Pathways Programs

CourtPersonnel Management Office
Citation88 FR 55586
Published date16 August 2023
Record Number2023-17372
Federal Register, Volume 88 Issue 157 (Wednesday, August 16, 2023)
[Federal Register Volume 88, Number 157 (Wednesday, August 16, 2023)]
                [Proposed Rules]
                [Pages 55586-55601]
                From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
                [FR Doc No: 2023-17372]
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                Proposed Rules
                 Federal Register
                ________________________________________________________________________
                This section of the FEDERAL REGISTER contains notices to the public of
                the proposed issuance of rules and regulations. The purpose of these
                notices is to give interested persons an opportunity to participate in
                the rule making prior to the adoption of the final rules.
                ========================================================================
                Federal Register / Vol. 88, No. 157 / Wednesday, August 16, 2023 /
                Proposed Rules
                [[Page 55586]]
                OFFICE OF PERSONNEL MANAGEMENT
                5 CFR Parts 300, 362, 410
                [Docket ID: OPM-2023-0020]
                RIN 3206-AO25
                Pathways Programs
                AGENCY: Office of Personnel Management.
                ACTION: Proposed rule.
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                SUMMARY: The Office of Personnel Management (OPM) is proposing to
                modify the regulations for the Pathways Programs to align the program
                to better meet the Federal Government's needs for recruiting and hiring
                interns and recent graduates. OPM proposes to update the regulations
                for the Pathways Programs to facilitate a better applicant experience,
                to improve developmental opportunities for Pathways Program
                participants, and to streamline agencies' ability to hire participants
                in the Pathways Programs, especially those who have successfully
                completed their Pathways requirements and are eligible for conversion
                to a term or permanent position in the competitive service. Robust
                Pathways Programs with appropriate safeguards to promote its use as a
                supplement to, and not a substitute for, the competitive hiring process
                is essential to boosting the Federal Government's ability to recruit
                and retain early career talent.
                DATES: Comments must be received on or before October 2, 2023.
                ADDRESSES: You may submit comments, identified by the Regulation
                Identifier Number (RIN) ``3206-AO25'', and title using following
                method:
                 Federal eRulemaking Portal: https://www.regulations.gov.
                Follow the instructions for sending comments.
                 The general policy for comments and other submissions from members
                of the public is to make these submissions available for public viewing
                at https://www.regulations.gov as they are received without change,
                including any personal identifiers or contact information.
                FOR FURTHER INFORMATION CONTACT: Katika Floyd at (202) 606-0960, or by
                email at [email protected].
                SUPPLEMENTARY INFORMATION: OPM is proposing to revise its regulations
                for the Pathways Programs. The proposed rule will clarify and update
                information on a variety of issues including reporting requirements,
                eligibility requirements, training requirements for Internship
                positions, and rotational assignments for Presidential Management
                Fellows. The proposed rule will also make changes to the public
                notification requirement for appointing Interns and Recent Graduates.
                Additionally, we propose to make several technical corrections to
                remove references to the former Student Career Program. OPM also
                invites feedback on potential modifications to several aspects of this
                rulemaking.
                 OPM is adopting a 45-day comment period to balance the need for
                robust public comment with agencies' operational considerations
                regarding the timing for students and recent graduates recruitment and
                hiring. The traditional agency recruiting season for early career
                talent, including interns, begins as early as winter to allow for
                internships to begin in the spring/summer. Agencies also start
                extending offers for full-time positions in the spring to students who
                expect to graduate in the summer. Prospective interns and job
                applicants frequently choose between numerous offers and opportunities
                in the winter and spring; agencies can maximize their chances of
                attracting and hiring great candidates if their recruiting and hiring
                activities are strategically timed. Applicants also benefit from having
                greater certainty about employment decisions as soon as possible.
                 To allow agencies a reasonable amount of time to modify their
                practices by the effective date of the final rule, OPM aims to review
                public comments on this proposed rule and make any necessary
                modifications expeditiously.
                Background Information
                 The Pathways Programs were established on December 27, 2010, with
                the issuance of E.O. 13562 (75 FR 82585) pursuant to 5 U.S.C. 3301 and
                3302. The programs are designed to provide students and recent
                graduates with the opportunity for Federal internships and potential
                careers in the Federal Government through three components.
                 The Internship Program exposes current high school
                students, undergraduate students, including those enrolled in community
                and technical colleges, and graduate students to the work of government
                by providing paid opportunities to work in agencies and explore Federal
                careers while still in school.
                 The Recent Graduates Program (Recent Graduates) provides
                opportunities for individuals who have received qualifying degrees or
                certificates within the previous two years (up to six years for
                qualifying veterans) to obtain entry-level developmental experience
                designed to lead to a career in the Federal Government after
                successfully completing the Program, which is generally one year in
                length and in certain cases may be two years in length.
                 The Presidential Management Fellows Program (PMF) promotes
                careers in the Federal Government by offering leadership development
                opportunities to individuals who have received advanced degrees within
                the preceding two years.
                 The Pathways Programs became effective on July 10, 2012.\1\ In the
                final implementing regulations, OPM identified five core principles
                shared by each of the programs to advance merit system principles and
                the policies established by the President in E.O. 13562:
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                 \1\ Final regulations were issued on May 11, 2012, and the five
                core principles are outlined in the supplemental information
                accompanying the final regulations for the Pathways Programs. See
                Excepted Service, Career and Career-Conditional Employment; and
                Pathways Programs, 77 FR 28195 (2012).
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                 (1) Transparency--In an effort to promote transparency, agencies
                have to provide OPM with information about Internship Program and
                Recent Graduates Program opportunities and how interested members of
                the public can apply so that OPM can inform potential applicants. OPM
                designated USAJOBS, a website used to announce Federal jobs in the
                competitive service, for the purpose of notifying the public of these
                opportunities and how to apply at each agency. For the PMF Program, OPM
                itself publishes the vacancy announcement in USAJOBS. Under the
                [[Page 55587]]
                discontinued Federal Career Intern Program (FCIP) and previous student
                programs, public notice using USAJOBS was not required, which created
                the appearance of restrictive, rather than open, recruitment practices.
                 (2) Limited Scope--Agencies are to use the Pathways Programs as
                part of an overall workforce planning strategy to supplement
                competitive examining, rather than a substitute for it. If agencies are
                not using the hiring authorities as intended, OPM may place caps on the
                number of individuals who may be initially appointed to or converted
                from Pathways positions to positions in the competitive service.
                 (3) Fairness to Veterans--The Pathways Programs honor and protect
                the rights of veterans in the Federal hiring process. Veterans'
                preference rules in the excepted service governed by sections 3308-
                3318, title 5, U.S.C. pursuant to section 3320, apply to Pathways
                positions through the application of part 302 of OPM's regulations in
                title 5 of the CFR. Veterans also have greater flexibility in meeting
                eligibility requirements for the Recent Graduates Program in that those
                unable to apply due to military service obligations have up to six
                years from the date they completed their educational programs to apply,
                whereas non-veterans must apply within two years of completion. This
                flexibility, along with providing public notice and safeguarding
                veterans' preference, helps ensure the hiring process is fair and
                veteran-friendly.
                 (4) Agency Investment--To meet the training and developmental
                requirements for the Pathways Programs, especially for the Recent
                Graduates and PMF Programs, agencies must commit resources to foster a
                positive experience that will help prepare their Pathways hires for
                potential conversion to the competitive service and success in their
                careers as Federal employees.
                 (5) OPM Oversight--To use the Pathways Programs, agencies must
                enter into Memoranda of Understanding (MOUs) with OPM and report to OPM
                annually on their use of the Pathways authorities. Agencies are also
                subject to any caps OPM may place on initial appointments or
                conversions to positions in the competitive service. In addition, the
                use of Pathways Programs is subject to evaluation by OPM or the agency
                as part of its independent audit program.
                 In general, these five principles, as outlined in the 2012
                implementing regulation, are retained throughout this proposal.
                However, OPM invites comments on whether we should consider
                modification to, or addition to, these principles.
                 The Federal Government benefits from a diverse workforce that
                includes students and recent graduates, who contribute enthusiasm,
                talents, and unique perspectives. OPM assessed the Pathways regulations
                to consider the need for changes to make the regulations better advance
                the goals of E.O. 13562. It has also received substantial input from
                agencies that utilize Pathways.
                 In August 2016, OPM published a special report titled, ``The
                Pathways Programs Their Use and Effectiveness Two Years After
                Implementation.'' \2\ This report documents a study OPM performed in
                fiscal year (FY) 2015 to determine how the Programs were being used and
                whether they were operating within the spirit and intent of the five
                core principles OPM identified in its implementing regulations:
                transparency, limited scope, fairness to veterans, agency investment,
                and OPM oversight. Additionally, OPM analyzed agencies' usage,
                highlighted notable practices, identified challenges and compliance
                concerns, and developed recommendations for improvement in the
                effective and efficient use of the Pathways Programs.
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                 \2\ https://www.opm.gov/policy-data-oversight/hiring-information/students-recent-graduates/reference-materials/report-on-special-study-of-the-pathways-programs.pdf.
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                 OPM has received qualitative feedback directly from agencies since
                the Programs' implementation. Between FY 2012 and FY 2016 OPM hosted
                monthly office hours meetings with agencies. During these office hours
                OPM and agencies discussed solutions and recommendations to challenges
                agencies encountered when using the Programs. Pathways Programs
                Officers and Presidential Management Fellows (PMF) Coordinators have
                and continue to contact OPM directly for advice and guidance on using
                the Programs since their inception. The Chief Human Capital Officers
                Council convened a working group to discuss challenges, issues, and
                successes of using the Pathways Programs during FY 2019. The working
                group also provided OPM staff with a number of ideas and
                recommendations for ways that the Programs could be improved.
                 Based on agency feedback and OPM's own analysis, we are proposing
                several changes aimed at enhancing the robust usage of the Pathways
                Programs as a key source of early career talent in the Federal
                Government, as a supplement to, and not a substitute for, the
                competitive hiring process. Overall, the purpose of this proposal is to
                streamline the Pathways regulations, making it easier for agencies to
                recruit and hire Pathways program participants, and to optimize the
                Pathways program as a tool to recruit and retain diverse and highly-
                qualified early career talent. The proposed changes, which are
                explained in greater detail below, cover a variety of issues related to
                the way agencies use the Pathways Programs to recruit and hire students
                and recent graduates including:
                 Outlining the specific responsibilities of the
                Presidential Management Fellows (PMF) Coordinator;
                 Expanding the time period for converting Pathways Interns
                from 120 to 180 days;
                 Modifying the public notice requirement for vacancy
                announcements for Pathways Interns and Recent Graduates;
                 Clarifying and streamlining the training and development
                requirements;
                 Allowing Recent Graduate and Presidential Management
                Fellows participants to be converted to term or permanent positions in
                any agency, when appropriate;
                 Clarifying the time period for required reporting;
                 Allowing the use of part-time work schedules for PMFs in
                certain situations;
                 Clarifying information about the use of developmental
                assignments for PMFs; and
                 Expanding eligibility for the Recent Graduates Program to
                include those who have completed certain career or technical education
                programs.
                 In addition to seeking comment on the proposed changes summarized
                above and discussed in greater detail throughout, please see the
                Request for Comment and Data section below for additional requests for
                data and additional comments on specific topics.
