Federal Manager's Daily Report

The U.S. Court of Federal Claims has denied 1,100 IRS lawyers

payment for overtime hours worked without the written

approval from an authorized agency representative under

the Federal Employees Pay Act.

The plaintiffs work in agency field offices and filed for

partial summary judgment; if they prevailed, the court would

have had to determine damages in the next phase of the case,

according to No. 99-758C.

The government also filed for summary judgment, arguing it

is not liable for the overtime hours worked by the plaintiffs

in connection with travel or by class members under flexible

schedules, which are beyond administrative control of the IRS.

However, while the plaintiffs acknowledged that their overtime

hours weren’t officially approved, they said they are

entitled to recovery based upon the interpretation of the

statutes and regulations applicable to flexible schedules, and

because they were induced, encouraged, and expected to work

overtime in meeting the demands of their jobs, according to

the decision.

It cited a similar case from the Federal Circuit appellate court

in 2004 — Doe v. United States — in which Department of

Justice lawyers were denied overtime pay where the statutes and

regulations requiring approval were not followed, and said the

IRS lawyers are also governed by Doe.

The court pointed out that IRS field offices employ a procedure

and form within a chief counsel directives manual that is

available for the request and approval of overtime compensation,

and that the manual was not used by the plaintiffs’ class for

the hours in question.

It noted that lawyers have another potential avenue for relief

— annual premium pay of 25 percent rather than overtime

compensation — where “the hours of duty cannot be controlled

administratively” and where there are “substantial amounts of

irregular, unscheduled overtime duty.”

It said that provision could be useful to some members of the

plaintiff’s class, but warned that the provision should not be

used by agencies as a way to evade the requirements of FEPA and

to coerce unpaid overtime. The court dismissed the claims.