive 
hiring process. Overall, the purpose of the changes is to streamline 
the Pathways regulations, making it easier for agencies to recruit and 
hire participants in the Pathways Programs and to optimize the Pathways 
Programs as a tool to recruit and retain diverse and highly qualified 
early career talent. These changes include:
     Outlining the specific responsibilities of the PMF 
Coordinator;
     Expanding the time period for converting Pathways Interns 
from 120 to 180 days;
     Modifying the public notice requirement for job 
opportunity announcements for Pathways Interns and Recent Graduates;
     Clarifying and streamlining the training and development 
requirements;
     Allowing Recent Graduates and PMFs to be converted to term 
or permanent positions in any agency, when appropriate;
     Reducing the frequency of 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.

Summary of Comments

    During the 45-day comment period between August 16, 2023, and 
October 2, 2023, OPM received 79 sets of comments from nine Federal 
agencies, 38 members of the public, and nine professional 
organizations. At the end of the public comment period, OPM reviewed 
and analyzed the comments. The comments are summarized in the next 
section, together with a discussion of the suggestions for revision 
that were considered and either adopted, or declined, and the rationale 
therefor. OPM did not address the following suggestions from commenters 
that are outside the scope of this rulemaking:
     Two comments suggested that OPM should address ways 
agencies can convert participants in third-party Internships that are 
not Pathways appointments to permanent positions.
     One comment suggested that OPM pursue legislative changes 
to the Competitive Service Act to allow for the use of shared 
certificates for Pathways appointments.
     Several comments addressed issues related to how a 
specific agency has chosen to use the Pathways Programs or implement 
various provisions of the programs.
     Comments related to the sharing of recruitment data among 
agencies that use the Pathways Programs.
     One comment suggested modification to the selection 
process for the PMF Program.
     Several comments suggested recommendations for workforce 
planning, recruitment, and marketing activities.
     One comment suggested that OPM remove its ability to place 
restrictions or caps on the number of Pathways appointments made.
     One comment suggested OPM change the 80 hour per year 
training requirement for PMFs.
     One comment suggested that Interns should be able to do 
remote work.
     One comment suggested that OPM allow agencies to share 
certificates for Pathways hiring actions.
     Several commenters shared information about their personal 
experiences in the program. The comments ranged from supportive to 
unsupportive.
    In the first section below, OPM addresses general or overarching 
comments. The sections that follow address comments in response to 
OPM's requests for comments and data related to specific portions of 
the proposed rule.

General Comments

    OPM received several comments that expressed general support for 
the proposed regulatory changes. For example, one agency expressed that 
the proposed updates would help facilitate a better applicant 
experience, streamline agencies' ability to hire participants in the 
Pathways Programs, and improve

[[Page 25752]]

developmental opportunities for Pathways Program Participants. A 
professional organization indicated that Pathways Programs are 
essential on-ramps to recruit and hire talented early-career and 
career-pivoting professionals of all ages into the Federal Government 
and applauded the proposed expansion of eligibility requirements and 
facilitation for participants to transition to permanent Federal 
employment.
    One commenter questioned how the proposed changes might provide or 
support transparency as an objective of the regulations. Our intent 
with these regulations is to provide more transparency in those areas 
where agencies, applicants, and Pathways Participants have shared with 
us that the existing regulations do not provide adequate information to 
maximize the effectiveness of the programs. For example, applicants and 
agencies have asked for more options in sharing information about 
Pathways opportunities. OPM is modifying the regulations to provide 
more information to applicants about job opportunities, to Pathways 
Participants and agencies about conversion opportunities, and to 
collect information that will allow OPM to monitor the effectiveness of 
the programs.
    One commenter indicated that they felt the proposed rule provided 
neither encouragement nor affirmative language related to leveraging 
the Pathways Programs for diverse individuals and those with 
disabilities as required by Executive Order 14035 of June 25, 2021, 
``Diversity, Equity, Inclusion, and Accessibility in the Federal 
Workforce.'' OPM disagrees with the assessment that affirmative 
language is required to help leverage Pathways Programs for diverse 
individuals. The changes in the proposed rule (and finalized here) that 
expand eligibility criteria to include career and technical education 
will allow agencies to recruit from a broader spectrum of applicants. 
This change should support agencies as they work to reach applicants 
with diverse backgrounds.
    One commenter indicated that the application of veterans' 
preference may impact the diversity of Pathways appointments and lead 
to Pathways appointments that reflect the diversity of the veteran 
community and not that of the American public. This commenter suggested 
OPM should monitor the impact of veterans' preference on diversity. 
Although OPM may continue to monitor the impact of veterans' 
preference, E.O. 13562 requires agencies to apply veterans' preference 
when making appointments to fill Pathways positions.
    One commenter expressed support for the use of paid internship 
opportunities. OPM agrees that the use of paid early career 
opportunities is mutually beneficial to students, recent graduates, and 
Federal agencies. These paid opportunities offer students and recent 
graduates a chance to demonstrate their talents and potential while 
offering agencies time to evaluate their skills, abilities, and 
contributions. All appointments under the Pathways Programs are paid 
opportunities. Pathways Participants are appointed to Federal positions 
and earn a salary commensurate with the grade level of the position. 
Additionally, Pathways Participants may also be eligible for benefits 
such as health insurance, life insurance, and retirement coverage 
depending on their work schedule and length of appointment.
    One commenter indicated that OPM should require agencies to 
implement the use of exit interviews, surveys, and/or other similar 
processes to ensure that agencies capture information about participant 
program experiences and use it to improve Pathways Programs in the 
future. OPM recognizes that exit interviews and surveys are valuable 
tools to measure employee engagement and the effectiveness of programs 
such as the Pathways Programs. OPM has determined that information on 
the use of such tools is more appropriate in guidance to agencies than 
in this final rule. OPM will consider whether to provide guidance and 
tools to help agencies measure employee engagement and program 
effectiveness.
    A commenter provided suggestions related to supporting agencies' 
ability to provide high quality experiences for participants. These 
suggestions included change management support such as communications, 
office hours, and training and establishing a Pathways Board to 
continuously assess and approve improvement recommendations, identify 
talent innovations, and encourage the hiring of early career talent. 
OPM intends to provide agencies with support as they implement the 
changes to the regulations through written guidance and a variety of 
outreach activities such as webinars, information sessions, office 
hours, and question and answer sessions. OPM receives feedback and 
provides support to agencies on the use of the Pathways Programs 
through the Chief Human Capital Officers Council and its working groups 
and communities of practice. For this reason, it would be duplicative 
to establish a Pathways Board.
    One commenter suggested that OPM clarify that Interns may be 
converted to permanent excepted service positions. OPM is not adopting 
this suggestion. As provided in E.O. 13562, the Pathways Internship 
authority is used as an exception to fill positions that would normally 
be filled through a competitive process. Accordingly, non-competitive 
conversion means assignment to a position in the competitive service. 
The Pathways Programs E.O. and implementing regulations do not provide 
for conversion to an excepted service position for an Intern.

Responses to Requests for Comments and Data

1. Whether Recent Graduates and PMFs Should Be Able To Convert to 
Positions at a Different Agency

    The existing regulations at 5 CFR 362.107 for conversion of Recent 
Graduates and PMFs to positions in the competitive service limits 
conversion to positions in the employing agency. OPM proposed to modify 
these provisions to allow conversion at other agencies.
    We received many comments on the provisions to allow Recent 
Graduates and PMFs to convert to positions at other agencies. Most 
comments were supportive of this change. Some commenters also 
questioned how agencies would share opportunities and how Recent 
Graduates and PMFs who are unable to be converted at their employing 
agency would find information about potential opportunities. Two 
commenters also recommended that OPM facilitate this process. OPM is 
currently developing tools to assist participants and agencies in this 
process. We will provide additional guidance on this process as we 
develop and launch these tools.

2. Limitations on Conversion of Recent Graduates and PMFs to Positions 
at Different Agencies

    The existing regulations for conversion of Recent Graduates and 
PMFs to positions in the competitive service limits conversion to 
positions in the employing agency. As discussed in the preceding 
section, OPM proposed to allow conversion at other agencies; however, 
OPM proposed that this new flexibility be limited to situations when 
the employing agency is unable to convert the Recent Graduate or PMF in 
5 CFR 362.305 and 362.409. OPM received comments about how the 
conversion to another agency should occur. Comments were evenly split 
between those who supported conversion to a position at another agency 
under limited conditions and those who supported conversion at another 
agency for any reason. In this

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final rule, OPM maintains the conditions to allow conversion at another 
agency when the agency is unable to convert the Recent Graduate or PMF 
to a position in the competitive service in the employing agency due to 
unforeseen circumstances or other appropriate reasons.
    Some Federal agencies and individuals indicated that conversion 
should be limited to certain situations because the agency has invested 
considerable resources into the recruitment, training/development, and 
mentorship of the employee. Other commenters suggested that limiting 
the conditions for when conversion at other agencies could occur was 
not recommended because it reduced flexibility and choice for Pathways 
Participants. One commenter also suggested that these limits on 
conversion would create a burden on agencies. One commenter suggested 
that limiting conversion at other agencies may lead to dissatisfaction 
and possibly contribute to PMFs or Recent Graduates leaving Federal 
service.
    Many commenters suggested that Recent Graduates and PMFs should be 
able to choose where they are converted. Some of these commenters 
expressed that not allowing this type of choice for Recent Graduates 
and PMFs could lead to resignations for those who have a bad experience 
or are in roles that do not align with their career goals. OPM reminds 
readers that there are opportunities for Recent Graduates and PMFs to 
move into different positions within the Federal Government before and 
after their conversion deadline if they are not satisfied with their 
Pathways experience. For example, Recent Graduates and PMFs can request 
a transfer to a different agency partway through their program. Once an 
individual is converted to a permanent position in the competitive 
service, the individual can seek to transfer to another agency (the 
same as anyone else hired into a permanent competitive service job). In 
this way, Recent Graduates and PMFs are not disadvantaged compared to 
other applicants for Federal jobs.
    A commenter recommended standardizing a conversion time period 
across agencies. They suggested that after a set period, the Recent 
Graduate should be able to reach out to other agencies to facilitate 
Federal employment and avoid attrition if the opportunity is not 
available at their agency. Another commenter suggested that an agency 
should be required to provide a Recent Graduate or PMF with a written 
notice of intent to convert or not convert 90 days before their program 
ends. Further the commenter indicated that only a Recent Graduate or 
PMF who receives a notice that the agency will not convert may then be 
converted to a different agency. OPM does not agree that an agency 
should be required to provide written notice 90 days before the program 
ends. But OPM does agree that the notice should be given at least 60 
calendar days prior to the end of an appointment and that the notice 
may be either written or unwritten. While OPM encourages agencies to 
have conversations with Recent Graduates and PMFs about whether the 
agency intends to convert the employee as early as possible, OPM 
recognizes that unforeseen circumstances (such as a budgetary shortfall 
or uncertainty) may prevent an agency from doing so.
    The intent of these Programs is to help agencies meet their early 
career hiring needs by allowing the hiring agency to convert an 
eligible Pathways Participant who successfully completes program 
requirements assuming the agency is able to do so. Therefore, at a 
minimum as a part of the agency's workforce planning, OPM encourages 
managers to make determinations about whether the resources are 
available to convert Recent Graduates and PMFs at regular intervals 
prior to the end of a Recent Graduate's or PMF's program period. OPM 
also encourages agencies to inform Recent Graduates and PMFs as soon as 
possible after the agency makes determinations about the agency's 
ability to convert the Recent Graduates or PMFs. Such a determination 
must be communicated to the Recent Graduate or PMF no later than 60 
calendar days prior to the end of their appointment. OPM recognizes 
that to ensure that such conversations and determinations are made in a 
timely manner this issue should be addressed in an agency's Pathways 
Policy. For this reason, OPM is modifying Sec.  362.104(a) in this 
final rule to require agencies to include provisions in their Pathways 
Policies that address procedures and criteria for determining if an 
agency will be able to convert Recent Graduates and PMFs and 
communicating those determinations to the employee. A conversion to a 
position in the competitive service must occur within the Recent 
Graduate's one- or two-year program period plus any approved extension 
or within the PMF's two-year program period plus any approved 
extension.
    The purpose of the Pathways Programs is to allow agencies to 
recruit student and recent graduates to support agency workforces needs 
while also offering them a pathway to a Federal career. OPM expects 
that agencies will continue to hire Recent Graduates and PMFs with the 
intention of converting them in the agency to which they were appointed 
and that the need to convert at another agency will be rare. This means 
the ability to convert at other agencies must balance the agency's need 
to meet its workforce goals using available resources against the 
participants' desires to build a meaningful career. OPM believes that 
allowing conversion at another agency under certain situations related 
to unforeseen circumstances provides the needed balance and maintains 
the intent that the programs are to be used to support agency workforce 
planning goals. It also preserves the investment the Government has 
made in the individual Recent Graduate or PMF.
    One commenter suggested that those eligible for conversion should 
be able to apply to merit promotion announcements. OPM is not adopting 
this suggestion. Agencies use merit promotion announcements to promote 
or reassign career or career-conditional employees as allowed by 5 CFR 
part 335 and agencies' policies for internal movements of employees. 
Recent Graduates and PMFs serve in excepted service positions and 
generally lack prior service in competitive service positions or career 
or career-conditional status to meet the eligibility criteria to apply 
to merit promotion announcements for competitive service positions. 
Recent Graduates and PMFs who have obtained career or career-
conditional status from prior Federal appointments may apply to merit 
promotion announcements for competitive service positions. Similarly, 
once converted to competitive service positions, Recent Graduates and 
PMFs obtain career or career-conditional status through the Pathways 
Program and may apply to merit promotion announcements.