                Section by Section Analysis
                Part 300 Employment (General)
                Section 300.301 Authority
                 OPM is proposing to modify the regulations in 5 CFR 300.301(b) to
                allow agencies to detail employees appointed under the Pathways
                Programs (Schedule D of the excepted service) to positions in the
                competitive service without approval from OPM. Current regulations
                under Schedule A, Schedule B, or the Veterans Recruitment Appointment
                authority allow an agency to detail an employee in an excepted service
                position under those authorities without approval from OPM. Prior to
                the creation of the Pathways Programs, both
                [[Page 55588]]
                the former Student Education Employment Program (SEEP) and the
                predecessor to the PMF Program were a part of Schedules A and B of the
                excepted service. However, the Pathways Internship Program, which
                replaced the SEEP, and the PMF Program are now filled under Schedule D
                of the excepted service, which currently requires OPM approval for
                details to the competitive service. OPM is proposing to modify the
                Schedule D regulations to allow agencies to detail Pathways employees
                to positions in the competitive service without approval from OPM,
                similar to how details were executed under the SEEP.
                Part 362 Pathways Programs
                Subpart A General Provisions
                Section 362.102 Definitions
                 OPM is proposing to revise the definition of an advanced degree and
                certificate program in Sec. 362.102. We are proposing that the
                definition of advanced degree be revised to mean a master's degree,
                professional degree, doctorate degree, or other formal degree pursued
                after completing a bachelor's degree. We believe that the revised
                definition may lead to less confusion among applicants and agencies
                about the types of degrees required for eligibility under the Pathways
                Programs. We are proposing to revise the definition of a certificate
                program to include a qualifying career or technical education program
                that awards a recognized postsecondary credential or industry-
                recognized credential.
                 OPM is also proposing to add definitions for terms related to
                career and technical education. These terms are: certificate of
                completion of a Registered Apprenticeship Program; industry-recognized
                credential; qualifying career or technical education program;
                recognized postsecondary credential; and Registered Apprenticeship
                Program. These definitions are being proposed as a part of the proposed
                changes to the eligibility criteria for the Internship and Recent
                Graduate Programs, as discussed more extensively in the Supplemental
                Information related to Sec. 362.302.
                 We are proposing to define certificate of completion of a
                Registered Apprenticeship Program to mean documentation (i.e., an
                official record) given to an individual who has successfully completed
                a registered apprenticeship program (29 CFR parts 29 and 30).
                 The term career or technical education program is used in section 3
                and section 4 of E.O. 13562 but is not currently defined in the
                regulation. We are proposing to define qualifying career or technical
                education program to mean:
                 An organized educational program, administered through a
                Federal agency, that focuses on providing rigorous academic content and
                relevant technical knowledge and skills needed to prepare the
                individual for further education and a career in a current or emerging
                profession and provides technical skill proficiency, and a recognized
                postsecondary credential (which may include an industry-recognized
                credential, a certificate, or an associate degree); or
                 A Registered Apprenticeship Program; or
                 Service in a federally administered local, state,
                national, or international volunteer service program or organization
                designed to give individuals work and or educational experiences in
                volunteer programs that benefit the Federal Government or local
                communities.
                 This proposed definition is based in part on the definition found
                in 20 U.S.C. 2302(5). Examples of eligible programs would include the
                Department of Labor Job Corps programs, Registered Apprenticeship
                Programs, the Peace Corps, and AmeriCorps.
                 We are proposing to define industry-recognized credential as either
                a certificate or credential developed and offered by, or endorsed by, a
                nationally- or regionally recognized industry association or
                organization representing a sizeable portion of the industry sector, or
                credential that is sought or accepted by companies within the industry
                sector for purposes of hiring or recruitment, which may include
                credentials from vendors of certain products.
                 We are proposing to define recognized postsecondary credential to
                mean documentation of an industry-recognized certificate or
                certification, a certificate of completion of a Registered
                Apprenticeship Program, a license recognized by the State involved or
                Federal Government, or an associate or baccalaureate degree. This
                proposed definition is based on the definition found in 29 U.S.C.
                3102(52). Our intent in incorporating these definitions is to provide
                agencies clarity that both career and technical education programs and
                industry recognized credentials, as defined herein, are suitable
                demonstrations of relevant experience for Pathways purposes.
                 We are proposing to define Registered Apprenticeship Program as a
                program that meets the requirements in 29 CFR part 29. Approval of
                registration would be evidenced by a Certificate of Registration or
                other written documentation as provided by the respective career or
                technical education establishment. This proposed definition would align
                with DOL regulations.
                 We are proposing these changes based on the authority given to OPM
                in E.O. 13562 to promulgate regulations for the implementation and use
                of the Pathways Programs and the statutory authority in 5 U.S.C. 3301
                and 3302.
                Section 362.104 Agency Requirements
                 Currently, an agency must execute a memorandum of understanding
                (MOU) with OPM before using the Pathways Programs. The original
                Pathways regulations contained this requirement because the MOU was the
                mechanism for OPM to obtain from agencies a listing in advance of the
                positions the agencies intended to fill through Pathways Programs. The
                MOU requirement allows for OPM to play a role in considering and
                approving those positions, a key oversight safeguard that promotes the
                use of these programs as supplements to, and not substitutes for,
                competitive hiring. OPM is proposing to replace the use of an MOU with
                a requirement that an agency must have a Pathways Policy in accordance
                with Sec. 362.104 in order to make appointments under the Pathways
                authority. Similar to the MOU, the agency policy will outline the
                parameters under which the agency will use the Pathways Programs. In
                lieu of the MOU, OPM will tie oversight to agency compliance with its
                Pathways Policy in revised Sec. 362.108(b)(1). OPM may limit an
                agency's use of this authority if we determine the agency is not in
                compliance with its Pathways Policy in accordance with revised Sec.
                362.104, or E.O. 13562 in general. This proposed change will do what
                the MOU would otherwise require, and we think it is an appropriate
                modification based on 10 years of experience overseeing the Pathways
                Programs that will streamline administration.
                 If this proposed change is adopted, each agency would be required
                to submit a copy of its Pathways Policy to OPM within 120 days of the
                effective date of the final rule. Once approved, the submission of an
                updated policy would only be required when the agency made substantive
                or significant changes to the policy. This is in line with how OPM
                approves delegated examining for agencies in the regular competitive
                hiring process. Agencies with existing Pathways MOUs \3\ may
                [[Page 55589]]
                continue to use the Pathways Programs subject to the new regulations in
                lieu of an updated Pathways Policy while they are developing and
                updating their policies in accordance with the new regulations.
                Agencies without existing MOUs must submit a copy of their agency
                Pathways Policy before they begin making Pathways appointments.
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                 \3\ A sample MOU is available online in the Pathways Transition
                and Implementation Guidance at https://www.opm.gov/policy-data-oversight/hiring-information/students-recent-graduates/reference-materials/pathways-transition-and-implementation-guidance.pdf.
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                 OPM is also proposing to clarify the role of the Presidential
                Management Fellows Coordinator in Sec. 362.104(a)(8) to outline the
                specific responsibilities of the role. We have found that there is
                inconsistency in the importance that agencies place on this role. The
                PMF Program is the premier leadership development program for the
                Federal Government. Each year, the best qualified candidates are
                selected through a rigorous assessment process. Then, the PMF finalists
                apply for placement to PMF-designated positions at Federal agencies.
                But placement rates vary year-to-year, and many years, hundreds of
                finalists do not get placed. Moreover, for those who are placed in
                agencies, the experience varies widely, as some agencies are more
                highly invested in the professional development of their PMFs. By
                bolstering the role of the PMF Coordinator, OPM seeks to offer agencies
                a better way to share information about the PMF Program throughout
                agencies and standardized practices associated with the use of the
                Program. This increased communication and added consistencies in
                practice may help agencies place more PMF finalists and provide a more
                positive developmental experience for those finalists who get placed.
                Accordingly, we are proposing that an agency must have at least one PMF
                Coordinator in a position at the agency's headquarters, in a position
                at or higher than grade 12 of the General Schedule (GS) or other
                equivalent pay and classification system. In addition, OPM recommends
                building the capacity within agencies, by designating PMF Coordinators
                at the headquarters level of a departmental component or sub-agency
                level. Additionally, we are proposing that the PMF Coordinator will be
                responsible for administering the agency's PMF Program including
                coordinating the recruitment of PMF finalists, coordinating and
                overseeing the on-boarding and certification processes for PMF Program
                Participants, coordinating the agency's PMF Program plan to ensure it
                is integrated with agency-wide workforce plans, and reporting to OPM on
                the agency's implementing of its PMF program. If an agency chooses to
                use more than one PMF Coordinator, at least one must be at the
                headquarters level and in a position at the GS-12 level or higher. If
                an agency designates multiple PMF Coordinators, they must work
                collaboratively to administer the agency's PMF Program. For example, a
                large agency may have a GS-12 PMF Coordinator at the headquarters level
                and additional coordinators in the component level offices may be at
                whatever grade level the agency finds appropriate.
                Section 362.107 Conversion to the Competitive Service
                 OPM is proposing to revise Sec. 362.107(c)(2) to allow a Recent
                Graduate, who has successfully completed program requirements, to be
                converted to a position in the competitive service within the employing
                agency or another agency within the Federal Government. This change
                will provide agencies additional flexibilities to capitalize on the
                Federal Government's investment in training and development of a Recent
                Graduate when the employing organization has determined resource
                restrictions prevent the agency from converting a Recent Graduate to a
                permanent or term position within the agency.
                 OPM continues to expect an eligible Recent Graduate to convert to a
                position at the agency that hired them as a Recent Graduate (either in
                the organization in which they are employed, or another component
                within the same Department or agency) before the Recent Graduate may
                convert to a different Department or agency. Indeed, agencies who hire
                Recent Graduates are required to have engaged in sufficient strategic
                workforce planning to allow for a plan to convert the Recent Graduate
                to a permanent position in the agency upon successful completion of the
                program. This is an important safeguard to protect against the
                possibility of agencies becoming overly reliant on Recent Graduates who
                cycle through every few years but never land permanent positions with
                the agency.
                 Nonetheless, it is reasonable to expect that an agency may
                encounter obstacles that prevent conversion within the agency. For
                example, unforeseen budgetary constraints may affect the agency's
                ability to convert the Recent Graduate. New priorities brought about by
                a new law or policy could require agencies to shift resources and focus
                away from the jobs to which the Recent Graduate is eligible to convert.
                OPM believes that, given the nature of such unexpected obstacles, it is
                in the interests of efficient and effective administration of the civil
                service to provide for opportunities for Recent Graduates who have
                successfully completed their program and meet the requirements for
                conversion to be able to convert at agencies other than the one that
                initially hired them as a Recent Graduate. Such conversion can occur
                for any position for which the Recent Graduate is qualified and at the
                grade level to which the Recent Graduate would have been converted
                within the agency that appointed them had the opportunity been
                available. The position in another component of the same agency or at
                the new agency must have a full performance level that is equivalent or
                less than the position at the prior agency. The initial agency has
                invested in the development of the Recent Graduate and, if it is unable
                to convert them, other agencies should have that opportunity so that
                the investment in the Recent Graduate is not lost to the Federal
                Government. OPM proposes that the employing agency should determine
                within a reasonable period of time (e.g., 90 to 120 days before
                conversion deadline) whether or not they intend to convert the Recent
                Graduate to a position in either the component or the broader agency.
