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CONTACT NTEU NATIONAL OFFICE:
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Frequently-Asked Questions on CBP Global Settlement
NTEU and CBP have reached settlement of a dozen pending national grievances filed on behalf of CBP Officers and Agricultural Specialists involving shift, scheduling and overtime issues. Eligible employees will receive a cash distribution and/or compensatory time.
1. What was settled?
NTEU and CBP have reached settlement of a dozen pending national grievances filed on behalf of CBP Officers (CBPOs) and Agricultural Specialists (CBPASes) involving shift, scheduling and overtime issues. Eligible employees will receive a cash distribution and/or compensatory time.
CBP paid $184 million into a settlement fund, which represents unspent salary and expense (S&E) appropriations for fiscal years 11, 12, 13, 14 and 15. A settlement administrator has been retained to calculate and make payments to individuals covered by the settlement agreement through a share-based system, based on years of service.
This was an extremely complex settlement following many years of litigation and months of challenging negotiations. Because of legal limitations on the funds CBP can use for this purpose and how those monies can be spent, the terms and the payout formula are unusually complicated.
2. Which grievances are covered?
The settlement covers a dozen pending national grievances filed on behalf of CBPOs and CBPASes concerning claimed violations of: (1) the scheduling requirements of 5 U.S.C. Section 6101 and Article 34, Section 5 of the contract; (2) the bid and rotations provisions of Article 13; (3) implementation of the Revised National Inspection Assignment Policy (RNIAP); and, (4) COPRA and/or the Fair Labor Standards Act (FLSA) for unpaid work. The settlement also covers local grievances making the same claims for the same time period.
3. Which employees are entitled to cash distributions under the settlement?
The settlement covers current and former bargaining unit GS-1895 CBPOs, including CBPOEs and canine officers, and GS-401 CBPASes who served in one of those positions between October 1, 2010 and September 30, 2015. It also includes retirees who were employed in one of these bargaining unit positions at some point in FY 11 – FY 15 (10/1/10 – 9/30/15).
4. Why must one have been a bargaining unit CBPO or CBPAS at some point between 10/1/10 and 9/30/15 to be eligible to receive a payment under the settlement?
By law, appropriated but unspent S&E funds may only be used to pay obligations “properly chargeable” to (i.e., incurred in) the fiscal year for which the funds were appropriated. Using the funds to pay back pay to employees who were not employed by CBP during the 10/1/10 – 9/30/15 timeframe would not comply with this limitation.
For a more information click here.
5. Why are CBPASes covered under the settlement?
Agriculture Specialists are covered by several of the settled grievances: a FLSA/COPRA grievance (filed in 2/08 and held in abeyance), and the Basham I and II 6101 grievances.
6. Why are other employees, like CBP Technicians, not included in the settlement?
The agreement only covers CBPOs and CBPASes because only grievances pertaining to them are being settled. We considered seeking to include national grievances filed on behalf of employees in other positions, but these grievances were for smaller amounts in total, which would have made a distribution formula much more complicated.
7. What about employees who have retired or are planning to retire soon?
Retired employees are eligible to receive payments from the settlement fund provided they occupied a bargaining unit CBPO or CBPAS position at some time between 10/1/10 and 9/30/15.
8. I was a bargaining unit member during the 10/1/10 – 9/30/15 time period but retired. Will I receive a payment at the same time as current eligible employees?
Yes. Payments to all individuals covered by the settlement will be distributed at the same time.
9. Will employees who were detailed to supervisory or other non-bargaining unit positions be included?
Individuals will only receive length of service credit under the distribution formula for years served in a bargaining unit position. To receive credit for a particular year, an individual must have served at least six months in a bargaining unit CBPO or CBPAS position.
10. How were cash distributions determined?
Individual amounts were determined using a share-based formula, with the number of individual shares based on years of service from FY2003 to FY2015 (between 10/1/02 and 9/30/15). Greater weight was given to service from 2003 to 2011, when most of the violations covered by the settled grievances occurred. Specifically, individuals were assigned 3 points for each year of service in a covered BU position between 2003 and 2011 and 1 point for each year of service in a covered BU position between 2012 and 2015. To qualify as occupying a covered BU position during a particular year, for purposes of assigning points, the individual must have occupied the covered BU position for at least six months of that year.