3. Structure of the Intern Conversion Process

    In the existing regulations in Sec.  362.204, an agency may convert 
an Intern to a position in the competitive service when the Intern has 
met the OPM qualification standard for the position to which the Intern 
will be converted, completes a course of academic study from a 
qualifying educational institution, completes a minimum of 640 hours of 
work experience while in the Internship Program, and receives a 
favorable recommendation by an official of the agency. OPM requested 
comments on how OPM could modify the Pathways Intern conversion process 
to maximize the Federal enterprise's ability to recruit

[[Page 25754]]

and retain qualified interns following the conclusion of their 
internship.
    One commenter suggested that OPM look to industry best practices 
when considering feasible reasons for conversion, but the commenter did 
not provide any examples. Another commenter suggested that, instead of 
a work hours requirement, OPM should ensure agencies are providing 
clear performance objectives and feedback throughout an Intern's tenure 
in the position to allow agencies to make conversion decisions based on 
performance and skills, rather than an hour requirement. While OPM is 
not adopting this specific suggestion, we note that the intent of the 
Internship Program is for the Intern to develop necessary skills while 
allowing the employing agency to train and then assess the performance 
of the Intern to fill agency workforce needs. The Internship Program 
achieves this through eligibility conditions required for conversion. 
One of the existing requirements for conversion is that the Intern 
receive a favorable recommendation for appointment by an official of 
the agency or agencies in which the Intern served. Additionally, 
Interns are subject to the agency's policies for performance and 
conduct. The recommendation from the Intern's supervisor in conjunction 
with the agencies' use or application of effective performance 
management practices ensures that performance is considered when an 
agency determines that the Intern meets the requirements for 
conversion. The requirement for a minimum number of hours provides the 
Intern with sufficient time to learn about the agency and Federal 
employment and to develop the necessary skills while also allowing the 
agency time to evaluate the Intern's work performance before offering 
permanent employment. OPM encourages agencies to recruit Interns as 
early as possible in the Intern's academic career to maximize the full 
benefit of the program.
    A professional organization recommended a number of best practices 
for retaining Interns and converting them to full time, including 
hosting networking events with fellow Interns and agency leaders to 
help Interns and leaders build networks and contacts, offering programs 
and experiences that allow Interns to learn about Federal employment 
and its benefits, and aligning internship opportunities to in-demand 
skills or emerging professions. Another professional organization 
suggested several areas of focus for all Federal internships such as 
improved onboarding efforts, standardization of program quality 
criteria, and increased strategic planning for recruitment and hiring 
of entry level talent. OPM agrees and encourages agencies to consider 
these types of strategies to improve the Intern experience. OPM plans 
to use some of these activities in its Intern Experience Program to 
assist agencies in their efforts to create meaningful experiences for 
all Interns.

4. Strengthen the Provisions That Allows Agencies To Waive or Credit Up 
to Half of the Interns' 640-Hour Service Requirement

    The existing regulations at 5 CFR 362.204(d) include a waiver 
provision and a credit provision for up to half of the 640-hour service 
requirement prescribed in 5 CFR 362.204(b). The waiver provision allows 
an agency to waive up to half (320 hours) of the 640-hour service 
requirement for any Intern who performs work directly related to the 
Intern's academic field of study or career goals, and who demonstrates 
outstanding academic achievement and exceptional job performance. The 
existing credit provision allows an agency to credit up to half of the 
640 work hours for time served in a comparable non-Federal internship 
at a Federal agency. OPM requested comments on ways to modify these 
provisions to provide additional and appropriate flexibility for 
agencies and Interns.
    One commenter expressed support for allowing agencies to credit or 
waive up to half of the hours from a Registered Apprenticeship Program 
or time served in the U.S. Department of Labor's Job Corps that was 
completed prior to the Internship appointment.
    The proposed rule included an example of an agency waiving half of 
the 640-hour requirement for an Intern who spent time at Job Corps two 
years before the Internship appointment. One commenter interpreted this 
example to mean the agency could only credit the time from Job Corps 
service if it occurred within the preceding two years. This is 
incorrect; an agency may waive time served with Job Corps that has 
occurred at any time prior to the Internship appointment. The agency is 
not limited to considering the two-year period prior to the Internship 
appointment.
    OPM received several comments related to alternative criteria for 
waiver or crediting provisions. One commenter suggested that credit or 
a waiver could be given for internships that received class credit, as 
shown on transcripts, or work experiences that were required for the 
relevant industry-recognized certification/state license. Another 
commenter suggested crediting up to 320 hours for both Federal and non-
Federal experience toward an intern's 640-hour service requirement to 
attract and convert qualified talent with in-demand skills. That same 
commenter suggested that OPM should consider accepting internship and 
apprenticeship experience from non-Federal organizations (such as 
private organizations or workforce centers) and career/technical 
education for programs that are focused on skills/careers in a current 
or emerging profession (e.g., cyber, artificial intelligence (AI), 
technology) to help fulfill demand, depending on type, level, and time 
of experience. An agency suggested that agencies should be able to 
waive up to half of the hours when certain agency-determined experience 
options are met. The agency did not provide example of the options. 
That same agency also suggested that guidance would be needed on the 
types of documentation that could be used to verify the outside 
experience. OPM is not adopting these suggestions. While the proposed 
alternatives presented in the comments may be viable and may hold 
promise, OPM believes more research is needed before making such 
changes to ensure program administration viability and employment 
equity.
    Some commenters also suggested the regulations allow agencies to 
credit time spent in non-Federal internships toward all or part of the 
work hour requirement. One commenter expressed that agencies should be 
able to credit all non-Federal internship or volunteer experience 
towards the 640 hours requirement, or alternatively, to use evidence of 
successful participation in such programs to justify immediate step 
increases upon conversion. OPM is not adopting this suggestion. The 
minimum number of hours required for conversion gives the employing 
agency sufficient time to evaluate the intern before converting the 
individual into the agency's permanent workforce. Crediting non-Federal 
experience or volunteer service for all or more than half of the work-
hour requirement would neither provide the agency sufficient time to 
evaluate the intern for purposes of permanent employment nor would it 
give an Intern sufficient time to learn about the agency and Federal 
employment in general. OPM is concerned that non-Federal internships 
may lack the structure, consistency, and developmental opportunities 
offered by Federal internships. This proposal could also be abused, 
allowing agencies to hire Interns for brief periods of time

[[Page 25755]]

before conversion to a permanent position. Experience gained through a 
non-Federal internship or volunteer activity, however, could be 
creditable for purposes of qualifying for an initial Pathways 
appointment.
    One commenter also expressed that Interns should be able to use 
evidence of successful participation in non-Federal internship or 
volunteer experience programs to justify step increases upon 
conversion. OPM is not adopting this suggestion. A step increase or 
within grade increase is earned when the employee's performance is at 
an acceptable level of competence, the required waiting period for 
advancement to the next higher step has been completed, and the 
employee has not received an ``equivalent increase'' in pay during the 
waiting period. If the Intern has met the waiting period and other 
requirements for a step increase at the time of conversion, then an 
agency may process a step increase at the time of conversion. If the 
Intern has not met the requirements for a step increase, then the 
agency does not have the ability to give the Intern a step increase 
unless it is awarding a Quality Step Increase (QSI). A QSI is a faster 
than normal within-grade increase used to reward employees a who 
display high quality performance and may be awarded to an employee in 
accordance with an agency's awards policy. This comment may also be 
referring to the mistaken idea that, if an agency is considering a 
promotion at the time of conversion, then the agency is not able to 
consider non-Federal internship or volunteer experience programs when 
determining whether the Intern is qualified for a higher grade level. 
When determining whether an Intern (or any other employee) is qualified 
for a promotion, an agency should review all available information 
about the Intern's qualifications and competencies, including non-
Federal and volunteer experience.
    One commenter suggested that it may be in the Government's best 
interest to have the entire work-hour requirement met through the 
Pathways appointment. OPM disagrees. A longstanding feature of Federal 
student programs such as the prior Student Career Experience Program 
and the current Pathways Program has been to allow Interns to credit 
work that was done in, but not for, a Federal agency. OPM believes such 
provisions are appropriate because these opportunities allow Interns to 
explore the culture of the agency and the agency has had a chance to 
observe the Intern's work even though they were not a Federal employee.
    One commenter suggested that any waiver provisions should be 
applied consistently across agencies, which would benefit situations 
when Interns convert at other agencies. OPM agrees that the use of the 
waiver provision should be applied consistently across agencies. 
However, OPM recognizes that waivers may not be needed by all 
participants and the number of waivers approved by agencies may vary. 
OPM encourages the approval of a waiver for situations where waiver may 
be needed and the criteria for a waiver and the additional criteria for 
conversion have been met. That same commenter also questioned how the 
waived or credited hours affect creditable service for leave accrual or 
retirement and time-in-grade. The waiver or crediting of hours is only 
creditable for the purpose of meeting the work-hour requirement. Hours 
waived or credited do not impact creditable service for purposes of 
leave accrual, service credit towards retirement, or time-in-grade 
requirements.
    A commenter stated that the work hour requirement should not be 
waived; however, if it is waived, OPM needs to provide a standardized 
form for use of all employing agencies that would require specific 
documentation. Several commenters suggested that OPM specify what 
documentation is required for an agency to waive a portion of the 
required work hours. When approving a waiver, an agency needs 
documentation to support its determination. For example, to document 
academic achievement, the agency may accept a transcript or other 
written confirmation of class standing from the educational institution 
or written confirmation of induction into a nationally recognized 
scholastic honor society. For exceptional job performance an agency 
could use a copy of the Intern's performance appraisal or other 
documentation of the rating of record. OPM may provide additional 
information about examples of documentation for these provisions in 
guidance. Given that agencies have been using the waiver provisions for 
many years without incident, OPM does not believe implementing a 
standardized form is necessary.
    One commenter suggested that, if an Intern met the work-hour 
requirement with or without a waiver, that the agency should be able to 
convert the intern to a term or permanent position before they 
completed their educational program. OPM disagrees and is not adopting 
this suggestion. Completion of the Intern's educational program is an 
integral part of the Pathways Programs, and its predecessor programs, 
and helps ensure the Intern meets his or her academic goals and 
aspirations. OPM noted in the original Pathways proposed rule (76 FR 
47495, August 5, 2011) that ``. . . it is difficult for many recent 
graduates or expected graduates to compete for government jobs through 
the competitive hiring system [because they] do not have the experience 
necessary to compete . . . .'' The proposed rule further stated, 
``Internship programs are essential to addressing these issues.'' The 
E.O. also states that many students are unable to successfully compete 
for a Federal job solely on the basis of possessing an academic degree 
because the Federal hiring process is structured to favor those with 
significant work experience. Completion of the educational program is a 
fundamental or foundational basis for this excepted service program and 
helps to ensure interns qualify for these positions and placement in 
the competitive service.
    One commenter suggested that agencies should be able to determine 
if up to half of the required work hours may be waived and for what 
types of work; agency policies should establish the process and 
criteria for making these determinations. OPM agrees that agencies 
should have the discretion to determine if a waiver or crediting of 
other experience is allowable. Agencies may put in place procedures 
that outline how the discretion to approve waivers may be made 
consistent with the criteria OPM has established in regulation.
    OPM's existing regulations apply a two-prong test to determine 
eligibility for a waiver. An intern must demonstrate ``high potential'' 
through both ``outstanding academic achievement'' and ``exceptional job 
performance.'' 5 CFR 362.204(d) (emphasis added). Further, outstanding 
academic achievement is defined in terms of grades, class standing, and 
honors societies. Id. With the proposed rule, OPM intended to expand 
the qualifying educational programs beyond traditional academic 
institutions to include career and technical education programs. As 
described in the proposed rule, OPM did not intend for Interns 
attending a qualifying technical education program to have their 
ability to participate curtailed in any way. However, our review of the 
comments related to the waivers and the existing waiver provision 
showed that the existing requirement for outstanding academic 
achievement (necessary for approval of a waiver) could not be applied 
to career and technical education programs where grades or other 
academic standards such as grade point average and class rankings may

[[Page 25756]]

not be used. For example, participants in a Registered Apprenticeship 
Program may be required to take classroom or online training classes 
where completion is graded as pass/fail and letter or numerical grades 
(or grade points) are not assigned. In such instances an Intern in a 
Registered Apprenticeship Program that did not also have class ranking 
or an associated honor society induction would have no way to qualify 
for a waiver. For this reason, OPM has modified the waiver provision to 
introduce a new option of the submission of a recommendation letter 
from an instructor or program administrator as a way for the Intern to 
demonstrate high potential in their academic or career and technical 
education program. This new option ensures that interns in career and 
technical education programs where traditional indicia of high 
performance are not available will be eligible for waivers consistent 
with the intent of the proposed rule. Specifically, OPM reorganized the 
two-prongs to remove references to academic programs but retained the 
concept that an intern must demonstrate high potential in both the 
Federal internship and in the educational component of the qualifying 
program. The Intern participating in a career or technical education 
program must demonstrate exceptional job performance just as an Intern 
enrolled in a qualifying educational institution, so OPM determined 
that no change to that provision is needed apart from the 
reorganization of the paragraph.

5. Changing the 640-Hour Requirement for Conversion of an Intern

    Under the current regulation in Sec.  362.204, one of the 
requirements that an Intern must meet for conversion is the completion 
of 640 hours of employment under a Pathways Internship appointment. OPM 
requested comments on whether OPM should consider making a change to 
the 640-hour service requirement that must be met for conversion of an 
Intern and indicated that it would consider adopting a different hourly 
requirement in the final rule. Additionally, OPM requested information 
regarding best practices and asked that any suggestions for an 
alternative work-hour requirement describe the advantages and 
disadvantages of the suggested length of the internship.
    Some commenters suggested that the 640-hour requirement should be 
reduced. Two agency commenters suggested the requirement should be 
reduced to 480 hours to allow more flexibility in hiring and converting 
Interns who are hired closer to their graduation date. One commenter 
suggested that OPM's 640-hour requirement is rigid, unrealistic, 
arbitrary, and burdensome and is longer than what is used in many 
industries. This same commenter suggested that more emphasis should be 
put on meaningful experience focused on skills, performance objectives 
and accomplishments. The commenter explained that compliance with an 
hour-based requirement is not the best way to obtain early career 
talent with demonstrated skills. Another commenter suggested that the 
work hour requirement should be reduced to 420 hours to better align 
with a typical summer internship period for students. Some commenters 
argued that OPM should consider private sector practices and indicated 
that private sector internships were generally shorter than the 
existing prescribed minimum of 640 work hours. Other commenters 
expressed support for the 640-hour requirement and indicated that it 
should not be changed or waived.
    OPM agrees that an intern's performance on-the-job is the most 
important factor as to whether an intern should be converted into a 
permanent position, but OPM believes that some minimum amount of time 
in an agency is necessary for the agency to evaluate that performance. 
As suggested by two agencies, OPM agrees that a 480-hour internship can 
provide agencies with the information they need to determine if a high-
performing intern can be converted. OPM notes, however, that the 
shorter time frame-from 640 to 480-in no way suggests that an intern 
should have an expectation of conversion. By contrast, agencies should 
only convert interns when their performance indicates that they are 
well prepared to add value to the Federal Government as permanent 
employees. Accordingly, OPM is revising the minimum work hours to 480.
    OPM further notes that another agency expressed the view that 640 
hours was a reasonable timeframe to assess an intern's performance. 
Agencies can set the minimum for their programs higher than 480, 
including setting higher minimums for different types of positions. OPM 
also notes that Sec.  362.105(i) requires an agency to place each 
Intern on a performance plan, establishing performance elements and 
standards that are directly related to acquiring and demonstrating the 
expected competencies, as well as the elements and standards 
established for the duties assigned. Interns are not eligible for 
conversion unless they have performed satisfactorily during their 
internships.

