Federal Education Association, Inc. v. United States

120 Fed. Cl. 791, 2015 U.S. Claims LEXIS 508, 2015 WL 1927088
CourtUnited States Court of Federal Claims
DecidedApril 28, 2015
Docket14-331C
StatusPublished

This text of 120 Fed. Cl. 791 (Federal Education Association, Inc. 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
Federal Education Association, Inc. v. United States, 120 Fed. Cl. 791, 2015 U.S. Claims LEXIS 508, 2015 WL 1927088 (uscfc 2015).

Opinion

Pay Freeze Act; Overseas Teachers Pay and Personnel Practices Act; Application of Pay Freeze Act after expiration; Skid-viore deference

OPINION

FIRESTONE, Judge.

This case arises from the pay freeze for teachers in overseas Department of Defense Educational Activity (“DoDEA”) schools, imposed by Congress as part of an overall *793 freeze of salaries for Federal employees from 2011 to 2013. Pending before the court are the Federal Education Association, Inc.’s (“FEA”) motion for summary judgment and defendant the United States’s (“the government”) motion for summary judgment. 1 Plaintiffs allege that the United States Office of Personnel Management (“OPM”) erred by determining that the Pay Freeze Act (“PFA”), passed by Congress as part of the Continuing Appropriations and Surface Transportation Extensions Act of 2011, applied to overseas teachers whose pay is set pursuant to the Overseas Teachers Pay and Personnel Practices Act (“OTPPPA”), • 20 U.S.C. §§ 901-907. Plaintiffs argue that the OTPPPA is not among the statutes covered by the PFA and that, even if they were covered, the government erred by extending a freeze of their pay beyond the deadline set by the statute. The government argues that Congress sought to apply the PFA broadly and that the President, through OPM, properly included overseas teachers in the pay freeze. The government further argues that DoDEA’s application of the pay freeze for overseas teachers beyond the pay freeze deadline was lawful in that the teachers were only subject to a pay freeze for 3 years, the same length of freeze as all other affected employees. The extension of a pay freeze beyond the statutory deadline, the government argues, was necessary given the timing of the school year relative to the pay freeze period. For the reasons that follow, the court agrees with the government that overseas teachers were subject to the pay freeze, but finds that the government erred in applying the pay freeze beyond the statutory period.

I. BACKGROUND

A. Pay Rates for Overseas DoDEA Teachers

Salaries for overseas teachers employed by DoDEA are set by 20 U.S.C. § 903, which states:

The Secretary of Defense shall fix the basic compensation for teachers and teaching positions in the Department of Defense at rates equal to the average of the range of rates of basic compensation for similar positions of a comparable level of duties and responsibilities in urban school jurisdictions in the United States of 100,000 or more population.

20 U.S.C. § 903.

The Secretary of Defense is given the authority to determine how to maintain the pay parity required by the OTPPPA. 20 Ü.S.C. § 902(a)(2). 2 Initially, the Secretary collected data from representative districts for a school year, and then used that data to set a rate of pay for the following school year. This procedure was challenged following a 1966 amendment on the grounds that this practice allowed salaries to lag behind those districts. March v. United States, 506 F.2d 1306, 1315 (D.C.Cir.1974). The court agreed and the pay adjustments are now made retroactive to the beginning of the school year. 3

During the time period at issue in this ease, the DOD set teacher salaries by surveying urban school districts populations of 100,000 or more. Hritz Decl. ¶3; Terhaar Decl. ¶ 8. Until 2013, this included 231 school districts. Id. This number was recalculated following the 2010 census and expanded to 267 school districts. Id. The survey process occurs between November and January, af *794 ter which DOD sets a pay rate for each category of DoDEA employee: teachers, guidance counselors, speech pathologists, and school psychologists. Hritz Decl. ¶ 4; Terh-aar Decl. ¶ 9. These rates are then shared with the FEA, corrected if necessary, and published. Hritz Decl. ¶¶ 5-8; Terhaar Decl. ¶ 9. The effective date of the pay adjustment is August 1 of the previous year. Terhaar Decl. ¶ 9.

B. The Pay Freeze

In December 2010, as part of the Continuing Appropriations and Surface Transportation Extension Act, Pub.L. No. 111-322, Congress passed the PFA, which prevented increases in salary for certain federal employees. The Act provided, in relevant part:

(a)(1) the term ‘employee’—
(A) means an employee as defined in section 2105 of title 5, United States Code; and
(B) includes an individual to whom subsection (b), (e), or (f) of such section 2105 pertains (whether or not such individual satisfies subparagraph (A));
(b)(1) Notwithstanding any other provision of law, except as provided in subsection (e), no statutory pay adjustment which (but for this subsection) would otherwise take effect during the period beginning on January 1, 2011, and ending on December 31, 2012, shall be made.
(2) For purposes of this subsection, the term ‘statutory pay adjustment’ means—
(A) an adjustment required under section 5303, 5304, 5304a, 5318, or 5343(a) of title 5, United States Code; and
(B) any similar adjustment, required by statute, with respect to employees in an Executive agency.
(e) Notwithstanding any other provision of law, except as provided in subsection (e), during the period beginning on January 1, 2011, and ending on December 31, 2012, no senior executive or senior-level employee may receive an increase in his or her rate of basic pay absent a change of position that results in a substantial increase in responsibility, or a promotion.
(d) The President may issue guidance that Executive agencies shall apply in the implementation of this section.
(e) The Non-Foreign Area Retirement Equity Assurance Act of 2009 (5 U.S.C. 5304 note) shall be applied using the appropriate locality-based comparability payments established by the President as the applicable comparability payments in section 1914(2) and (3) of such Act.

Pub.L. No. 111-322 § 147, 124 Stat. 3518. Thus, the Act explicitly froze increases pursuant to 5 U.S.C. §§ 5303, 5304,

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Bluebook (online)
120 Fed. Cl. 791, 2015 U.S. Claims LEXIS 508, 2015 WL 1927088, Counsel Stack Legal Research, https://law.counselstack.com/opinion/federal-education-association-inc-v-united-states-uscfc-2015.