P.S. Docket No. AWG 22-167

FINAL DECISION

The Postal Service, through the Department of Treasury (Treasury), seeks to collect a debt from Petitioner Terri Wilson based on an alleged overdrawn annual leave when she separated from the Postal Service. Ms. Wilson challenges the existence of the debt.

FINDINGS OF FACT

Ms. Wilson worked for the Postal Service but separated in 2020 (Tr. 17). At the time of her separation, Postal Service records showed that Ms. Wilson had a negative annual leave balance of 80 hours (Terri Wilson Clock Rings; Invoice)¹ . In January 2021, the Postal Service issued Ms. Wilson Invoice No. 703150799 for $1,249.42 for the value of the annual leave balance (Invoice No. 703150799). When the balance of the invoice remained unpaid, the Postal Service transferred the debt to Treasury. In June 2021, Treasury issued Ms. Wilson a Notice of Intent to Initiate Administrative Wage Garnishment Proceedings. The Treasury Department sought to garnish the original amount of the debt, plus collection fees, bringing the total amount sought to $1,624.25. (AWG Notice to Debtor). Ms. Wilson requested a hearing to challenge the existence of the debt, and Treasury transferred the petition to the Judicial Officer for further proceedings (AWG Hearing Request).

DISCUSSION

A retiring or separating employee’s negative annual leave balance equates to a salary overpayment, entitling the Postal Service to recover the monetary value of the paid but unearned annual leave. To recover, the Postal Service must prove by a preponderance of the evidence that it made the salary overpayments, the amount of the overpayments, and that the employee was not entitled to them. Employee and Labor Relations Manual (ELM) § 512.72; Amerson v. United States Postal Service, AWG 21-319, 2022 WL 622379 (February 1, 2022); Reneau v. United States Postal Service, AO 15-211, 2016 WL 10572230 (August 2, 2016).
At the hearing, the Postal Service called no witnesses. Moreover, the Postal Service did not submit any evidence of payment, such as relevant payroll journals. Either may have been sufficient to prove that a salary overpayment was made to Ms. Wilson. See, e.g. United States Postal Service v. Cleaver, AO 22-56, 2022 WL 16836195 (October 28, 2022) (Postal Service must submit payroll journals or other evidence of payment to Petitioner to prove salary overpayment). Rather, the Postal Service submitted into evidence Ms. Wilson’s clock rings. Like an invoice, clock rings are generally insufficient as the sole evidence to meet the Postal Service’s burden. Clock rings may establish that the employee worked on certain days, and can reflect leave balances, but they offer no evidence that the employee was paid for the hours shown on the document. Accordingly, Petitioner is entitled to judgment in her favor.

CONCLUSION AND ORDER

The petition is granted. The Postal Service, through Treasury, may not collect the debt by administrative wage garnishment. The Postal Service must recall the debt from Treasury and refund Ms. Wilson any funds that may have been previously offset, including any associated fees, within 30 days of the date of this Order.