                If the agency is unable to convert the eligible Recent Graduate, then
                the Recent Graduate may be converted to a position in a different
                agency.
                 We welcome comments on how to balance an agency right of first
                refusal in converting their Recent Graduates with Recent Graduates
                choosing whether to convert if there are opportunities at other
                agencies. We are also interested in comments on whether conversion at
                other agencies should be limited to situations where the employing
                agency is unable to convert due to a lack of resources or if conversion
                should occur at another agency for any reason. Comments in favor of
                conversion at another agency for any reason should address the types of
                reasons or situations where conversion at another agency may be
                allowed.
                 For the same reasons stated above with respect to eligible Recent
                Graduates, OPM is also proposing to allow eligible Presidential
                Management Fellows to be converted to a position in the competitive
                service either within the employing agency or at another agency within
                the Federal Government. For reader clarity we are proposing to move the
                revised provision on PMFs to proposed Sec. 362.107(c)(3).
                Section 362.108 Oversight
                 OPM is proposing to revise Sec. 362.108 by amending Sec.
                362.108(b)(1) to remove the reference to an MOU and replace it
                [[Page 55590]]
                with a reference to the agency's Pathways Policy in accordance with the
                proposed change at Sec. 362.104 described above.
                Section 362.109 Reporting Requirements
                 The regulations in Sec. 362.109 require agencies to provide OPM
                with information on workforce planning strategies and their use of the
                Pathways Programs on an annual basis. OPM is proposing to clarify this
                requirement by modifying Sec. 362.109 to indicate that reporting is
                required on a fiscal year basis. OPM proposes starting the updated
                requirement in FY 2024 because that is the target fiscal year for
                publication of the final rule. In addition, since FY 2010, OPM has
                required reporting on an annual basis. Because the Pathways rules and
                programs have been effective since that time and OPM receives regular
                feedback on these programs on an on-going basis, we believe a 3-year
                reporting cycle is more appropriate and will reduce any administrative
                burdens this requirement may present to agency Pathways users.
                Accordingly, we are proposing to modify the reporting requirement to
                once every three years, i.e., beginning in FY 2024 and then again in FY
                2027, and so on.
                Section 362.111 Severability
                 Severability is an important remedial doctrine that arises in cases
                challenging the legality of statutes and agency rules. When reviewing a
                rule, if a court determines that a particular provision is unlawful,
                severability addresses whether judicial relief should extend to the
                entire rule or whether it can be limited to the invalid provision,
                leaving in effect the remainder of the rule.\4\ OPM is proposing to add
                a new Sec. 362.11 to address the issue of severability. OPM intends
                and expects that if any part or section is held to be invalid or
                unenforceable as applied to any person or circumstance, that part or
                section shall be construed so as to continue to give the maximum effect
                to the provision permitted by law, including as applied to persons not
                similarly situated or to dissimilar circumstances, unless such holding
                is that the provision is invalid and unenforceable in all
                circumstances, in which event the provision shall be severable from the
                remainder of this Part and shall not affect the remainder thereof. We
                have come to this determination because the Pathways Programs
                encompassed three discrete programs with different implementing
                provisions. Should provisions related to one of the programs be held to
                be invalid we believe that the other programs should be severable and
                would not be impacted.
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                 \4\ https://www.acus.gov/sites/default/files/documents/tailoring-the-scope-of-judicial-remedies-in-administrative-law-final-report.pdf.
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                Subpart B Internship Program
                362.202 Definitions
                 OPM is proposing to include a definition for Intern not-to-exceed
                (Intern NTE). We are proposing this change because it is the general
                way that Interns and agencies refer to Interns who have been appointed
                for an initial period of up to one year.
                 OPM is also proposing to modify the definition of student to
                include individuals enrolled or accepted for enrollment in a qualifying
                career or technical education program. We are proposing this change to
                make the Pathways Internship Program more inclusive of individuals in
                career or technical education programs that award a post-secondary
                certification or credential. Eligible career or technical education
                programs would include programs such as Registered Apprenticeship
                programs and the Job Corps programs. Section 3 of E.O. 13562 states
                that the Internship Program shall provide opportunities for, ``. . .
                students in high schools, community colleges, 4-year colleges, trade
                schools, career and technical education programs, and other qualifying
                educational institutions and programs, as determined by OPM . . .''.
                Consistent with the direction in E.O. 13562, OPM has determined that
                career and technical education programs that provide a recognized post-
                secondary credential such as Registered Apprenticeships and Jobs Corps
                programs meet the criteria of career and technical education programs
                expressed in E.O. 13562.
                362.203 Filling Positions
                 Since the implementation of the Pathways Internship Program in
                2012, OPM, through administrative guidance, has required that agencies
                must post internship positions on USAJOBS.gov before filling these
                positions. Over the years, agencies have noted that this requirement
                can substantially lengthen the hiring process and can hinder agencies'
                ability to effectively recruit and retain early career talent.
                Therefore, OPM is proposing changes to this requirement to give
                agencies greater flexibility to recruit and retain early career talent
                and therefore to advance the goals of E.O. 13562. It should be noted
                that the flexibility to recruit in an efficient manner must be balanced
                with the agency's responsibility to uphold fair and open competition.
                 OPM proposes that agencies can meet the public notice requirement
                in one of two ways: (1) posting a searchable announcement on
                www.USAJOBS.gov, as is currently required; or (2) posting job
                information on the agency's public facing career or job information web
                page with a link to a USAJOBS custom posting.
                 With respect to this second option, a USAJOBS custom posting
                generates a unique URL that agencies can use for the job announcement.
                An agency can create a custom job posting in its talent acquisition
                system (TAS). OPM will have the posting stored within USAJOBS, and
                therefore can use USAJOBS to collect applicant data analytics for trend
                reporting and applicant flow data purposes, but the custom job posting
                will not appear in USAJOBS searches. Therefore, to facilitate
                applicants' access to these internship opportunities, OPM will provide
                a centralized source through which applicants can be directed to the
                locations on agency-specific web pages where applicants can learn about
                these opportunities.
                 For either of these two options--either a searchable announcement
                on USAJOBS or a link to a USAJOBS custom posting on the agency's public
                career or job information web page--agencies can promote the job
                posting on third party websites and recruitment boards or recruiting
                platforms, social media platforms, in trade publications, and at
                college and university events.
                 OPM is proposing these changes to assist agencies in their
                recruitment and retention efforts and as informed by the public
                notification requirements provided in recent statutory changes for
                early career hiring authorities for Post-Secondary Students and College
                Graduates (5 U.S.C. 3116 and 3115). OPM specifically invites comments
                regarding these changes and whether they will assist agencies and
                ultimately improve the hiring experience for Interns and Recent
                Graduates, thereby better advancing the purposes of E.O. 13562.
                 OPM is proposing to revise Sec. 362.203(d) to remove the reference
                to an MOU and replace it with a reference to the agency's Pathways
                Policy. The conforming change is necessary due the proposed change in
                Sec. 362.104 described above.
                 Both agencies and employees have asked for clarity on the ability
                of an agency to promote Interns. Eligibility for promotion is
                determined based on the type of appointment given. Employees
                [[Page 55591]]
                on temporary appointments (initial appointments of not-to-exceed one
                year) are not eligible for promotions. Employees on non-temporary
                appointments (initial appointments of more than one year made without a
                not-to-exceed date) are eligible for promotion. For this reason, we are
                revising Sec. 362.203(e) to reflect that those Interns whose
                appointments are expected to last more than one year without a not-to-
                exceed date may be promoted when they meet the qualification
                requirements for a higher graded position. The change also provides
                that Interns NTEs (on temporary appointments not-to-exceed one year)
                are not eligible for promotions.
                 Agencies participating in the Pathways Internship Program are
                required to provide Interns with meaningful developmental work and set
                clear expectations regarding the work experience of the Intern as
                indicated in Sec. 362.104. Identifying and allowing Interns to
                participate in training opportunities such as job training activities,
                formal training classes, mentoring sessions, testing products or tools,
                organizing work activities or functions, and assisting colleagues with
                projects or tasks will help ensure that Interns have meaningful work
                experiences that will help to adequately prepare Interns for Federal
                service. For this reason, we are proposing to modify the regulations at
                Sec. 362.203 by adding a new paragraph (i) that requires agencies to
                provide Interns with meaningful onboarding activities and training and
                development opportunities. Agencies should document training
                information using training plans, Individual Development Plans (IDP) or
                the Pathways Participant Agreement. Appropriate training opportunities
                may include but are not limited to on-the-job training activities,
                formal training classes, mentoring sessions, testing products or tools,
                organizing work activities or functions, and assisting colleagues with
                projects or tasks.
                Section 362.204 Conversion to the Competitive Service
                 Currently, agencies must convert an Intern to a permanent position
                in the competitive service within 120 days of the Intern's completion
                of a degree and the program requirements. Agencies have indicated that
                they face challenges in completing additional background investigations
                and adjudications that may be required to encumber the position
                following conversion. OPM is proposing to extend this time for
                conversion from 120 calendar days to 180 calendar days in Sec.
                362.204(b)(2). Though we are extending the timeline to assist agencies
                and Interns in securing conversion, we continue to urge agencies to
                move promptly to complete conversion upon the Intern's completion of
                the degree or qualifying career or technical education program and
                program requirements. Lengthy delays in conversion can pose a financial
                hardship on the Intern and lead to them seeking employment elsewhere.
                 Currently, an Intern must complete a minimum of 640 hours of work
                experience while in the Internship Program to be eligible for
                conversion. Under Sec. 362.204(c) an agency may credit time served in
                comparable non-Federal Internships, in which an Intern is working in,
                but not for, a Federal agency, for up to half of that time (320 hours)
                when that service occurred prior to an Internship appointment. OPM
                proposes to modify the provisions in Sec. 362.204(c) to allow agencies
                to also credit time served in a Registered Apprenticeship Program at a
                Federal agency prior to the appointment as an Intern toward the 640-
                hour requirement. As with the time served in non-Federal internships,
                time served in Registered Apprenticeship Program can count for up to
                half of the minimum 640 hours. We are also proposing that an agency may
                count time spent in a Department of Labor Job Corps program, prior to
                appointment as an Intern, toward the 640-hour work requirement. It is
                important to note that all time served by participants in Registered
                Apprenticeship Programs or Job Corps Programs (after the publication of
                the final rule) while appointed as a Pathways Intern will be creditable
                toward the 640-hour requirement as allowed by Sec. 362.204(b). This
                provision for crediting time toward conversion would only be needed for
                those Interns who may have participated in a Registered Apprenticeship
                Program or Job Corps program prior to a current Intern appointment
                where eligibility was based on enrollment in a subsequent qualifying
                program after completing the Registered Apprenticeship Program. For
                example, an Intern currently enrolled in a bachelor's degree program
                has completed 320 work hours as an Intern prior to completing her
                degree. The Intern had participated in a Registered Apprenticeship
                Program at a Federal agency two years before their appointment as an
                Intern. Up to 320 hours from the prior Registered Apprenticeship
                Program may be credited toward the 640-hour requirement.
                 OPM invites comments on other ways to strengthen the provisions
                that agencies may credit or waive up to 320 hours toward an Intern's
                640-hour service requirement.
