One of the most common misconceptions among security clearance holders is that having an active clearance provides some measure of job protection. After all, if the government continues to trust you with classified information, shouldn’t that mean your employer has to keep you?
Unfortunately, that is not how the system works.
Yes, you can be fired from a cleared position even if your security clearance has never been suspended, denied, or revoked.
After more than 27 years representing security clearance holders and applicants, I have seen situations where individuals lost their jobs while their security clearance eligibility remained intact. I have also seen cases where an employment termination eventually created separate security clearance problems.
Understanding the distinction between employment and security clearance eligibility is particularly important for government contractors and federal employees.
Your Security Clearance Is Not a Guarantee of Employment
A security clearance is a determination by the federal government that an individual is eligible for access to classified information, subject to the applicable access requirements. It is not a guarantee of continued employment.
For government contractors, the distinction is relatively straightforward. The government determines whether an individual is eligible for a clearance, while the employer generally determines whether to hire or retain that individual, subject to applicable employment laws and contractual requirements.
A contractor may terminate an employee because of poor performance, workplace misconduct, a reduction in force, loss of a contract, or other employment-related reasons. None of these circumstances necessarily requires the government to revoke the individual’s security clearance.
In fact, the Defense Counterintelligence and Security Agency (DCSA) expressly recognizes that contractors do not have the authority to grant, deny, or revoke personnel security clearances. That authority belongs to the government.
What If Your Employer Fires You for Misconduct?
This is where the situation can become more complicated. Suppose a cleared employee is terminated for repeated attendance problems, insubordination, or a serious disagreement with management. The employer may decide that the employee should no longer work for the company even though the government has made no adverse security clearance determination.
However, if the conduct also raises concerns under the National Security Adjudicative Guidelines, under Security Executive Agent Directive 4 (SEAD 4), the employer may have an obligation to report the information to the appropriate government security authorities.
For example, misconduct involving dishonesty, criminal behavior, workplace violence, substance abuse, or mishandling protected information could potentially implicate one or more adjudicative guidelines.
The important distinction is that an employer’s decision to fire someone and the government’s decision to revoke clearance eligibility are separate decisions. The employer does not necessarily have to wait for the government to complete a security review before taking employment action.
An Incident Report Can Follow You After Termination
For government contractors, adverse information concerning a cleared employee may be reported through the Defense Information System for Security (DISS) or other security clearance databases.
An incident report allows the government to evaluate whether particular conduct raises security concerns. Additionally, an employer’s reporting obligation does not automatically disappear simply because the employee is about to be terminated.
DCSA guidance specifically addresses the requirement to report adverse information even when an employee’s departure is imminent. As a result, someone may leave a job believing that their clearance remains intact, only to discover later that an unresolved security incident complicates their next cleared position.
An incident report does not automatically mean that a clearance has been revoked. It may lead to additional review, investigation, or adjudication depending on the circumstances.
What Happens to Your Clearance After You Are Fired?
When a cleared contractor leaves an employer, the company generally removes the employee’s access and ends its affiliation with the individual’s personnel security record. That does not necessarily mean the government has revoked the individual’s underlying clearance eligibility. However, the employee no longer has authorized access through that employer.
This distinction is important because people frequently use the terms clearance and access interchangeably. A person may retain a favorable eligibility determination without having current access to classified information.
When a new cleared employer hires that individual, its security office may be able to establish the appropriate affiliation and verify the individual’s eligibility. Whether additional processing is required depends on the person’s record, the time away from cleared employment, and any unresolved security issues.
The Loss of Jurisdiction Problem
One of the more frustrating complications can arise when an employee is terminated while a security investigation or adjudicative matter is still pending.
In the Department of Defense personnel security system, Loss of Jurisdiction (LOJ) may occur when an individual no longer has the necessary affiliation before the government completes a favorable eligibility determination.
LOJ is not the same thing as a formal clearance denial or revocation. However, it can create substantial practical difficulties. An individual may be unable to return immediately to classified work because the new employer must establish an affiliation and request the necessary adjudicative action.
This is one reason why an employment termination can have lasting career consequences even without a formal clearance revocation.
Federal Employees Face Different Employment Procedures
For federal employees, the distinction between employment and security clearance eligibility also matters, although the procedures can be different. Federal agencies may remove employees for misconduct, unacceptable performance, or other legally sufficient reasons even when the employees continue to hold security clearance eligibility.
Depending on their appointment and employment status, federal employees may have procedural protections under civil service laws, agency regulations, or collective bargaining agreements. It is often the case that federal employees are able to stay employed with an agency, at least in some status, so long as there is not a final decision to revoke a security clearance and you have exhausted the appeals process.
Additionally, certain federal employees may have rights to notice, an opportunity to respond, and an appeal to the Merit Systems Protection Board (MSPB). These protections do not necessarily exist in the same form for private-sector government contractors. The key point is that federal employment rights and security clearance appeal rights are not interchangeable.
What Should You Do If You Are Fired from a Cleared Job?
If you are terminated while holding a security clearance, several practical steps may help protect your future employment opportunities.
First, determine whether the employer has identified any security-related allegations connected with the termination.
Second, ask the appropriate security office about your eligibility status and whether any adverse information has been reported. The office may not be able to provide every detail immediately, but understanding whether an unresolved security matter exists can be important.
Third, preserve relevant employment documents, including termination notices, grievances, responses to proposed discipline, performance evaluations, disciplinary records, and correspondence relating to the underlying dispute.
Finally, if the termination involves allegations of dishonesty, criminal conduct, mishandling classified information, or other security-relevant behavior, consider obtaining legal advice before responding to further investigative questions.
Final Thoughts
Can you be fired even if you haven’t lost your security clearance?
Absolutely. A security clearance is not a guarantee of employment, and employers do not need to wait for the government to revoke someone’s eligibility before terminating employment. For government contractors, the employer generally makes the employment decision while the government controls clearance eligibility.
For federal employees, additional civil service procedures and employment protections may apply, but maintaining a clearance does not guarantee continued federal employment.
This article is for informational purposes only and should not be construed as legal advice. Security clearance procedures, federal employment laws, agency policies, and contractor reporting requirements may change, and readers should consult qualified counsel regarding their specific circumstances.
