A loss of jurisdiction in the security clearance adjudication process can be a major red flag for employers and potential sponsors for a security clearance. According to the Defense Counterintelligence and Security Agency (DCSA), a loss of jurisdiction is a designation reflected in the Defense Information System for Security (DISS) that is placed on an individual’s eligibility for access to classified information when they have lost affiliation with the Department of Defense as a military member, federal employee, or employee with a cleared government contractor. In more simplistic terms, if you lose sponsorship for your clearance, whether through voluntary or involuntary separation, the Consolidated Adjudication Services are no longer able to make an eligibility determination on your security clearance.
Typically, a loss of jurisdiction occurs when there is something that needs to be adjudicated, such as a pending Statement of Reasons or an incident report placed in DISS, and a separation of sponsorship occurs before those issues can be adjudicated. Since the loss of sponsorship indicates that you no longer require a security clearance, DCSA Consolidated Adjudication Services would no longer have jurisdiction to make an eligibility determination on a person’s security clearance (i.e., DCSA “lost jurisdiction” to make a determination because you don’t have a need for a security clearance). This is commonly referred to as a “flag” or “red flag” in your DISS to potential employers due to the unresolved nature of the potential security concerns that notifies a potential employer that there could be delays in you obtaining security clearance eligibility.