Ahrens v. United States

62 Fed. Cl. 664, 9 Wage & Hour Cas.2d (BNA) 1813, 2004 U.S. Claims LEXIS 252, 2004 WL 2212090
CourtUnited States Court of Federal Claims
DecidedSeptember 30, 2004
DocketNo. 02-115 C
StatusPublished
Cited by8 cases

This text of 62 Fed. Cl. 664 (Ahrens v. United States) is published on Counsel Stack Legal Research, covering United States Court of Federal Claims primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Ahrens v. United States, 62 Fed. Cl. 664, 9 Wage & Hour Cas.2d (BNA) 1813, 2004 U.S. Claims LEXIS 252, 2004 WL 2212090 (uscfc 2004).

Opinion

OPINION

DAMICH, Chief Judge.

I. Introduction

The 95 Plaintiffs in this action are GS-12 civilian engineering technicians at the Portsmouth and Puget Sound Naval Shipyards, seeking unpaid overtime wages pursuant to the Fair Labor Standards Act (hereinafter “FLSA”), 29 U.S.C. §§ 201 et seq., and regulations implementing FLSA for federal employees, promulgated by the Office of Personnel Management, located at 5 C.F.R. Part 551. Compl. H1Í1, 8. Pending are Defendant’s Motion for Summary Judgment on its affirmative defense of accord and satisfaction (hereinafter “Def.’s Mot.”), filed March 11, 2003, and Plaintiffs’ Cross-Motion for Partial Summary Judgment as to Defendant’s defense of accord and satisfaction (hereinafter “Pis.’ X-Mot.”), filed November 26, 2003.

For the reasons explained below, both motions are hereby GRANTED IN PART and DENIED IN PART.

[666]*666II. Background

On December 2, 1995, the International Federation of Professional and Technical Engineers (hereinafter “IFPTE” or “Union”), the exclusive collective bargaining agent of the Plaintiffs, reached a Global Memorandum of Understanding (hereinafter “MOU”) with the Naval Sea Systems Command (hereinafter “NÁVSEA”), attempting to resolve a number of FLSA overtime grievances and two lawsuits filed by civilian employees at six Naval shipyards. Plaintiffs’ Proposed Findings of Uncontroverted Fact (hereinafter “PPFUF”) 113, at 2; Plaintiffs’ Response to Defendant’s Proposed Findings of Uncontro-verted Fact (hereinafter “Pis.’ Resp. to DPFUF”) 115, at 2. The employees are or were members of IFPTE at six different locales: Long Beach, Mare Island, Norfolk, Philadelphia, Portsmouth, and Puget Sound. PPFUF 112, at 1. The grievances involved employees in a variety of pay grades and classifications. Id. Only twenty of the Plaintiffs in this action were GS-12 Technician employees who had filed grievances prior to the MOU (hereinafter “grievants”). Defendant’s Response to Plaintiffs’ Proposed Findings of Uncontroverted Fact (hereinafter “Def.’s Resp. to PPFUF”) 11118-9, at 4-5. The other 75 Plaintiffs in this action either were not GS-12 Technician employees in '1995 or had not filed grievances before 1995 (hereinafter “non-grievants”). Id.

A prefatory memorandum to the MOU, also dated December 2, 1995 and signed by representatives of the Navy, the IFPTE, and the union locals, recites that the MOU was reached “to resolve the Fair Labor Standards Act (FLSA) grievances at the locations specified in ‘the Global MOU.’ ” Appendix to Def.’s Mot. (hereinafter “Def.’s App.”) at 2. The opening sentence of the MOU itself recites:

This Memorandum of Understanding (MOU) is made by and between the Naval Sea Systems Command 07 (Employer) and the International Federation of Professional and Technical Engineers (IFPTE), in consideration of the mutual promises and representations contained herein in regard to the Fair Labor Standards Act (FLSA) claims on behalf of employees in the court cases entitled Abundis v. United States and Bow v. United States,1 and the FLSA grievances in the IFPTE bargaining units identified below in paragraph 1.

Id. at 3.; MOU at 1 (footnote added).

