You're Not Stuck
A guide for federal employees who feel trapped by signing bonuses, service agreements, or clawback provisions—and want to understand their options.
If you're reading this, you probably feel trapped. Maybe you took the job for the bonus. Maybe you believed in the mission. Maybe you just needed steady work with benefits.
Now something has changed. And when you think about leaving, you think about the money you'd owe. And you stay.
This guide is for you. You have more options than you think.
First: You're Not Crazy
The feeling of being trapped isn't in your head. It's by design.
The bonus structure you signed isn't unique. It's a documented pattern called "stay-or-pay" that's been studied—and increasingly condemned—across industries. A federal task force examining identical arrangements in trucking called them "irredeemable tools of fraud." California banned most such contracts in 2026. New York calls them "unconscionable."
You're not weak for feeling stuck. You're responding rationally to a system designed to make leaving feel impossible.
Know Your Actual Situation
Before you can plan, you need to understand exactly what you're dealing with. Pull out your service agreement and answer these questions:
Key questions to answer:
- What is the total commitment period?
- How much of the bonus have you actually received? (Remember, it's often paid over time)
- Is the clawback prorated—do you owe less the longer you've served?
- What triggers repayment? Voluntary resignation only? Any separation?
- Are there waiver provisions for hardship, disability, or involuntary separation?
- What happens if you transfer to another federal agency?
Many people never read the full terms. The actual situation may be different—sometimes better, sometimes worse—than you assume.
Your Options
Option 1: Transfer Within the Federal Government
Depending on your agreement, transferring to another federal agency may not trigger repayment. You'd still be a federal employee—just not in this particular role. Check whether your agreement specifies your current agency or federal service generally.
USAJOBS.gov lists federal positions. Many agencies are hiring.
Option 2: Document and Report (Whistleblower Path)
If you've witnessed wrongdoing—violations of law, gross mismanagement, abuse of authority, or dangers to public safety—you have federal protections.
The Whistleblower Protection Act protects federal employees from retaliation for reporting such concerns. You also have protection for refusing to obey an order that would require you to violate a law.
Key resources: Office of Special Counsel (osc.gov), DHS Inspector General (oig.dhs.gov), Merit Systems Protection Board (mspb.gov).
Important: If you consider this path, consult with a federal employment attorney first. Document everything. Your identity can be protected during investigations.
Option 3: Request a Waiver
Some service agreements include hardship waiver provisions. Situations that might support a waiver request:
- Documented medical condition (physical or mental health)
- Family emergency requiring relocation or caregiving
- Hostile work environment (documented)
- Being asked to perform duties materially different from what was described at hiring
Even if your agreement doesn't explicitly mention waivers, they can sometimes be negotiated. Get any denial in writing.
Option 4: Just Leave
This is the option nobody talks about. But sometimes it's the right one.
Ask yourself: What is staying actually costing you? Your mental health? Your relationships? Your sleep? Your sense of who you are?
Debt can be paid off. Time cannot be recovered. Some damage cannot be undone.
If you leave and owe money: You can often negotiate a payment plan. The amount may be less than you think after proration. A new job in the private sector may pay enough to offset the debt.
Calculate the real number. It's often smaller than the fear makes it feel.
Protect Yourself While You Decide
- Document everything — Keep a personal log (on your personal device, not work systems) of anything concerning. Dates, times, who was present, what happened.
- Get copies of your agreements — Service agreement, offer letter, any amendments. Keep them somewhere secure outside of work.
- Know your mental health resources — Federal employees have access to Employee Assistance Programs (EAP). These are confidential. Use them.
- Build your outside network — Talk to people outside the agency. You need perspectives from people who aren't inside the bubble.
- Update your resume quietly — You don't have to use it. But having it ready reduces the feeling of being trapped.
Every person who's ever left a job they felt trapped in faced the same fear you're facing now. Nearly all of them, looking back, say the same thing:
"I wish I'd done it sooner."
The bonus was designed to keep you in place. It was designed to make leaving feel impossible. But you are not a service agreement. You are a person with a life, a future, and the right to decide what you do with both.
Whatever you decide, decide it consciously. Don't let a clawback clause make the decision for you.
Resources
Federal Employee Rights: Office of Special Counsel (osc.gov) • Merit Systems Protection Board (mspb.gov) • Government Accountability Project (whistleblower.org)
Legal Help: National Employment Law Project (nelp.org) • Federal employee attorneys in your area
Mental Health: Your agency's EAP • 988 Suicide and Crisis Lifeline • Crisis Text Line (text HOME to 741741)