This bill, the Telework Reform Act of 2025, significantly amends title 5, United States Code, to update federal employee telework policies. It introduces new definitions, distinguishing between "telework" as a flexible arrangement and "remote work" as full-time work from an approved alternative site. These definitions clarify the scope and expectations for federal employees working outside traditional agency offices.

Executive agencies must now ensure telework agreements are for periods not longer than one year and undergo annual supervisor reviews assessing policy adherence, employee performance, and agency needs. Telework may be restricted if an employee is disciplined for unauthorized absence, performs below acceptable levels, or violates policy terms. The bill also limits travel reimbursement for remote workers within 75 miles of their agency-designated worksite, unless approved. It mandates annual training for managers and supervisors on accurate reporting of telework eligibility and participation.

Agencies must establish systems to confirm employees are working solely at approved worksites. The Office of Personnel Management (OPM) is directed to issue new guidelines for information and security protections for teleworking, with annual reviews by the Office of Management and Budget (OMB). Telework Managing Officers are required to conduct biennial surveys on telework effectiveness and maintain agency web pages as information portals. OPM reporting requirements are expanded to include detailed statistics on various telework frequencies and an analysis of productivity and cost savings.

OPM will prescribe new regulations for evaluating positions for telework eligibility, considering costs, and processing changes to remote worksites, including defining limited geographical boundaries. The Act establishes a noncompetitive appointment process for qualified covered veterans and spouses of Armed Forces members into remote work positions. Additionally, it creates a seven-year pilot program allowing noncompetitive appointment for spouses of law enforcement officers to remote work roles. The Director of OPM must report annually on the pilot program's effectiveness in recruitment and retention.