The High Stakes of Security Clearance Issues for Federal Employees and Contractors
The High Stakes of Security Clearance Issues for Federal Employees and Contractors
For federal employees and government contractors, holding a security clearance is often a prerequisite for employment. However, when a clearance is under investigation, suspended, or revoked, the consequences can be severe, affecting both job stability and future career opportunities. The Law Offices of David P. Sheldon, based in Washington, DC, has extensive experience assisting individuals in navigating security clearance challenges and appeals.
Employment Implications of Security Clearance Issues
When a security clearance is under investigation or suspended, the immediate consequence is often the loss of access to classified information. Many federal positions and contractor roles require active clearances, and without them, employees may be placed on unpaid leave, reassigned to non-classified roles (if available), or even terminated. Contractors, whose work is frequently contingent upon an active clearance, often face immediate job loss.
Moreover, a revoked clearance can have long-term repercussions, making it difficult to secure new employment within federal agencies or government-related industries. Without a clearance, individuals may be ineligible for roles that align with their expertise and previous experience, significantly impacting their earning potential.
Limitations in Seeking Additional Contracts or Employment
Once a security clearance is revoked, securing new employment in the defense, intelligence, or other classified sectors becomes challenging. Many job postings explicitly require an active clearance, and even if an individual attempts to reapply for a position, past revocations can surface in background checks, raising red flags for potential employers. Additionally, clearance issues may delay or entirely prevent individuals from securing new contracts, which is particularly problematic for independent contractors and consultants reliant on government work.
Common Causes for Security Clearance Investigations and Revocations
Several factors can trigger a security clearance investigation, suspension, or revocation, including:
- Financial Issues: Significant debt, delinquent payments, or bankruptcy may raise concerns about financial stability and susceptibility to coercion.
- Criminal Conduct: Arrests, charges, or convictions can indicate a risk to national security.
- Foreign Influence: Close ties to foreign nationals or financial interests in foreign entities can be seen as potential threats.
- Substance Abuse: Drug and alcohol misuse can lead to concerns about reliability and judgment.
- False Statements: Providing misleading or false information during the clearance process can result in immediate disqualification.
- Unauthorized Information Handling: Mishandling classified information or violations of security protocols can prompt clearance suspension.
- False Statements by Others: Malicious or incorrect allegations made by colleagues, supervisors, or others can lead to clearance reviews and revocations.
- Political Retribution: In some cases, changes in administration or shifts in political climate can lead to clearance reviews as a form of retaliation.
- Allegations of Inappropriate Use of Access: Claims of misuse of classified information, even if unfounded, can trigger investigations and clearance suspension.
- Changes in Administration: Transitions in government leadership can bring policy shifts that impact clearance statuses, leading to reevaluations or revocations.
Appealing a Security Clearance Revocation
Individuals facing a clearance suspension or revocation have the right to challenge the decision. The appeals process typically involves:
- Receiving a Statement of Reasons (SOR): The agency outlines the reasons for the adverse clearance decision.
- Responding to the SOR: The individual must submit a written rebuttal with supporting evidence and mitigating factors.
- Requesting a Hearing: If the initial response is unsuccessful, a formal hearing before an administrative judge may be necessary.
- Further Appeals: If the judge upholds the revocation, additional appeals may be made through agency-specific processes or the Defense Office of Hearings and Appeals (DOHA).
For cases involving false statements by others, political retribution, or inappropriate allegations, individuals may need additional legal strategies, such as filing grievances through their agency, requesting independent investigations, or seeking whistleblower protections. In politically motivated cases, legal arguments demonstrating due process violations or retaliation may be necessary. The Law Offices of David P. Sheldon provides experienced legal counsel to individuals navigating security clearance issues, ensuring their rights are protected and that they have the best possible chance of retaining or regaining clearance status.
About the Law Offices of David P. Sheldon
The Law Offices of David P. Sheldon, located in Washington, DC, is a premier legal firm dedicated to defending military service members, federal employees, and government contractors. With decades of experience, our firm specializes in military law, security clearance appeals, and administrative hearings, advocating for the careers and livelihoods of those who serve and support our nation’s security infrastructure.
For legal assistance with security clearance issues, contact us today at www.militarydefense.com.
Recent High-Profile Security Clearance Revocations:
- Revocation of Perkins Coie Law Firm’s Security Clearances (March 2025): President Trump signed an executive order suspending security clearances for employees of Perkins Coie, a law firm that played a key role in commissioning the Steele dossier regarding Trump’s alleged interactions with Russia. This action was part of Trump’s broader strategy to retaliate against perceived adversaries. axios.com
- Revocation of Security Clearances for Attorneys Associated with Special Counsel Jack Smith (February 2025): President Trump revoked the security clearances of employees at the law firm Covington & Burling, who had provided pro bono services to former special counsel Jack Smith. This move was perceived as a response to the legal challenges Trump faced during his previous term. nypost.com
- Revocation of Retired General Mark Milley’s Security Clearance (January 2025): Defense Secretary Pete Hegseth, under President Trump’s direction, suspended the security detail and clearance of retired General Mark Milley, former Chairman of the Joint Chiefs of Staff. This action followed allegations of disloyalty and was part of a series of measures targeting former officials perceived as adversaries. axios.com
- Revocation of Security Clearance for Australian Defense Force Officer (February 2025): An Australian Army officer was stripped of his security clearance due to concerns about his loyalty to Israel over Australia. The officer admitted he did not regard Israel as a foreign government and would share classified information if requested by the Israeli Defense Forces. theguardian.com
- Revocation of Security Clearances for Former Intelligence Officials (January 2025): President Trump announced plans to revoke the security clearances of over four dozen former intelligence officials who had signed a letter in 2020 suggesting that the controversy surrounding Hunter Biden’s laptop bore signs of a Russian information operation. apnews.com