Facing discipline as a federal employee can feel like your career is collapsing in slow motion. You receive a proposed suspension, demotion, or removal, and panic sets in. You worry about your clearance, your pension, and your professional reputation—especially if an adverse action hits your SF-50, the official record that follows you for the rest of your federal career.

But here’s what most employees don’t realize: the proposal isn’t always the end of the story. With the right legal strategy and negotiation, it can become the beginning of a second chance—one that protects your record and your future.

At National Security Law Firm (NSLF), our federal employment lawyers have negotiated hundreds of alternative discipline resolutions, including Last Chance Agreements (LCAs) and clean SF-50 settlements that save careers, prevent removals, and protect security clearances.

This guide explains when and how to pursue these options, what risks to avoid, and how to use them strategically to maximize your case outcome.

Understanding Alternative Discipline

What Is Alternative Discipline?

“Alternative discipline” refers to any negotiated resolution of a disciplinary or adverse action that avoids formal penalties like removal or suspension appearing in your personnel file. These agreements are authorized under federal law and agency policy as a way to promote the efficiency of the service while giving the employee a second chance.

Alternative discipline can take many forms:

  • Last Chance Agreements (LCAs)

  • Clean SF-50s or neutral personnel records settlements

  • Resignations in lieu of removal

  • Reprimand substitutions

  • Temporary suspensions with record sealing

The goal is to avoid a permanent black mark on your employment record while satisfying the agency’s need for accountability.

The SF-50: Why It Matters

Your SF-50 is your permanent personnel record. It documents every personnel action—appointments, promotions, suspensions, removals—and follows you throughout your federal career.

A removal, demotion, or suspension SF-50 can make it extremely difficult to obtain future employment, renew a clearance, or qualify for federal contractor positions.

That’s why negotiating a “clean” SF-50—one that reflects a resignation, reassignment, or other neutral action rather than a removal—is often just as valuable as keeping your job.

Last Chance Agreements (LCAs) Explained

A Last Chance Agreement is a formal written contract between you and the agency that allows you to remain employed under strict conditions. Typically, it involves:

  1. Agency Suspension of Removal or Discipline: The agency agrees not to finalize a proposed removal or severe discipline.

  2. Employee Acknowledgment: You agree to comply with specific behavioral or performance terms for a set period, often one year.

  3. Automatic Consequence for Breach: If you violate the agreement, the agency can remove you without another full proposal-and-reply process.

LCAs are often used when the agency is willing to give a second chance—but wants to preserve leverage if problems continue.

When to Consider Negotiating a Last Chance Agreement

LCAs are powerful tools, but they’re not for everyone. Here’s when they make sense:

  • When removal is likely to be sustained by the Merit Systems Protection Board (MSPB) if appealed.

  • When the agency’s evidence is strong (e.g., admitted misconduct, positive drug test, or repeated attendance issues).

  • When the employee wants to keep retirement benefits, health insurance, and continuity of service.

  • When the employee’s security clearance or professional license depends on avoiding removal.

  • When time matters—LCAs can prevent lengthy appeals and allow immediate reinstatement.

When to Avoid a Last Chance Agreement

There are times when LCAs do more harm than good. Avoid signing one if:

  • The agency’s case is weak or procedurally flawed—you may win outright at the MSPB.

  • The LCA contains vague or one-sided terms, such as “any conduct the agency deems unacceptable.”

  • The agency refuses to specify a limited duration (typically 12 months).

  • The agreement waives too many rights, including grievance, EEO, or whistleblower claims.

  • The agency has a history of retaliating against employees who signed LCAs.

Our attorneys often negotiate tighter, fairer versions of LCAs that preserve due process while still giving clients a second chance.

Clean SF-50 Settlements

When the employment relationship has broken down beyond repair, a clean SF-50 settlement can be the smartest option.

In these agreements, the employee resigns or retires voluntarily, and the agency agrees to:

  • Withdraw the removal proposal.

  • Replace the pending SF-50 with a neutral entry (e.g., “Resignation” or “Voluntary Retirement”).

  • Provide a neutral reference for future employment.

  • Waive further disciplinary actions.

This kind of agreement can make the difference between a career-ending removal and a dignified transition that preserves your federal record, benefits, and professional reputation.

Example

A VA nurse facing removal for alleged patient care errors negotiates a clean SF-50 stating “Resignation for Personal Reasons.” The agency withdraws the removal notice, and she continues her nursing career with a federal contractor.

Strategic Considerations: How Agencies Think

Having former agency attorneys on our team gives NSLF insight into how deciding officials approach these deals. Here’s what drives their decisions:

  1. Time and Resources — Agencies prefer resolution over months of litigation.

  2. Optics — A quiet settlement avoids media attention and internal precedent-setting.

  3. Risk Avoidance — A negotiated agreement minimizes the risk of reversal or attorney-fee awards at the MSPB.

  4. Mitigation Evidence — Demonstrating remorse, rehabilitation, or improved performance makes agencies more receptive to alternative discipline.

Understanding these internal pressures allows us to craft proposals that appeal to both fairness and agency efficiency—a hallmark of NSLF strategy.

How to Negotiate an Effective Last Chance or Clean SF-50

  1. Engage Counsel Early
    Don’t wait until the day before your reply deadline. Early engagement allows your attorney to open dialogue with the agency before positions harden.

  2. Frame the Proposal Around Agency Interests
    Focus on efficiency, reduced litigation costs, and improved performance—not just what you want.

