Federal Employees Political Activities Act of 1981

Federal Employees' Political Activities Act of 1981 - Revises provisions which prohibit Federal and District of Columbia employees from engaging in political activities.

Continues proscriptions against employees using their official authority or influence to interfere with the result of any election or to coerce the political action of any person. Prohibits employees from using any information obtained through their employment and not publicly available for any political purpose.

Modifies provisions relating to the solicitation and offering of political contributions by Federal employees. Prohibits employees from: (1) giving or offering to give a political contribution to any individual either to vote or refrain from voting; (2) soliciting or receiving a contribution to vote or refrain from voting; (3) giving a contribution to a superior; (4) soliciting or receiving a contribution from a subordinate employee; (5) soliciting or receiving a contribution in specified facilities; or (6) soliciting or receiving a contribution from or giving a political contribution to an employee, Member of Congress, officer of a uniformed service, or agent of such individual, or any person who has or is seeking business interests affected by such employee's agency. Directs the Office of Personnel Management (OPM) to prescribe certain exemptions to such prohibitions.

Prohibits employees, with specified exceptions, from engaging in political activities while on duty, while wearing a uniform or official insignia identifying their position, or in designated areas. Allows employees holding certain restricted positions to take part in political management or a political campaign only under specified conditions.

Requires an employee to notify his or her agency upon becoming a candidate for political office. Permits an employee to take annual leave or leave without pay to engage in activities related to such candidacy.

Sets forth the penalties to be imposed against any employee who is found by the Merit Systems Protection Board (MSPB) to have violated provisions of this Act.

Permits State and local employees to run for political office if they are in federally funded positions.

Directs the OPM to report to Congress on the effect of the provisions of this Act on political participation by Federal employees, the merit system and the improper use of official influence or information.