6. Public Notification

    The existing regulations at 5 CFR 362.203(a) and 362.303(a) require 
that an agency must post opportunities for positions in the Internship 
and Recent Graduates Programs on USAJOBS.gov. OPM proposed to modify 
the provisions for meeting public notice options for filling positions 
under the Internship Program and Recent Graduates Program. In addition 
to allowing agencies to post searchable job opportunities at USAJOBS, 
OPM also proposed 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 requested comments on these 
changes and whether the changes will enable agencies to recruit and 
retain early career talent more effectively than the current process.
    One commenter indicated that they did not think the updated public 
notification requirement would help agencies or potential candidates 
but was not opposed to offering multiple options for advertising the 
opportunities. Another commenter indicated the changes would not yield 
much additional benefit. Another commenter felt the additional options 
just added more steps and could possibly extend the length of the 
hiring process. Public notification for Pathways positions is required 
by E.O. 13562 to ensure that agencies uphold the merit system principle 
of fair and open competition for the Program's opportunities. OPM's 
intention is to provide agencies with multiple options to communicate 
about available opportunities, while still making sure that such 
options are available and open to all. The options provided will allow 
agencies to choose which options best match their recruitment and 
outreach approaches and meet the core Federal employment principle of 
fair and open competition.
    One commenter questioned how allowing agencies to link to a USAJOBS 
custom posting on the agency's public career or job information web 
page would be advantageous when many agencies already have links to 
USAJOBS announcements on their websites. OPM recognizes that some 
agencies may already provide links to USAJOBS announcements on their 
websites, but many do not. Using a USAJOBS custom posting in concert 
with an announcement on the agency's website allows an agency to 
provide fair and open competition while focusing its recruitment 
efforts. Specifically, adding this alternative to the regulations

[[Page 25757]]

ensures that agencies have the use of all available tools to spread 
information about Pathways opportunities.
    A commenter suggested that agencies should be required to have 
internship announcements stay open for at least 3-4 weeks. OPM 
disagrees with this suggestion. Agencies need the flexibility to open 
and close announcements in a manner that allows for a sufficient pool 
of applicants to apply. In certain situations, such as when an agency 
is attending a job fair or conducting other strategic recruiting 
activities, the agency may identify a sufficient pool of applicants 
using a shorter application period. The public notification period used 
by an agency will depend on several factors which include: the type of 
job and grade level of the position being filled, the availability of 
candidates in the location where the job will be performed, and the 
breadth of outreach and recruitment conducted by the agency.
    Two commenters expressed that custom postings would be helpful in 
recruiting early career and diverse talent. OPM agrees with this 
assessment. Another commenter, while supportive of the proposed 
changes, made several recommendations pertaining to outreach. The 
commenter stated:

    We recommend expanding recruitment marketing for Pathways 
positions to establish and improve the Pathways program's brand, 
promote open positions, and highlight benefits and attract/source 
talent through high-yield platforms (digital and social media 
(Facebook, Google, etc.), jobs boards (Indeed, Handshake, etc.). OPM 
and individual agencies should consider the development of talent 
network site to source leads for the Pathways program during and 
outside of hiring windows and should bolster their careers sites 
with information about different Pathways opportunities.\1\
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    \1\ Comment 0072 available at https://www.regulations.gov/comment/OPM-2023-0020-0072.

    OPM agrees and is working with our agency partners to develop tools 
and resources for applicants to learn about Pathways opportunities. For 
instance, in 2022, OPM introduced the Federal Internship Portal \2\ as 
part of a strategy to improve marketing and outreach to potential 
applicants for early career positions.
---------------------------------------------------------------------------

    \2\ https://www.opm.gov/intern/prospective-interns/ and https://intern.usajobs.gov/.
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    A professional organization recommended that agencies create 
separate announcements for Pathways Programs between a public 
announcement and Federal/status announcement to ensure qualified 
veteran and non-veteran candidates are selected in a timely manner and 
reduce applicant dropout rates for non-veterans. OPM is not adopting 
this recommendation. Announcements for Pathways Programs are open to 
all who meet the eligibility criteria regardless of whether the 
applicant is a current Federal employee, or an individual entitled to 
veterans' preference. Veterans' preference also applies to positions 
filled in the excepted service. Having separate announcements for 
current Federal employees would not remove the requirement to apply 
veterans' preference and is not likely to impact whether students or 
recent graduates complete the hiring process.
    This final rule adopts the proposed changes to public notification 
in Sec. Sec.  362.203(a) and 362.303(a) without change.

7. Clarifying the Role of the Presidential Management Fellows 
Coordinator

    Under the existing regulations, the Agency Presidential Management 
Fellows Coordinator (PMF) Coordinator is broadly defined as ``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.'' 5 CFR 362.401. The existing 
regulations also indicate that the PMF Coordinator is responsible for 
administering the PMF Program and serving as a liaison with OPM. OPM 
proposed to clarify the role of the PMF Coordinator by outlining the 
specific responsibilities of the role. Additionally, OPM proposed to 
require that the employee filling the role of the coordinator must be 
in a position at the agency's 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).
    Many commenters were supportive of the proposal to define and 
clarify the role of the PMF Coordinator. One commenter indicated that 
outlining minimum grade level requirements as well as the necessarily 
collaborative nature of the assignment are appropriate steps. OPM 
appreciates these comments.
    One commenter suggested that OPM specify that the changes to the 
PMF Coordinator role should include facilitating the assignment of a 
mentor for each agency PMF. While OPM agrees that a PMF Coordinator has 
a role in facilitating a PMF's search for a mentor, the role could also 
be filled by others in the agency such as the PMF's supervisor or an 
agency training manager. For this reason, OPM is not adopting this 
suggestion.
    One commenter suggested that OPM should clarify how PMF Coordinator 
positions interact with agency roles for managing other early career 
talent programs. This commenter also stated it is unclear whether the 
PMF Coordinator role is intended to be separate from similar positions 
used to manage other early career talent programs. OPM recognizes that 
many factors such as the agency's size and their utilization of the PMF 
program and other early career talent programs may impact whether the 
PMF coordinator role is separate from other roles. OPM believes that 
agencies need the flexibility to determine whether the PMF coordinator 
role can be combined with agency roles that manage other early career 
talent programs. OPM believes the discussion of this issue is best 
addressed in guidance to agencies and declines to incorporate this 
suggestion into the regulatory text in this final rule.
    One commenter suggested that OPM should require annual training and 
development for PMF Coordinators to ensure that PMFs are getting the 
same quality of program coordination regardless of which agency employs 
them. Another commenter suggested that OPM implement user-centered 
design to collect feedback from current PMF Coordinators and program 
applicants to better understand challenges and to develop the tools and 
resources needed to strengthen the PMF experience. A commenter also 
suggested that OPM standardize the required training for the role and 
establish quarterly meetings with all PMF Coordinators to provide 
support and ensure consistency of the program across agencies. OPM's 
PMF Program Office currently provides Agency PMF Coordinators with 
resources and technical assistance to encourage agency use of the PMF 
Program and to provide necessary technical guidance. Resources include 
an Agency Brochure, Participant Handbook, Onboarding Toolkit, 
Checklists, Timelines, FAQs, Sample Position Descriptions, PMF Forms, 
and Templates.\3\ The PMF Program Office also conducts monthly meetings 
with all Coordinators, facilitates an Agency PMF Advisory Board, and 
sponsors a mentoring program for new PMF Coordinators. The PMF Program 
Office uses feedback from all stakeholders to create and update these 
offerings to assist Agency PMF Coordinators in implementing the PMF 
Program.
---------------------------------------------------------------------------

    \3\ These resources are available online at https://www.pmf.gov/agencies/resources/.
---------------------------------------------------------------------------

    A commenter suggested that PMF Coordinators should play a more 
hands-

[[Page 25758]]

on role in onboarding new PMFs to agencies and focus on the employee 
experience. OPM agrees that an agency may find it beneficial for PMF 
Coordinators to have an active role in a PMF's agency orientation. 
Agencies should have the discretion to determine how that is handled. 
OPM also provides PMF Coordinators with resources to help them create 
successful onboarding activities. OPM is not making changes to the 
regulatory text based on this suggestion. Instead, it will continue to 
provide guidance and resources to PMF Coordinators on effective 
onboarding.
    One commenter indicated the provisions for the PMF Coordinator 
limit the placement of coordinators to the headquarters level of the 
employing agency. This commenter added that agencies should have the 
flexibility to place coordinators at other levels as appropriate. OPM 
believes it is important for at least one PMF Coordinator to be at the 
headquarters level of a department or agency to ensure there is agency-
wide coordination for the implementation of the PMF program in the 
agency. This requirement to have a PMF Coordinator at the headquarters 
level does not prohibit an agency or department from having additional 
roles at other levels of the organization. OPM has clarified the 
language at Sec.  362.104(a)(8) to state this more clearly.

8. Inclusion of Technical and Career Education Programs

    The existing regulations at 5 CFR 362.202 and 362.302 limited 
eligibility for the Internship and Recent Graduate Programs to those in 
qualifying educational programs. OPM proposed to revise the eligibility 
criteria for the Internship and Recent Graduate Programs to include 
career and technical education programs, consistent with E.O. 13562. 
OPM also requested comments on whether to include non-Federal programs 
in the definition of career and technical education programs.
    OPM also asked for information on 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 did 
not receive any comments that provided substantive and measurable ways 
to evaluate non-Federal programs for inclusion in the eligibility 
criteria for the Recent Graduates Program. While OPM agrees that it 
could be valuable to include non-Federal programs, we also recognize 
that more research is needed to identify the best way to evaluate the 
programs to determine if the programs should be considered eligible. 
For this reason, OPM is not including non-federally administered 
programs in the definition of career and technical educational 
programs.
    Many commenters supported the inclusion of Registered 
Apprenticeship Programs in the definition of career and technical 
educations programs and as meeting the eligibility criteria for the 
Recent Graduate Program. A professional organization commented that the 
provision should be expanded to include apprenticeship programs that 
are not Registered Apprenticeship Programs or non-government 
apprenticeships. Registered Apprenticeship Programs are industry-
vetted, approved, and validated by the U.S. Department of Labor or a 
State Apprenticeship Agency and may be sponsored by a Federal agency, a 
State, local, or Tribal government organization, or private sector 
organization. These programs must meet specific standards that address 
the mentorship, pay, education, and on-the job training of apprentices. 
Non-registered apprenticeships may not meet these standards and 
agencies may not have a way to validate that a program meets industry-
recognized standards. In addition, credentialing and certification may 
vary widely among non-registered apprenticeships, making it difficult 
for agencies to determine whether the standards these certifications 
represent are of a similar nature and rigor as those obtained via 
Registered Apprenticeship Programs. Some non-registered programs may 
not operate through a structured program designed to ensure 
participants receive an organized and systematic form of instruction 
designed to provide the participant with legitimate job skills. OPM 
believes Registered Apprenticeship Programs provide a measure of 
standardization that ensure the participant is receiving meaningful 
training, guidance, and work experiences needed to prepare the 
individual for employment in a specific job, trade, or career field. 
For these reasons, OPM is not including non-registered apprenticeship 
programs in the definition of career and technical education. To 
clarify, those who complete Registered Apprenticeship Programs with any 
organization (either a Federal agency, a State, local, or Tribal 
government organization, or private sector organization) will meet the 
eligibility criteria for the Recent Graduates Program.
    OPM received three comments related to including industry-
recognized credentials in the definition for certificate programs. One 
commenter indicated that including ``industry-recognized credentials'' 
or state licensing programs as options for being eligible for Pathways 
would greatly improve agencies' ability to recruit and retain 
candidates in the trade professions. Another commenter questioned 
whether reputable sources to verify technical programs exist to 
determine if technical programs are accredited or meet accreditation 
standards in a similar manner that is used for accreditation of degree 
programs. A different commenter urged OPM to allow individual Federal 
agencies to establish low-burden processes to vet and certify 
certificate programs as eligible entities for the purposes of their 
Pathways Programs, such as by providing documentation of industry 
recognition or a third-party evaluation of a certificate program's 
efficacy.
    Another commenter suggested that, in addition to including programs 
such as Registered Apprenticeship Programs, Job Corps, Peace Corps, and 
AmeriCorps, OPM should develop criteria that include conditions similar 
to those outlined for a ``qualified youth or conservation corps'' under 
the Public Land Corps Act (16 U.S.C. 1723). Qualified youth or 
conservation corps programs must provide meaningful, full-time, 
productive work; a mix of work experience, basic and life skills, 
education, training, and support services; and an opportunity to 
develop citizenship values and skills through community service. 16 
U.S.C. 1722(11). These programs generally should implement projects 
that provide long-term benefits to the public, instill a work ethic and 
sense of public service, be labor intensive, and provide academic, 
experiential, or environmental education opportunities. 16 U.S.C. 
1723(e). OPM will provide additional guidance to agencies and 
applicants to help them determine which types of programs meet the 
definition of career and technical education. OPM has also added 
clarifying language to the definition of career and technical education 
programs in Sec.  362.102. Specifically, OPM has added an explanation 
that federally administered \4\ career or technical education programs 
that will qualify for the Internship and Recent Graduates Programs must 
operate under the oversight of a Federal agency (or component thereof). 
The purpose of this oversight is to ensure that the program

