U.S. Code » Title 5 » Part PART III— EMPLOYEES › Subpart Subpart F— Labor-Management and Employee Relations › Chapter CHAPTER 71— LABOR-MANAGEMENT RELATIONS › Subchapter SUBCHAPTER I— GENERAL PROVISIONS

5 U.S.C. § 7106

Management rights

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(a) Subject to subsection (b) of this section, nothing in this chapter shall affect the authority of any management official of any agency—(1) to determine the mission, budget, organization, number of employees, and internal security practices of the agency; and(2) in accordance with applicable laws—(A) to hire, assign, direct, layoff, and retain employees in the agency, or to suspend, remove, reduce in grade or pay, or take other disciplinary action against such employees;(B) to assign work, to make determinations with respect to contracting out, and to determine the personnel by which agency operations shall be conducted;(C) with respect to filling positions, to make selections for appointments from—(i) among properly ranked and certified candidates for promotion; or(ii) any other appropriate source; and(D) to take whatever actions may be necessary to carry out the agency mission during emergencies.(b) Nothing in this section shall preclude any agency and any labor organization from negotiating—(1) at the election of the agency, on the numbers, types, and grades of employees or positions assigned to any organizational subdivision, work project, or tour of duty, or on the technology, methods, and means of performing work;(2) procedures which management officials of the agency will observe in exercising any authority under this section; or(3) appropriate arrangements for employees adversely affected by the exercise of any authority under this section by such management officials.(Added Pub. L. 95–454, title VII, § 701, Oct. 13, 1978, 92 Stat. 1198.)Statutory Notes and Related SubsidiariesEffective Date

Section effective 90 days after Oct. 13, 1978, see section 907 of Pub. L. 95–454, set out as an Effective Date of 1978 Amendment note under section 1101 of this title.

Notes of Decisions
Cited in 199 cases (5 in the last 5 years), 1980–2026 · leading case: Fort Stewart Schs. v. Fed. Labor Relations Auth., 495 U.S. 641 (1990).
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Fort Stewart Schs. v. Fed. Labor Relations Auth., 495 U.S. 641 (1990). · cites it 6× “" 5 U. S. C. § 7106 . The Authority rejected that claim by applying the test established in its decision in American Federation of Government Employees, AFL-CIO, 2 F.”
Equal Emp. Opportunity Comm'n v. Fed. Labor Relations Auth., Am. Fed'n of Gov't Employees, Afl-Cio, Etc., Intervenor, 744 F.2d 842 (D.C. Cir. 1984). · cites it 11× “5 U.S.C. § 7106 (a). Most important, for this case, the management rights clause reserves to management the authority “to make determinations with respect to contracting out.”
Am. Fed'n of Gov't Emps. v. Trump, 318 F. Supp. 3d 370 (D.C. Cir. 2018). · cites it 7× “]" 5 U.S.C. § 7106 (b)(1) ; see id. (allowing, "at the election of the agency," negotiation as to the "numbers, types, and grades of employees or posit ions assigned to" any project, or "the technology, methods, and means or performing work"); see also Nat'l Treasury Emps.”
Am. Fed'n of Govt. v. Donald Trump, 929 F.3d 748 (D.C. Cir. 2019). · cites it 3× “at 25,332 , defined as those that are negotiable "at the election of the agency" under 5 U.S.C. § 7106 (b)(1). The "Official Time Order" instructs agencies to aim to limit the extent to which collective bargaining agreements authorize "official time," meaning time spent by…”
Dep't of the Treasury v. Fed. Labor Relations Auth., 494 U.S. 922 (1990). · cites it 6× “" 5 U. S. C. § 7106 (emphasis added). In the proceedings below and again before this Court, the IRS has argued that even when an agency's decision to contract out violates OMB Circular A-76 it is still a decision "in accordance with applicable laws" and is thus immunized by the…”
Nat'l Fed'n of Fed. Employees, Local 1309 v. Dep't of the Interior, 526 U.S. 86 (1999). · cites it 6× “Fourth, the Agency and the Fourth Circuit contend that the "management rights" provision of the Statute, 5 U. S. C. § 7106 , does authorize limited midterm bargaining in respect to certain matters (not here at issue), and that by negative implication it denies permission to…”
Nat'l Treasury Employees Union v. Chertoff, 452 F.3d 839 (D.C. Cir. 2006). · cites it 4× “511 (a)(2) (2006), with 5 U.S.C. § 7106 (b)(1) (2000). Further, the Regulations would permit DHS to avoid bargaining with the Unions over the procedures management will observe when exercising its management rights.”
Nat'l Ass'n of Gov't Employees, Inc. v. Fed. Labor Relations Auth., 179 F.3d 946 (D.C. Cir. 1999). · cites it 12× “ERSON, Circuit Judge: The petitioners, labor unions representing federal employees, seek review of the decisions of the Federal Labor Relations Authority (FLRA or Authority) that three federál agencies did not commit unfair labor practices when they refused to bargain over…”
Nat'l Treasury Employees Union v. Fed. Labor Relations Auth., 691 F.2d 553 (D.C. Cir. 1982). · cites it 5× “at 446; 5 U.S.C. § 7106 (a)(1) (Supp. IV 1980) (nothing in Act shall affect authority of any management official of any agency to determine agency’s budget).”
United States Dep't of Com., Pat. & Trademark Off. v. Fed. Labor Relations Auth., 672 F.3d 1095 (D.C. Cir. 2012). · cites it 16× “In particular, PTO challenges the Authority's determination that the provision constitutes an "appropriate arrangement" under 5 U.S.C. § 7106 (b)(3). We grant PTO's petition on the ground that, under the collateral estoppel doctrine, the Authority was bound by *1097 its earlier…”
Nat'l Treasury Employees Union v. Chertoff, 385 F. Supp. 2d 1 (D.D.C. 2005). · cites it 5× “While management retains its rights to make decisions without bargaining concerning wages and other subjects commonly negotiated in private-sector bargaining, see 5 U.S.C. § 7106 (a), a federal-sector union can demand that the agency negotiate concerning the “impact and…”
Dep't of Def. v. Fed. Labor Relations Auth., 659 F.2d 1140 (D.C. Cir. 1981). · cites it 12× “Section 7106, the “management rights”, section of the Reform Act, also enumerates certain areas of management authority regarding which management either cannot, see 5 U.S.C. § 7106 (a), or need not, see 5 U.”
Show all 199 citing cases →
— 5 U.S.C. § 7106(a)(1) — 1 case
Nuclear Regulatory Comm'n v. Fed. Labor Relations Auth., Nat'l Treasury Employees Union, Intervenor, 879 F.2d 1225 (4th Cir. 1989).
— 5 U.S.C. § 7106(a)(2)(B) — 1 case
Antilles Consol. Educ. Ass'n v. FLRA, 977 F.3d 10 (D.C. Cir. 2020).
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