National Treasury v. Flra

Court of Appeals for the Ninth Circuit·Decided August 12, 2005·No. 03-74093·Published

Opinion

FOR PUBLICATION

UNITED STATES COURT OF APPEALS FOR THE NINTH CIRCUIT

NATIONAL TREASURY EMPLOYEES  UNION (NTEU), No. 03-74093

Petitioner,

v.  FLRA No.

O-NG-2667

FEDERAL LABOR RELATIONS OPINION

AUTHORITY, Respondent.

On Petition for Review of an Order of the Federal Labor Relations Authority

Argued and Submitted

April 4, 2005—Seattle, Washington

Filed August 12, 2005

Before: Ronald M. Gould, Richard C. Tallman, and Johnnie B. Rawlinson, Circuit Judges.

Opinion by Judge Gould

10549

NATIONAL TREASURY EMPLOYEES UNION v. FLRA 10551

COUNSEL

Gregory O’Duden, General Counsel, Barbara A. Atkin, Deputy General Counsel, and Julie M. Wilson, Assistant Counsel, Washington, D.C., for the petitioner.

David M. Smith, Solicitor, William R. Tobey, Deputy Solicitor , and David M. Shewchuk, Attorney, Washington, D.C., for the respondent.

10552 NATIONAL TREASURY EMPLOYEES UNION v. FLRA OPINION

GOULD, Circuit Judge:

This petition for review of an order by the Federal Labor Relations Authority (FLRA) arises out of negotiations for a collective bargaining agreement between the National Treasury Employees Union (NTEU) and the Internal Revenue Service . NTEU sought to include in the agreement a provision that would provide compensation to IRS employees who are required to spend extra time commuting from home to a temporary work site within their official duty station. The IRS accepted the provision and approved the agreement.

The Secretary of the Treasury disapproved NTEU’s proposed contract provision as contrary to a government-wide regulation defining “hours of work” promulgated by the Office of Personnel Management (OPM). NTEU petitioned the FLRA for review of the Secretary’s disapproval. The FLRA denied the petition, concluding that NTEU’s proposed contract provision was nonnegotiable because it was contrary to law.

NTEU timely filed a petition for review of the FLRA’s order. We have jurisdiction under 5 U.S.C. § 7123(a), and we affirm.

I

The Federal Service Labor-Management Relations Statute (FSLMRS), 5 U.S.C. §§ 7101-7135 (2000), governs labor relations for federal employees. The statute requires federal agencies to bargain in good faith with its employees over wages. See Fort Stewart Schs. v. FLRA, 495 U.S. 641, 644 (1990). Agreements between an agency and its employees are subject to approval by the head of the agency; a provision may be disapproved only if it is not in accordance with appli-

NATIONAL TREASURY EMPLOYEES UNION v. FLRA 10553 cable law, rule, or regulation. See 5 U.S.C. § 7114(c).1 Employees may challenge an agency head’s disapproval through an appeal to the FLRA. See id. §§ 7105(a)(2)(E), 7117(c).

In its collective bargaining agreement with the IRS, NTEU sought to include the following provision:

When an employee travels from his/her residence to a point of destination within his/her official duty station , he/she should not be required to leave home any earlier or arrive home any later than he/she does when he/she travels to and from his/her usual assigned place of business.

The IRS accepted the provision and approved the agreement.

The Secretary of the Treasury, pursuant to 5 U.S.C. § 7114(c), reviewed the agreement and disapproved the language requiring pay for extra commute time as contrary to Part 551 of the OPM regulations, which covers “hours of work.”2 1 Section 7114(c) provides in part that (1) An agreement between any agency and an exclusive representative shall be subject to approval by the head of the agency. (2) The head of the agency shall approve the agreement within 30 days from the date the agreement is executed if the agreement is in accordance with the provisions of this chapter and any other applicable law, rule, or regulation (unless the agency has granted an exception to the provision). 2 Congress gave OPM the authority to issue government-wide regulations to implement the FSLMRS and the Fair Labor Standards Act (FLSA) of 1938, 29 U.S.C. §§ 201- 219, for federal employees. See 5 U.S.C. §§ 1103-1104, 1301-1103; 29 U.S.C. § 204(f).

OPM regulations define the phrase “hours of work” as “all time spent by an employee performing an activity for the benefit of the agency and under the control or direction of the agency.” 5 C.F.R. § 551.104. In determining whether time is hours of work, the OPM regulations consider factors including other rules, provisions of law, Comptroller General decisions, agency policy and regulations, and negotiated agreements. Id.

10554 NATIONAL TREASURY EMPLOYEES UNION v. FLRA The subpart of Part 551 that addresses “Time spent traveling” states:

An employee who travels from home before the regular workday begins and returns home at the end of the workday is engaged in normal “home to work” travel; such travel is not hours of work. When an employee travels directly from home to a temporary duty location outside the limits of his or her official duty station, the time the employee would have spent in normal home to work travel shall be deducted from hours of work . . . .

5 C.F.R. § 551.422(b) (emphasis added). The Secretary determined that NTEU’s proposed contract provision was in conflict with the OPM regulation because the provision would require payment for normal “home to work” travel within an employee’s official duty station,3 while the OPM regulation clearly states that “such travel is not hours of work.” NTEU petitioned the FLRA for review of the Secretary’s disapproval of its proposed contract provision.

In a 2-1 decision, the FLRA dismissed the petition, holding that the provision was nonnegotiable under 5 U.S.C. § 7117(a)(1) because the provision conflicted with 5 C.F.R. § 551.422(b). The majority reasoned that normal “home to work” travel is not compensable under OPM regulations and that binding precedent from the D.C. Circuit in Department of the Air Force v. Federal Labor Relations Authority, 952 F.2d 446, 450-51 (D.C. Cir. 1991), established that OPM regulations are mandatory and rule out bargaining by federal employees for compensation in a manner contrary to the regulations . The FLRA majority concluded that 3 The agency can prescribe a “mileage radius of not greater than 50 miles to determine whether an employee’s travel is within or outside the limits of the employee’s official duty station.” 5 C.F.R. § 551.422(d).

NATIONAL TREASURY EMPLOYEES UNION v. FLRA 10555 Since the provision . . . would require the Agency to compensate employees for increased commute time to a work site within their official duty station, the provision is inconsistent with 5 C.F.R. § 551.422(b). Moreover, and consistent with Dep’t of the AF, we find that if OPM had meant for such activity to be compensable through negotiation under the FLSA, “it would have had to affirmatively grant that right in [Part 551] or other regulations in order not to run afoul of § 7117 of [the Statute] and its designation as nonnegotiable any proposal inconsistent with government-wide regulations . . . .”

(quoting Dep’t of the Air Force, 952 F.2d at 451) (alterations in original).

The dissent saw no conflict between the provision and the OPM regulation because the regulation neither mandates nor prohibits pay for “work to home” travel. In the dissent’s view, the statutory context in which the OPM issued the regulation and Congress’s intent to support collective bargaining suggested that the contract provision was consistent with § 551.422(b), which establishes only a minimum rule that “home to work travel . . . is not hours of work” that can be modified by negotiated agreement. The dissent distinguished Department of the Air Force as addressing a different OPM regulation, 5 C.F.R. § 551.412(b),4 which includes “categorical ” language critical to the D.C. Circuit’s holding.

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