For example, an individual who occupied a covered BU position for at least six months in each year between 2003 and 2013 would be assigned 24 points in the distribution of 2011 funds because, as of 2011, that employee had eight years of service that fell between 2003 and 2011. Following the same approach for 2012 and 2013 funds, the individual would be assigned 25 points in the distribution of 2012 funds and 26 points in the distribution of 2013 funds.
The individual’s share of the funds in each fiscal year 2011-2015 is equal to his or her points divided by the total points for all individuals entitled to a share of the fiscal year’s funds. Thus, for the individual who occupied a covered BU position between 2003 and 2013, his or her share of the 2011 funds would be equal to 24 divided by the total number of points for all individuals entitled to the FY 2011 funds. Similarly, that individual’s share of the 2012 funds would equal 25 divided by the total number of points for all individuals entitled to the 2012 funds, and his or her share of the 2013 funds would equal 26 divided by the total number of points for all individuals entitled to the 2013 funds.
There are two limitations on payments: the annual overtime cap of $35K (or $45K if the individual received a waiver) and payments already made pursuant to covered national or local grievances. If an individual could not receive the full amount of the payment due them in a particular FY due to the overtime cap, the settlement administrator determined whether their payment in other fiscal years can be enhanced, while remaining under the cap, to make up the difference.
For a more detailed explanation click here.
11. Will the fact that I reached the annual OT cap in one or more of the fiscal years from FY 11 – FY 15 affect my payment under the settlement?
Possibly. Although NTEU does not agree that back OT payments should be subject to the annual OT earnings cap, we agreed to subject payments to the cap solely for this agreement because there was insufficient time to litigate our position. A distribution formula will be used that minimizes the number of employees who do not receive their full payment. Those who do not receive their full payment because of cap limitations are entitled to additional comp time.
12. Who will perform the distribution calculations and distribute the funds?
A firm, Brown/Greer (BG) in Richmond, Virginia, has been retained to serve as the settlement administrator (SA) to perform these functions. BG specializes in this type of work. The SA will communicate with individuals covered by the settlement and will resolve any disputes about payment amounts.
13. Is the settlement administrator being paid out of the settlement funds?
No, CBP is paying the costs of the services provided by BG separately.
14. How much of the $184 million will be paid to employees? What money comes out of the settlement fund?
CBP’s required employer contributions must be paid from the settlement fund. Deductions and withholding required of CBP, as the employer, are Medicare, FICA/Social Security, and retirement contributions. Retirement contributions are not required for OT earnings over $17,500 in a given year. CBP’s retirement contributions make up the largest portion of their required contributions.
15. What money comes out of the employee’s cash distribution?
By law, income taxes, Social Security, Medicare, and retirement contributions must be withheld from individuals’ payments. Again, no retirement contributions will be withheld if a covered individual already earned more than $17,500 in OT in a given year. W-2s containing payment amounts and withholdings will be issued to each individual who received a payment.
16. What about TSP contributions?
CBP’s mandatory contribution to employee TSP accounts, in an amount equal to 1% of settlement payments, will be taken from the settlement fund. No other employee contributions or agency matching contributions beyond those already made during the period covered by the settlement agreement will occur.
17. Will the back pay I receive affect my high 3 year average for purposes of calculating my retirement annuity?
Back OT pay received under the settlement will be credited to a covered individual’s OT earnings for each fiscal year from FY 11 through FY 15 that the individual occupied a covered position. If the individual earned less than $17,500 in any of those years, the back payment will count towards the individual’s base salary for retirement purposes, up to $17,500 in total OT earnings each year. Although back pay received under the settlement will be paid in FY 17, it will not count towards an individual’s FY 17 OT earnings for OT cap or retirement purposes.
18. When and how will my cash distribution be paid?
We anticipate that the settlement administrator will issue the payments beginning August 14, 2017 and ending August 25, 2017. Payments will be made by check, not EFT.
19. If I received a payment under a national or local grievance that is included in the settlement, will I still receive a payment from the settlement fund?
Payments received pursuant to a grievance included in the settlement will be subtracted from payments made from the settlement fund. Check with your local chapter if you believe you may have received such a payment.
20. What does the agreement say about scheduling, which was the subject of several of the national grievances that were settled?
During these negotiations, we also worked to protect your rights under the contract and the law. One of the more contentious aspects of the negotiations was the scheduling requirements of 5 USC Section 6101 and Article 34 of the term contract.
