# Federal Agencies Face Reservist Pay Lawsuit

Federal agencies including the Departments of Defense, Justice, and Veterans Affairs are subject to a class action lawsuit alleging unlawful withholding of differential pay owed to federal reservists who served on active duty since 2009. This legal action follows a 2025 U.S. Supreme Court ruling affirming reservists' entitlement to differential pay during national emergencies. The Merit Systems Protection Board complaint and ongoing litigation highlight significant unresolved compensation liabilities and delayed policy updates by the Office of Personnel Management (OPM). Procurement and human resources professionals should be aware of potential financial impacts and compliance requirements related to reservist pay obligations.

- **Why this matters:** Federal contractors and agencies must monitor compliance with reservist differential pay regulations to avoid financial liabilities and ensure accurate payroll processing.
- The Office of Personnel Management is urged to update policies, indicating forthcoming procedural changes affecting federal workforce compensation.
- Agencies involved in contracting with reservists should evaluate their payroll systems and contract terms to address potential back pay claims.
- Legal developments may influence future contract negotiations and budgeting for personnel costs related to reservist activation.

**Jurisdictions:** federal
**Industries:** Defense & Military
**Topics:** Regulatory Compliance
**Published:** September 24, 2026

### Government Entities
- Office of Personnel Management (OPM)
- Department of Defense (DoD)
- Department of Justice (DOJ)
- Department of Veterans Affairs (VA)
- Merit Systems Protection Board (MSPB)

### Key Quotes
> The Supreme Court could not have been clearer: these men and women earned this pay, and the law requires the government to make them whole.
> — Andrew Tutt, Attorney, Trial Lawyers for Justice

### Sources
- [
        Reservists sue over years of unpaid differential pay | Federal News Network](https://federalnewsnetwork.com/litigation/2026/09/reservists-sue-over-years-of-unpaid-differential-pay) - Federal News Network