To amend title 39, United States Code, to provide for procedures under which persons involuntarily separated by the United States Postal Service as a result of having been improperly arrested by the Postal Inspection Service on narcotics charges may seek reemployment.

Requires the Judicial Officer of the Postal Service to establish procedures under which specified individuals involuntarily separated from the Postal Service may seek reemployment. Lists such individuals as persons separated as a result of having been arrested by the Postal Inspection Service: (1) after December 31, 1983; (2) pursuant to any investigation in which paid confidential informants were used; and (3) for violating any law prohibiting the use, sale, or possession of controlled substances.

Authorizes an individual to petition for reemployment only if the individual was not convicted of the violation and has exhausted all administrative procedures for seeking reemployment within a specified time frame.

Requires petitions to be considered by a panel of administrative law judges. Authorizes a panel to require the Postal Service to reemploy the petitioner if the petitioner was improperly arrested due to the actions of the Inspection Service or its informants. Requires the position in which the petitioner is reemployed to be reasonably similar to the position from which the petitioner was separated and the pay to be equivalent. Provides for back pay and retroactive contributions to the Civil Service Retirement and Disability Fund for reemployed individuals.