Employee Salary Overpayment

The agency is to notify the employee, on agency letterhead, clearly addressed to the employee,  and provide a clear explanation of the overpayment

The employee or Union representative may inspect records on duty/official time.

Must give notice of the intent to collect

Amount to be collected may not exceed 15% of the employee's disposable income (unless agreed to in writing.)

Notice of the right to a hearing to resolve disputes as to the debits existence, amount and repayment schedule

 Overpayment collection will be stayed if a hearing is requested.

Notice of the right to seek waiver, the criteria for waiver, and information generally considered in ruling requests for wavier and the name, title, address and phone number of the person to whom a questions or a request for wavier should be submitted

The MOU is silent on:

How fast they have to make a decision on a waiver request

Collecting/suspending the overpayment collection while a waiver request is pending (They appear to be collecting the overpayment while making the decision.)

(Exceptions - different procedures/rights)

Overpayments arising from election/change of election in a Federal benefits program, if the overpayment was accumulated in four or fewer pay periods

The only hearing available to challenged the debit is expedited arbitration

The Union is the exclusive bargaining representative

The Union must approve arbitration (and notify the agency within 30 days of the filing of the request for arbitration.)

If the Union does not request arbitration that will constitute a withdrawal of the request for hearing.

Note: This means that if you are going to challenge the overpayment (amount, existence, or duration) you MUST have a Union representative: only the Union can request expedited arbitration.

Because of the role of the Union in requesting expedited arbitration for a hearing, if there is no designated representative, the Agency will notify the Local Union President of the fact that a hearing has been filed. If no representative is appointed copies of further notices will be sent to the Local President.

To be timely a request for hearing must be in writing, filed on or before the 15th day of receipt of notice (either the employee or the Union representative may file)

The request for a hearing should:

State factual reasons for the dispute

Include copies of supporting documents

be signed

Additional information may be introduced at the hearing

After designation of the Union representative the agency will forward information to the representative

All notices to the employee will tell the employee they have the right to Union representation, contain a form to designate a representative.

Inform the employee that, unless the Agency head extends it, the debt will be overdue 31 days after receipt of the letter, and begin collection.