DCMA's Notice of GS-11 Employee FLSA status change

Here below is one of the messages that AFGE representatives received from DCMA once news of the Final FLSA Settlement Agreement was released.

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From:   Abbott, James T (Legal)
Sent:   Wednesday, March 10, 2004 12:16:34 PM
To:     All DCMAW Heads
Cc:     Carr, Anthony
Subject:        FLSA-Appendix C Settlement - Clarification
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        All,

On Monday of this week, you received the email below which attached a copy of a Negotiated Settlement Agreement.  This message is intended to clarify and explain the details and circumstances behind the Agreement.

On February 27, 2004, DCMA entered into a Settlement Agreement with AFGE that resolves the outstanding issues regarding the FLSA status of nine job series that remained in question as a result of the July 1999 “Global” Settlement Agreement.   As part of the 1999 Agreement, DCMA / DLA and AFGE agreed to attempt mediation prior to proceeding to arbitration regarding the FLSA status of those positions that were referred to as “Appendix C” in the July 1999 Agreement.  

 
             Mediation began in November 1999 and continued in various forms through November 2003 when a tentative agreement was reached between DCMA and AFGE and its legal representative.   Negotiations on the DLA side continued until February, thereby delaying the implementation date of the Agreement. (DCMA and DLA determined it was mutually beneficial to continue joint processing of the case even after DCMA became a separate Agency in 2000.)

 
             This mediation, and the resulting Settlement Agreement, is significant in several regards.   First, it closes seven years of grievance and arbitration resulting from dispute over appropriate classification of FLSA “exempt” versus “non-exempt” status.   Second, the Agreement avoids extended hearings that would be costly and disruptive.   Third, the terms achieved are results that were likely to occur as a result of upcoming implementation of NSPS.   Fourth, any additional claim for backpay is waived for the period July 1999 through January 2004.  

 
             The terms of the Settlement Agreement that affect DCMA are:
 
1.      The following positions change from “exempt” to “non-exempt”.  This change will affect the circumstances under which employees in these job series receive overtime and the overtime rate of pay:

 

  343-11
1150-11
1101-11
1102-11
1910-11
2010-11
2210-11

 

2.  The following positions remain “exempt”:

 

1103-12
1150-12

 
3.      These changes will be made retroactive to the first pay period of January 2004.   The retroactive effect is minimal.   It may affect employees who were previously    “exempt” but since January 2004 were required to travel after duty hours or on weekends.   The effect should be minimal since it has been DCMA policy since July 1999 to minimize requirements to travel outside of the normal workweek.

 
All changes regarding the exempt status will be made by either DCMAW or DCMA Human Resource offices.   No action is required on your part at this time.   Your primary responsibility is to be aware of and apply the appropriate overtime provisions to those series identified in 1 above.

            While the Settlement Agreement only lists 11 DCMAW locals, the terms of the Agreement will be applied to all locals throughout DCMA.   Many locals never filed grievances.  However, DCMA entered into Negotiated Agreements with those locals in September – October 1999 in order to forestall additional grievances on the same issue.  Those Agreements “linked” themselves to the outcome of the “global” mediation or arbitration results.  Therefore, the terms of this Agreement will be applied to all locals throughout DCMA.

 
As a sidenote, you should be aware that this Settlement has no direct effect on several ongoing cases in Federal Court on FLSA issues, wherein significant numbers of DCMA employees currently stand as Plaintiffs.   Those cases are continuing to be addressed in the Federal Court of Claims and the Federal Circuit Court of Appeals.   It is anticipated, however, that all of the DCMA employees who are covered by these Agreements will be dismissed as Plaintiffs from Federal Court.   That decision is expected from the Federal Court of Claims within approximately 30 days.   You will be apprised of the outcome of that proceeding when it is issued.

 
Should you have any questions please do not hesitate to call me or your servicing Human Resource Specialist.

        Regards,
        James T. Abbott
        Senior Associate District Counsel
        Personnel and Ethics
        310-900-6209