September 25, 2003

                         MEMORANDUM

TO:  FDIC Chapter Presidents

RE:  Completion of the FDIC FLSA Overtime Case

SUMMARY:  NTEU has resolved the last of the overtime appeals that had been pending under the Fair Labor Standards Act claims procedures.  As a result of NTEU’s work on the case, the FDIC paid over $16 million in back pay and liquidated damages to eligible employees. 

     NTEU’s long-running overtime case against the FDIC is now over, with the agency finally agreeing to make payment on the last disputed claims.  I am very pleased to be able to report that, as a result of NTEU’s June 1993 grievance, the FDIC has paid employees more than $16 million in back pay and liquidated damages owing from violations of the Fair Labor Standards Act (FLSA).   

     As you may recall, winning favorable rulings from the Federal Labor Relations Authority and the arbitrator was only half of the battle.  As is customary in overtime cases involving large numbers of employees, the decisions contained broad legal rulings rather than specific findings with respect to each employee.  NTEU was thus left to negotiate implementation of the award with the FDIC.  These negotiations resulted in the claims procedures, which included provisions for appeal from the FDIC’s decisions with respect to overtime claims.  This appeal process was a massive undertaking, considering the fact that the case affected several thousand employees. 

     NTEU attorneys carefully analyzed each appeal request submitted by employees and pursued appeals on behalf of every employee whose appeal request was found to be meritorious under governing legal principles.  Ultimately, NTEU obtained a payment for each and every employee on whose behalf NTEU pursued an appeal.

     NTEU worked for many years to ensure that FDIC employees would be paid properly under the FLSA.  NTEU’s effort in this case is only one example of the work that NTEU does every day on behalf of federal employees.  Please be sure that employees in your chapter are asked to support our efforts by becoming NTEU members.       

                                  Colleen M. Kelley

                                  National President