George Squillacote v. United States

739 F.2d 1208, 1984 U.S. App. LEXIS 20544
CourtCourt of Appeals for the Seventh Circuit
DecidedJuly 13, 1984
Docket83-1882
StatusPublished
Cited by10 cases

This text of 739 F.2d 1208 (George Squillacote v. United States) is published on Counsel Stack Legal Research, covering Court of Appeals for the Seventh Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
George Squillacote v. United States, 739 F.2d 1208, 1984 U.S. App. LEXIS 20544 (7th Cir. 1984).

Opinion

CUMMINGS, Chief Judge.

This class action lawsuit is another in the series of cases challenging Congressional efforts in the late 1970’s and early 1980’s to brake the inflationary economy by means of' limitations on salary increases authorized for federal employees. See, e.g., United States v. Will, 449 U.S. 200, 222, 101 S.Ct. 471, 484, 66 L.Ed.2d 392; Foley v. Carter, 526 F.Supp. 977, 980 (D.D. C.1981). The plaintiff class is composed of 5,000-6,000 executive level federal employees who are members of the Senior Executive Service (SES) established in 5 U.S.C. §§ 3131-3136 (1982). 1 The ' named plaintiffs are 21 Regional Directors of the National Labor Relations Board. They complain that salary limitations enacted by Congress in Fiscal Years (FY) 1979, 1980, and 1981 should not have been applied to limit their salaries, because the SES pay system, established in 5 U.S.C. § 5382 (1982), 2 superseded the limitations, and the *1210 limitations by their own terms did not apply to SES members.

The complaint was filed in the United States District Court for the Eastern District of Wisconsin and jurisdiction was invoked pursuant to 28 U.S.C. § 1346(a)(2) (the Tucker Act)., The parties filed cross-motions for summary judgment and agreed that the issue is solely one of law. In a careful opinion, Chief Judge Reynolds granted the government’s summary judgment motion and. denied that of the plaintiffs, holding that the case presented no genuine issue of material fact and the defendant was entitled to judgment as a matter of law. Squillacote v. United States, 562 F.Supp. 338 (E.D.Wis.1983). Plaintiffs appeal from that decision. We affirm the district court’s decision with regard to FY 1979 but reverse with regard to FY 1980 and 1981.

The Senior Executive Service (SES) was created as part of the Civil Service Refotm Act of 1978 (CSRA) “to ensure that the executive management of the Government of the United States is responsive to the needs, policies, and goals of the Nation, and otherwise is of the highest quality.” 5 U.S.C. § 3131. To establish the SES, positions were to be converted from GS-16, 17, and 18 levels and Executive Schedule levels IV and V. 3 See 5 U.S.C. § 3132(a)(2). The President was authorized to establish at least five SES pay levels as well as to set pay rates for the SES. 5 U.S.C. § 5382(a). Agencies were directed to designate positions deemed appropriate for conversion from the Executive or General Schedule to SES (P.L. 95-454, § 413(b)(1), 92 Stat. 1111, 1175), and employees serving in those positions at the time of the designation were entitled to elect to accept or decline conversion {Id., Section 413(c)(1)). The actual conversion of positions to SES from the Executive and General Schedules took place on July 13, 1979, nine months after passage of the CSRA. See id., Section 415(a)(1).

Like other federal pay systems, the SES does not exist in a vacuum but rather is part of an intricate web of legislation regulating both, scheduled and payable rates of pay for federal employees. In addition to the statutes which establish the three pay systems already discussed and generally govern the overlapping of pay rates among the systems, 4 salary limitation provisions *1211 have been enacted periodically to cap for a prescribed period salaries of specified federal employees. These limitations often have been enacted as part of the appropriations process, especially during times of national economic difficulties, and often are challenged by those whose compensation is thereby limited. See, e.g., U.S. v. Will, 449 U.S. 200, 222, 101 S.Ct. 471, 484, 66 L.Ed.2d 392 (judicial salaries); United States v. Dickerson, 310 U.S. 554, 60 S.Ct. 1034, 84 L.Ed. 1356 (reenlistment bonuses); Foley v. Carter, 526 F.Supp. 980 (D.D.C.1981) (non-Article III Judicial Branch salaries).

The case before us arises in a similar context. The plaintiff class (plaintiffs) argues that salary limitations enacted for each of the first three fiscal years SES was in existence (FY 1979, 1980, and 1981) did not apply to SES. Because the Office of Personnel Management (OPM) applied those limitations to SES, so that plaintiff SES members did not receive the total salary increases they would have otherwise received, plaintiffs sued for damages amounting to the difference between the salaries they received due to enforcement of the limitation and the salaries they would have received if the limitation had not been enforced. Because plaintiffs separately challenged each year’s limitation in a separate count and because the relevant legal issues are different for each count, each count will be considered separately.

A. Count 1: FY 1979 (October 1, 1978 through September 30, 1979).

On September 30, 1978, a general limitation on FY 1979 salary increases was enacted. This limitation, Pub.L. 95-391, § 304(a), 92 Stat. 788-89 (hereinafter Section 304(a)), 5 froze salaries for FY 1979 at the rates that were payable on September 30, 1978. This limitation affected the salaries of federal employees if the rates for their positions were fixed at or limited to rates equal to or greater than rates payable for level V of the Executive Schedule pay system. Id.

Section 304(a) was enacted prior to the passage, as part of the Civil Service Reform Act, of 5 U.S.C. § 5382, which established the system for setting SES pay rates. Plaintiffs rely heavily on the fact of Section 304(a)’s earlier enactment in challenging the application of the Section 304(a) limitation to SES. First they argue that certain descriptive referents in Section 304(a), ostensibly broad enough to encompass Section 5382 and the SES, do not in fact so apply because Section 5382 and the SES were not yet in existence at the time of Section 304(a)’s passage. Second, they contend that even if Section 304(a) initially applied to SES, Section 5382 subsequently repealed the limitation’s application to SES.

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Bluebook (online)
739 F.2d 1208, 1984 U.S. App. LEXIS 20544, Counsel Stack Legal Research, https://law.counselstack.com/opinion/george-squillacote-v-united-states-ca7-1984.