                Section 362.205 Reduction in Force (RIF) and Termination
                 OPM is proposing to change the provision for termination of an
                Intern appointment from 120 days after completion of a degree to 180
                days after the completion of a degree. This conforming change is
                necessary based on the proposed change in Sec. 362.204(b)(2)
                pertaining to the conversion window described above.
                 We are also proposing to make conforming changes in this section to
                incorporate the new term Intern NTE.
                Subpart C Recent Graduates Program
                Section 362.301 Program Administration
                 OPM is proposing to revise Sec. 362.301(a) to remove the reference
                to an MOU and replace it with a conforming reference to the agency's
                Pathways Policy in accordance with the proposed change at Sec.
                362.104.
                Section 362.302 Eligibility
                 One objective of E.O. 13562, as stated under section 1, is to
                enable the Federal Government to ``compete effectively'' for talent and
                avoid ``being at a competitive disadvantage compared to private-sector
                employees when it comes to hiring qualified applicants for entry level
                positions.'' In the years since the creation of the Pathways Programs,
                employment trends in other sectors have shifted to better recognize the
                value of and utilize skills-based hiring over reliance on degrees. The
                Governors of Colorado,\5\ Alaska,\6\ and Pennsylvania \7\ among others,
                have issued Executive orders to promote skills-based hiring for state
                government jobs and reduce or eliminate degree requirements. According
                to a Burning Glass Institute report, major companies in the technology
                services field are dropping degree requirements for a significant share
                of their entry-level and
                [[Page 55592]]
                above positions.\8\ Federal policies have also started to change, as
                demonstrated by E.O. 13932 of June 26, 2020, Modernizing and Reforming
                the Assessment and Hiring of Federal Job Candidates, which directed the
                Federal Government to increase its use of skills-based hiring to fill
                positions. Consistent with E.O. 13562's objective of enabling the
                Federal Government to compete effectively for qualified applicants to
                fill entry-level positions under current workforce and job marketplace
                conditions, OPM is proposing to modify the eligibility criteria for the
                Recent Graduate Program in Sec. 362.302 to include individuals who
                have completed a career or technical education program.
                ---------------------------------------------------------------------------
                 \5\ Executive Order D-2022-015: Concerning Skills-based Hiring
                for the State Workforce (https://www.colorado.gov/governor/sites/default/files/inline-files/D%202022%20015%20Skills%20Based%20Hiring%20EO.pdf).
                 \6\ Administrative Order No. 343 (https://gov.alaska.gov/admin-orders/administrative-order-no-343/).
                 \7\ Executive Order 2023-03: Creating Opportunities by
                Prioritizing Work Experience for State Government Jobs (https://www.oa.pa.gov/Policies/eo/Documents/2023-03.pdf).
                 \8\ The Emerging Degree Reset (https://static1.squarespace.com/static/6197797102be715f55c0e0a1/t/6202bda7f1ceee7b0e9b7e2f/1644346798760/The+Emerging+Degree+Reset+%2822.02%29Final.pdf).
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                 The current regulation includes a definition of the term
                ``qualifying educational institutions'' under Sec. 362.102 but does
                not include a definition of ``qualifying career or technical education
                program.'' As noted in the discussion of Sec. 362.102, we are
                proposing a definition of career or technical education programs to
                include programs such as Registered Apprenticeship Programs, the
                Department of Labor-administered Job Corps, the Peace Corps, and
                AmeriCorps. Individuals who have completed such career or technical
                education programs, much like college graduates who have graduated from
                a qualifying educational institution, may be at a disadvantage for
                competitive service hiring, as they lack significant previous work
                experience. See E.O. 13562, Sec. 1 (noting that existing competitive
                hiring process favors job applicants who have significant previous work
                experience and therefore finding it necessary to create an excepted
                hiring authority for the Pathways Programs).
                 OPM has specifically identified four Federal programs that meet the
                criteria under this definition of ``qualifying career or technical
                education program'': Registered Apprenticeship Programs, the Department
                of Labor-administered Job Corps Programs, the Peace Corps, and
                AmeriCorps. Graduates and alumni from these programs are uniquely
                positioned to apply for Federal positions because they have been
                accepted into a government-administered program that is regulated by
                specific standards, and the Federal Government has already invested
                funding and personnel resources toward their success. Many of these
                participants have been pre-screened with background checks or
                investigations before joining these programs, and they have already
                demonstrated an inclination toward government service through their
                participation. Additionally, these programs attract more diverse
                participants relative to the broader U.S. workforce and creating a more
                robust applicant pipeline from these programs to Pathways Programs
                would help further the objective of E.O. 13562 to draw from all parts
                of American society. OPM believes that overtly defining this term will
                assist agencies as they seek to access additional talent pools that
                they can draw upon to meet their missions.
                 OPM invites comments regarding the inclusion of career and
                technical education programs in the eligibility criteria for the Recent
                Graduate Program. OPM is particularly interested whether we should
                establish restrictions or criteria for the types of programs that would
                meet the eligibility criteria.
                Section 362.303 Filling Positions
                 For the reasons discussed above regarding Sec. 362.203, OPM is
                proposing to revise Sec. 362.303(a)--the job posting requirements for
                Recent Graduates--in the same manner as has been proposed for Interns
                in Sec. 362.203(a). OPM believes that these changes will enable
                agencies to better recruit and retain early career talent and therefore
                advance the goals of E.O. 13562. OPM invites comments on these changes,
                as discussed above.
                 OPM is proposing to revise Sec. 362.303(b)(1) and (c) to remove
                the reference to an agency's MOU and replace it with a reference to the
                agency's Pathways Policy. The conforming change is necessary due the
                proposed change in Sec. 362.104.
                 OPM's qualification standards for white collar jobs allows
                education alone to be qualifying for non-research positions at the GS-
                11 level and below. The standards also allow education alone to be
                qualifying at the GS-12 level for research positions. For this reason,
                OPM is proposing to revise Sec. 362.303(b)(i) to allow initial
                appointments of a Recent Graduate to any position filled under the
                authority up the GS-11 level. The existing provisions in the
                regulations to allow appointments at the GS-12 level for research
                positions in Sec. 362.303(b)(iv) remains unchanged.
                Section 362.305 Conversion to the Competitive Service
                 OPM is proposing to modify Sec. 362.305 to permit conversion to a
                term or permanent position in a different agency. The proposed change
                adds a new paragraph (c) which provides that conversion at a different
                agency may only occur when the employing agency documents it is unable
                to convert the Recent Graduate. An agency may determine that it is
                unable to convert the Recent Graduate for reasons related to a lack of
                available positions for which the Recent Graduate is qualified due to
                unforeseen funding or budgetary constraints or limitations,
                reorganizations, abolishment of positions, or other appropriate
                reasons. It is important to note that a Recent Graduate is not entitled
                to conversion at the employing agency or another agency. Conversions
                may only be offered to those Recent Graduates who have successfully
                completed the Recent Graduate Program requirements and demonstrated
                successful job performance resulting in a rating of record (or summary
                rating) of at least Fully Successful or equivalent and have a
                recommendation for conversion from the first level supervisor. Recent
                Graduates who do not meet these criteria or have misconduct issues or
                unsuccessful performance may not be converted to a position in the
                employing agency or another agency. Additionally, such a conversion
                must occur on or before the end of the agency prescribed Program
                period, plus any agency-approved extension, and the position at the new
                agency must have a career ladder or full promotion potential that is
                the same or lower than the position at the former agency.
                Subpart D Presidential Management Fellows Program
                Section 362.401 Definitions
                 OPM is proposing to revise the definition of Agency PMF Coordinator
                in Sec. 362.401. This conforming change is necessary due to the
                proposed change in Sec. 362.104(a)(8).
                Section 362.404 Appointment and Extension
                 OPM is proposing to revise Sec. 362.404(a)(1) and (b) to remove
                the references to an agency's MOU and replace it with a reference to
                the agency's Pathways Policy. This conforming change is necessary due
                to the proposed change in Sec. 362.104.
                 Presidential Management Fellows (Fellows) are generally given full-
                time work schedules. However, there are times when an agency may need
                the flexibility to offer a part-time work schedule to Fellows for
                limited periods of time. For example, as a reasonable accommodation due
                to a medical condition, illness, or injury, or
                [[Page 55593]]
                caregiving responsibilities for family members, an agency could
                authorize a part-time work schedule for a period of 3 to 6 months while
                the Fellow recovers. For this reason, OPM is proposing to modify Sec.
                362.404 by adding paragraph (e) to provide agencies with the discretion
                to authorize a part-time work schedule for limited period of up to 6
                months during the program if the agency and Fellow have determined that
                it would not negatively impact the Fellow's ability to meet all program
                requirements by the expiration of the Fellow's appointment. An agency
                is not required to approve a part-time schedule. When a part-time
                schedule is being approved, it should be approved for the shortest
                amount of time necessary because the Fellow must complete all program
                requirements within the two-year program period and any approved
                extension. In situations where the Fellow may have entitlements under
                the Family Medical Leave Act, the use of a part-time work schedule may
                supplement those entitlements.
                Section 362.405 Development, Evaluation, Promotion, and Certification
                 Currently, Sec. 362.405(a) provides that a Fellow must (1) have an
                Individual Development Plan (IDP) in place within 45 days upon entering
                on duty, (2) have a Mentor in place within 90 days, and (3) be able to
                consult the Mentor in the development of the IDP. The different time
                frames for developing an IDP and identifying a mentor creates a
                situation where most Fellows do not have a Mentor in place prior to and
                during the initial development of their IDP. For this reason, we are
                proposing to modify Sec. 362.405(a) to require an IDP within 90 days.
                This will allow the Mentor to participate in the development of the IDP
                with the Fellow and the manager. OPM encourages agencies and Fellows to
                identify Mentors and create IDPs as soon as practicable but no later
                than 90 days after the appointment.
                 OPM is proposing to modify Sec. 362.405(b)(1) to reflect that OPM
                will provide leadership development activities and general program
                resources instead of an orientation program. Years of experience with
                the PMF program has led us to conclude that the agency-specific PMF
                orientation is far more valuable to individuals selected as Fellows
                than a centrally provided orientation program. Fellows are going to
                work for a particular agency. While there are centrally managed
                activities for Fellows, the employing agency is primarily responsible
                for the day-to-day activities of their PMF Fellow cohort. Fellows need
                to learn about their agency and where their job fits into it.
                Clarifying that agencies are responsible for PMF orientation--which
                many already are providing--reduces confusion between agencies and OPM
                about responsibilities and provides a better on-boarding experience for
                Fellows. OPM views its role as providing meaningful leadership
                development activities and resources throughout the program lifecycle.
                This proposed change will better reflect the reality of how the program
                is administered today, which is a model that will lead to a better on-
                boarding experience for Fellows.
                 Currently, Sec. 362.405(b)(4)(i) requires agencies to provide for
                a minimum of one developmental assignment of 4 to 6 months' duration.
                It also allows that as an alternative to this developmental assignment
                Fellows may choose to participate in an agency-wide, Presidential or
                Administration initiative that will provide experience comparable to
                the developmental assignment. Fellows and agencies have found this
                description of an alternative to be confusing and duplicative.
