P.S. Docket No. AO 14-326


April 2, 2015

In the Matter of the Administrative Offset Petition

STEPHEN L. KELLER v. UNITED STATES POSTAL SERVICE

P.S. Docket No. AO 14-326

APPEARANCE FOR PETITIONER:
Stephen L. Keller

APPEARANCE FOR RESPONDENT:
Jeanne Rosas
Labor Relations Specialist

INITIAL DECISION

Respondent, United States Postal Service, sought to collect from Petitioner, Stephen Keller, a debt in the amount of $4,290.71 based upon overdrawn annual leave.  Petitioner filed a Petition for Hearing on September 11, 2014.  A hearing was conducted in Tampa, Florida on January 6, 2015.1  The following findings are based upon the record.

FINDINGS OF FACT

  1. Petitioner was an employee of Respondent until his date of separation on February 15, 2014 (Resp. Exh. 7).2
  2. On December 17, 2013, Petitioner requested and received approval for use of 213 hours of annual leave from his supervisor for the period of January 10, 2014, through February 20, 2014 (Tr. p. 11; Resp. Exh. 17).
  3. Petitioner carried 5.48 hours of annual leave from 2013 into the new leave year that commenced in pay period 3 of 2014 (Tr. p. 26; Resp. Exh. 5).
  4. In pay period 3 of 2014, the Postal Service advanced 208 hours of annual leave to Petitioner (Tr. pp. 31-32).
  5. From January 10, 2014, through February 15, 2014, Petitioner was paid for 192 hours of annual leave, of which 170.52 hours represented advanced (but unearned) annual leave and 21.48 hours represented earned (and carryover) annual leave.  The 170.52 hours of advanced leave translates to a gross amount of $4,678.88 and a net amount of $3,834.34. (Tr. pp. 19, 26-27, 33; Resp. Exhs. 5 and 6).
  6. On February 15, 2014, Petitioner resigned from the Postal Service (Tr. p. 18; Resp. Exh. 15).3
  7. After the date of his separation and by administrative error, Petitioner was paid an additional 21.48 hours of annual leave, which translates to a gross amount of $589.39 and a net amount of $456.37 (Tr. p. 18; Resp. Exh. 1A).
  8. Although the procedures of 39 C.F.R. Part 966 do not appear to have been followed by the parties, neither party raised that failure as an objection to proceeding on the merits of Petitioner’s claim.

DECISION

In a Debt Collection Act case, Respondent carries the burden of establishing that a debt exists.  Debbie Eccles, P.S. Docket No. 99-148 (August 26, 1999).  The Postal Service met that burden through testimony and documentary evidence that established Petitioner was overdrawn in his annual leave balance, the number of hours of annual leave that Petitioner was overpaid, and the dollar value associated with that overdrawn annual leave.  (Findings 2-7).  Accordingly, the burden of persuasion shifts to Petitioner to establish why he should not be held liable for the debt.

Petitioner argues that he was misled by Respondent’s Human Resources personnel on the use of his annual leave in anticipation of his resignation.  (Tr. pp. 41-42).  Petitioner testified that if he knew that his use of annual leave would have led to a debt, he would have used sick leave during the same period (Id.).4]  Even if I accept Petitioner’s version of the events as true, it is insufficient to relieve him of his obligation to repay the overdrawn annual leave to which he was not entitled.  If Petitioner relied on erroneous advice of Respondent’s Human Resource specialists to his detriment, or misunderstood the advice that was offered, that was an unfortunate occurrence.  However, an error by Respondent’s administrative staff is not a basis to excuse liability in this case.  Nancy Petitti, P.S. Docket No. DCA 09-449 (April 30, 2010)(a debt created by administrative error is collectible under the Debt Collection Act.)  There is no dispute that Petitioner was overdrawn in his annual leave account in the amounts sought by the Postal Service.  The Postal Service has met its burden of proof and is entitled to judgment in its favor.

ORDER

The Petition is DENIED.5 

Petitioner shall pay the sum of $250 per month beginning not later than May 1, 2015, and on the first day of each month thereafter until the debt of $4,290.71 is satisfied.  If Petitioner fails to make a timely payment for a period of greater than 60 days from the payment due date, or otherwise fails to pay the balance of this debt, the Postal Service retains its right to collect the debt (or any unpaid balance) by administrative offset in accordance with federal law.

James G. Gilbert
Chief Administrative Law Judge


 

1 The undersigned Administrative Law Judge presided via telephone from the Judicial Officer Courtroom in Arlington, Virginia.

2 References to exhibits are abbreviated as “Resp. Exh.” and “Pet. Exh.”  References to the transcript are abbreviated to “Tr. p. __.”

3 Petitioner intended to resign on February 20, 2014, which was the date that Petitioner calculated he would run out of annual leave; however, upon receipt of Petitioner’s notice that he was resigning, Petitioner’s supervisor processed the resignation with an effective date of February 15, 2014 (Tr., p. 42; Resp. Exh. 15).

4 Petitioner separated with a balance of 254.59 hours of sick leave (Resp. Exh. 5).  Petitioner maintained that his medical condition at the time would have qualified him for sick leave; however he never discussed that issue with his supervisor and never made a request for sick leave prior to his resignation.

5 Petitioner is not currently receiving a retirement annuity from the Postal Service and will not receive that annuity for several years.  Accordingly, Petitioner testified that if the debt was found to be valid, he would make monthly payments in lieu of administrative offset.  The Postal Service agreed to accept such payments. The terms of my Order shall govern that agreement.