In the last decision we received on whether CBP must comply with these scheduling requirements, an arbitrator ruled that CBP had established the need to deviate from several scheduling requirements to avoid a substantial increase in costs or being seriously handicapped in carrying out CBP functions. The arbitrator further ruled that these determinations must be made on a case-by-case basis and must be documented.
Working from that decision, we negotiated language that identifies the 3 scheduling requirements and the conditions under which deviations are permitted:
• Workweeks must be scheduled at least one week in advance unless a change is necessary to meet situations beyond CBP’s control;
• Workweeks must include 2 consecutive days off unless it is necessary to respond timely to posed threats or to avoid substantially increased costs;
• Work hours in each day of the week must be the same, unless CBP has no control over the situation or to avoid substantially increased costs.
Upon request, CBP must explain why a deviation from scheduling requirements was necessary under the circumstances. We also identified four limited situations where deviation from the scheduling requirements is considered appropriate: (1) mandatory training; (2) court or litigation related activities; (3) AT-CET or PERT assignments; and (4) when an employee voluntarily requests a schedule change consistent with the terms of the contract.
NTEU may still challenge deviations from the general scheduling requirements if we do not believe the conditions for deviations are satisfied.
20. Will the new scheduling language in the contract affect employees on Compressed Work Schedules (CWS)?
No. The Article 34 and Section 6101 scheduling requirements apply to those working 40 hour workweeks. CWSes for uniformed officers are negotiated under a separate law, the Flexible and Compressed Work Schedules Act (FCWSA), and a different contract article. The FCWSA makes clear that Section 6101, including the authority to deviate from scheduling requirements, does not apply to CWS. The FCWSA allows an agency like CBP to seek to terminate or modify a CWS for certain reasons, but they must bargain with NTEU before implementing any changes. Article 14, Section 5 of the current contract also allows CBP to temporarily suspend CWS to meet unexpected work requirements or changes in staffing levels, with 2 weeks advance notice.
21. What can I do if I disagree with my payment amount?
You are permitted to contest the correctness of certain factors that went into determining your award amount: (1) whether you occupied a covered BU position at any time in FY11, 12, 13, 14, or 15; (2) whether you occupied a covered BU position for at least six months in any fiscal year between FY03 and FY15; (3) whether you exceeded your overtime cap in FY11, 12, 13, 14, 15; (4) whether you already received a payment pursuant to covered national or local grievances.
To lodge an appeal, you must contact the claims administrator at 1-844-378-6551 within 30 days of the date of your check. Depending on whether your check was one of the first or one of the last to be mailed, your appeal deadline falls somewhere between September 13 and September 24.
If you wish to appeal, you must not cash your settlement check. Another check will be issued to you after your appeal is resolved.
22. What kinds of documents should I submit with my appeal?
Most helpful would be official documents, such as an SF-50, that can substantiate your claims with respect to the factors you dispute.
23. How will my appeal be resolved?
The settlement administrator will review claims by covered individuals who assert that they were wrongly denied payment or that the amount initially paid was incorrect. Claims by covered individuals who contest the correctness of data provided by CBP, however, will have to be decided by CBP.
24. Why is the employer’s retirement contribution share included on my payment stub but not taken out of my total payment?
Just like the retirement contributions associated with your regular bi-weekly paycheck, the retirement contributions associated with your payment under the settlement include employee contributions—i.e., a percentage that you contribute from your pay—and employer contributions—i.e., a separate amount that the agency contributes to your retirement.
To make employer contributions for purposes of this settlement, the settlement administrator made preliminary calculations of all awards for each fiscal year 2011-2015 and calculated employer contributions based on these figures. Then, the settlement administrator subtracted the employer’s aggregate contributions from the total funds available for distribution in each fiscal year 2011-2015. Once sufficient funds to cover the employer’s mandatory contributions were set aside, the settlement administrator applied the distribution formula to the remaining funds to calculate individuals’ final award amounts. Thus, the employer’s retirement contribution was set aside prior to the calculation of your total payment and, unlike the employee contribution, was not withheld from the payment after-the-fact.
25. Are retirement contributions deducted before or after taxes?
Retirement and TSP contributions are deducted from your gross award amount before taxes.
