Federal Manager's Daily Report

Penalty hours increased from between 9.3 million and 11.3 million before the pandemic to 16.7 million in 2020 and 23.8 million in 2021. Image: Karolis Kavolelis/Shutterstock.com

Although use of “penalty” overtime in the Postal Service was reduced in 2022 vs. 2021, it remains well above pre-pandemic levels and better oversight by management could help reduce it further, says an inspector general report.

Penalty overtime, which is double pay, is payable under differing circumstances that vary by the union contract covering the employee but can be paid for example for work beyond 10 hours on a regularly scheduled day or over eight hours on a non-scheduled day. “Workhours are a significant cost to the Postal Service, and management must ensure all hours worked are authorized and accurately recorded to monitor and control their costs,” the IG said.

It said that such hours increased from between 9.3 million and 11.3 million before the pandemic to 16.7 million in 2020 and 23.8 million in 2021, as USPS “faced significant unforeseen and uncontrollable challenges due to the COVID 19 pandemic in FY 2021, including higher package volumes, employee absenteeism, employee safety, and unanticipated expenses.”

The total declined in 2022 but only to 19.5 million, the audit said, but “facility management and lead clerks did not always properly identify and categorize penalty overtime transactions” which leaves management above the facility level “unaware if the hours are accurately authorized or not.”

Postal management responded that there is an established oversight process to verify penalty overtime transactions, but the IG reiterated its recommendation to ensure that is being followed; the two also disagreed regarding the potential cost. Management however agreed with other recommendations

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