Abbey v. United States

745 F.3d 1363, 25 Wage & Hour Cas.2d (BNA) 242, 2014 WL 1099571, 2014 U.S. App. LEXIS 5303
CourtCourt of Appeals for the Federal Circuit
DecidedMarch 21, 2014
Docket2013-5009
StatusPublished
Cited by55 cases

This text of 745 F.3d 1363 (Abbey v. United States) is published on Counsel Stack Legal Research, covering Court of Appeals for the Federal Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Abbey v. United States, 745 F.3d 1363, 25 Wage & Hour Cas.2d (BNA) 242, 2014 WL 1099571, 2014 U.S. App. LEXIS 5303 (Fed. Cir. 2014).

Opinions

Opinion for the court filed by Circuit Judge TARANTO.

Opinion concurring in part and dissenting in part filed by Circuit Judge O’MALLEY.

TARANTO, Circuit Judge.

The plaintiffs in this case — the “controllers” — are or were employed by the Federal Aviation Administration as air-traffic-control specialists or traffic-management coordinators. The controllers sued the United States in the Court of Federal Claims, alleging that the FAA’s policies governing how to compensate them when they worked overtime failed to comply with the time-and-a-half-payment requirement of the Fair Labor Standards Act of 1938 (FLSA), 29 U.S.C. § 207. They sought damages under 29 U.S.C. § 216(b) and invoked the court’s jurisdiction under the Tucker Act, 28 U.S.C. § 1491. The Court of Federal Claims ruled in the controllers’ favor, holding that the agency’s personnel policies are contrary to the FLSA and are not authorized by any other provision of law.

We reject the Court of Federal Claims’ essential premise — that no provision authorizes the FAA to depart from the FLSA’s overtime-pay provision. We hold that the FAA has such authority under particular provisions of the federal personnel laws, 5 U.S.C. §§ 5543 and 6120-6133. We therefore vacate the judgment of the Court of Federal Claims and remand the case for further proceedings to determine whether the challenged FAA policies are fully, or only partly, within the authority of those title 5 exemptions from the FLSA.

BACKGROUND

A

The FLSA generally requires that, when a nonexempt employee works more than forty hours per week, the employer must pay the employee for the overtime hours at a rate of one-and-a-half times the employee’s regular rate of pay. 29 U.S.C. § 207(a)(1). Unless modified by other statutes, that provision has applied, since 1974, to federal employees like the controllers. Id. § 203(e)(2). But title 5 of the United States Code, which governs federal employment specifically, includes several exceptions to the FLSA’s overtime-pay requirement. The exceptions relevant to this case concern “compensatory time” and “credit hours” for certain employees.

Section 5543(a)(1) of title 5 provides that, in the case of irregular or occasional overtime, a federal agency may provide “compensatory time” instead of money as compensation if the employee so requests: rather than pay dollars (at a time-and-a-half rate), the agency may provide time off (on a one-to-one basis, ie., the same number of hours off as the overtime worked). 5 U.S.C. § 5543(a)(1). Sections 6120-6133 of title 5 address employees who work flexible schedules rather than traditional forty-hour workweeks, authorizing two forms of non-cash compensation for such employees. First, the provisions authorize an agency to grant an employee compensatory time off for overtime hours, in lieu of payment, at the request of the employee. Id. §§ 6123(a)(1), 6121(6). Second, the provisions authorize the grant of “credit hours,” which are “any hours, within a flexible schedule established under section 6122 of this title, which are in excess of an employee’s basic work requirement and which the employee elects to work so as to vary the length of a workweek or a workday.” Id. § 6121(4). The employee can [1366]*1366use credit hours “to reduce the length of the workweek or another workday” without forfeiting pay or using leave. Id. § 6122(a)(2). An employee may accumulate up to 24 credit hours in one pay period, id. § 6126(a), and if the employee stops working a flexible schedule, the agency must pay for those hours at the employee’s current rate of pay, id. § 6126(b).

Before 1996, the FAA relied on the exemptions contained in title 5 for the authority to compensate the controllers with compensatory time and credit hours in lieu of FLSA-mandated overtime pay. Then, in late 1995, Congress passed the Department of Transportation and Related Agencies Appropriations Act, 1996 (“Appropriations Act”), which authorized several reforms to the FAA’s operations that were to take effect in 1996. Pub.L. No. 104-50, § 347, 109 Stat. 436, 460 (1995), codified as amended at 49 U.S.C. § 40122(g). Two provisions are important here. Section 40122(g)(1) directed the FAA to develop a new personnel policy to provide the agency “greater flexibility” in determining employee compensation and other matters:

In consultation with the employees of the Administration and such non-governmental experts in personnel management systems as he may employ, and notwithstanding the provisions of title 5 and other Federal personnel laws, the Administrator shall develop and implement, not later than January 1, 1996, a personnel management system for the Administration that addresses the unique demands on the agency’s workforce. Such a new system shall, at a minimum, provide for greater flexibility in the hiring, training, compensation, and location of personnel.

49 U.S.C. § 40122(g)(1) (emphases added). And Section 40122(g)(2) provides:

The provisions of title 5 shall not apply to the new personnel management system developed and implemented pursuant to paragraph (1), with the exception of—

(A) section 2302(b), relating to whis-tleblower protection, including the provisions for investigation and enforcement as provided in chapter 12 of title 5;
(B) sections 3308-3320, relating to veterans’ preference;
(C) chapter 71, relating to labor-management relations;
(D) section 7204, relating to antidis-crimination;
(E) chapter 73, relating to suitability, security, and conduct;
(F) chapter 81, relating to compensation for work injury;
(G) chapters 83-85, 87, and 89, relating to retirement, unemployment compensation, and insurance coverage;
(H) sections 1204, 1211-1218, 1221, and 7701-7703, relating to the Merit Systems Protection Board; and
(I) subsections (b), (c), and (d) of section 4507 (relating to Meritorious Executive or Distinguished Executive rank awards) and subsections (b) and (c) of section 4507a (relating to Meritorious Senior Professional or Distinguished Senior Professional rank awards)....

Id. § 40122(g)(2) (emphasis added).

In response to those directives, the FAA developed and implemented a new personnel management system that would take effect April 1, 1996.

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745 F.3d 1363, 25 Wage & Hour Cas.2d (BNA) 242, 2014 WL 1099571, 2014 U.S. App. LEXIS 5303, Counsel Stack Legal Research, https://law.counselstack.com/opinion/abbey-v-united-states-cafc-2014.