26. Can the settlement administrator reissue my check in a different name?
The award check can only be issued to an individual who is covered under the settlement.
27. I received a check for a deceased employee. Can the settlement administrator reissue it in my name?
No. Deceased employees are not covered under the settlement.
28. I have not received my check. Can the settlement administrator reissue it?
If you have not received a check but believe you should have received one, contact the settlement administrator at 1-844-378-6551.
29. When will employees who did not receive their full payment because of OT cap limitations be notified of their entitlement to additional comp time?
Employees granted additional comp time because of OT cap limitations will receive a notice of their entitlement with their payment check. The exact amount of their additional comp time will not be known until all payment appeals are resolved and the second, final round of payments to liquidate the settlement fund are made. This will likely be in late November or early December, 2017.
30. How much additional comp time will be granted to employees who did not receive their full payment because of OT cap limitations?
Employees who came within $500 of the cap in fewer than 4 of the 5 years from FY 11-15 will receive comp time equivalent in value to the amount of their individual payment that was precluded by the cap up to an additional 24 hours. Employees who did not receive the full amount and who came within $500 of the cap in 4 of the 5 years will receive up to 40 additional hours. And employees who did not receive their full amount and came within $500 of the cap in all 5 years will receive up to 84 additional hours.
The additional comp time will be calculated using the COPRA OT hourly rate, or twice the employee’s regular hourly rate.
Example: A covered individual is due $5,000 in back overtime pay under the settlement distribution formula. That individual earned $34,500 in each year between FY11 and FY15, leaving aggregate cap room in the amount of $2,500. Because the individual came within $500 of the cap in all 5 years and cannot receive the full payment of $5,000, the individual will receive up to an additional 84 hours of comp time.
To calculate the amount of additional comp time, the $2,500 difference between the amount due under the formula ($5,000) and amount payable under the cap ($2,500) would be divided by twice the employee’s hourly pay rate (the COPRA hourly overtime rate) to arrive at the additional comp time due the employee. Assume the employee’s hourly rate is $40. $2,500 divided by $80 (twice the hourly rate) is 31.25. The employee will receive 31.25 comp hours in addition to the 16 hours granted to all covered employees under paragraph 7a of the settlement agreement.
31. When must those who receive additional comp time due to OT cap limitations use the additional comp time?
Employees granted additional comp time because of OT cap limitations must use the comp time within 26 pay periods of when the additional comp time is granted. Under a revision to the settlement agreement, beginning the first full pay period in January 2018 recipients must use the additional comp time before using sick or annual leave until the comp time is exhausted. If CBP does not approve the use of the additional time within 26 pay periods of when it is granted, it will be cashed out at the COPRA double-time rate.
For those planning to retire within the next year, please refer to question 14. Unused comp time will only be cashed out earlier if CBP refused to approve its use after it has been granted. If you will receive additional comp time due to OT cap limitations and you intend to retire within the next year, you may wish to consider delaying your retirement until the comp time has been credited to your account and you have used it or your request to use it has been denied.
32. Why must comp time be used before other leave?
The prospect of cashing out unused comp time for potentially thousands of employees at the end of the fiscal year was a significant financial concern to CBP. To avoid this, the parties agreed to require comp time usage before other leave.
33. If I am on a premium pay shift, will I still receive premium pay when I use the comp time?
chapter 173 ratifies new nteu/cbp contract
NTEU and CBP have reached agreement on a new six-year contract that retains critical rights, benefits and protections that the union secured in previous negotiations and builds on these gains.
NTEU representatives, including more than two dozen chapter presidents from across the country, negotiated for two years on your behalf to reach the best possible deal. This contract, which takes effect Oct. 1, did not require intervention by the Federal Service Impasses Panel (FSIP), which avoided potentially detrimental provisions being imposed upon you.
Chapter 173 held a special membership meeting on June 15th where by unanimous vote, voted to ratify the new NTEU/CBP Contract! All other chapters have until July 3rd to conduct their meetings and report the results to NTEU National. Once are all completed and if majority vote in favor, then NTEU and CBP will meet to sign off on the New NTEU/CBP Contract and make it effective October 1st, 2017!
Click here to view the contract!
Chapter 173 also took a vote to change the local bylaws to change the term of office for elected officials to 3 years from 2. The bylaw was approved by majority vote. The updated bylaws can be viewed by clicking here!