5 U.S.C. § 4302 — Establishment of performance appraisal systems

(a) Each agency must develop one or more performance-appraisal systems that—

(1) provide periodic appraisals of employees’ job performance;

(2) encourage employees to participate in establishing performance standards; and

(3) use appraisal results as a basis for training, rewarding, reassigning, promoting, reducing in grade, retaining, and removing employees.

(b)(1) The head of each agency, after consulting the Director of the Office of Personnel Management and the Special Counsel, must develop criteria that—

(A) the agency head must use as a critical element when establishing the job requirements of a supervisory employee; and

(B) promote whistleblower protection.

(2) The criteria must include—

(A) whistleblower-protection principles, such as the extent to which supervisory employees—

(i) respond constructively when agency employees make disclosures described in section 2302(b)(8)(A) or (B);

(ii) take responsible actions to resolve those disclosures; and

(iii) foster an environment in which agency employees feel comfortable making those disclosures to supervisory employees or other appropriate authorities; and

(B) for each supervisory employee—

(i) whether the agency entered into an agreement with an individual who alleged that the supervisory employee committed a prohibited personnel practice; and

(ii) if it did, the number of times the agency entered into such an agreement concerning that supervisory employee.

(3) In this subsection—

(A) “agency” means any entity whose employees are covered under section 2302(b)(8) and (9), whether or not another provision of this section applies to that entity;

(B) “prohibited personnel practice” has the meaning given in section 2302(a)(1);

(C) “supervisory employee” means an employee who would be a supervisor, as defined in section 7103(a), if the agency employing the employee were an agency for purposes of chapter 71; and

(D) “whistleblower” means an employee who makes a disclosure described in section 2302(b)(8).

(c) Under regulations prescribed by the Office of Personnel Management, each performance-appraisal system must provide for—

(1) performance standards that, to the maximum extent feasible, allow accurate evaluation of each employee’s or position’s job performance using objective criteria related to the job, which may include the courtesy shown to the public;

(2) for initial appraisal periods, communicating the performance standards and critical elements of each employee’s position to the employee as soon as practicable, but no later than October 1, 1981. After that, the standards and critical elements must be communicated at the beginning of each following appraisal period;

(3) evaluating each employee during the appraisal period using those standards;

(4) recognizing and rewarding employees whose performance warrants it;

(5) helping employees improve unacceptable performance; and

(6) reassigning, reducing in grade, or removing employees who continue to perform unacceptably, but only after giving them an opportunity to show acceptable performance.

(d) Consistent with regulations prescribed by the Office, the head of an agency may administer and maintain a performance-appraisal system electronically.