[[Page 25759]]

is achieving educational outcomes and is being operated in accordance 
with criteria specified by the agency to ensure participants develop 
high-demand skills. These criteria must include the nature and scope of 
work to be performed by participants, the types and scope of training 
to be provided to participants, the types of skills participants will 
gain from the program, the mentoring that will be provided, and the 
specific metrics by which the program's fulfillment of the educational 
purpose will be evaluated. Programs operated under a cooperative 
agreements or other agreements that require programmatic oversight by 
the partnering or funding Federal agency may meet this criteria.
---------------------------------------------------------------------------

    \4\ In the proposed rule, OPM used the phrases ``federally 
administered'' and ``administered by a Federal agency'' to capture 
the same intended meaning. For better clarity and consistency, in 
this final rule and in the adopted regulatory text, OPM uses the 
phrase ``federally administered.''
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    OPM notes that not all programs funded or ``administered by a 
Federal agency'' in a colloquial sense will meet these criteria; 
although OPM is expanding the range of eligible programs, OPM also 
intends to ensure that qualified programs provide commensurate 
education/training to those OPM reviewed as part of this rulemaking 
process. Accordingly, these criteria, along with Federal oversight, 
will ensure that participants in other federally administered programs 
will receive the quality of training and experience similar to that 
received by participants in Job Corps, Peace Corps, and AmeriCorps.
    Accordingly, OPM is not adopting the suggestions to expand the 
definition of career and technical education programs to include non-
federally administered programs even if accredited credentials are 
awarded. The Recent Graduates Program eligibility criteria will 
continue to require a certificate or industry-recognized credential to 
meet the eligibility criteria only when the certificate or credential 
has been awarded from a qualifying educational institution or 
qualifying career or technical education program as defined in the 
revised Sec.  362.102. Industry-recognized credentials vary widely by 
occupation and each occupation may have one or more entities that 
accredit or certify the programs. OPM is aware that some industry-
recognized credentials may be accredited through programs like those 
offered by the American National Standards Institute National 
Accreditation Board (ANAB), National Commission for Certifying Agencies 
(NCCA), or other industry-specific accreditation organizations. 
Additionally, the Department of Labor Career One Stop offers a 
certification finder to help identify a variety of industry-endorsed 
certifications. However, even with these disparate resources there is 
not a centralized way for vetting individual programs to verify that 
they provide participants with the skills and competencies to 
adequately prepare them for Federal employment. Agencies may find it 
challenging to determine if a credential has been accredited or is 
formally endorsed or accepted as being industry-recognized by a 
specific industry. We believe limiting the definition to federally 
administered programs reduces the potential for participants to be 
eligible through programs that do not provide an appropriate level of 
training or technical education, and also ensures that participants 
receive an organized and systematic form of instruction designed to 
provide the participant with legitimate job skills while performing a 
defined public service. For this reason, OPM has chosen not to expand 
the definition of qualifying career and technical education programs 
beyond those that are a part of federally administered, organized 
educational programs, a Registered Apprenticeship Programs, or 
federally administered local, State, national, or international 
volunteer service programs.
    A professional organization, while supportive of the inclusion of 
career and technical education programs, expressed that limiting the 
definition to those programs administered through a Federal agency is 
unclear and likely unnecessarily restrictive. A different professional 
organization suggested that OPM broaden the definition of career and 
technical education programs to align with how and where these programs 
operate at the state level. OPM is not adopting these suggestions. OPM 
recognizes that there are many private sector and state-run career and 
technical education programs. However, as with industry recognized 
credentials, these programs lack a centralized way for vetting 
individual programs to verify that they provide participants with the 
skills and competencies to adequately prepare them for Federal 
employment. Also, students who complete private sector programs that 
are a part of an academic program at a qualifying education institution 
such as a vocational or trade school may meet the eligibility criteria. 
OPM has added clarifying language to the definition of career and 
technical education in Sec.  362.102 to make it easier for agencies and 
applicants to understand which types of programs will meet the 
eligibility criteria.
    Several commenters were supportive of the change to include 
participants in federally administered local, state, national, or 
international volunteer service programs such as AmeriCorps and Peace 
Corps in the definition of career and technical programs. They 
indicated that it would be a substantial benefit to participants in 
these programs. Additionally, a commenter indicated that inclusion of 
these programs under the Pathways umbrella provides agencies with other 
avenues for recruiting high quality candidates from a variety of 
backgrounds. One commenter suggested that, while the inclusion of these 
programs may be beneficial, these participants may need additional 
support in building foundational skills to be successful in the Federal 
Government. OPM appreciates these comments and agrees with the 
sentiment that all students and recent graduates may benefit from 
support to build foundational work and leadership skills.
    Other commenters were skeptical of including these types of 
volunteer programs. One commenter suggested that it was unclear whether 
these programs have the same level of rigor as graduation from a formal 
academic or technical training program with clearly defined areas of 
study and a methodology for validating sufficient assessment standards 
(e.g., accreditation). One commenter requested that OPM clarify why 
AmeriCorps and Peace Corps are included in the definition for career 
and technical education programs when alumni of these programs already 
benefit from noncompetitive eligibility for appointment under existing 
law. OPM has included these programs because the participants in these 
programs gain relevant technical skills and competencies that are 
similar to those developed in more formal programs such as 
apprenticeships. Use of the Pathways Programs for AmeriCorps and Peace 
Corps participants are not intended to replace the use of the non-
competitive hiring authority that currently exists for those programs. 
It is important to note that the non-competitive hiring authority is 
limited in scope and not available to all participants. The use of the 
Pathways Recent Graduate authority provides an alternative for those 
participants who are not eligible for the non-competitive authority. 
Agencies are encouraged to continue to use the non-competitive hiring 
authority to appoint participants from the AmeriCorps and Peace Corps 
programs.
    One commenter supported the inclusions of career and technical 
education programs but was concerned that this inclusion would be 
applied to applicants for the PMF Program. Completion of a career and 
technical education program will now fulfill one of the requirements 
for the Internship

[[Page 25760]]

and Recent Graduates Programs; however, career and technical education 
program do not satisfy the requirements for the PMF program.

Responses to Comments on the Regulations

    In addition to receiving comments that were responsive to OPM's 
specific requests for comments in the NPRM, as discussed above, OPM 
also received comments on a number of other issues. Below we discuss 
those comments with respect to specific sections of the Pathways 
regulations.

Part 300 Employment (General)

Section 300.301 Authority To Detail an Employee

    The existing regulations at 5 CFR 300.301 require that an agency 
must obtain approval from OPM to detail employees appointed under the 
Pathways Programs (Schedule D of the excepted service) to positions in 
the competitive service. OPM proposed to modify 5 CFR 300.301(b) to 
remove this requirement.
    We received three comments related to the proposed change 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. A commenter asked what it means to 
detail an employee. A detail is a temporary assignment of an employee 
to a different position for a specified period, with the employee 
returning to their regular duties at the end of the specified period. 
One commenter indicated that it may help with retention of Pathways 
Interns by offering them the opportunity to get additional specialized 
experience.
    An agency commented that it was concerned about allowing agencies 
to detail Interns and Recent Graduates to another position while 
serving a trial period. The same agency commented that details should 
only be allowed after Interns and Recent Graduates are converted to 
term or permanent positions. OPM disagrees, noting that Interns and 
Recent Graduates should be allowed to be detailed while serving a trial 
period in the same way as other Federal employees. Internship and 
Recent Graduate positions are developmental in nature, and details are 
an appropriate tool for facilitating employee development and training. 
The same agency also expressed that allowing such details may require 
negotiating the option with their union partners. This change provides 
an option to agencies to use in appropriate situations in accordance 
with agency policy, any applicable collective bargaining agreements, 
and applicable collective bargaining obligations.

Part 362 Pathways Programs

Subpart A General Provisions

Section 362.102 Definitions

    OPM proposed to revise the definitions of advanced degree and 
certificate program in Sec.  362.102 and also added 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 support the changes to the 
eligibility criteria for the Internship and Recent Graduate Programs.
    One commenter recommended that OPM include a list of the types of 
documentation that an agency may accept as proof that an applicant has 
completed a program at a qualifying educational institution. OPM agrees 
that agencies and applicants may need additional detail or examples of 
the types of documentation appropriate for determining eligibility. For 
example, an agency may accept a transcript (official or unofficial), a 
copy of the diploma, or other written documentation from the 
educational institution for the purposes of determining eligibility. 
OPM may provide additional examples of documentation that may be used 
to determine eligibility in guidance.
    An agency asked for clarification on the typical duration of a 
certificate program. Specifically, the agency wanted to know if a 
program of three months would meet the criteria. The comment did not 
specify if the question was directed to certificates from a qualifying 
educational institution or from a qualifying career and technical 
education program. A certificate from a qualifying educational 
institution must have length that is equivalent to one academic year of 
full-time study. Many educational institutions measure the length of an 
academic year based on the number credit hours completed, and this 
number varies by institution. To determine if the certificate program 
meets the criteria, the applicant will need to provide the agency with 
information about the number of credit hours that constitutes an 
academic year at the educational institution that awarded the 
certificate and the number of hours that were completed to attain the 
certificate. The proposed rule did not specify the length of the 
program for certificates from qualifying career or technical education 
programs. For clarity OPM has modified the regulatory text in this 
final rule to indicate that programs should be at least one year (12 
months) in length similar to the requirement that qualifying volunteer 
service must be one year in length.
    As previously discussed (Responses to Requests for Comments and 
Data--8. Inclusion of technical and career education programs), OPM has 
added clarifying language that explains the term federally administered 
in response to comments related to the definition of career and 
technical education.
    In the proposed rule, OPM expanded the definition of a certificate 
program to include a qualifying career or technical education program 
of at least one year that awards a recognized postsecondary credential 
or industry recognized credential. An industry recognized credential is 
a type of post-secondary credential. For additional clarity, OPM is 
modifying that part of the definition of certificate program to remove 
the term industry recognized credential in the final rule.
    In the proposed rule, the definition of recognized postsecondary 
credential included a reference to an industry recognized certificate 
or certification. The terms industry recognized certificate or 
certification and industry recognized credential can be used 
interchangeably. In the final rule, we replaced the term industry 
recognized certificate or certification with industry recognized 
credential.

Section 362.104 Agency Requirements

A. Removing the Requirement for a Pathways Memorandum of Understanding
    The final rule replaces the requirement for an agency to execute a 
memorandum of understanding (MOU) with OPM before using the Pathways 
Programs with a requirement that an agency must have a Pathways Policy 
to make Pathways appointments.
    OPM received two comments regarding the removal of the requirement 
for agencies to enter into a memorandum of understanding (MOU) to use 
the Pathways Programs. One comment was in support of replacing the use 
of an MOU with a requirement that an agency must have a Pathways 
Policy. The other comment suggested replacing the MOU requirement with 
a reporting requirement. This comment also mentioned that the use of 
the MOU created an unnecessary administrative burden. OPM agrees that 
the agency development of a policy will be a less burdensome method to 
ensure an agency has the necessary structures in

[[Page 25761]]

place to use the Pathways Programs than the current requirement for an 
MOU. Therefore, OPM is adopting the proposed change to replace the MOU 
with a Pathways Policy. There is an existing reporting requirement in 
Sec.  362.109 that provides OPM with information on agency use of the 
Pathways Programs.
    As previously discussed (Responses to Requests for Comments and 
Data--2. Limitations on conversion of Recent Graduates and PMFs to 
positions at different agencies), OPM has modified this section to also 
require agencies to include provisions in their policies that address 
procedures and criteria for determining if an agency will be able to 
convert Recent Graduates and PMFs and communicate those determinations 
to the employee.
    In reviewing the comments on this section, we recognized that in 
ending the MOU process we inadvertently also removed the way that 
agencies informed OPM about the staff who filled the roles of the 
Pathways Program Officer and PMF Coordinator. For this reason, OPM is 
adding a provision in Sec.  362.104(a)(6)(v) to require agencies to 
provide OPM with the names of the agency's Pathways Programs Officer 
and Presidential Management Coordinator.
    Agencies must establish their Pathways Policies in accordance with 
the criteria listed in Sec.  362.104 by no later than December 9, 2024. 
Until that date, an agency with an existing Pathways MOU \5\ may 
continue to use the Pathways Programs subject to the new regulations in 
lieu of an updated Pathways Policy while it develops and updates its 
policies in accordance with the new regulations. Agencies with MOUs 
that expire within 240 days of the publication date of this final rule 
may request an extension of the MOU. Agencies without an existing 
Pathways MOU must establish a Pathways Policy before they begin making 
Pathways appointments. All Pathways MOUs will expire on December 9, 
2024, unless OPM has approved an extension. OPM will issue implementing 
guidance that provides additional details about creating Pathways 
Policies. OPM has modified Sec.  362.104(b) to reflect these timelines.
---------------------------------------------------------------------------

    \5\ 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-andimplementation-guidance.pdf.
---------------------------------------------------------------------------

    OPM did not propose that agency Pathways Policies would require OPM 
approval. Because an agency does not require OPM review of its Pathways 
Policy, OPM is replacing the proposed requirement to submit Pathways 
Policies to OPM with a requirement to make these policies available for 
review upon request by OPM, applicants, Pathways Participants, and 
agency employees. OPM expects that this requirement will lower the 
potential administrative burden for agencies relative to the proposed 
rule.
    In the proposed rule when revising the text in Sec.  362.104 to 
replace the requirement to have an MOU with an agency policy, we 
inadvertently removed the provision that contained OPM's authority to 
revoke an agency's ability to use the Pathways Programs when the agency 
usage is inconsistent with the regulations. That was not our intent, 
and we did not request or receive any comments on such a change. For 
this reason, this final rule retains OPM's authority to revoke an 
agency's use of the Pathways programs when OPM has found that an 
agency's use of the Programs is inconsistent with the regulations or an 
agency's Pathways policy in Sec.  362.104(c).
    OPM is also adding a requirement for agency policies to identify 
the minimum service-hour requirement that must be completed by an 
Intern for conversion. This is a conforming change based on changes in 
Sec.  362.204.
B. Presidential Management Fellowship Coordinators
    As previously discussed (Responses to Requests for Comments and 
Data--7. Clarifying the Role of the Presidential Management Fellows 
Coordinator), the existing regulations at 5 CFR 362.104(c)(8) require 
an agency to identify a Presidential Management Fellows (PMF) 
Coordinator. OPM proposed to clarify the role of a PMF Coordinator by 
outlining specific responsibilities, and the final rule includes those 
specific responsibilities of the PMF Coordinator.
    One agency suggested that the provision for PMF Coordinators be 
modified to indicate that collaboration is required between the PMF 
Coordinators when an agency or sub agency designates multiple PMF 
Coordinators. OPM agrees this is a good idea and is adopting this 
suggestion.

