Hambrick v. United States Postal Service
662 F. App'x 938
| Fed. Cir. | 2016Background
- In Feb 2014 Hambrick was removed from Postal Service employment, filed an MSPB appeal, and then voluntarily retired; Postal Service paid a "terminal leave" check in Sept 2014 reflecting a gross $16,329.68 for unused leave, less $5,050.83 (withholdings) and $307.14 (health premium), netting $10,971.71.
- On Nov 6, 2014 Hambrick and USPS executed a Settlement Agreement rescinding his retirement, reinstating him, and providing backpay from Feb 12, 2014 until return-to-duty; the Board entered the settlement into the record and dismissed the appeal.
- Upon reinstatement USPS issued a debt-collection notice for $16,329.68 and then reduced Hambrick’s backpay by that gross amount; USPS told a postal AJ it was no longer seeking separate collection, and the postal AJ issued a Final Decision saying USPS may not collect the $16,329.68 by involuntary offset (reflecting that the debt had already been collected).
- Hambrick filed an MSPB petition for enforcement (Sept 2015) claiming USPS breached the settlement by collecting the full $16,329.68 instead of accounting for the net $10,971.71 and challenging the unexplained $307.14 deduction; USPS explained it recouped the gross leave payout and that $307.14 repaid an outstanding health-benefit invoice.
- The MSPB administrative judge denied enforcement; on Board review the MSPB affirmed (Mar 2016), finding the gross recoupment proper (effectively reducing net backpay by Hambrick’s net terminal pay after tax withholdings) and that the $307.14 was a health-benefit repayment; new allegations were referred to the regional office.
- Hambrick appealed to the Federal Circuit under 5 U.S.C. § 7703; the court affirmed the Board, finding no legal or factual error and no basis to disturb the Board’s referral of later claims to the regional office.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether USPS breached the settlement by offsetting $16,329.68 from Hambrick’s gross backpay | Hambrick: USPS improperly collected the full $16,329.68 rather than the $10,971.71 net check he received in Sept 2014 | USPS: Upon reinstatement it properly recouped the gross leave payout (including amounts it had withheld and paid on his behalf) and reduced backpay accordingly | Affirmed: Board reasonably found recoupment of the gross amount lawful and supported by record |
| Whether the $307.14 deduction was unexplained/ improper | Hambrick: $307.14 discrepancy unexplained from pay stub | USPS: $307.14 repaid an outstanding health-benefit invoice | Affirmed: Board accepted USPS explanation; Hambrick failed to rebut it |
| Whether the postal AJ’s July 7, 2015 order barred offset of the $16,329.68 | Hambrick: the AJ’s order precluded further collection by offset | USPS: AJ’s order merely reflected that USPS had already collected the debt by reducing backpay | Held: Board’s interpretation was reasonable; AJ’s order did not require refunding the amount |
| Whether later-raised allegations of noncompliance should have been adjudicated now | Hambrick: sought resolution of additional claims (backpay computation, leave restoration, TSP) | Board/USPS: These were new allegations properly sent to the regional office for initial consideration | Held: Affirmed referral to regional office; Board acted properly on new claims |
Key Cases Cited
- McCrary v. Office of Pers. Mgmt., 459 F.3d 1344 (Fed. Cir. 2006) (petitioner bears burden to establish agency error)
- Hansson v. Dep’t of Navy, 39 F.3d 1196 (Fed. Cir. 1994) (settlement-agreement noncompliance claims on review are forwarded to regional office for enforcement processing)