5 CFR §339.306

1. (a)In accordance with the provisions of this part, agencies are authorized to medically disqualify a nonpreference eligible. A nonpreference eligible so disqualified has a right to a higher level review of the determination within the agency.
2. (b)OPM must approve the sufficiency of the agency's reasons to:
   1. (1)Medically disqualify or pass over a preference eligible in order to select a nonpreference eligible for:
      1. (i)A competitive service position under part 332 of this chapter; or
      2. (ii)An excepted service position in the executive branch subject to title 5, U.S. Code;
   2. (2)Medically disqualify or pass over a 30 percent or more compensably disabled veteran for a position in the U.S. Postal Service in favor of a nonpreference eligible;
   3. (3)Medically disqualify a 30 percent or more compensably disabled veteran for assignment to another position in a reduction in force under § 351.702(d) of this chapter; or
   4. (4)Medically disqualify a 30 percent or more disabled veteran for noncompetitive appointment, for example, under § 316.302(b)(4) of this chapter.