According to a HR rep today, yes, you can apply for a transfer with a warning letter, but you won't actually be able to transfer! This came up because I had asked my mgr if the new policy allowing those with warning letters to transfer applied to me. I got penalized for withdrawing from a signed offer letter last March. The penalty was one year until I can start applying again. Mgr said he didn't see why I couldn't apply. And I did, seeing a place I always wanted to live in. He verified my eligibility, and I came in 3rd. I noticed Thursday my status had been changed back to "not verified". Was told I had to wait one full year. Which lead to talking to HR rep. I pointed out that it was crazy that those who had done something bad enough to get a warning letter were being allowed to transfer but I couldn't. That's when he said they were being allowed to apply, but as soon as hiring mgrs saw they had warning letter they were being rejected. No one with warning letters were being allowed to transfer, period! As for me, there was a job posted with a waiver today, but he said I wasn't allowed to apply no matter what. So there you are. I'm beginning to feel like an indentured servant.