Abramson v. United States

42 Fed. Cl. 621, 6 Wage & Hour Cas.2d (BNA) 801, 1998 U.S. Claims LEXIS 298, 1998 WL 884984
United States Court of Federal Claims·Decided December 16, 1998·No. Nos. 96-480C, 96-4801C·Published·Cited by 8 cases

Opinion

OPINION

HORN, Judge.

FACTS

The plaintiffs in these cases are 1008 former or current employees of the United States Customs Service, United States Department of the Treasury.1 Most are employed as customs inspectors or import specialists, with the remainder holding one of several other positions.2 They allege that, beginning as early as August 27, 1989, the defendant illegally failed to pay overtime wages at the rate required by the Fair Labor Standards Act (“FLSA”), 29 U.S.C.A. §§ 201-219 (West 1994 & Supp.1998), and instead paid them at a lower Federal Employment Pay Act (“FEPA”) rate set forth in 29 U.S.C. § 5542(a)(2) (1994), which is “capped” at one and one-half times the rate of a grade GS-10 step 1 employee.

According to the complaint, the United States, acting through the United States Customs Service, is a public agency as defined by the FLSA and is the employer of the listed plaintiffs.3 Since 1974, non-exempt employees of the federal government have been covered by the FLSA, while exempt employees are covered by the FEPA. Plaintiffs’ complaint appears to allege that each of the plaintiffs in the case is a non-exempt employee. The complaint states that each plaintiff receives a salary above that of a grade GS-10, step 1 employee, and that each worked a significant number of overtime hours since 1988, some of which were hours not compensated in accordance with the FLSA.

Plaintiffs allege that the Customs Service has refused to pay them for overtime at the FLSA rate because the defendant has identified them as “administrative” employees exempt from the FLSA pursuant to 29 U.S.C. § 213(a)(1). According to the plaintiffs, “[t]he wrongful FLSA exemption has resulted in [their] being compensated at the ‘capped’ time-and-a-half overtime rates provided for by the [FEPA], instead of at the more generous ‘true’ time-and-a-half overtime rates required by the FLSA.” Furthermore, “[t]he wrongful FLSA exemption may have also resulted in plaintiffs being denied appropriate FLSA overtime compensation for work-related travel and for overtime for which they earned ‘compensatory time’ under FEPA.” Plaintiffs contend that the defendant either knew that its exemption of plaintiffs from the FLSA was unlawful, or that it acted with reckless disregard for the Act’s requirements.

Prior to filing an answer to the plaintiffs’ complaint in this case, defendant moved for dismissal of the complaint for lack of subject matter jurisdiction pursuant to Rule 12(b)(1) of the Rules of the United States Court of Federal Claims (RCFC). Defendant argues that until May 19, 1991, the plaintiffs were covered by a collective bargaining agreement that did not exclude FLSA pay claims from its negotiated grievance procedure. The defendant, citing a decision by the United States Court of Appeals for the Federal Circuit in Carter v. Gibbs, 909 F.2d 1452 (en banc), cert. denied, 498 U.S. 811, 111 S.Ct. 46, 112 L.Ed.2d 22 (1990), asserts that employees who were covered by a collective bargaining agreement that did not specifically exclude overtime pay disputes from its [624]*624grievance provisions are precluded from bringing suit for that pay under the FLSA. According to the defendant, under Carter v. Gibbs and a provision of the Civil Service Reform Act (CSRA),4 5 U.S.C. § 7121(a), plaintiffs’ access to the federal courts in such situations is precluded.5

The plaintiffs counter that CSRA § 7121(a) was amended in 1994 to read “procedures shall be the exclusive administrative procedures” rather than “procedures shall be the exclusive procedures” (emphasis added.) Plaintiffs argue that the absence of the word “administrative” had been the basis for Carter’s conclusion that employees covered by collective bargaining agreements could not judicially enforce the FLSA if violations of that statute were subject to negotiated grievance procedures. Plaintiffs assert that the amendment demonstrates congressional intent to give parties in their situation access to the courts in addition to their possible administrative remedies, effectively overturning the decision in Carter v. Gibbs.

The plaintiffs seek relief pursuant to FLSA section 216(b) for the amount of the alleged unpaid portion of their overtime pay, liquidated damages, and payment of attorney fees and costs. The above-captioned case comes before the court on the defendant’s motion to dismiss for lack of subject matter jurisdiction pursuant to RCFC 12(b)(1).

[625]*625 DISCUSSION

The defendant has filed a motion to dismiss pursuant to RCFC 12(b)(1) for lack of subject matter jurisdiction. When considering a motion to dismiss, the court may consider all relevant evidence in order to resolve any disputes as to the truth of the jurisdictional facts alleged in the complaint. Reynolds v. Army & Air Force Exch. Serv., 846 F.2d 746, 747 (Fed.Cir.1988). The court is required to decide any disputed facts which are relevant to the issue of jurisdiction. Id.

The standard for weighing the evidence presented by the parties when evaluating a motion to dismiss for lack of jurisdiction, pursuant to RCFC 12(b)(1), and/or a motion to dismiss for failure to state a claim upon which relief can be granted, pursuant to RCFC 12(b)(4), as in the instant case, has been articulated by the United States Supreme Court, as follows: “in passing on a motion to dismiss, whether on the ground of lack of jurisdiction over the subject matter or for failure to state a cause of action, the allegations of the complaint should be construed favorably to the pleader.” Scheuer v. Rhodes, 416 U.S. 232, 236, 94 S.Ct. 1683, 40 L.Ed.2d 90 (1974); accord Hamlet v. United States, 873 F.2d 1414, 1416 (Fed.Cir.1989); see also Alaska v. United States, 32 Fed.Cl. 689, 695 (1995), appeal dismissed, 86 F.3d 1178 (Fed.Cir.1996). In rendering a decision, the court must presume that the undisputed factual allegations included in the complaint by a plaintiff are true. Miree v. DeKalb County, 433 U.S. 25, 27 n. 2, 97 S.Ct. 2490, 53 L.Ed.2d 557 (1977); Reynolds v. Army & Air Force Exch. Serv., 846 F.2d at 746; Alaska v. United States, 32 Fed.Cl. at 695.

The burden of establishing jurisdiction is on the plaintiff. McNutt v. General Motors Acceptance Corp. of Indiana, 298 U.S. 178, 189, 56 S.Ct. 780, 80 L.Ed. 1135 (1936); Alaska v. United States, 32 Fed.Cl. at 695; Catellus Dev. Corp. v. United States, 31 Fed.Cl. 399, 404 (1994). The court should not grant a motion to dismiss “unless it appears beyond doubt that the plaintiff can prove no set of facts in support of his claim which would entitle him to relief.” Conley v. Gibson, 355 U.S. 41, 45-46, 78 S.Ct. 99, 2 L.Ed.2d 80 (1957) (footnote omitted).

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Abramson v. United States, 42 Fed. Cl. 621, 6 Wage & Hour Cas.2d (BNA) 801, 1998 U.S. Claims LEXIS 298, 1998 WL 884984 (uscfc 1998).

42 Fed. Cl. 621 (Abramson v. United States) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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