                Accordingly, we are instead providing examples that we expect will
                assist agencies and Fellows alike. Specifically, we note that
                developmental assignments could include projects requiring
                implementation of a new Executive order, major piece of legislation,
                agency reorganization, or cross-agency collaboration on a major
                Administration initiative. Cross-agency collaboration on a new program
                or service, establishment of a new program or office, or drafting a
                report would be additional types of projects that could serve as a
                developmental assignment. We welcome further comment on other examples.
                 Agencies may also provide Fellows with an additional short term
                rotational assignment of up to 6 months. Over the years, Fellows and
                agencies have inquired about whether such assignments are limited to
                the employing agency or if they may also occur in other agencies. To
                clarify this matter OPM is proposing to revise Sec. 362.405(b)(4)(ii)
                to indicate that short term rotational assignments may take place
                within the Fellow's organization, in another component of the agency,
                or in another Federal agency at the employing agency's discretion.
                 OPM is proposing to clarify the information about Executive
                Resource Board (ERB) certification of completion to indicate how
                certification relates to the eligibility for conversion in the current
                agency or a different agency. We are proposing to modify Sec.
                362.405(d)(2) and (4) to indicate that a Fellow who is successfully
                certified may be converted in accordance with Sec. 362.409 and that a
                Fellow who is not approved for ERB certification is not eligible for
                conversion. This change is necessitated by the change in Sec. 362.107
                to allow the conversion of a Fellow in the employing agency or a
                different agency. The losing agency is responsible for the ERB
                certification.
                Section 362.409 Conversion to the Competitive Service
                 OPM is proposing to modify in Sec. 362.409 to allow conversion to
                a term or permanent position in a different agency. The proposed change
                adds a new paragraph (c), which would require that conversion at
                another agency is allowed only when the employing agency documents that
                there no available positions in the current organizational unit or
                elsewhere in the employing agency (including its various components)
                for which the Fellow is qualified. An agency may determine that it is
                unable to convert the Fellow for reasons related to a lack of available
                positions for which the Fellow is qualified due to unforeseen funding
                or budgetary constraints or limitations, reorganizations, abolishment
                of positions, or other appropriate reasons. It is important to note
                that a Fellow is not entitled to conversion at the employing agency or
                another agency. Conversions may only be offered to those Fellows who
                have successfully completed the PMF Program requirements including the
                performance and developmental expectations set forth in the Fellow's
                performance plan and IDP; and has received ERB-certification of
                completion. Fellows who do not meet this criteria or have misconduct
                issues or unsuccessful performance may not be converted to a position
                in the employing agency or another agency. The proposed change would
                also require that such conversion must occur on or before the end of
                the agency prescribed Program period, plus any agency-approved
                extension, and the position at the new agency must have a career ladder
                or full promotion potential that is the same or lower than the position
                at the former agency.
                 OPM welcomes comments on whether the employing agency should have
                priority in converting their Recent Graduates or Fellows or if,
                instead, the Recent Graduates or Fellows should be able to choose where
                to convert if there are opportunities at other agencies.
                [[Page 55594]]
                Part 410 Training
                Section 410.306 Selecting and Assigning Employees to Training
                 OPM is proposing to replace the outdated reference to the former
                Student Career Experience Program (SCEP) program in 5 CFR 10.306(c)
                with a reference to the Pathways Internship Program.
                Expected Impact of This Proposed Rule
                A. Statement of Need
                 OPM is proposing these regulations to update the Pathways Programs
                to facilitate a better applicant experience, to improve developmental
                opportunities for Pathways Programs participants, and to streamline
                agencies' ability to hire Pathways Program participants and convert to
                permanent employment those that have successfully completed their
                Pathways requirements. Robust Pathways Programs with appropriate
                safeguards to promote its use as a supplement to, and not a substitute
                for, the competitive hiring process is essential to boosting the
                Federal Government's ability to recruit and retain early career talent.
                B. Impact
                 The proposed rule modifies existing regulations for the Pathways
                Programs for hiring Interns and Recent Graduates and for the
                Presidential Management Fellowship Program. We anticipate that these
                changes will improve and enhance the effectiveness of the Pathways
                Programs consistent with E.O. 13562, which requires OPM to support
                agency use of programs to recruit students and recent graduates.
                 In fiscal year 2021, agencies made 8,039 new appointments using the
                Pathways Programs hiring authorities (4,873 Interns, 2,828 Recent
                Graduates and 338 Presidential Management Fellows). It is important to
                note that, while these proposed changes may enhance the way the
                agencies use the program, they are only one of several factors
                impacting whether the number of appointments made will increase or
                decrease. Other factors not addressed or impacted by these regulations
                such as agency resources available for hiring and recruiting will also
                need to be considered when evaluating the effectiveness of the programs
                in helping agencies reach their recruiting and hiring goals.
                C. Costs
                 This proposed rule will affect the operations of over 80 Federal
                agencies--ranging from cabinet-level departments to small independent
                agencies. We estimate that this proposed rule will require individuals
                employed by these agencies to modify policies and procedures to
                implement the rule and perform outreach and recruitment activities when
                using the authority. For the purpose of this cost analysis, the assumed
                average salary rate of Federal employees performing this work will be
                the rate in 2022 for GS-14, step 5, from the Washington, DC, locality
                pay table ($143,064 annual locality rate and $68.55 hourly locality
                rate). We assume that the total dollar value of labor, which includes
                wages, benefits, and overhead, is equal to 200 percent of the wage
                rate, resulting in an assumed labor cost of $137.10 per hour.
                 In order to comply with the regulatory changes in this NPRM,
                affected agencies would need to review the final rule and update their
                policies and procedures. We estimate that, in the first year following
                publication of the final rule, this would require an average of 250
                hours of work by employees with an average hourly cost of $137.10. This
                would result in estimated costs in that first year of implementation of
                about $34,275 per agency, and about $2,742,000 in total Governmentwide.
                We do not believe this proposed rule will substantially increase the
                ongoing administrative costs to agencies (including the administrative
                costs of administering the programs and hiring and training new staff).
                This is because the proposed rule is modifying existing programs and
                recruitment of students and recent graduates is an ongoing need.
                D. Benefits
                 The proposed changes will boost the Federal Government's ability to
                recruit and retain early career talent. For example, the proposed
                change to modify the public notice requirement will provide agencies
                with additional flexibility when recruiting and may also lead to a
                better applicant experience. The proposed changes to allow the
                conversion of eligible Recent Graduates and Presidential Management
                Fellows to competitive service positions in the employing agency or
                another agency will provide flexibility when resource restrictions
                would otherwise prevent conversion. When an agency is unable to convert
                the eligible Recent Graduate or Presidential Management Fellow the
                agency and the government lose the expertise and knowledge the
                participant has gained during the program. However, the opportunity for
                conversion at another agency may prevent that loss. The extension of
                the 120-day period for the conversion of Interns to 180 days provides
                agencies the benefit of being able to convert those interns who may
                have been separated when the background investigation or vetting
                process exceeded the 120-day limit.
                 Executive Order 14035 of June 25, 2021, Diversity, Equity,
                Inclusion, and Accessibility in the Federal Workforce, establishes an
                initiative on diversity, equity, inclusion, and accessibility (DEIA) in
                the Federal workforce. As part of OPM's work, a Government-Wide
                Strategic Plan to Advance Diversity, Equity, and Accessibility in the
                Federal Workforce was released in November 2021.\9\ This plan directs
                agencies to prioritize a number of efforts to support sustainability
                and continued improvement on DEIA matters. This includes seeking
                opportunities to promote paid internships, fellowships, and
                apprenticeships. The proposed updates to the Pathways Programs will
                help inform and support agency efforts to use and promote paid
                internships.
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                 \9\ https://www.whitehouse.gov/wp-content/uploads/2021/11/Strategic-Plan-to-Advance-Diversity-Equity-Inclusionand-Accessibility-in-the-Federal-Workforce-11.23.21.pdf.
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                E. Regulatory Alternative
                 E.O. 13562 authorized OPM to establish regulations to implement the
                Pathways Programs. Over the years OPM has issued guidance in addition
                to these regulations to assist agencies in using the Programs. However,
                the proposed changes in this notice of proposed rulemaking (NPRM)
                address issues that require a modification of the existing regulations
                and cannot be changed by guidance alone. For example, OPM believes that
                agencies need additional flexibility to convert participants in the
                Recent Graduate and PMF programs to positions in another agency. The
                existing regulations limit the conversion of Recent Graduate or PMF
                participants to positions in the employing agency. We have determined
                that a change to these regulatory provisions is required to provide the
                additional flexibility agencies requested.
                Request for Comment and Data
                 In addition to the information contained in the regulatory
                analysis, OPM requests comment on whether to modify several aspects of
                this rulemaking. Such information will be useful for better
                understanding the impact of these regulations on hiring by Federal
                agencies. OPM welcomes the public's views on the following:
                 Whether Recent Graduates and Presidential Management
                Fellows should be able to convert to positions at a different agency.
                OPM recognizes that agencies may encounter obstacles preventing the
                conversion of Recent Graduates and Presidential Management
                [[Page 55595]]
                Fellows. OPM believes that given the nature of such unexpected
                obstacles, it is in the interests of efficient and effective
                administration to provide for opportunities for Recent Graduates and
                Presidential Management Fellows who have successfully completed their
                program and meet the requirements for conversion to be able to convert
                at agencies other than the one that initially hired them as a Recent
                Graduate. The initial agency has invested in the development of the
                Recent Graduate and Presidential Management Fellow and, if it is unable
                to convert them, other agencies should have that opportunity so that
                the investment in the Recent Graduate or Presidential Management Fellow
                is not lost to the Federal Government.
                 Whether the employing agency should have a right of first
                refusal in converting their Recent Graduates and Presidential
                Management Fellows, as currently proposed, or if, instead, the Recent
                Graduates and Presidential Management Fellows should be able to choose
                where to convert if they have multiple offers.
                 How could OPM structure the Pathways Intern conversion
                process to maximize the Federal enterprise's ability to recruit and
                retain qualified interns following the conclusion of their internship?
                Should OPM consider alternative conversion timelines (e.g., greater
                than 180 days), alternative internship service requirements,
                alternative interagency conversion rules, or specific waiver/exception
                conditions?
                 Whether the proposed public notice options for filling
                positions under the Internship Program and Recent Graduates Program
                will enable agencies to more effectively recruit and retain early
                career talent than the current process. In addition to allowing
                agencies to post searchable job opportunities at USAJOBS, OPM is also
                proposing to allow agencies to post job information with a link to a
                USAJOBS custom posting on their agency websites, with OPM providing a
                centralized place where applicants can be directed to those postings on
                the agency websites. OPM specifically invites comments on these changes
                and whether they will assist agencies with better advancing the
                purposes of E.O. 13562.
                 Ways to strengthen the proposed provision that allows
                agencies to waive or credit up to 320 hours toward an Intern's 640-hour
                service requirement for these programs. OPM encourages commenters to
                provide examples of alternate criteria that could be used for the
                credit or waiver provisions. Are there practical considerations or
                specific waiver/exception conditions OPM should consider when setting
                the 640-hour requirement? Should agencies be able to consider and
                credit work experience from non-Federal Internships for up to 320
                hours? Comments in favor of crediting non-Federal experience should
                address the types of criteria and documentation that could be used to
                evaluate such experiences.