Section 362.107 Conversion to the Competitive Service

    The existing regulations at 5 CFR 362.107 allow a Recent Graduate 
or PMF who successfully completes program requirements to be converted 
to a position within the employing agency. OPM also proposed to allow 
conversion to a position in another agency within the Federal 
Government when the employing agency is unable to convert the Recent 
Graduate or PMF.
    Two agencies suggested that conversion at other agencies should 
only occur when the employing agency was unable to convert due to 
budgetary constraints (including not having a permanent position 
available). One commenter suggested that the regulations should allow 
for programs with interagency missions and goals to forgo the process 
by which an agency must provide proof of refusal for financial or 
mission-related reasons in order to streamline career mobility. To ease 
administrative burden, OPM is removing the requirement to provide 
documentation of this situation. As previously described (Responses to 
Requests for Comment and Data--2. Limitations on conversion of Recent 
Graduates and PMFs to positions at different agencies), OPM has added a 
requirement for agencies to specify the procedures for how conversion 
at another agency may occur in their Pathways Policy.

Section 362.108 Program Oversight

    Under the current regulation, agencies must enter into an MOU to 
participate in Pathways. As discussed above (Section 362.104 Agency 
requirements), OPM proposed to replace the MOU requirement with a 
requirement for agencies to create a Pathways Policy. As proposed, this 
final rule removes the reference to a Pathways MOU in Sec.  362.108 and 
replaces it with a reference to the agency's Pathways Policy in 
accordance with the proposed change at Sec.  362.104.

Section 362.109 Reporting Requirements

    The existing regulations at 5 CFR 362.109 require agencies to 
provide information on workforce planning strategies and their use of 
the Pathways Programs on an annual basis to OPM. As proposed, this 
final rule modifies the requirement so that agencies will report to OPM 
on a fiscal year basis every three years.
    A professional organization encouraged OPM to collect and share 
trend data on the utilization of the Pathways Programs. They also 
encouraged OPM to use this data to help prioritize future participant 
outreach and make program adjustments as needed. OPM appreciates this 
suggestion and will formulate a strategy for sharing Pathways data with 
agencies and the general public.

[[Page 25762]]

Section 362.111 Severability

    This final rule adds a new Sec.  362.111 to address the issue of 
severability. OPM received no comments on this section.

Internship Program

Section 362.202 Definitions

    This final rule adds a definition for the term ``Intern not-to-
exceed (Intern NTE),'' which is not included in the existing 
regulations, and modifies the definition of a student to include 
individuals who are ``enrolled or accepted for enrollment in a 
qualifying career or technical education program that awards a 
recognized postsecondary credential.''
    OPM received no comments on this section.

Section 362.203 Filling Positions

A. Public Notification
    The existing regulations at 5 CFR 362.203(a) require agencies to 
provide OPM with information about opportunities to participate in 
their Internship Programs. OPM proposed adding clarifying text 
regarding the public notice requirement for posting Intern positions 
and options for agencies to meet the public notice requirement. In 
addition to including information about the position title, series, 
grade, and geographic location where the position will be filled, which 
is required under current regulation, OPM proposed adding the following 
announcement requirements: appointment length, salary information, 
qualifications, promotion potential, and conversion information. As 
previously discussed (Responses to Requests for Comments and Data--6. 
Public Notification), this final rule adds an option for agencies to 
meet the public notice requirement.
    One commenter suggested that OPM clarify that an agency can post an 
internship opportunity both on its own site and on USAJOBS--not just on 
one or the other. OPM agrees and encourages agencies to post 
opportunities in multiple locations. The regulatory text for this 
suggestion indicates that an agency may use either or both of the 
options. OPM believes that agencies should have the discretion to 
recruit for positions in a manner that best supports and implements 
their agency workforce plans.
    One agency indicated that, while it did not object to the 
additional option of posting on its agency website, it was not likely 
to use that option. OPM encourages agencies to use both options 
whenever necessary to ensure that it can source a sufficient number of 
applicants to meet its needs and to use all available tools to attract 
broad applicant pools. This final rule adopts the proposed changes to 
public notification in Sec.  362.203(a) without change.
B. Promotion of Interns
    The existing regulations at 5 CFR 362.203(e) generally state that 
an agency may promote any Intern who meets the qualification 
requirements for the position. As OPM proposed, this final rule revises 
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 \6\ 
may be promoted when they meet the qualification requirements for a 
higher-graded position. The change also provides that Interns NTE (on 
temporary appointments not-to-exceed one year) are not eligible for 
promotions.
---------------------------------------------------------------------------

    \6\ The Internship Program does not allow the use of time-
limited appointments (i.e., initial appointments of more than one 
year made with an NTE date).
---------------------------------------------------------------------------

    One commenter suggested that OPM should provide information about 
the impact of time-in-grade (TIG) restrictions on promotions at the 
time of conversion as well as promotions based on superior academic 
achievement. Another commenter suggested that OPM should reconsider the 
TIG restrictions on Interns. The TIG restrictions in 5 CFR part 300, 
subpart F, do not apply to promotions of excepted service employees 
being promoted to an excepted service position. However, some agencies 
may have policies pertaining to excepted service promotions similar to 
their competitive service policies. Assuming an agency does not have 
policies similar to TIG for the excepted service or other policy 
restrictions, then upon completion of degree and prior to conversion, 
the Intern may be promoted to any grade level for which they qualify as 
allowed by agency policy. An agency wishing to promote an Intern should 
do so prior to conversion. This is because, once the employee is 
converted to the competitive service, the Intern is subject to all 
competitive service provisions, including TIG. The agency may also use 
the superior academic achievement provisions when determining the 
appropriate grade level for promotion.
C. Required Developmental Activities
    The existing regulations at 5 CFR 362.104(c) include a general 
requirement for agencies participating in the Pathways Internship 
Program to provide Interns with meaningful developmental work and to 
set clear expectations regarding the work experience of the Intern. OPM 
proposed to add a specific requirement in Sec.  362.104 that provides 
more detail about training and development opportunities that should be 
provided for Interns. The final rule includes this change and requires 
agencies to provide Interns with meaningful onboarding activities and 
training and development opportunities.
    A professional organization suggested OPM should provide further 
guidance, tools, and resources for Intern training and professional 
development. Another professional organization suggested that OPM 
should standardize training requirements for program participants and 
coordinators at the agency level; advise agencies as to the number of 
employees and budget required to commit to a successful program; and 
require specific reporting practices to capture effectiveness of each 
agency's programs. OPM launched the Intern Experience Program this year 
to provide agencies with additional training and development resources 
for Interns. OPM provides a variety of resources such as webinars and 
quarterly Pathways Program Officer meetings to support agency 
Internship coordinators. Agencies hire Interns as a part of 
implementing their agency workforce plans which will inform the number 
and budget commitments for successful Internship Programs. OPM does not 
believe it is appropriate to prescribe staffing and budget requirements 
for internship programs. OPM will continue to support agencies and 
Interns by providing resources and guidance and will help them identify 
appropriate training and professional development resources.
D. Corrections
    As proposed, this final rule removes a reference in Sec.  362.203 
to a Pathways MOU and replaces it with a reference to the agency's 
Pathways Policy in accordance with the change at Sec.  362.104 
described above. This final rule corrects the regulatory text in the 
proposed rule, which inadvertently included a reference relevant to the 
Recent Graduates program and maintains the existing citation to Sec.  
213.3402(a).
    In revising Sec.  362.203, OPM determined that the definition for 
agency provided in paragraph (a)(1) is unnecessary as it is duplicative 
with the definition already provided in Sec.  362.102, which applies 
for the purposes of part 362. However, OPM also identified a 
typographical error in Sec.  362.102. Specifically, the definition for 
agency states that the term has the meaning of ``agency'' as defined in 
5 U.S.C. 105, but 5 U.S.C. 105 defines the term ``Executive agency.'' 
Accordingly,

[[Page 25763]]

this final rule corrects the defined term (referencing 5 U.S.C. 105) to 
be ``Executive agency.''

Section 362.204 Conversion to the Competitive Service

A. 180-Day Period for Conversion of an Intern
    The existing regulations at 5 CFR 362.204(b) require that an Intern 
may be converted to a permanent or term position in the competitive 
service within 120 days of completing a course of study. OPM proposed 
to lengthen this period. The final rule changes the time period allowed 
for conversion of an Intern from 120 days to 180 days after the 
completion of a degree.
    Several commenters expressed support for increasing the time 
allowed to convert an Intern to a permanent or term position from 120 
days to 180 days. Many of the comments that were in support of a longer 
period for conversion came from former Internship participants, who 
also referenced their agency-specific experiences and how they felt 
that the additional time would improve the opportunity and experiences 
of current and future Internship participants.
    Some commenters offered alternative suggestions to the proposed 
change of the time period from 120 to 180 days or indicated support for 
a period of more than 180 days. An agency expressed support for a 
period of more than 180 days but did not indicate a specific length. 
One professional organization expressed opposition to the extended 
timeline and suggested that the extension to 180 days should only be 
allowed for specific agencies identified in the regulation and only for 
those times when background investigations and adjudications are likely 
to take longer than 120 days and alternative resolutions are 
unavailable or impractical. Another agency suggested that a timeline of 
greater than 180 days should be an option in rare circumstances and 
agencies should be authorized to determine when rare cases should allow 
conversion past the 180-day requirement. Agencies are well aware of the 
time it takes in the agency to complete these processes and can plan to 
begin the process at a time that would allow completion within 180 days 
of completing a degree. For this reason, OPM is not adopting these 
suggestions to allow a timeline of greater than 180 days.
    Two commenters incorrectly equated the proposed 180-day time period 
for conversion with the service period required for conversion 
available under other hiring authorities, such as the Veterans 
Recruitment Authority (VRA) hiring authority, where an individual 
appointed under the authority must be converted to the competitive 
service after successfully completing two years of service on the VRA 
appointment. The conversion period, or window, in the Internship 
Program is strictly for administrative purposes--i.e., it is time for 
the employee and agency to collect and process all documentation 
relating to the conversion of the Pathways employee. The conversion 
period is not for deciding whether to convert a Pathways participant, 
for purposes of qualifying the employee, or to be used as a de facto 
probationary or trial period. For this reason, OPM is not adopting the 
suggestion to extend the conversion period to two years for Interns; 
OPM is adopting the proposed 180-day conversion period based on agency 
input requesting additional administrative time.
    One commenter also suggested that the proposed 180-day period 
should be extended to allow Interns the opportunity to explore other 
endeavors before starting a full-time job with the Federal Government. 
OPM is not adopting this suggestion. The purpose of the Pathways 
Programs is to provide early career talent an avenue to Federal 
employment that would otherwise be unavailable to them if these 
individuals were required to compete with the general public for a 
Federal job, and to assist agencies in developing a pipeline for 
individuals with skills and knowledge needed to perform the work of an 
agency. Interns accept positions with the awareness that conversion 
upon completion of their educational program is a possibility.
    As previously stated, the purpose of the 180-day period is to allow 
students time to provide documentation that they have successfully 
completed their degree or educational programs and to allow agencies 
time to complete additional background investigations and 
adjudications. OPM is not adopting the suggestions for extending the 
period allowed for conversion beyond 180 days.
B. Work Hour Requirement for Conversion of an Intern
    As previously discussed in ``Responses to Requests for Comments and 
Data--5. Changing the 640-hour requirement for conversion of an 
Intern,'' OPM has revised the provision in Sec.  362.204(b)(1) to 
reduce the minimum number of hours required for conversion from 640 
hours to 480 hours. OPM reminds readers that an agency may require more 
than the minimum of 480 hours for conversion based on agency specific 
training and development or other Internship program requirements. An 
agency must identify the minimum number of hours required for 
conversion of an Intern in the agency's Pathways Policies.
C. Crediting and Waiver Provisions
    The existing regulations at Sec.  362.204(c) and (d) allow an 
agency to waive or provide credit for up to half of the work hours 
required for conversion in Sec.  362.204(b). OPM is maintaining the 
ability of an agency to waive or provide credit for a portion of the 
hours-based requirement. OPM expects that agencies using the new 480 
minimum for service hours will not need to apply the waiver provision; 
however, agencies adopting higher service-hour requirements may still 
find situations in which waiving some portion of time is necessary to 
hire a highly qualified student with superior performance in their 
academic or training program. Based on the comments received, OPM finds 
insufficient justification for lowering the minimum service-hours below 
320 hours (half of the prior 640 service-hour requirement). Therefore, 
OPM has modified Sec.  362.204(c) and (d) to allow agencies to waive or 
approve credit for up to half of the minimum required service hours 
subject to a limitation that an Intern must complete at least 320 hours 
under a Pathways Intern appointment to be eligible for a waiver. For 
example, if the agency requires a minimum of 480 work hours for 
conversion, then the agency may waive up to 160 hours (480 - 320 = 
160). Consistent with the existing regulation at Sec.  362.204(e), an 
agency may not credit and/or waive more than 320 hours. Therefore, for 
example, an agency that requires the completion of 800 hours may waive 
up to 320 hours.
    OPM has also modified the criteria for approving a waiver in Sec.  
362.204(d) to introduce a new option of the submission of a 
recommendation letter from an instructor or program administrator as a 
way for the Intern to demonstrate high potential in their academic or 
career and technical education program. (This change was previously 
discussed in ``Responses to Requests for Comments and Data--4. 
Strengthen the provisions that allows agencies to waive or credit up to 
half of the Interns' 640-hour service requirement.'')
    OPM has also modified Sec.  362.204(e) to reflect the changes in 
Sec.  362.204(b) through (d).

