HHS to withhold some bonus pay earned by laid-off employees

The Department of Health and Human Services has decided to effectively block the payout of overdue bonuses to many of its laid-off employees, multiple health officials say. The bonuses were tied to high performance by the workers last year, before they were cut from the department.

"If the savings from the layoffs were pennies from the HHS budget, this is hundredths of a penny," one current federal health agency employee said of the move.

While bonus payments usually go out in April to high-performing federal employees, the department had stalled them from being deposited. Now payouts are scheduled to go out after June 2, under the new decision.