Supreme Court ruling requires federal agencies to pay potentially millions in back wages to reservist employees who served during national emergencies, opening floodgates for claims dating back years.
Key Takeaways
- The Supreme Court ruled federal employees are entitled to differential pay when serving as military reservists during a national emergency without needing to prove a connection to that specific emergency.
- Federal civilian employees who served in military reserves can claim up to 22 days of additional paid military leave per year under the ruling.
- The Feliciano v. Department of Transportation case strengthens veterans’ rights and could trigger thousands of claims for back pay.
- Current employees may receive restored annual leave while retired or separated employees could qualify for lump-sum payments.
- Law firms are now offering no-upfront-fee assistance to help federal employees file claims with the Merit Systems Protection Board.
Supreme Court Upholds Reservists’ Right to Full Pay
The Supreme Court delivered a decisive victory for federal employees who also serve as military reservists, ruling they’re entitled to differential pay when called to active duty during a national emergency. The landmark decision, issued in the Feliciano v. Department of Transportation case, clarifies a 2008 statute designed to protect the financial welfare of federal workers serving in the reserves. The ruling specifically states reservists qualify for differential pay if their service coincides with any declared national emergency, without requiring proof of a direct connection to that emergency.
This ruling dramatically expands eligibility for compensation, as the United States has been under various national emergency declarations for decades. The decision corrects years of improper denials by federal agencies that had been interpreting the law narrowly, leaving thousands of patriotic federal employees financially disadvantaged while serving their country. President Trump’s administration has consistently supported our military personnel, and this ruling aligns with his commitment to protecting those who sacrifice for our nation.
A recent Supreme Court ruling could lead to numerous pay claims for federal employees also serving as military reservists. https://t.co/NZNb34qgN1
— NEWSMAX (@NEWSMAX) June 18, 2025
Additional Leave Entitlements Confirmed
Beyond differential pay, the Court also reinforced that reserve military personnel called to active duty for a “contingency operation” are entitled to 22 days of compensated leave per year from their federal civilian employer. This entitlement stems from 5 U.S.C. § 6323(b), which the Court found had been misapplied for years. The O’Farrell v. Department of Defense case established a broad interpretation of what constitutes “support for contingency operations,” resulting in additional paid military leave for affected employees.
“entitled to differential pay if the reservist’s service temporally coincides with a declared national emergency without any showing that the service bears a substantive connection to a particular emergency,” the Supreme Court wrote in its decision.
The Federal Circuit Court previously overturned a Merit Systems Protection Board (MSPB) decision in O’Farrell’s case, granting him 22 additional days of paid military leave. This precedent, coupled with the Butterbaugh v. Department of Justice case which required agencies to compensate employees for improperly charged military leave prior to December 2000, creates a powerful legal foundation for claims. These rulings represent a significant correction to years of financial injustice suffered by those serving in both federal civilian and military capacities.
How Federal Employees Can Claim Benefits
The Supreme Court’s ruling has opened the door for potentially thousands of claims from current and former federal employees who served in the military reserves during declared national emergencies. The legal process requires filing claims with the Merit Systems Protection Board, with different outcomes depending on employment status. Current federal employees who successfully file claims may receive restored annual leave, effectively correcting past accounting errors that forced them to use personal leave when military leave should have been provided.
“During a national emergency,” states the Federal Circuit Court, quoted in the United States Supreme Court’s ruling, emphasizing the timing requirement rather than a connection requirement.
For those who have retired or separated from federal service, successful claims can result in lump-sum payments representing the value of leave that should have been available. Several law firms, including Terrell Marshall Law Group and Tully Rinckey PLLC, are now offering free consultations and contingency-fee representation to affected federal employees. These firms are processing claims without up-front fees, taking payment only if the claim succeeds, making legal representation accessible to all affected veterans regardless of financial circumstances.
Financial Impact on Federal Agencies
The financial implications for federal agencies could be substantial as claims accumulate. With the potential for claims dating back many years, agencies may face significant unbudgeted expenses for back pay and leave restoration. The government’s resistance to proper compensation, despite clear statutory language, has created this liability. The ruling also mandates that agencies adjust their policies moving forward to ensure proper compensation for reservists called to active duty, creating ongoing budget considerations.
This ruling represents a significant victory for military reservists who have served their country in multiple capacities, often at personal financial sacrifice. While the fiscal impact on federal agencies may be substantial, the Supreme Court’s decision simply enforces what was always the law’s intent: to ensure that those who serve our country in uniform should not suffer financial penalties for that service. This aligns perfectly with President Trump’s commitment to supporting our military and ensuring fair treatment for all who serve America.