[[Page 25764]]

Section 362.205 Reduction in Force and Termination

    The existing regulations at 5 CFR 362.205(b) require that an Intern 
appointment may be terminated 120 days after the completion of a degree 
unless the Intern is converted to a position in the competitive 
service. Consistent with the proposed rule, this final rule changes the 
time period for termination of an Intern appointment from 120 days to 
180 days after the completion of a degree. This conforming change is 
based on the change in Sec.  362.204(b)(2) pertaining to the conversion 
window described above. Changes in this section were also made to 
incorporate the new term Intern not-to-exceed (NTE) appointment.
    One commenter requested clarification on what is meant by selected 
for conversion and if an offer letter is required. Selected for 
conversion means that the agency has determined that the Intern has 
successfully completed all program requirements including their 
educational program, and it will convert the employee. The agency 
should provide the Intern with all the necessary information about the 
position to which the Intern will be converted. The same commenter also 
asked if an Intern on a not-to-exceed (Intern NTE) appointment may have 
their appointment extended beyond the date they completed their degree. 
The appointment of an Intern NTE may be extended to accommodate the 
180-day period. However, the agency must process the extension prior to 
the Intern completing their educational program.

Recent Graduate Program

Section 362.301 Program Administration

    The proposed rule removed references to Pathways MOU and replaces 
it with a reference to the agency's Pathways Policy in accordance with 
the change at Sec.  362.104 described above. OPM is finalizing this 
section as proposed.

Section 362.302 Eligibility

    The existing regulations at 5 CFR 362.302 limited eligibility for 
the Recent Graduate Program to those in qualifying educational 
programs. OPM proposed to modify the eligibility criteria. This final 
rule adopts the proposal to expand the eligibility criteria for the 
Recent Graduate Program to include those who have completed qualifying 
career or technical education programs.
    One commenter indicated that the criteria should be changed to 
allow individuals in trade or technical schools or with associate 
degrees and high school diplomas to meet the eligibility criteria for 
the Recent Graduate Program. Another commenter also advocated for the 
inclusion of those who completed a two-year undergraduate degree. Since 
the inception of the Recent Graduate Program, the eligibility criteria 
included those with degrees from qualifying post-secondary vocational 
and technical schools or associate degrees. This criterion has not 
changed.
    We received many comments related to using skills-based hiring 
provisions instead of completion of educational programs for 
eligibility. One commenter indicated that OPM should include skills-
based hiring provisions in this rule to be on par with State 
governments who are establishing such provisions. Another commenter 
recommended using a skills-based approach for eligibility criteria. A 
different commenter indicated that the inclusion of career and 
technical education programs as meeting the eligibility criteria for 
the Recent Graduates Program did not seem to be an appropriate use of 
OPM's authority to establish excepted service authorities. This 
commenter expressed that apprenticeship and other experiential learning 
programs are designed to teach specific skills and were not similar to 
academic degrees. Additionally, they felt that the proposed regulations 
suggested including skills-based programs because people with limited 
skills and experience cannot compete with those who have more skills 
and experience. A professional organization encouraged OPM to allow 
Pathways applicants to meet minimum qualifications solely by passing a 
skills-based assessment as a co-equal method to qualifying with 
education and/or experience.
    OPM is actively working to incorporate skills-based hiring across 
Government as required by E.O. 13932, ``Modernizing and Reforming the 
Assessment and Hiring of Federal Job Candidates,'' dated June 26, 2020. 
For the Pathways Programs, however, using skills-based hiring must be 
balanced with the requirements in E.O. 13562 that limits the use of the 
Pathways Programs to students and recent graduates. Given that E.O. 
13562 does not contemplate skills-based hiring, it is not appropriate 
for OPM to include skills-based hiring provisions as a substitute or 
alternative eligibility criteria in place of formal educational 
programs. OPM is not adopting these suggestions.
    Many commenters had favorable comments and supported the inclusion 
of programs such as Job Corps, AmeriCorps, and Peace Corps. Two 
commenters questioned why eligibility for AmeriCorps participants was 
limited to only those who had completed one year of service when some 
AmeriCorps programs have a required period of service of less than one 
year (10 to 11 months). One of these commenters specifically requested 
that we clarify that the one-year requirement for volunteer programs 
such as AmeriCorps is the completion of a service year with no regard 
to the number of calendar months taken to complete the term. OPM 
recognizes that these programs provide valuable career and technical 
education. Our review of these programs indicates that only those 
programs of at least one year in length provide career and technical 
education that is equivalent in scope and rigor to other programs that 
meet the Recent Graduate Program eligibility criteria. It is OPM's 
understanding that, in some of the programs offered by AmeriCorps and 
similar programs, participants are required to fulfill at least 1700 
work hours within a 12-month period and those who meet this requirement 
within 10 or 11 months are considered to have successfully completed 
the program. For this reason, we have modified the criteria for 
volunteer service programs in the definition of qualifying career and 
technical education programs to indicate than a volunteer must have 
completed either at least one year of volunteer service or at least 
1700 work hours when the length of volunteer service is less than 1 
year. For programs of at least a year, an applicant could meet the 
eligibility criteria by serving in one volunteer program for 12 
consecutive months, or by completing a total of 52 weeks of service 
during multiple periods of service. For programs of less than a year, a 
volunteer would need to complete at least 1700 work hours during one or 
multiple periods of service. When the volunteer has participated in 
multiple periods of service, the periods of service do not need to be 
consecutive. However, the most recent period of service must have been 
completed within 2 years of applying for a Pathways Recent Graduate 
appointment.
    One commenter suggested OPM should provide clear guidance on the 
types of programs that will meet eligibility criteria. As discussed in 
detail in ``Responses to Requests for Comments and Data--8. Inclusion 
of technical and career education programs,'' OPM has added clarifying 
language to the definition of career and technical education. OPM plans 
to provide additional guidance to assist

[[Page 25765]]

agencies and applicants in understanding the types of programs that 
will meet the eligibility criteria.
    One commenter requested clarity on the eligibility period for 
individuals who served in the Peace Corps, AmeriCorps, or other 
volunteer programs that will now be included as qualifying career or 
technical education programs. The length of the eligibility period for 
the Recent Graduate Program for participants in Peace Corps, AmeriCorps 
or other volunteer programs is two years.
    One commenter recommended increasing the eligibility period for 
non-veterans to three years to widen the talent pool. E.O. 13562 
specifically limits the eligibility period for the Recent Graduates 
Program to two years for non-veterans. OPM does not have the discretion 
to make such a change.
    As discussed, OPM proposed to expand the eligibility criteria to 
include career and technical education programs. To that end, the 
proposed rule included modifications to paragraph (a) of Sec.  362.302 
only. This was an oversight as Sec.  362.302(b) also needs to be 
modified to reflect that career and technical education programs are 
now qualifying programs. For this reason, OPM has modified Sec.  
362.302(b) to include references to career and technical education 
programs.

Section 362.303 Filling Positions

    The existing regulations at 5 CFR 362.303(a) require that an agency 
must post opportunities for positions in the Recent Graduates Programs 
on USAJOBS.gov. OPM proposed to modify the provisions for meeting 
public notice options for filling positions under the Recent Graduates 
Program. In addition to allowing agencies to post searchable job 
opportunities at USAJOBS, OPM also proposed 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. As previously 
discussed (Responses to Requests for Comments and Data--6. Public 
Notification), this final rule incorporates the proposed changes to 
public notification without change in Sec.  362.303(a).

Section 362.305 Conversion to the Competitive Service

    The existing regulations at 5 CFR 362.305 allow a Recent Graduate 
who successfully completes program requirements to be converted to a 
position within the employing agency. OPM proposed to allow conversion 
to a term or permanent position in a different agency when the 
employing (or losing) 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. OPM received a number 
of comments, which are discussed in sections 1 and 2 of ``Responses to 
Requests for Comments and Data'' and address two questions OPM asked 
regarding flexibility to convert Recent Graduates and PMFs Management 
Fellows to positions at different agencies. In this final rule, OPM has 
adopted the proposed conditions to allow conversion at another agency 
when 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 due to unforeseen circumstances or other 
appropriate reasons.
    OPM had also proposed to require agencies to document the reason 
for conversion in another agency. OPM has removed that requirement and, 
instead, is requiring agencies to outline the procedures for how 
conversion at another agency may occur in their Pathways Policy in 
Sec.  362.104. OPM expects this to be a less burdensome approach to 
ensuring that conversion at other agencies is accomplished in 
accordance with this final rule.
    An agency requested that the revised regulation clarify the grade 
level to which a Recent Graduate can convert when conversion occurs at 
a different agency. Specifically, the agency wanted to know if the 
Pathways Participant is limited by the grade level mentioned in the 
announcement the prior agency used to make the initial appointment and 
if that limitation is binding for conversion at the new agency. OPM 
confirms that, when the Pathways Participant is converted to a position 
in another agency, the new agency may only convert them to a position 
at a grade level that is within the career ladder or promotion 
potential that was specified in the announcement used to recruit the 
Pathways Participant. For example, Agency A advertises and appoints a 
Recent Graduate to a GS-7 Accountant position with a career ladder to 
the GS-12 level. If the Recent Graduate is going to be converted to a 
position in another agency, the position identified for conversion may 
not have a career ladder that exceeds the GS-12 level, and the Recent 
Graduate may be promoted prior to conversion assuming they meet the 
qualification requirements for the higher-graded position.

Presidential Management Fellows Program

Section 362.401 Definitions

    OPM proposed to update the definition of Agency PMF Coordinator 
from the existing general description to add specific responsibilities. 
This conforming change is necessary due to the change in Sec.  
362.104(a)(8).
    OPM is finalizing this provision with slight modifications from the 
proposed rule. The modifications should provide better clarity but do 
not change the meaning from the proposed rule.

Section 362.404 Appointment and Extension

    Consistent with the proposed rule, this final rule revises Sec.  
362.404(a)(1) and (b) to remove the existing regulatory references to 
an agency's MOU and replace each with a reference to the agency's 
Pathways Policy. This conforming change is necessary due to the change 
in Sec.  362.104.
    OPM also proposed a new paragraph (e) to allow an agency the 
discretion to approve a part-time work schedule for a limited period of 
up to 6 months during the program if the agency and PMF have determined 
that it would not negatively impact the PMF's ability to meet all 
program requirements by the expiration of the PMF's appointment. 
Several commenters supported the flexibility for an agency to approve a 
part-time work schedule. One commenter suggested that OPM should 
clarify that agencies can approve or disapprove requests for part-time 
work schedules, including the duration of the modified schedules. OPM 
agrees and has revised the language of this provision to indicate that 
the PMF may request a part-time schedule and that an agency may approve 
the request but that a PMF is not entitled to an approval of the 
request.
    One commenter suggested incorrectly that time on a part-time 
schedule would delay ``time-in-grade/promotion eligibility.'' While on 
a PMF appointment, a PMF must meet the qualification requirement of one 
year of specialized experience at the next lower grade level to be 
eligible for promotion. Part-time work is prorated in crediting 
experience. For example, an employee working 20 hours per week for a 6-
month period should be credited with 3 months of experience. Given that 
part-time work schedules for PMFs are voluntary and limited to periods 
of six months or less, there would be a minimal delay for a promotion. 
This is

[[Page 25766]]

a factor that a PMF should consider before requesting a part-time work 
schedule. In contrast, the time in grade (TIG) restrictions in 5 CFR 
part 300, subpart F, do not apply to promotions of excepted service 
employees being promoted to an excepted service position. However, some 
agencies may have policies pertaining to excepted service promotions 
similar to their competitive service policies. Unless an agency limits 
promotions of excepted service employees based on TIG, time spent in a 
part-time work schedule would not affect a PMF's eligibility on the 
basis of TIG.
    A commenter suggested that, while the part-time schedule 
flexibility was welcomed, OPM should also explore other flexibilities 
such as remote work for PMFs who may be experiencing a long-term 
illness or injury. OPM is not adopting this suggestion as a regulatory 
provision is not needed. As agency employees, PMFs already are eligible 
for reasonable accommodations and agency work-life programs and 
benefits such as telework and remote work, consistent with applicable 
law and the agency's policies.

