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NG-10/10/12 (Caregiver Act): Settlement Agreement
On May 5, 2010, President Obama signed the Caregivers and Veterans Omnibus Health Services Act of 2010, Public Law 111-163. The Act changed the requirements for an employee’s entitlement to certain forms of premium pay, including night differential, weekend premium, and overtime pay under 38 U.S.C. §7453 authority. Specifically, the Act removed the requirement that the entitlement be based on “service on a tour” or “tour of duty,” and instead, replaced it with a “period of service.” This change benefited employees and expanded the entitlement to premium pay for eligible positions. Eligible positions included Registered Nurses, Physicians Assistants, Expanded Function Dental Auxiliaries, and certain hybrid Title 38 employees. As always, an employee’s entitlement to one or more forms of premium pay is based on the employee’s individual position.
Despite these changes in the law, the VA failed to implement the Act in a timely manner. The scope of the VA’s violation varied by location based on whether local payroll offices complied with these new requirements in the law. On October 10, 2012, NVAC filed a National Grievance against the VA. We are pleased to report that the Parties executed a Settlement Agreement on October 2, 2020. A copy of that Agreement is attached for your reference. Attachment A to the Agreement includes information on affected positions and the premium pay entitlements at issue.
Under the Agreement, the VA has agreed to review employee timecards from May 5, 2010 to October 1, 2018 for all AFGE bargaining unit employees in eligible positions. If the timecard review reveals that an employee is entitled to a pay adjustment, the VA will provide backpay, minus any debt owed by the employee. If the net adjustment (after reduction of any debts) is $100 or more, the employee will also be entitled to a 23% interest payment. NVAC negotiated this additional interest payment to make sure employees were compensated for the long delay resulting from the VA’s failure to comply with the law. The VA also paid attorney’s fees.
Under the Agreement, the VA is required to review timecards for current and separated employees. Current employees will receive payment by direct deposit, if eligible. Separated employees will receive payment by traditional paper check, if eligible, and once they verify their mailing address with the VA. We encourage all employees to make sure their updated home address is on file with the VA. Attachment B to the Agreement includes a copy of the Address Verification Forms.
Fortunately, during settlement negotiations, the VA began processing timecard reviews and pay adjustments. To date, the VA has reviewed more than 100,000 timecards, resulting in more than $23.1 million in backpay to AFGE bargaining unit employees thus far. If an employee already received backpay for these adjustments, they will not receive a duplicate payment under this Agreement. They may, however, be eligible for the 23% interest payment. The interest payment schedule is included in the Agreement. There will not be an appeals process. The VA will complete the pay adjustments by June 30, 2023 and the interest payments by September 1, 2023. NVAC will continue to receive periodic updates on the status and amounts of these pay adjustments during the implementation of the Agreement.
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