  3. Avoid “Any Violation” Clauses
    Require that any breach of an LCA be material and provable—not subjective.

  4. Define a Clear Time Limit
    Most LCAs should expire after 12 months of satisfactory service.

  5. Confirm SF-50 Language in Writing
    If a clean SF-50 is part of the deal, ensure the agreed language (e.g., “Resignation for Personal Reasons”) is attached as an exhibit.

  6. Retain Appeal Rights When Possible
    Avoid broad waivers of EEO, OSC, or whistleblower protections unless you are fully satisfied with the outcome.

Combining Strategies: LCAs and Clean SF-50s Together

In some cases, we negotiate hybrid settlements—a Last Chance Agreement that includes a pre-approved clean SF-50 if the employee successfully completes the probation period.

This approach protects the agency while giving the employee an opportunity to exit gracefully with a clean record if performance issues recur.

Common Pitfalls and How to Avoid Them

  • Signing under duress — Courts will void agreements signed under coercion or misinformation.

  • Failing to specify duration — An open-ended LCA is unenforceable and dangerous.

  • Allowing ambiguous breach terms — Insist on concrete, measurable expectations.

  • Over-waiving rights — Don’t surrender claims unrelated to the proposed discipline (e.g., pending EEO matters).

  • Failing to confirm SF-50 entries — Always verify the final personnel action before signing.

How Alternative Discipline Impacts Security Clearances and Suitability Reviews

Federal employees often focus on keeping their job—but for those in sensitive positions or clearance-requiring roles, the greater threat can be what happens after the discipline. Every entry on your SF-50, every settlement clause, and every disciplinary outcome may need to be disclosed on the SF-86 (Questionnaire for National Security Positions) or during future suitability adjudications.

How a Last Chance Agreement Affects Your Clearance

A Last Chance Agreement (LCA) itself does not automatically harm your clearance, but what’s inside it can. Adjudicators at the Defense Counterintelligence and Security Agency (DCSA), DOHA, and other clearance authorities routinely examine LCAs to assess:

  • Whether the underlying conduct raises concerns under Guideline E (Personal Conduct), Guideline J (Criminal Conduct), or Guideline F (Financial Considerations).

  • Whether the employee acknowledged responsibility and demonstrated rehabilitation.

  • Whether the misconduct involved trust, honesty, or judgment issues that could affect national security reliability.

Strategy Tip: A well-drafted LCA should include explicit language showing rehabilitation and agency confidence. Our attorneys often negotiate statements within the agreement confirming that the employee remains eligible for sensitive duties—language that can later prove invaluable in a clearance renewal or reinvestigation.

How Clean SF-50s Protect You

When an agency withdraws a removal proposal and replaces it with a neutral or voluntary personnel action, the new SF-50 often does not trigger mandatory reporting on the SF-86. You may still need to disclose the underlying incident, but a “Resigned for Personal Reasons” entry carries dramatically less risk than “Removed for Misconduct.”

Example:
A DHS analyst facing removal for misuse of government property negotiates a clean SF-50 showing “Voluntary Resignation.” During her periodic reinvestigation, she truthfully reports that she resolved a workplace issue through voluntary separation. Because no adverse action appeared in her record, the clearance adjudicator found no disqualifying concern.

What to Avoid

  • False or misleading disclosure: Omitting discipline entirely on an SF-86 can create greater risk under Guideline E than the incident itself.

  • Ambiguous agreement language: Avoid settlements that reference “removal held in abeyance” without clarifying the outcome; adjudicators may view that as an unresolved integrity issue.

  • Inconsistent documentation: Ensure your LCA, decision letter, and SF-50 all align—any inconsistency can raise red flags during background checks.

The NSLF Advantage

Because National Security Law Firm handles both federal employment and security clearance defense, our attorneys coordinate these outcomes across disciplines. We ensure your settlement not only protects your record at the agency but also supports your future clearance renewals and contractor opportunities.

When necessary, our security clearance lawyers can prepare written mitigation statements, supplemental disclosures, or formal responses under DOHA Guidelines, reinforcing that your alternative discipline reflected accountability and rehabilitation—not ongoing risk.

Why Choose NSLF

When your job and record are on the line, you need more than just legal representation—you need a command unit that knows how agencies think.

  • 4.9-star Google rating from federal employees nationwide.

  • Former agency insiders—our attorneys served at DHS, TSA, CBP, and DOJ, advising the same decision-makers we now challenge.

  • Located in Washington, D.C., the center of federal employment law.

  • Nationwide representation before the MSPB, EEOC, OSC, and OPM.

  • Attorney Review Board collaboration on every complex case.

  • Disabled-veteran-founded, mission-driven team.

  • Transparent flat fees and flexible financing.

  • Decades of combined experience negotiating settlements that protect SF-50s and preserve federal careers.

Our senior attorneys—Jeff Velasco, Danielle Moora, and Karen Hickey—bring more than 60 years of insider experience. They’ve been the ones deciding whether to accept or reject these agreements—and now they use that knowledge to defend you.

Explore the Federal Employment Defense Resource Hub

For more insider strategies on negotiating settlements, appealing removals, or avoiding career-ending mistakes, visit our Federal Employment Defense Hub.

It’s packed with:

  • Step-by-step guides to adverse actions, appeals, and mitigation

  • Insider negotiation tactics from former agency counsel

  • Cost breakdowns and flat-fee transparency

  • Tips to maximize case value and preserve career reputation

Also read: Finding the Best Federal Employment Lawyer—Why Local Isn’t Always Better.

Book a Free Consultation

If you’re facing removal or serious discipline, don’t wait until the agency acts. The best time to negotiate a Last Chance Agreement or clean SF-50 is before a final decision is issued.

Our consultations are free, confidential, and pressure-free. Let’s build a strategy that saves your career and protects your record.

Book your free consultation today.

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