Teleworking is the most common alternative work schedule used in public organizations. Despite the adoption of teleworking in government agencies, no studies were found that empirically examined the effect it has on retention in these agencies. This article therefore extends the literature by examining the impact of teleworking on turnover intentions in U.S. federal agencies. In so doing, the findings suggest that teleworking did not exact a social exchange in public agencies. That is, teleworkers and nonteleworkers reported similar intentions to quit implying that telecommuting should not be used by managers and organizations “solely” to reduce the turnover of government employees. Furthermore, an examination of each of the teleworking and nonteleworking arrangements revealed that government workers were more likely to report a leave intention when they were denied the opportunity to telecommute. As a result, this finding validates the social denial hypothesis. The managerial and theoretical implications of these findings are thoroughly discussed in the article.