Section 362.405 Development, Evaluation, Promotion, and Certification

A. Individual Development Plans for PMFs
    The existing regulations at 5 CFR 362.405(a) require that an agency 
must approve an Individual Development Plan (IDP) for a PMF within 45 
days of appointment. OPM proposed to lengthen the time allowed to 
create and have an IDP approved. OPM received several comments 
regarding the timeframe to develop an IDP.
    One commenter suggested that the time period to create an IDP 
should be increased to 120 days instead of 90 days to give the PMF and 
mentor additional time in situations when it takes most of the 90-day 
period to identify a mentor. Another commenter also suggested 
additional time of either 105 or 120 days to create an IDP. OPM is not 
adopting these suggestions. OPM encourages agencies and PMFs to treat 
the IDP as a living document that should be discussed between the PMF 
and their supervisor throughout the year. Once an IDP is in place, it 
is typically reviewed during the initial, mid-year, and annual 
performance discussions between the PMF and their supervisor and may be 
updated or changed as necessary throughout the PMF's program. While the 
IDP is individually tailored to the PMF's position and learning 
objectives, agencies can proactively plan and provide information and 
guidance to PMFs to assist them in completing the initial IDP within 90 
days of appointment. Given these flexibilities, OPM believes 90 days is 
sufficient to both find a mentor and prepare an initial IDP that may be 
changed or updated at any time. Accordingly, this final rule modifies 
the time frame to have an approved IDP from within 45 days of 
appointment to within 90 days of appointment, as proposed.
    One commenter indicated that extending the deadline to have an IDP 
in place would be helpful as it gives PMFs more time to discuss their 
goals with their mentor and supervisor. This commenter also suggested 
that it may be helpful to provide more guidance to remind PMFs and 
their supervisors that the IDP may be changed as needed. OPM's PMF 
Participant Handbook \7\ provides PMFs with guidance on creating an IDP 
and explains that it is a working document that should be updated as 
requirements are completed.
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    \7\ The PMF Participant Handbook is available at https://www.pmf.gov/media/vumhfhkh/pmf-participant-handbook-draft-04-04-2022.pdf.
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    OPM also received comments on several other issues related to IDPs. 
One commenter suggested that there should be additional clarity around 
who is responsible for ensuring each PMF has a mentor and an IDP at the 
employing agency. The selection of a mentor and the development of the 
IDP is a collaborative process between the PMF, the PMF's supervisor, 
the Agency PMF Coordinator, and the mentor. The supervisor, the PMF 
Coordinator, and the mentor can provide valuable insight to help the 
PMF select appropriate training and development activities. Ultimately 
it is the PMF's responsibility to ensure that the PMF meets all program 
requirements. The other parties are there to provide advice and 
guidance. OPM has revised the existing regulation at 5 CFR 362.405(a) 
to remove the passive voice and make clear that the responsibility for 
developing the IDP rests with the PMF with the assistance of the PMF's 
supervisor, the Agency PMF Coordinator and/or the PMF's mentor. OPM 
will ensure that available guidance on the creation and use of the IDP 
clearly identifies the responsibilities of the PMF, supervisor, the PMF 
Coordinator, and mentor.
    Another commenter suggested that it did not make sense to have the 
PMF Coordinator involved in the creation of the IDP. OPM disagrees 
because the PMF Coordinator will be well versed in the PMF Program 
requirements for training and development and may be able to provide 
resources and advice to assist the PMF in creating the IDP. For this 
reason, OPM is not changing the requirement that either the PMF 
Coordinator or the assigned mentor (or both) be consulted in creating 
the IDP.
    A commenter indicated that many PMFs face challenges in developing 
an IDP when they have not been able to identify a mentor, or the 
supervisor is unfamiliar with the PMF Program requirements. OPM 
recognizes that developing an IDP may be challenging and offers 
resources to PMFs, supervisors of PMFs, and Agency PMF coordinators on 
the training and development requirements of the program and IDP 
creation on the PMF Program website.\8\
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    \8\ https://www.pmf.gov/current-pmfs/training-and-development/.
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B. Required Developmental Activities
    The existing regulations at 5 CFR 362.405(b) require that OPM will 
provide an orientation program for each class or cohort of PMFs and 
will provide information on available training opportunities known to 
it. Recent feedback from PMFs indicated that agency-specific 
orientations were more valuable than general orientations, and PMFs 
found OPM's longer-term leadership development offerings beneficial. 
OPM proposed modifying this requirement so that ``OPM will provide 
leadership development activities and general program resources for 
each class or cohort of PMFs'' in addition to providing information on 
available training opportunities, and agencies ``must provide 
appropriate agency specific onboarding and employee orientation 
activities.'' This final rule adopts these proposed changes and 
modifies Sec.  362.405(b)(1) to reflect that OPM will provide 
leadership development activities and general program resources instead 
of an orientation program.
    One commenter disagreed with the changes regarding orientation 
programs for PMFs. This commenter indicated that the changes would lead 
to less support for PMFs in agencies that did not have robust PMF 
Program specific orientation programs. OPM's orientation program over 
the years has evolved from one-time annual orientation sessions with 
general information about the PMF program to providing PMFs with 
leadership development activities and general program resources that 
are available throughout the PMF Program. With this update to the 
regulatory text OPM will continue to provide those activities and 
resources to PMFs. OPM

[[Page 25767]]

has not made changes to the regulatory text based on this comment.
C. Developmental Assignments
    The existing regulations at 5 CFR 362.405(b) require agencies to 
provide for a minimum of one developmental assignment of 4 to 6 months' 
duration. They also allow that, as an alternative to this developmental 
assignment, PMFs may choose to participate in an agency-wide, 
Presidential, or Administration initiative that will provide experience 
comparable to the developmental assignment. To improve clarity, OPM 
proposed replacing language on ``an agency-wide initiative or other 
Presidential or Administration initiative'' with this language: 
``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.'' This final rule provides in Sec.  
362.405(b)(4) examples and clarifying information on the types of 
activities that can be used to provide developmental assignments and 
rotational assignments for PMFs.
    One commenter suggested that OPM add language to the developmental 
assignment information to specify that the developmental assignment 
must be completed under a supervisor other than the PMF's usual 
supervisor (i.e., the PMF's supervisor of record). OPM has adopted this 
suggestion and has revised the language in Sec.  362.405(b)(4)(ii) to 
indicate that these assignments will generally be in a different work 
unit in the PMF's organization, in another component, or another 
Federal agency.
    Other commenters expressed support for the clarifying language 
around developmental assignments. The commenters also indicated that 
the clarifying examples were useful. OPM appreciates these comments.
    One commenter suggested that PMF Coordinators should be empowered 
to work across agencies to help PMFs identify developmental assignment. 
To aid PMFs and agencies identifying developmental assignments, OPM 
offers the functionality for agencies to post developmental assignment 
opportunities for current PMFs to search in the PMF Talent Acquisition 
System.
    One agency suggested that Sec.  362.405(b)(4)(ii) and (iii) may 
limit the opportunities available to PMFs. Specifically, the agency 
stated that the agency needed to offer opportunities that may be 
external to Federal Government at state agencies and private 
industries. An agency may detail an employee to certain non-Federal 
organizations under the provisions of the Intergovernmental Personnel 
Act (IPA) Mobility Program. The IPA program provides for the temporary 
assignment of personnel between the Federal Government and State and 
local governments, colleges and universities, Indian Tribal 
governments, federally funded research and development centers, and 
other eligible organizations. An agency may use the IPA Program to 
allow a PMF to complete a developmental or rotational assignment at a 
non-Federal organization.
    An agency requested that OPM clarify that the information contained 
in these paragraphs constitute examples or suggestions and are not 
required. The PMF Program is the Federal Government's flagship 
leadership development program for advanced degree holders across all 
academic disciplines. One of the key features of the program is that 
all PMFs Government-wide have meaningful developmental opportunities 
that will help them grow as leaders. To ensure consistency in this 
effort, all PMFs need to complete developmental assignments with 
management and/or technical responsibilities consistent with the PMF's 
IDP. The examples are offered to ensure that all PMFs are given 
developmental assignments of similar type and scope. OPM also offers 
additional guidance on developmental assignments in the PMF Participant 
Handbook.\9\ For the sake of clarity, OPM is modifying Sec.  
362.405(b)(4)(iii) to include a description of the scope of work that 
should be included in a developmental assignment in addition to the 
examples initially proposed.
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    \9\ https://www.pmf.gov/media/vumhfhkh/pmf-participant-handbook-draft-04-04-2022.pdf.
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Section 362.409 Conversion to the Competitive Service

    The existing regulations at 5 CFR 362.409 allow a PMF who 
successfully completes program requirements to be converted to a 
position within the employing agency. OPM proposed to allow a PMF also 
to be converted to a position at another Federal agency. OPM received 
numerous comments on this proposal. Those comments are discussed in 
``Responses to Requests for Comment and Data--2. Limitations on 
conversion of Recent Graduates and PMFs to positions at different 
agencies.'' After consideration of the comments, this final rule allows 
conversion to a term or permanent position in a different agency when 
the employing (or losing) agency is unable to convert the PMF 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 due to unforeseen circumstances or other 
appropriate reasons.
    OPM had also proposed to require agencies to document the reason 
for conversion in another agency. OPM has removed that requirement and, 
instead, is requiring agencies to outline the procedures for how 
conversion at another agency may occur in their Pathways Policy in 
Sec.  362.104. OPM expects the modified proposal to be a less 
burdensome approach to ensuring that conversion at other agencies is 
accomplished in accordance with this final rule.

Part 410 Training

Section 410.306 Selecting and Assigning Employees to Training

    The existing regulations at 5 CFR 410.306 contain an outdated 
reference to the former Student Career Experience Program (SCEP) 
program. OPM proposed to remove the outdated reference. OPM received no 
comments on this section. OPM is finalizing this section as proposed.

Expected Impact of This Final Rule

A. Statement of Need

    The purpose of this rule is to modify existing regulations for the 
Pathways Programs for hiring Interns, Recent Graduates, and 
Presidential Management Fellows. 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. OPM has received 
qualitative feedback directly from agencies since the Programs' 
implementation. Between fiscal year (FY) 2012 and FY 2016, OPM hosted 
monthly office hours meetings with agencies to discuss solutions and 
recommendations to challenges agencies encountered when using the 
Pathways Programs. Pathways Programs Officers and PMF Coordinators have 
continued to contact OPM directly for advice and guidance on using the 
Pathways 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. These 
discussions have identified areas where regulatory updates would allow 
the

[[Page 25768]]

Programs to recruit students and recent graduates more successfully.
    Based on the feedback received from stakeholders over the years, 
this final rule updates 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 who have successfully completed their Pathways requirements. 
Robust Pathways Programs, with appropriate safeguards to promote their 
use as a supplement to, and not a substitute for, the competitive 
hiring process are essential to boosting the Federal Government's 
ability to recruit and retain early career talent.

B. Impact

    In fiscal year 2022, agencies made 8,567 new appointments using the 
Pathways Programs hiring authorities (5,087 Interns, 3,085 Recent 
Graduates, and 395 Presidential Management Fellows). It is important to 
note that, while these changes in the program regulations should 
enhance the way the agencies use the programs, 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.
    The changes to include career and technical education programs in 
the eligibility criteria for the Internship and Recent Graduate 
Programs are a benefit to agencies, students, and recent graduates. 
Agencies will be able to recruit from a broader spectrum of applicants. 
Students and recent graduates of career and technical education 
programs may have more opportunities to more to work in agencies.
    OPM removed some administrative burdens of using the Programs for 
agencies. This final rule replaces the proposed requirement to submit 
Pathways Policies to OPM with a requirement to make these policies 
available for review upon the request of OPM, applicants, Pathways 
Participants, and agency employees. This final rule also replaces the 
requirement to submit documentation of why a Recent Graduate or PMF is 
being converted to a position at a different agency with a requirement 
for agencies to specify the procedures for how conversion at another 
agency may occur in their Pathways Policy. These changes in the final 
rule will make it easier for agencies to implement the final rule.

C. Costs

    This final rule will affect the operations of over 80 Federal 
agencies--ranging from cabinet-level departments to small independent 
agencies. We estimate that this rule will require individuals employed 
by these agencies to 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 2024 for GS-14, step 5, from the Washington, DC, locality pay table 
($157,982 annual locality rate and $89.04 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 $178.08 per hour.
    To comply with the regulatory changes in this rule, affected 
agencies will 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 process would require an average of 
250 hours of work by employees with an average hourly cost of $143.76. 
This time would result in estimated costs in that first year of 
implementation of about $35,940 per agency, and about $2,875,200 in 
total Government-wide. We do not believe this rule will substantially 
increase the ongoing administrative costs to agencies (including the 
costs of administering the programs and hiring and training new staff). 
This is because the rule is modifying existing programs and recruitment 
of students and recent graduates is an ongoing need.
    OPM did not receive any comments on the estimated costs in the 
proposed rule.

D. Benefits

    The final rule will boost the Federal Government's ability to 
recruit and retain early career talent. For example, modifying the 
public notification requirement will provide agencies with additional 
flexibility when recruiting and may also lead to a better applicant 
experience. Further, the changes to allow the conversion of eligible 
Recent Graduates and Presidential Management PMFs 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 PMF, the agency and the Government lose the expertise and 
knowledge the participant has gained during the program. 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 otherwise would have been separated when the background 
investigation or vetting process exceeded the 120-day limit.
    E.O. 14035 of June 25, 2021, titled ``Diversity, Equity, Inclusion, 
and Accessibility in the Federal Workforce,'' established a Federal 
diversity, equity, inclusion, and accessibility (DEIA) initiative. A 
Government-Wide Strategic Plan to Advance Diversity, Equity, and 
Accessibility in the Federal Workforce was released in November 
2021.\10\ This plan directs agencies to prioritize several efforts to 
support the sustainability and continued improvement on of DEIA 
matters. These efforts include seeking opportunities to promote paid 
internships, fellowships, and apprenticeships. The updates to the 
Pathways Programs regulations will help inform and support agency 
efforts to use and promote paid internships, in line with the aims of 
the Federal DEIA initiative.
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    \10\ 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, 
this rule addresses issues that require a modification of the existing 
regulations and that cannot be changed by guidance alone. For example, 
staff in agencies told OPM that agencies need additional flexibility to 
convert participants in the Recent Graduate and PMF Programs to 
positions in other agencies. The existing regulations limit the 
conversion of Recent Graduate or PMFs to positions in the employing 
agency. OPM has determined that a change to these regulatory provisions 
is required to provide the additional flexibility agencies requested.
    OPM did not receive any comments on the costs, benefits or 
regulatory alternatives presented in the proposed rule and is 
finalizing this section of the rule with minimal technical changes.

[[Page 25769]]

F. Severability

    If any of the provisions of this final rule is held to be invalid 
or unenforceable by its terms, or as applied to any person or 
circumstance, it shall be severable from its respective section(s) and 
shall not affect the remainder thereof or the application of the 
provision to other persons not similarly situated or to other 
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. The Pathways Programs encompass 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. Similarly, many of the operational requirements have no 
bearing on other provisions and are severable. For example, a holding 
that a hiring provision is invalid should not impact provisions related 
to conversion. In enforcing the provisions of this rule, OPM will 
comply with all applicable legal requirements.
    OPM did not receive any comments on severability in the proposed 
rule.