                 Whether OPM should consider making a change to the 640-
                hour service requirement that must be met for conversion of an Intern.
                Although this proposal retains the existing 640-hour Pathways hours of
                service requirement to be eligible for non-competitive conversion, OPM
                is open to adopting a different hourly requirement in the final rule.
                OPM is interested in learning more about non-Federal entities' best
                practices with regard to internship conversion pipelines, especially if
                there are innovative programs that integrate specific internship
                requirements (hours of service, content, skill-based assessment) with
                defined pathways into career paths. OPM encourages commenters who
                suggest a different length for the work hour requirement to discuss the
                advantages and/or disadvantages of such a change.
                 Whether to revise the PMF regulations by clarifying the
                developmental assignment requirement by providing examples that we
                expect will assist agencies and Fellows alike. Projects requiring
                implementation of a new Executive order, major piece of legislation,
                agency reorganization, or cross-agency collaboration on a major
                Administration initiative would be the sorts of projects that could
                serve as a developmental assignment. OPM welcomes further comments and
                other examples that could satisfy this requirement from the public.
                 OPM invites comments regarding the inclusion of career and
                technical education programs as meeting the eligibility criteria for
                the Recent Graduate Program. In this proposed regulation, the
                definition includes Federal programs: Job Corps, Registered
                Apprenticeship Programs, Peace Corps, and AmeriCorps. We are interested
                in comments as to whether these programs are appropriate. We are also
                interested in whether we should include non-Federal programs in the
                definition of career and technical education programs. Comments that
                advocate for inclusion of non-Federal programs should address the types
                of criteria and documentation that could be used to justify why those
                who complete such programs should be eligible for the Recent Graduates
                Program. OPM welcomes data showing the effectiveness and comparability
                to Federal programs that could support an expansion of eligibility.
                Executive Orders 13563, 12866, and 14094 Regulatory Review
                 Executive Orders 13563, 12866, and 14094 direct agencies to assess
                all costs and benefits of available regulatory alternatives and, if
                regulation is necessary, to select regulatory approaches that maximize
                net benefits (including potential economic, environmental, public
                health and safety effects, distributive impacts, and equity). Executive
                Order 13563 emphasizes the importance of quantifying both costs and
                benefits, of reducing costs, of harmonizing rules, and of promoting
                flexibility. In accordance with the provisions of Executive Order
                12866, this proposed rule was reviewed by the Office of Management and
                Budget as a significant, but not significant under section (3)(f)(1),
                rule.
                Regulatory Flexibility Act
                 The Director of the Office of Personnel Management certifies that
                this proposed rule will not have a significant economic impact on a
                substantial number of small entities because it applies only to Federal
                agencies and employees.
                E.O. 13132 Federalism
                 This regulation will not have substantial direct effects on the
                States, on the relationship between the National Government and the
                States, or on distribution of power and responsibilities among the
                various levels of government. Therefore, in accordance with Executive
                Order 13132, it is determined that this proposed rule does not have
                sufficient federalism implications to warrant preparation of a
                Federalism Assessment.
                E.O. 12988 Civil Justice Reform
                 This regulation meets the applicable standard set forth in section
                3(a) and (b)(2) of Executive Order 12988.
                Unfunded Mandates Reform Act of 1995
                 This proposed rule will not result in the expenditure by State,
                local, or tribal governments, in the aggregate, or by the private
                sector, of more than $100 million annually. Thus, no written assessment
                of unfunded mandates is required.
                [[Page 55596]]
                Paperwork Reduction Act (44 U.S.C. 3501-3521)
                 Notwithstanding any other provision of law, no person is required
                to respond to, nor shall any person be subject to a penalty for failure
                to comply with, a collection of information subject to the requirements
                of the Paperwork Reduction Act of 1995 (44 U.S.C. 3501 et seq.) (PRA),
                unless that collection of information displays a currently valid Office
                of Management and Budget (OMB) Control Number. This proposed rule
                involves the following OMB-approved collections of information subject
                to the PRA: OMB Control Number 3206-0219, USAJOBS 3.0 and OMB Control
                Number 3206-0082, OPM 1300 (PMF Program Annual Application) OPM
                believes any additional burden associated with this proposed rule falls
                within the existing estimates currently associated with these control
                numbers. We do not anticipate that the implementation of this proposed
                rule will increase the cost burden to members of the public. Additional
                information regarding these collections of information--including all
                background materials--can be found at https://www.reginfo.gov/public/do/PRAMain by using the search function to enter either the title of
                the collection or the OMB Control Number.
                List of Subjects
                5 CFR Part 300
                 Government employees.
                5 CFR Part 362
                 Administrative practice and procedure, Colleges and universities,
                Government employees.
                5 CFR Part 410
                 Education, Government employees.
                Office of Personnel Management.
                Kayyonne Marston,
                Federal Register Liaison.
                 For reasons stated in the preamble, the Office of Personnel
                Management proposes to amend 5 CFR parts 300, 315, 362, and 410 as
                follows:
                PART 300--EMPLOYMENT (GENERAL)
                0
                1. The authority citation for part 300 continues to read as follows:
                 Authority: 5 U.S.C. 552, 2301, 2302, 3301, and 3302; E.O.
                10577, 3 CFR 1954-1958 Comp., page 218, unless otherwise noted.
                 Secs. 300.101 through 300.104 also issued under 5 U.S.C. 7201,
                7204, and 7701; E.O. 11478, 3 CFR 1966-1970 Comp., page 803, E.O.
                13087; and E.O. 13152.
                 Secs. 300.401 through 300.408 also issued under 5 U.S.C.
                1302(c).
                 Secs. 300.501 through 300.507 also issued under 5 U.S.C.
                1103(a)(5).
                 Sec. 300.603 also issued under 5 U.S.C. 1104.
                Subpart C--Details of Employees
                0
                2. Revise Sec. 300.301(b) to read as follows:
                Sec. 300.301 Authority.
                * * * * *
                 (b) In accordance with 5 U.S.C. 3341, an agency may detail an
                employee in the excepted service to a position in the excepted service
                and may also detail an excepted service employee serving under Schedule
                A, Schedule B, Schedule D, or a Veterans Recruitment Appointment, to a
                position in the competitive service.
                * * * * *
                PART 362--PATHWAYS PROGRAMS
                0
                3. The authority citation for part 362 continues to read as follows:
                 Authority: E.O. 13562, 75 FR 82585. 3 CFR, 2010 Comp., p. 291.
                Subpart A--General Provisions
                0
                4. Amend Sec. 362.102 by:
                0
                a. Revising the definition for ``Advanced degree'';
                0
                b. Adding the definition for ``Certificate of completion of a
                Registered Apprenticeship Program'' in alphabetical order;
                0
                c. Revising the definition for ``Certificate program''; and
                0
                d. Adding the definitions for ``Industry-recognized credential'',
                ``Qualifying career or technical education program'', ``Recognized
                postsecondary credential'', and ``Registered Apprenticeship Program''
                in alphabetical order.
                 The revisions and additions read as follows:
                Sec. 362.102 Definitions.
                * * * * *
                 Advanced degree means a master's degree, professional degree,
                doctorate degree, or other formal degree pursued after completing a
                bachelor's degree.
                * * * * *
                 Certificate of completion of a Registered Apprenticeship Program
                means the documentation given to individuals who have successfully
                completed a Registered Apprenticeship Program.
                 Certificate program means post-secondary education in a:
                 (1) Qualifying educational institution, equivalent to at least one
                academic year of full-time study that is part of an accredited post-
                secondary, technical, trade, or business school curriculum; or
                 (2) Qualifying career or technical education program that awards a
                recognized postsecondary credential or industry recognized credential.
                * * * * *
                 Industry-recognized credential means:
                 (1) A credential or certificate that is developed and offered by,
                or endorsed by, a nationally or regionally recognized industry
                association or organization representing a sizeable portion of the
                industry sector, or
                 (2) A credential that is sought or accepted by companies within the
                industry sector for purposes of hiring or recruitment, which may
                include credentials from vendors of certain products.
                * * * * *
                 Qualifying career or technical education program means:
                 (1) An organized educational program, administered through a
                Federal agency, that focuses on providing rigorous academic content and
                relevant technical knowledge and skills needed to prepare the
                individual for further education and/or a career in a current or
                emerging profession and provides technical skill proficiency and a
                recognized postsecondary credential (which may include an industry-
                recognized credential, a certificate, or an associate degree); or
                 (2) A Registered Apprenticeship Program; or
                 (3) Service in a Federally-administered local, state, national, or
                international volunteer service program or organization designed to
                give individuals work and or educational experiences in volunteer
                programs that benefit the Federal Government or local communities.
                Qualifying volunteer service must be documented with written
                information from the federally sponsored program of successful
                completion of at least one year of volunteer service.
                * * * * *
                 Recognized postsecondary credential means documentation (e.g.,
                official record) of an industry-recognized certificate or
                certification, a certificate of completion of a Registered
                Apprenticeship Program, a license recognized by the State involved or
                Federal Government, or an associate's or baccalaureate degree.
                 Registered Apprenticeship Program means a program that meets the
                requirements in 29 CFR part 29. Approval of registration is evidenced
                by a Certificate of Registration or other written documentation as
                provided by the respective career or technical education establishment.
                0
                5. Revise Sec. 362.104 to read as follows:
                [[Page 55597]]
                Sec. 362.104 Agency requirements.
                 (a) Agency policy. In order to make any appointment under a
                Pathways authority, an agency must establish a Pathways Policy. The
                Pathways Policy must:
                 (1) Include information about any agency-specific program labels
                that will be used, subject to the Federal naming conventions identified
                in Sec. 362.101 (e.g., OPM Internship Program);
                 (2) State the delegations of authority for the agency's use of the
                Pathways Programs (e.g., department-wide vs. bureaus or components);
                 (3) Include any implementing policy or guidance that the agency
                determines would facilitate successful implementation and
                administration for each Pathways Program;
                 (4) Prescribe criteria and procedures for agency-approved
                extensions for Recent Graduates and PMFs, not to exceed 120 days.