Of particular significance to Plaintiffs’ claims, II12 and Appendix D of the MOU provided, inter alia, that the GS-12 Technician positions in question (job series GS-856 and GS-802) would henceforth be considered FLSA-exempt, but that the employees affected would be eligible to participate in an incentive program. Def.’s App. at 10, 25; Pis.’ Resp. to DPFUF 113, at 2. Further, 1116 provided that the GS-12 grievants would receive backpay and interest, through March 1996, in amounts sufficient to compensate them for the overtime they would have received as FLSA non-exempt employees. Def.’s App. at 11-12.

In 2000, the IFPTE revived the issue of GS-12 FLSA exemption because of indications that, despite the MOU, the government was classifying a number of new GS-12s as non-exempt, and thus entitled to overtime compensation. Def.’s Resp. to PPFUF 1113, at 6-7. As a result, within the same pay grades and job classifications, some GS-12s were considered exempt and some were classified non-exempt, leading the exempt employees to complain of unfair/unequal treatment. Id. Till 13-14, at 6-7. Consequently, after several meetings between IFPTE and Naval officials, a Second Supplemental Agreement to the 1995 MOU (hereinafter “SSA”) was executed on June 29, 2001. Id. 1115, at 7. The SSA provided that the Navy would re-classify all of the GS-12 Engineering Technician positions in the 802 and 856 series as FLSA non-exempt by no later than October 7,2001. Id.

The anomalous classification of some GS-12s as exempt and others as non-exempt subsequent to the 1995 MOU, but before the 2001 SSA, was due to a particular grandfathering provision in the MOU regarding ex[667]*667isting GS-12s at the Portsmouth Naval Yard. In 1113 of the MOU, these grandfathered employees were given the choice of “remaining FLSA non-exempt while they occupy these positions” or being made FLSA-ex-empt (with the benefit of the incentive and performance awards and compensatory time to be afforded the exempt GS-12s under KH12, 16).2 Def.’s App. at 10-11. Approximately 20 Portsmouth GS-12s chose to remain non-exempt, but they ultimately misconstrued that their entitlement under the MOU to FLSA overtime compensation in those positions was a personal accommodation, rather than a position accommodation. Appendix to Pis.’ X-Mot. (hereinafter Pis.’ App.”) at 267-68; Deposition of James L. Kautz (hereinafter “Kautz Dep.”) at 24, 29; Def.’s Resp. to PPFUF K10, at 5. Thus, as these 20 employees moved throughout their careers to other job classifications within the GS-12 pay grade, they continued to insist on retaining non-exempt status. Def.’s Resp. to PPFUF H10, at 5. According to Human Resources Office director James L. Kautz, the Navy then made a decision that the grandfathered “position” exemptions would be converted to “personal” exemptions that would follow the grandfathered technicians from job to job throughout the Technician series. Pis.’ App. at 269; Kautz Dep. at 32. Thereupon, compounding the confusion, various Navy position classifiers found it difficult to understand, or to justify, why new GS-12s in the same job classifications as the grandfathered Portsmouth GS-12s should not also be considered non-exempt. Pis.’ App. at 269-81; Kautz Dep. at 30-78.

Plaintiffs here are suing for overtime compensation, liquidated damages, interest, and attorney fees and costs, alleging that the government improperly classified them as FLSA-exempt during the period between the 1995 MOU and the 2001 SSA. Compl. 111, at 2. The government’s motion for summary judgment rests on the affirmative defense that the MOU, pursuant to the doctrine of accord and satisfaction, serves as a complete bar to Plaintiffs’ claims — despite the disparity engendered by the classification of some non-grandfathered GS-12s as non-exempt. Def.’s Mot. at 6. Plaintiffs respond that the government has failed to establish three of the four components of accord and satisfaction: competent parties, meeting of the minds, and consideration. Pis.’ X-Mot. at 17.

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62 Fed. Cl. 664, 9 Wage & Hour Cas.2d (BNA) 1813, 2004 U.S. Claims LEXIS 252, 2004 WL 2212090, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ahrens-v-united-states-uscfc-2004.