Regulatory Review

    OPM has examined the impact of this rule as required by Executive 
Orders 12866, 13563, and 14094, which 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). This 
rule is considered a ``significant regulatory action'' under section 
3(f) of Executive Order 12866.

Regulatory Flexibility Act

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

Federalism

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

Civil Justice Reform

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

Unfunded Mandates Reform Act of 1995

    This 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.

Congressional Review Act

    Subtitle E of the Small Business Regulatory Enforcement Fairness 
Act of 1996 (also known as the Congressional Review Act) (5 U.S.C. 801 
et seq.) requires certain rules (as defined in 5 U.S.C. 804) to be 
submitted to Congress before taking effect. The Office of Management 
and Budget's (OMB) Office of Information and Regulatory Affairs has 
determined this is not a major rule as defined by the Congressional 
Review Act (5 U.S.C. 804(2)).

Paperwork Reduction Act

    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 OMB 
Control Number. This rule involves the following OMB-approved 
collections of information subject to the PRA:

 USAJOBS 3.0 (OMB Control Number 3206-0219)
 Presidential Management Fellows (PMF) Program Online 
Application and Resume Builder (OMB Control Number 3206-0082).

    OPM believes any additional burden associated with this final rule 
falls within the existing estimates currently associated with these 
control numbers. OPM does not anticipate that the implementation of 
this final 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.
Stephen Hickman,
Federal Register Liaison.

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

PART 300--EMPLOYMENT (GENERAL)

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

    Authority: 5 U.S.C. 552, 2301, 2302, 3301, and 3302; E.O. 10577, 
19 FR 7521, 3 CFR 1954-1958 Comp., p. 218, unless otherwise noted.
    Secs. 300.101 through 300.104 also issued under 5 U.S.C. 7201, 
7204, and 7701; E.O. 11478, 34 FR 12985, 3 CFR 1966-1970 Comp., p. 
803; E.O. 13087, 63 FR 30097, 3 CFR 1998 Comp., p. 191; and E.O. 
13152, 65 FR 26115, 3 CFR 2000 Comp., p. 264.
    Sec. 300.301 also issued under 5 U.S.C. 3341 and E.O. 13562, 75 
FR 82585, 3 CFR 2010 Comp., p. 291.
    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. Amend Sec.  300.301 by revising paragraph (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

[[Page 25770]]

Subpart A--General Provisions

0
4. Amend Sec.  362.102 by:
0
a. Revising the definitions for ``Advanced degree'' and ``Agency'';
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.
    Agency means an Executive agency as defined in 5 U.S.C. 105, and 
the Government Publishing Office.
    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 of at least 
one year that awards a recognized postsecondary 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) A federally administered, organized educational program 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). Qualifying programs must require 
at least one year of substantially continuous participation;
    (2) A Registered Apprenticeship Program; or
    (3) 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 administered program that the volunteer 
has completed either:
    (i) At least 52 weeks of volunteer service (through one or multiple 
periods of service); or
    (ii) At least 1700 work hours when the period(s) of volunteer 
service (through one or multiple periods of service) is less than one 
year in length.
    (4) For the purposes of this definition, the phrase federally 
administered means a program or organization that operates under a 
Federal agency's (or a component within an agency) programmatic 
oversight, to ensure educational outcomes and compliance with agency-
established criteria to provide participants with high-demand skills. 
Such criteria must describe:
    (i) The nature and scope of work to be performed by participants;
    (ii) The type(s) and scope of training to be provided to 
participants;
    (iii) The types of skills participants will acquire or develop 
during the program (e.g., teaching, environmental, business, 
scientific, public health/health care, languages);
    (iv) The level and extent of mentoring participants will receive); 
and
    (v) The metrics that describe successful completion of the program.
* * * * *
    Recognized postsecondary credential means documentation (e.g., 
official record) of an industry-recognized credential, 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. Registration of a program is evidenced 
by a certificate of registration or other written documentation 
provided by the Registration Agency under 29 CFR part 29.

0
5. Revise Sec.  362.104 to read as follows:


Sec.  362.104  Agency requirements.

    (a) Agency policy. To make any appointment under a Pathways 
authority, an agency must first 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; and
    (v) Provide OPM with the names of the agency's Pathways Programs 
Officer and PMF Coordinator.
    (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

[[Page 25771]]

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, 
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.
    (8) Identify the agency's PMF Coordinator who:
    (i) Must be in a position at the agency's headquarters level, or at 
the headquarters level of departmental component, or sub-agency level, 
in a position at or higher than grade 12 of the GS (or the equivalent 
under the FWS or another pay and classification system). If an agency 
or sub agency designates multiple PMF Coordinators, they must work 
collaboratively to administer the agency's PMF Program.
    (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.
    (iv) Reports to OPM on the agency's implementation of its PMF 
Program and individuals hired under the PMF Program.
    (9) Prescribe criteria and procedures on how the agency will 
determine whether it has the resources available to convert a Pathways 
Participant to a term or permanent position in the competitive service. 
These procedures must specify the timeline for making the 
determination, which must include informing the Pathways Participant no 
later than 60 calendar days prior to the end of the appointment about 
whether the agency is able to convert them. If an agency is unable to 
convert a Pathways Participant, its procedures may include the actions 
it will take to assist a Participant in pursuing conversion at another 
agency (when appropriate).
    (10) Identify the minimum service-hour requirement that must be 
completed by an Intern as required by Sec.  362.204.
    (11) An agency's Pathways Policy must be maintained and be 
available for review upon request of OPM, applicants, Pathways Programs 
participants, or agency employees.
    (b) Implementation of Pathways Policy requirement. Agencies must 
establish a Pathways Policy that meets the criteria listed in paragraph 
(a) of this section not later than December 9, 2024. Upon June 11, 
2024, agencies with existing Pathways memorandums of understanding 
(MOUs) may continue to use the Pathways Programs subject to the 
regulations in this part in lieu of an updated Pathways Policy while 
they are developing and updating their policies in accordance with the 
regulations in this part. Agencies without an existing MOU or an 
expired MOU on June 11, 2024, must establish an agency Pathways Policy 
before they begin making Pathways appointments. Agencies with MOUs that 
expire within 240 days of April 12, 2024, may request an extension of 
the MOU. All Pathways Programs MOUs will expire on December 9, 2024, 
unless OPM has specifically approved use of the MOU after December 9, 
2024.
    (c) Revocation. The Director may revoke an agency's authority to 
make Pathways appointments when agency use of these Programs is 
inconsistent with E.O. 13562, this part, or the agency's Pathways 
Policies.

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 position at a different agency is subject to Sec.  
362.305(c).
    (3) A PMF may be converted within the employing agency or any other 
agency within the Federal Government. Conversion to position at a 
different agency is subject to Sec.  362.409(c).
* * * * *

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.), for each of the preceding 
three fiscal years:
    (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 this part 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.

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.

[[Page 25772]]

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 revising paragraphs (a), (d)(1), and (e) and 
adding paragraph (i) to read as follows:


Sec.  362.203  Filling positions.

    (a) Announcement--(1) Public notification 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. 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 notification requirement. An agency may use 
any of the following options for meeting the public notification 
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 public facing web page must provide applicants with 
information about how to apply or seek additional information about the 
position(s) being filled.
    (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 notification 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 Pathways 
Internship opportunities in such form as the Director may determine.
* * * * *
    (d) * * *
    (1) An agency may make Intern appointments, pursuant to its 
Pathways Policy, using the Schedule D excepted service appointing 
authority provided in Sec.  213.3402(a) 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 paragraph (e) 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, documents planned 
training activities in a training plan, Individual Development Plan 
(IDP), or the Pathways Participant Agreement that is approved by their 
supervisor. Documentation of training activities 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 revising paragraphs (b)(1) and (2), revising 
and republishing paragraph (c), and revising paragraphs (d) and (e) to 
read as follows:


Sec.  362.204  Conversion to the competitive service.

* * * * *
    (b) * * *
    (1) Completed at least 480 hours of work experience acquired 
through the Internship Program, except as provided in paragraphs (c) 
and (d) of this section, while enrolled as a full-time or part-time, 
degree- or certificate-seeking student or participant in a career or 
technical education program. (An agency may require a minimum that is 
higher than 480, including setting varying minimums for different types 
of positions);
    (2) Completed a course of academic study or a career and technical 
education program, 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) Subject to the limitations in paragraph (e) of this section, 
an agency may evaluate, consider, and grant credit for up to one-half 
of the service requirement in paragraph (b)(1) of this section for 
comparable non-Federal internship experience in a field or functional 
area related to the student's target position and acquired while the 
student:
    (i) Worked in, but not for, a Federal agency, pursuant to a formal 
internship agreement, comparable to the Internship Program under this 
subpart, between the agency and an accredited academic institution;
    (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 25773]]

    (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.
    (d) An agency may waive up to one-half of the minimum service 
requirement in paragraph (b)(1) of this section provided the Intern has 
completed at least 320 hours of career-related work experience under an 
Internship Program appointment with exceptional job performance and 
demonstrates high potential in an academic or career and technical 
education program. For purposes of this paragraph (d):
    (1) Exceptional job performance means a formal evaluation conducted 
by the student's internship supervisor(s), consistent with the agency 
performance appraisal program that results in a rating of record (or 
summary rating) of higher than Fully Successful or equivalent.
    (2) Demonstrates high potential in an academic or career and 
technical education program means attaining at least one of the 
following:
    (i) An overall grade point average of 3.5 or better, on a 4.0 
scale;
    (ii) Standing in the top 10 percent of the student's graduating 
class;
    (iii) Induction into a nationally recognized scholastic honor 
society; or
    (iv) A letter of recommendation attesting to the Intern's 
outstanding program performance from an instructor or program 
administrator.
    (e) An agency may not grant a credit or waiver (or a combination of 
a credit and waiver) unless the Intern has performed at least 320 hours 
under a Pathways Internship appointment. An agency may not grant a 
credit or waiver (or a combination of a credit and waiver) totaling 
more than 320 hours.

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 or career and technical education 
program, 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. Revise Sec.  362.302 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, 
technical degree or a 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 
in paragraph (b) of this section.
    (b)(1) Except as provided in paragraph (b)(2) of this section, an 
individual may apply for a position in the Recent Graduates Program 
only if the individual's application is received not later than 2 years 
after the date the individual completed all requirements of an academic 
course of study leading to a qualifying associate, 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.
    (2) A veteran, as defined in 5 U.S.C. 2108, who, due to a military 
service obligation, was precluded from applying to the Recent Graduates 
Program during any portion of the 2-year eligibility period described 
in paragraph (b)(1) of this section shall have a full 2-year period of 
eligibility upon his or her release or discharge from active duty. In 
no event, however, may the individual's eligibility period extend 
beyond 6 years from the date on which the individual completed the 
requirements of an academic course of study or a qualifying career or 
technical education program.

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 notification 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 
Publishing 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 notification requirement. An agency may use 
any of the following options for meeting the public notification 
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

[[Page 25774]]

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 notification 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 Pathways 
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 the authority in this section 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:


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 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 reasons for 
conversion at another agency may include unforeseen budgetary 
constraints; reorganizations; abolishment of positions; completion of 
cohort-based Pathways programs; 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 they would have been 
converted to 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 in its place 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 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 and fulfills the 
criteria described in Sec.  362.104(a)(8). 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) * * *
    (1) An agency may make 2-year appointments to the PMF Program, 
pursuant to a Pathways Policy, under Schedule D of the excepted service 
in accordance with part 302 of this chapter.
* * * * *
    (e) Work schedules. A PMF will generally have a full-time work 
schedule. A PMF may request a part-time work schedule for a limited 
period of up to 6 months during the PMF Program. An agency has the 
discretion to approve or deny a request for a part-time work schedule 
if the agency and PMF have determined that it would not negatively 
impact the PMF's ability to meet all Program requirements by the 
expiration of the PMF's appointment. The agency's approval of the 
request must include an approval of a specific time period that the 
agency determines to be appropriate. A PMF is not entitled to approval 
of a request for a part-time work schedule. An agency's Pathways Policy 
must specify the conditions under which a part-time work schedule may 
be authorized. The PMF's Pathways Participant agreement must 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), and (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 PMFs that 
sets forth the specific developmental activities that are mutually 
agreed upon by each PMF and their supervisor. The PMF must develop the 
IDP in consultation with the Agency PMF Coordinator and/or the mentor 
assigned to the PMF under paragraph (b)(3) of this section, as well as 
the PMF's supervisor.
    (b) * * *
    (1) OPM will provide leadership development activities and general 
Program resources for each class or cohort of PMFs 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 PMF with at least one rotational 
or developmental assignment with full-time management and/or technical 
responsibilities consistent with the PMF's IDP. With respect to the 
requirement in this paragraph (b)(4):
    (i) Each PMF must receive at least one developmental assignment of 
4 to 6

[[Page 25775]]

months in duration, with management and/or technical responsibilities 
consistent with the PMF's IDP.
    (ii) The developmental assignment may be within the PMF's 
organization, in another component of the agency, or in another Federal 
agency as permitted by the employing agency. These assignments should 
generally be in a different work unit led by a supervisor other than 
the usual supervisor of the PMF's current position.
    (iii) Developmental assignments must provide challenging work 
experience of a caliber appropriate for a participant in the Federal 
Government's flagship leadership development program. 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 PMF 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 PMF'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 PMF of its decision regarding 
certification of successful completion.
    (ii) A PMF who receives successful certification is eligible for 
conversion in accordance with Sec.  362.409.
* * * * *
    (4) * * *
    (iii) A PMF 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.

* * * * *
    (b) An agency may convert, without a break in service, an ERB-
certified PMF to a competitive service term or permanent appointment in 
any position for which they are qualified.
    (c) A PMF who is being converted to a permanent or term position at 
a different agency is subject to the following conditions:
    (1) The employing (or losing) agency must be unable to convert the 
PMF 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. These reasons for 
conversion at another agency 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 failure to obtain certification from the agency's 
Executive Resources Board, 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 to or less than the position to which the PMF 
would have been converted at the losing agency.

PART 410--TRAINING

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

    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. 2024-06810 Filed 4-11-24; 8:45 am]
BILLING CODE 6325-39-P