The proposal ties NDA violations to suitability determinations under 5 CFR Part 731, potentially expanding OPM's authority to terminate employees or bar them from federal service for up to five years. The scope of what constitutes a violation and how aggressively OPM will enforce the standard remain unclear. OPM cites a series of recent major leaks as justification for the move, but has not detailed which disclosures prompted the proposal.
Attorneys advising federal employees or contractors should monitor the public-comment period closely. The NDA raises unresolved First Amendment and whistleblower-retaliation questions that could face legal challenge. More immediately, the proposal will reshape federal hiring and personnel practices if finalized—agencies will need to revise onboarding procedures and counsel employees on the expanded confidentiality obligations and their connection to employment suitability.