27:0156(30)AR - Navy Public Works Center and IAM -- 1987 FLRAdec AR
[ v27 p156 ]
27:0156(30)AR
The decision of the Authority follows:
27 FLRA No. 30
U.S. NAVY PUBLIC WORKS CENTER
Agency
and
INTERNATIONAL ASSOCIATION OF MACHINISTS
AND AEROSPACE WORKERS
Union
Case No. 0-AR-1304
DECISION
I. Statement of the Case
This matter is before the Authority on an exception to the award of
Arbitrator Alfred J. Goodman filed by the Agency under section 7122(a)
of the Federal Service Labor-Management Relations Statute (the Statute)
and part 2425 of the Authority's Rules and Regulations.
II. Background and Arbitrator's Award
The grievance in this case concerned the Agency's erroneous
overpayment of wages to the grievant and its subsequent decision to
require reimbursement of the overpayment. The facts leading to this
dispute are as follows.
On November 11, 1984, the grievant was temporarily promoted from
Utility Systems Operator, Wage Grade 9 (WG-9), to Electric Power
Controller, WG-10, for a period not to exceed one year. In May 1985 the
grievant was notified that effective May 11, 1985, he was being returned
to his former WG-9 position. However, the grievant continued to receive
the WG-10 salary for over two months (until July 21, 1985) despite the
fact that the grievant informed his general foreman about his
overpayment on several occasions.
The Agency subsequently recognized that the appropriate paperwork had
not been processed to make the necessary salary adjustment. On
September 25, 1985, the grievant received a personnel action notice
stating the effective date of the return to the WG-9 position as May 11,
1985. The grievant was also informed that he would be required to
reimburse the $315.28 salary overpayment for the period May 11 through
July 21, 1985. The grievant requested a waiver from the Navy Accounting
and Finance Center of the requirement that he return the overpayment.
The request was denied. The grievant made the reimbursement and filed a
grievance to recover the amount.
The Arbitrator framed the issue before him as whether the Agency's
decision to compel the grievant to reimburse the Agency for erroneous
overpayment of salary violated the parties' agreement. The Arbitrator
found that the grievant "openly, honestly, and reasonably attempted to
apprise supervision of the overpayment error" (Arbitrator's Decision at
9-10), but was told by the general foreman not to worry about it. The
Arbitrator found that it was clear that the overpayment was due to
administrative error, and that the grievant had acted properly in
reporting the erroneous salary overpayment and did not conceal the error
or "fraudulently abscond with government funds." Arbitrator's Decision
at 11. The Arbitrator concluded that in light of the facts in this
case, the grievant was entitled to a waiver of the overpayment.
Accordingly, he awarded the grievant a $315.28 reimbursement for the
salary overpayment.
III. Exception
The Agency contends that the Arbitrator's award is contrary to law
and Government-wide regulations, specifically 5 U.S.C. Section 5584 and
4 C.F.R. Section 91.5, as interpreted by the Comptroller General.
IV. Analysis and Conclusions
Under 5 U.S.C. Section 5584, claims against federal employees may
under certain circumstances be waived when collection "would be against
equity and good conscience and not in the best interests of the United
States." 5 U.S.C. Section 5584(a). The Standards for Waiver of Claims
for Erroneous Payment of Pay and Allowances (Standards for Waiver), 4
C.F.R. Sections 91.1-93.3, are the implementing regulations and are
applicable Government-wide. See American Federation of Government
Employees, AFL-CIO, Local 225 and Department of the Army, USARRADCOM,
Dover, New Jersey, 15 FLRA 607 (1984). Under those regulations, claims
arising out of an erroneous payment may be waived when, among other
things, a finding is made "that the erroneous payment of allowances
occurred administrative error and that there is no indication of fraud,
misrepresentation, fault or lack of good faith on the part of the
employee(.) . . . Waiver of overpayments of pay . . . necessarily must
depend upon the facts existing in the particular case." 4 C.F.R. Section
91.5(c).
We find that the Agency's exception does not provide a basis for
finding the Arbitrator's award deficient. The Agency argues that a
waiver of the claim for overpayment in wages is not warranted in this
case because the circumstances in this case differ from those in
decisions in which the Comptroller General has granted waivers.
However, the Agency has failed to show that the Arbitrator's award
violates applicable law or regulations. Rather, the Agency's contention
constitutes mere disagreement with the Arbitrator's assessment of the
facts in this case and his determination that the grievant is entitled
to compensation. This contention is not a sufficient basis for finding
the award deficient. See, for example, Social Security Administration,
New York Regional Office and American Federation of Government
Employees, Local 3369, AFL-CIO, 27 FLRA No. 6 (1987).
V. Decision
For the reasons stated, the Agency's exception is denied.
Issued, Washington, D.C., May 29, 1987.
/s/ Jerry L. Calhoun, Chairman
/s/ Henry B. Frazier III, Member
/s/ Jean McKee, Member
FEDERAL LABOR RELATIONS AUTHORITY