Section 5 of Executive Order 13839 and proposed OPM regulations prohibit agencies from erasing, removing, or altering any information from an official personnel file to settle an informal or formal challenge or an administrative action. Additionally, 5 USC 3322 requires agencies to make a permanent notation in an employee’s personnel file of adverse findings if an employee resigns from federal service in lieu of removal. These two provisions are causing headaches for agencies in avoiding litigation through low-cost settlements. Come learn the pros and cons of clean record settlement provisions as well as the various ways agencies are complying with these legal restrictions while at the same time reaching a settlement agreement.