                Extension criteria must be limited to circumstances that would render
                the agency's compliance with the regulations impracticable or
                impossible;
                 (5) Describe how the agency will design, implement, and document
                formal training and/or development, as well as the type and duration of
                assignments;
                 (6) Include a commitment from the agency to:
                 (i) Provide to OPM any information it requests on the agency's
                Pathways Programs;
                 (ii) Adhere to any caps on the Pathways Programs imposed by the
                Director;
                 (iii) Provide information to OPM about opportunities for
                individuals interested in participating in the Pathways Programs, upon
                request from OPM;
                 (iv) Provide a meaningful on-boarding process for each Pathways
                Program;
                 (7) Identify the agency's Pathways Programs Officer (PPO), who:
                 (i) Must be in a position at the agency's headquarters level, or at
                the headquarters level of a departmental component, in a position at or
                higher than grade 12 of the General Schedule (GS) (or the equivalent
                under the Federal Wage System (FWS) or another pay and classification
                system);
                 (ii) Is responsible for administering the agency's Pathways
                Programs, including coordinating the recruitment and on-boarding
                process for Pathways Programs Participants, and coordinating the
                agency's Pathways Programs plan with agency stakeholders and other
                hiring plans (e.g., merit promotion plans, and agency plans pursuant to
                Executive Order (E.O.) 14035, ``Diversity, Equity, Inclusion, and
                Accessibility (DEIA) in the Federal Workforce'');
                 (iii) Serves as a liaison with OPM by providing updates on the
                agency's implementation of its Pathways Programs, clarifying technical
                or programmatic issues, sharing agency best practices, and other
                similar duties; and
                 (iv) Reports to OPM on the agency's implementation of its Pathways
                Programs and individuals hired under these Programs, in conjunction
                with the agency's Pathways Policy; and
                 (8) Identify the agency's Presidential Management Fellows (PMF)
                Program Coordinator who:
                 (i) Must be in a position at the agency's headquarters level, or at
                the headquarters level of a departmental component, or sub-agency
                level, in a position at or higher than grade 12 of the General Schedule
                (GS) (or the equivalent under the Federal Wage System (FWS) or another
                pay and classification system);
                 (ii) Is responsible for administering the agency's PMF Program
                including coordinating the recruitment, on-boarding, and certification
                processes for PMF Program Participants, and coordinating the agency's
                PMF Program plan to ensure it is integrated with agency-wide workforce
                plans;
                 (iii) Serves as a liaison with OPM by providing updates on the
                agency's implementation of its PMF Program, clarifying technical or
                programmatic issues, sharing agency best practices, and other similar
                duties; and
                 (iv) Reports to OPM on the agency's implementation of its PMF
                Program and individuals hired under the PMF Program.
                 (b) Submission of agency policies to OPM. Beginning in FY 2024 an
                agency must make an initial submission of the agency's Pathways Policy
                to OPM as required in paragraph (a) of this section. Submission of an
                updated policy is required only when the agency makes substantive
                changes to the policy.
                0
                6. Amend Sec. 362.107 by revising paragraph (c)(2) and adding
                paragraph (c)(3) to read as follows:
                Sec. 362.107 Conversion to the competitive service.
                * * * * *
                 (c) * * *
                 (2) A Recent Graduate may be converted to a position within the
                employing agency or any other agency within the Federal Government.
                Conversion to a different agency may occur when the employing agency is
                unable to convert the Recent Graduate to a term or permanent position
                in the competitive service in the agency (including its various
                components).
                 (3) A Presidential Management Fellow (Fellow) may be converted
                within the employing agency or any other agency within the Federal
                Government. Conversion to a different agency may occur when the
                employing agency is unable to convert the Fellow to a term or permanent
                position in the competitive service in the employing agency (including
                its various components).
                * * * * *
                0
                7. Amend Sec. 362.108 by revising paragraph (b)(1) to read as follows:
                Sec. 362.108 Program oversight.
                * * * * *
                 (b) * * *
                 (1) An agency's compliance with its Pathways Policy;
                * * * * *
                0
                8. Revise Sec. 362.109 to read as follows:
                Sec. 362.109 Reporting requirements.
                 Agencies must provide information requested by OPM regarding
                workforce planning strategies that includes:
                 (a) Information on the entry-level occupations targeted for filling
                positions under this part in the coming three fiscal years;
                 (b) The percentage of overall hiring expected in the coming three
                fiscal years under the Internship, Recent Graduates, and Presidential
                Management Fellows Programs; and
                 (c) Every three fiscal years beginning with fiscal year (FY)--2024
                (i.e., FY24 and then again in FY27, etc.):
                 (1) The number of individuals initially appointed under each
                Pathways Program;
                 (2) The percentage of the agency's overall hires made from each
                Pathways Program;
                 (3) The number of Pathways Participants, per Program, converted to
                the competitive service; and
                 (4) The number of Pathways Participants.
                0
                9. Add Sec. 362.111 to read as follows:
                Sec. 362.111 Severability.
                 Any provision of part 362 held to be invalid or unenforceable as
                applied to any person or circumstance shall be construed so as to
                continue to give the maximum effect to the provision permitted by law,
                including as applied to persons not similarly situated or to dissimilar
                circumstances, unless such holding is that the provision is invalid and
                unenforceable in all circumstances, in which event the provision shall
                be severable from the remainder of this part and shall not affect the
                remainder thereof.
                [[Page 55598]]
                Subpart B--Internship Program
                0
                10. Revise Sec. 362.202 to read as follows:
                Sec. 362.202 Definitions.
                 In this subpart:
                 Intern Not-to-Exceed (Intern NTE) means an Intern appointed for an
                initial period not to exceed one year.
                 Student means an individual who is:
                 (1) Accepted for enrollment or enrolled and seeking a degree
                (diploma, certificate, etc.) in a qualifying educational institution,
                on a full or half-time basis (as defined by the institution in which
                the student is enrolled), including awardees of the Harry S. Truman
                Foundation Scholarship Program under Public Law 93-842. Students need
                not be in physical attendance, so long as all other requirements are
                met. An individual who needs to complete less than the equivalent of
                half an academic/vocational or technical course-load immediately prior
                to graduating is still considered a student for purposes of this
                Program; or
                 (2) Enrolled or accepted for enrollment in a qualifying career or
                technical education program that awards a recognized postsecondary
                credential.
                0
                11. Amend Sec. 362.203 by:
                0
                a. Revising paragraphs (a), (d)(1) and (e); and
                0
                b. Adding paragraph (i).
                 The revisions and addition read as follows:
                Sec. 362.203 Filling positions.
                 (a) Announcement--(1) Public notice requirement. An agency must
                adhere to merit system principles and thus must provide public
                notification in a manner designed to recruit qualified individuals from
                appropriate sources in an endeavor to draw from all segments of
                society. For the purposes of this paragraph (a), ``agency'' means an
                Executive agency as defined in 5 U.S.C. 105 and the Government Printing
                Office. An Executive department may treat each of its bureaus or
                components (i.e., the first major subdivision that is separately
                organized and clearly distinguished from other bureaus or components in
                work function and operation) as a separate agency or as part of one
                agency but must do so consistent with its Delegated Examining
                Agreement.
                 (2) Meeting the public notice requirement. An agency may use the
                following options for meeting the public notice requirement:
                 (i) Posting a searchable announcement on www.USAJOBS.gov; or
                 (ii) Posting job information with a link to a USAJOBS custom job
                announcement on the agency's public facing career or job information
                web page. This custom posting must provide applicants with information
                about how to apply or seek additional information about the position(s)
                being filled, while also providing information regarding that job
                announcement to OPM.
                 (iii) The agency may also consider whether additional recruitment
                and advertisement activities to supplement paragraphs (a)(2)(i) and
                (ii) of this section, such as posting to third-party websites, are
                necessary or appropriate to further support merit system principles.
                 (3) Contents of announcements. Announcements used to meet the
                public notice requirement must include:
                 (i) Position information. Position title, series, and grade;
                 (ii) Position location. Geographic location where the position will
                be filled;
                 (iii) Appointment length. Duration of the appointment;
                 (iv) Salary information. The starting salary of the position;
                 (v) Qualifications. The minimum qualifications of the position;
                 (vi) Promotion potential. Whether the individual in the position
                will be eligible for promotion to higher grade levels;
                 (vii) Conversion information. The potential for conversion to the
                agency's permanent workforce;
                 (viii) How to apply. A public source (e.g., a link to the location
                on the agency's website with information on how to apply) for
                interested individuals to seek further information about how to apply
                for Intern opportunities;
                 (ix) Equal employment information. Equal employment opportunity
                statement (Agencies may use the recommended equal employment
                opportunity statement located on OPM's USAJOBS website);
                 (x) Reasonable accommodation information. Reasonable accommodation
                statement;
                 (xi) Other relevant information. Any other relevant information
                about the position such as telework opportunities, recruitment
                incentives, etc.; and
                 (xii) Other requirements. Any other information OPM considers
                appropriate.
                 (4) Other information. OPM will publish information on Internship
                opportunities in such form as the Director may determine.
                * * * * *
                 (d) * * *
                 (1) An agency may make Intern appointments, pursuant to its
                Pathways Policy, under Schedule D of the excepted service in accordance
                with part 302 of this chapter.
                * * * * *
                 (e) Promotion. An agency may promote an Intern, on an initial
                appointment expected to last more than one year (without a not to
                exceed (NTE) date) who meets the qualification requirements for the
                position. An Intern NTE on a temporary appointment is not eligible for
                promotion. This provision does not confer entitlement to promotion.
                * * * * *
                 (i) Required developmental activities. Agencies are required to
                provide appropriate training and development activities to Interns
                regardless of the length of the appointment. OPM recommends that
                agencies ensure, within 45 days of appointment, that each Intern,
                appointed for an initial period expected to last more than 1 year, or
                an Intern NTE appointed for more than 90 days, an agency documents its
                planned use of training activities in a training plan, Individual
                Development Plan (IDP), or the Pathways Participant Agreement that is
                approved by his or her supervisor. Documenting of training activities
                for is also recommended for an Intern NTE appointed for an initial
                period less than 90 days. Appropriate training opportunities may
                include but are not limited to on-the-job training activities, formal
                training classes, mentoring sessions, testing products or tools,
                organizing work activities or functions, and assisting colleagues with
                projects or tasks.
                0
                12. Amend Sec. 362.204 by:
                0
                a. Revising paragraph (b)(2);
                0
                b. Revising paragraph (c)(1)(ii) and (iii);
                0
                c. Adding paragraph (c)(1)(iv); and
                0
                d. Revising paragraph (c)(2).
                 The revisions and addition to read as follows:
                Sec. 362.204 Conversion to the competitive service.
                * * * * *
                 (b) * * *
                 (2) Completed a course of academic study, within the 180-day period
                preceding the appointment, at a qualifying educational institution
                conferring a diploma, certificate, or degree; or successful completion
                in a qualifying career or technical educational program.
                * * * * *
                 (c) * * *
                 (1) * * *
                 (ii) Worked in, but not for, a Federal agency, pursuant to a
                written contract with a third-party internship provider officially
                established to provide internship experiences to students that are
                comparable to the Internship Program under this subpart;
                [[Page 55599]]
                 (iii) Served as an active-duty member of the armed forces
                (including the National Guard and Reserves), as defined in 5 U.S.C.
                2101, provided the veteran's discharge or release is under honorable
                conditions; or
                 (iv) Worked in a Registered Apprenticeship Program at a Federal
                Agency (prior to appointment as an Intern).
                 (2) Student volunteer service under part 308 of this chapter, and
                other Federal programs designed to give internship experience to
                students (e.g., fellowships and similar programs) including a
                Department of Labor Job Corps Program prior to an intern appointment
                may be evaluated, considered, and credited under this section when the
                agency determines the experience is comparable to experience gained in
                the Internship Program.
                * * * * *
                0
                13. Revise Sec. 362.205 to read as follows:
                Sec. 362.205 Reduction in force (RIF) and termination.
                 (a) Reduction in force. Interns and Interns NTE are covered by part
                351 of this chapter for purposes of RIF.
                 (1) Tenure Groups. (i) An Intern serving under an appointment for
                an initial period expected to last more than 1 year is in excepted
                service Tenure Group II.
                 (ii) An Intern NTE who has not completed 1 year of service, is in
                excepted service Tenure Group 0.
                 (iii) An Intern NTE serving under a temporary appointment not to
                exceed 1 year, who has completed 1 year of current, continuous service,
                is in excepted service Tenure Group III.
