Arbitrator Orders IRS to Restore Telework Agreements, Rules Agency Unlawfully Repudiated Union Contract
An independent arbitrator, Christopher Shulman, has ordered the Internal Revenue Service (IRS) to restore telework and remote work agreements that were in effect prior to March 2025, ruling that the agency unlawfully repudiated its union contract with the National Treasury Employees Union (NTEU). The IRS had unilaterally cancelled telework agreements en masse in March 2025, despite a collective bargaining agreement requiring case-by-case review. The agency later withdrew from arbitration proceedings, citing President Trump's executive orders banning unions at federal agencies. Shulman conducted the hearing with the agency in absentia, noting that the dispute arose before the contract termination and that telework arrangements concern where work is performed, not management rights over work duties. He ordered the IRS to make whole any employees who suffered financial losses due to the unlawful cancellation.
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