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IRS Facing New Lawsuit Over Return-To-Office Policy

November 5, 2026
IRS Facing New Lawsuit Over Return-To-Office Policy
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The IRS is facing a new legal challenge from its union, after the agency declined to restore telework for federal employees despite a recent arbitrator’s ruling ordering it to do so.

The National Treasury Employees Union on Thursday filed a lawsuit in the U.S. District Court for the District of Columbia, arguing that the IRS’s refusal to comply with the arbitration order violates the Administrative Procedure Act.

A third-party arbitrator ruling in July found that the IRS violated its collective bargaining agreement when it implemented the Trump administration’s return-to-office orders last year.

Despite the arbitrator’s order to restore telework and remote work arrangements for bargaining unit employees, NTEU’s new lawsuit contends that the IRS told agency managers the return-to-office policy should remain in effect. The agency asserted that workplace disputes are no longer subject to arbitration due to the cancellation of its collective bargaining agreement with NTEU.

Click here to read the rest of the article written by Federal News Network over at Maryland Matters

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