                 (2) [Reserved]
                 (b) Termination--(1) Intern. As a condition of employment an Intern
                appointment expires 180 calendar days after completion of the
                designated academic course of study, unless the Participant is selected
                for noncompetitive conversion under Sec. 362.204.
                 (2) Intern NTE. As a condition of employment an Intern NTE
                appointment expires upon expiration of the temporary Internship
                appointment, unless the Participant is selected for noncompetitive
                conversion under Sec. 362.204.
                Subpart C--Recent Graduate Program
                0
                14. Amend Sec. 362.301 by revising paragraph (a) to read as follows:
                Sec. 362.301 Program administration.
                * * * * *
                 (a) Identify in its Pathways Policy the duration of its Recent
                Graduates Program, including any criteria used to determine the need
                for a longer and more structured training program that exceeds 1 year;
                * * * * *
                0
                15. Amend Sec. 362.302 by revising paragraph (a) to read as follows:
                Sec. 362.302 Eligibility.
                 (a) A Recent Graduate is an individual who obtained a qualifying
                associate's, bachelor's, master's, professional, doctorate, vocational
                or technical degree or certificate from a qualifying educational
                institution or completed a qualifying career or technical education
                program within the previous 2 years or other applicable period provided
                below.
                * * * * *
                0
                16. Amend Sec. 362.303 by revising paragraphs (a), (b)(1), and
                (b)(3)(i) to read as follows:
                Sec. 362.303 Filling positions.
                 (a) Announcement--(1) Public notice requirement. An agency must
                adhere to merit system principles and thus must provide public
                notification in a manner designed to recruit qualified individuals from
                appropriate sources in an endeavor to draw from all segments of
                society. For the purposes of this paragraph (a), ``agency'' means an
                Executive agency as defined in 5 U.S.C. 105 and the Government Printing
                Office. An Executive department may treat each of its bureaus or
                components (i.e., the first major subdivision that is separately
                organized and clearly distinguished from other bureaus or components in
                work function and operation) as a separate agency or as part of one
                agency but must do so consistent with its Delegated Examining
                Agreement.
                 (2) Meeting the public notice requirement. An agency may use the
                following options for meeting the public notice requirement:
                 (i) Posting a searchable announcement on www.USAJOBS.gov; or
                 (ii) Posting job information with a link to a USAJOBS custom job
                announcement on the agency's public facing career or job information
                web page. This custom posting must provide applicants with information
                about how to apply or seek additional information about the position(s)
                being filled, while also providing information regarding that job
                announcement to OPM.
                 (iii) The agency may also consider whether additional recruitment
                and advertisement activities to supplement paragraphs (a)(2)(i) and
                (ii) of this section, such as posting on third-party websites, are
                necessary or appropriate to further support merit system principles.
                 (3) Contents of announcements. Announcements used to meet the
                public notice requirement must include:
                 (i) Position information. Position title, series, and grade;
                 (ii) Position location. Geographic location where the position will
                be filled;
                 (iii) Salary information. The starting salary of the position;
                 (iv) Qualifications information. The minimum qualifications of the
                position;
                 (v) Promotion potential. Whether the individual in the position
                will be eligible for promotion to higher grade levels;
                 (vi) Conversion information. The potential for conversion to the
                agency's permanent workforce;
                 (vii) How to apply. A public source (e.g., a link to the location
                on the agency's website with information on how to apply) for
                interested individuals to seek further information about how to apply
                for Recent Graduate opportunities; and
                 (viii) Equal employment information. Equal employment opportunity
                statement (Agencies may use the recommended equal employment
                opportunity statement located on OPM's USAJOBS website);
                 (ix) Reasonable accommodation information. Reasonable accommodation
                statement;
                 (x) Other relevant information. Any other relevant information
                about the position such as telework opportunities, recruitment
                incentives, etc.; and
                 (xi) Other requirements. Any other information OPM considers
                appropriate.
                 (4) Other Information. OPM will publish information on Recent
                Graduate opportunities in such form as the Director may determine.
                 (b) * * *
                 (1) An agency may make appointments to the Recent Graduates Program
                pursuant to its Pathways Policy under Schedule D of the excepted
                service in accordance with part 302 of this chapter.
                * * * * *
                 (3)(i) An agency may make an initial appointment of a Recent
                Graduate to any position filled under this authority for which the
                Recent Graduate qualifies, up to the GS-11 level (or equivalent under
                another pay and classification system, such as the Federal Wage
                System), except as provided in paragraphs (b)(3)(ii) through (iv) of
                this section.
                * * * * *
                0
                17. Amend Sec. 362.305 by adding paragraph (c) to read as follows:
                [[Page 55600]]
                Sec. 362.305 Conversion to the Competitive Service.
                * * * * *
                 (c) A Recent Graduate may be converted to a permanent or term
                position at a different agency when the following conditions are met:
                 (1) The employing (or losing) agency documents that the agency is
                unable to convert the Recent Graduate to a term or permanent position
                in the competitive service in the current organizational unit of the
                employing agency or another component within the same Department or
                agency. The documentation of this must address the reason(s) why
                conversion did not occur in the agency. These reasons may include
                unforeseen budgetary constraints; reorganizations; abolishment of
                positions; or other appropriate reasons. Such a conversion to another
                agency may not be due to issues related to misconduct, poor
                performance, or suitability.
                 (2) Conversion must occur on or before the end of the agency
                prescribed Program period, plus any agency-approved extension; and
                 (3) The position at the new agency must have a full performance
                level that is equivalent or less than the position at the prior agency.
                Subpart D--Presidential Management Fellows Program
                0
                18. Amend Sec. 362.401 by removing the definition for ``Agency PMF
                Coordinator'' and adding the definition for ``Agency Presidential
                Management Fellows (PMF) Program Coordinator'' to read as follows:
                Sec. 362.401 Definitions.
                 Agency Presidential Management Fellows (PMF) Program Coordinator
                has the same meaning as described in Sec. 362.104(a)(8); is an
                individual, at the appropriate agency component level, who coordinates
                the placement, development, and other Program-related activities of
                PMFs appointed in his or her agency. The agency Pathways Programs
                Officer may also serve as the PMF Coordinator.
                * * * * *
                0
                19. Amend Sec. 362.404 by revising paragraph (a)(1) and adding
                paragraph (e) to read as follows.
                Sec. 362.404 Appointment and extension.
                 (a) Appointments. (1) An agency may make 2-year appointments to the
                PMF Program, pursuant to a Pathways Policy executed with the OPM, under
                Schedule D of the excepted service in accordance with part 302 of this
                chapter.
                * * * * *
                 (e) Work schedules. A Fellow will generally have a full-time work
                schedule. An agency may authorize a part-time work schedule for a
                limited period of up to 6 months during the PMF Program if the agency
                and Fellow have determined that it would not negatively impact the
                Fellow's ability to meet all program requirements by the expiration of
                the Fellow's appointment. An agency's Pathways Policy must outline the
                conditions under which a part-time work schedule may be authorized. The
                Fellow's Pathways Participant agreement should be updated with the new
                work schedule information when a part-time work schedule is approved.
                0
                20. Amend Sec. 362.405 by revising paragraphs (a), (b)(1), (4) and
                (5), (d)(2) and adding paragraph (d)(4)(iii) to read as follows:
                Sec. 362.405 Development, evaluation, promotion, and certification.
                 (a) Individual Development Plans. An agency must approve, within 90
                days, an Individual Development Plan (IDP) for each of its Fellows that
                sets forth the specific developmental activities that are mutually
                agreed upon by each Fellow and his or her supervisor. The IDP must be
                developed in consultation with the Agency PMF Coordinator and/or the
                mentor assigned to the Fellow under paragraph (b)(3) of this section.
                 (b) Required developmental activities. (1) OPM will provide
                leadership development activities and general program resources for
                each class or cohort of Fellows and will provide information on
                available training opportunities known to it. Agencies must provide
                appropriate agency specific onboarding and employee orientation
                activities.
                * * * * *
                 (4) The agency must provide each Fellow with at least one
                rotational or developmental assignment with full-time management and/or
                technical responsibilities consistent with the Fellow's IDP. With
                respect to this requirement:
                 (i) Each Fellow must receive at least one developmental assignment
                of 4 to 6 months in duration, with management and/or technical
                responsibilities consistent with the Fellow's IDP.
                 (ii) The developmental assignment may be within the Fellow's
                organization, in another component of the agency, or in another Federal
                agency as permitted by the employing agency.
                 (iii) Examples of appropriate developmental assignments may include
                projects implementing a new Executive order or, major piece of
                legislation, agency reorganization, or cross-agency collaboration on a
                major administration initiative.
                 (5) The Fellow may receive other short-term rotational assignments
                of 1 to 6 months in duration, at the agency's discretion. A short-term
                rotational assignment may take place within the Fellow's organization,
                in another component of the agency, or in another Federal agency as
                permitted by the employing agency.
                * * * * *
                 (d) * * *
                 (2) (i) The ERB must notify the Fellow of its decision regarding
                certification of successful completion.
                 (ii) A Fellow who receives successful certification is eligible for
                conversion in accordance with Sec. 362.409.
                * * * * *
                 (4) * * *
                 (iii) A Fellow who is not approved for certification and whose
                appeal to OPM is denied is not eligible for conversion in accordance
                with Sec. 362.409.
                0
                21. Amend Sec. 362.409 by revising paragraph (b) and adding paragraph
                (c) to read as follows:
                Sec. 362.409 Conversion to the competitive service.
                 (a) * * *
                 (b) An agency may convert, without a break in service, an ERB-
                certified Fellow to a competitive service term or permanent appointment
                in any position for which they are qualified.
                 (c) A Fellow who is being converted to a permanent or term position
                at a different agency is subject to the following conditions:
                 (i) The employing (or losing) agency documents that the agency is
                unable to convert the Fellow to a term or permanent position in the
                competitive service in the employing agency. The documentation must
                address the reason(s) why conversion did not occur in the agency. These
                reasons may include unforeseen funding or budgetary constraints or
                limitations, reorganizations, abolishment of positions, or other
                appropriate reasons. Such a conversion to another agency may not be due
                to issues related to failure to obtain certification from the agency's
                Executive Resources Board, misconduct, poor performance, or
                suitability.
                 (ii) Conversion must occur on or before the end of the agency
                prescribed Program period, plus any agency-approved extension; and
                 (iii) The position at the new agency must have a full performance
                level that is equivalent or less than the position at the losing
                agency.
                PART 410--TRAINING
                0
                22. The authority citation for part 410 continues to read as follows:
                [[Page 55601]]
                 Authority: 5 U.S.C. 1103(c), 2301, 2302, 4101, et seq.; E.O.
                11348, 3 CFR, 1967 Comp., p. 275, E.O. 11478, 3 CFR 1966-1970 Comp.,
                page 803, unless otherwise noted, E.O. 13087; and E.O. 13152.
                0
                23. Amend Sec. 410.306 by revising paragraph (c) to read as follows:
                Sec. 410.306 Selecting and assigning employees to training.
                * * * * *
                 (c) Subject to the prohibitions of Sec. 410.308(a), an agency may
                pay all or part of the training expenses of students hired under the
                Pathways Internship Program (see 5 CFR part 362, subpart B).
                [FR Doc. 2023-17372 Filed 8-15-23; 8:45 am]
                BILLING CODE 6325-39-P
                

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