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Elon Musk’s DOGE Layoffs Overturned: Federal Workers Left in Limbo

An IRS employee had been experiencing significant stress. For weeks, he feared losing his job due to potential workforce reductions spearheaded by President Donald Trump and Elon Musk. Preferring anonymity to avoid any repercussions, he frequently checked a Reddit forum for federal workers and participated in a group chat with his colleagues.

“I was just kind of a mess because I knew it was pretty much over,” he stated.

When the anticipated job cuts were confirmed and his manager informed him of his termination, the employee felt a sense of relief. He was among thousands of probationary workers dismissed during what was termed the “Valentine’s Day Massacre.”

“There was a period of expectation that this was going to happen—I was more or less just waiting for it. When I got the call, I was not surprised,” he explained.

In the past two months, significant portions of the federal workforce have been laid off through several measures, including a return-to-office mandate and an incentivized mass resignation. Probationary employees, who were either recent hires or employees who recently changed positions, were particularly targeted. In February, the Trump administration instructed federal agencies to dismiss nearly all of them. As of March 2024, government data showed approximately 220,000 federal employees had less than a year of service.

Recently, two court rulings directed the Trump administration to reinstate these dismissed probationary employees. However, many are now facing challenges upon returning, dealing with uncertainty and questions about the future.

“It’s beyond demoralizing to be stuck in this depressing and inefficient limbo—fired one moment, then supposedly rehired with no clarity about pay or benefits,” a Housing and Urban Development (HUD) employee remarked to Fortune, opting for anonymity due to possible repercussions. “I don’t even know if I should look for another job or prepare to show up at HUD tomorrow.”

Famously Fired

The dismissal of probationary workers led to immediate legal challenges, but the affected employees had to manage the abrupt loss of income, healthcare benefits, and significant life changes.

Without severance, the IRS employee promptly applied for unemployment benefits, but his application faced delays. Although he remains financially stable, his job search has not been fruitful.

Conversely, the HUD employee faced immediate financial difficulties, with her retired parents assisting with bills. The loss of health insurance caused significant anxiety due to her chronic illness. “It’s been one of the worst points of my life, in my marriage, [as] a mom, as a daughter,” she mentioned, revealing that she spent several days overwhelmed with sadness.

The New Purgatory

Last week, probationary employees received a reprieve. On March 14, U.S. District Judge William Alsup ordered the reinstatement of thousands of employees from six federal agencies, including the Department of Treasury, labeling the previous dismissals as illegal. Similarly, another federal judge in Maryland supported the reinstatement of fired probationary federal workers from 18 agencies following appeals from 20 Democrat attorneys general. The Trump administration has contested both rulings.

The reinstatement news was a bright spot for the HUD employee. “My parents were so happy—my dad started crying,” she said. Despite the court ruling being a technical victory, it primarily addressed the manner of dismissal, leaving many employees facing potential future terminations.

While some returned to their previous roles, others were reinstated and immediately placed on administrative leave, according to communications by the Office of Personnel Management (OPM). These individuals were instructed not to resume work until further guidance. Both the HUD and IRS employees have not received further instructions on their employment status.

The duration of this administrative leave remains uncertain. Agencies are handling the situation differently; as of March 17, HUD had fully reinstated 13 employees, while 299 were on administrative leave, as stated in court documents. Lori Michalski, HUD’s chief human capital officer, expressed that immediate reinstatement could cause significant disruption for the agency and affected employees.

The IRS stated in the same filing its efforts to reinstate approximately 7,613 employees. However, the agency noted possible multiple employment status changes should an appellate court reverse the reinstatements.

The day-to-day life of the affected IRS and HUD employees remains largely unchanged as they await further instruction on reinstatement. They anticipate receiving past pay in the upcoming cycle, albeit the HUD worker still lacks health insurance reinstatement.

The IRS employee expressed willingness to return if reinstated, acknowledging it is not a long-term solution. Meanwhile, the HUD employee has applied for numerous positions and attended one informational interview, reconsidering her government career choice for her family’s future.

“I don’t want to count on this federal job. I don’t know if it will last,” she concluded.

This report was originally published on Fortune.com

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