Federal Manager's Daily Report

The appeals court for the Federal Circuit has upheld a

lower court’s decision to deny additional overtime pay

to thousands of criminal investigators employed in

various federal agencies between 1984 and 1995.


The court of federal claims initially granted the

government’s dismissal of the “takings complaint” issued

by 14,302 former GS- 9-13 criminal investigators in the

Bureau of Alcohol Tobacco and Firearms, the Drug

Enforcement Agency, the Internal Revenue Service, the

Customs Service, and the Secret Service, according to

the appeals court decision, 04-5012.


It said the appellants were seeking the difference in

overtime compensation between what they got under federal

employees pay law, and what they claim they are entitled

to under the Fair Labor Standards Act, which establishes

minimum overtime pay at time-and-a-half.


The appellants had been found exempt from the FLSA as

“executive, administrative, or professional” employees,

so they filed an “action at law” against the government

under the Tucker Act, according to the decision.


It said they also filed at the same time an administrative

claim before the Government Accountability Office — the

other course of action federal employees may take to

recover unpaid overtime — challenging the exemption

ruling and seeking damages stemming from the

“misclassification.”


Later, the appellants argued that the dismissal of their

case was in effect a “taking of their private property

without just compensation.”


However, the claims court found that the appellants failed

“to state a claim upon which relief may be granted,” and

the appeals court affirmed, saying that the “appellants do

not have a cognizable property interest in either the

underpaid overtime compensation or in an administrative

claim thereto within the meaning of the Takings Clause of

the Fifth Amendment.”