Arbitrator Orders HUD to Restore Telework for Thousands of Federal Employees

In a decision issued February 18, 2026, third-party arbitrator Michael Loconto ordered the Department of Housing and Urban Development (HUD) to restore telework agreements for the roughly 7,000 employees in the bargaining unit represented by AFGE Council 222. Loconto found that HUD breached its union contract and federal labor statute when it required nearly all employees to return to fully on-site work beginning in February 2025 in response to a January “Return to In-Person Work” presidential memorandum. The arbitrator also ordered HUD to compensate employees for return-to-office costs, such as added commuting and dependent-care expenses. On March 20, 2026, HUD filed exceptions with the Federal Labor Relations Authority seeking reversal, calling the award “the most disruptive remedy available”; the agency is not obligated to comply while the appeal is pending, and HUD employees remain largely on site.