Adjudications

OPM’s Merit System Accountability and Compliance (MSAC) has a long history of adjudicating federal employee classification appeals, as well as Fair Labor Standards Act (FLSA), compensation and leave, and declination of reasonable offer claims. These functions offer federal employees an independent review of agency personnel decisions. OPM’s decision in these cases is the final administrative decision.

The right to appeal classification determinations to OPM was codified in the Civil Service Reform Act of 1978 under 5 U.S.C. Chapter 51 and in 5 CFR Part 511. The process permits federal employees in General Schedule positions direct access to OPM for adjudication of their position classification. Federal Wage System (FWS) employees in disagreement with their job classification may only appeal to OPM after they receive a final decision from their agency, as outlined in 5 U.S.C. Chapter 53, Subchapter IV and 5 CFR Part 532. Unlike civil and criminal procedure, OPM is not bound to decide classification appeals in favor of either party and there is no right to judicial review.

OPM assumed responsibility for FLSA claims when the Act was extended to the Federal government in 1974, with relevant law and regulation contained in 29 U.S.C. 204 and 5 CFR Part 551. FLSA claims usually come from employees disputing exemption status, hours worked, or overtime pay. The FLSA is an employee protection act and OPM is charged with independently developing the facts necessary to reach a decision, which may involve placing people under oath and taking affidavits. These OPM decisions are final; no further administrative review is available within OPM. However, nothing limits the right of a claimant to bring an action in an appropriate United States court for de novo review. OPM will not adjudicate a FLSA claim that is in litigation.

Compensation and leave claims came to OPM through the Legislative Branch Appropriations Act of 1996, which transferred most claim functions from the Government Accountability Office (GAO) to the Office of Management and Budget (OMB). OMB delegated adjudication authority to OPM’s Office of General Counsel, and this function was transferred to MSAC’s predecessor organization in 2000. Laws and regulations governing these claims are contained in 31 U.S.C. 3702 and 5 CFR Part 178. Unlike the classification appeals and FLSA claims processes, these claims are adjudicated solely upon the written record. These OPM settlements are final; no further administrative review is available within OPM. Again, nothing limits the right of claimants to bring an action in an appropriate United States Court for de novo review.

OPM has been responsible for adjudicating declination of reasonable offer appeals since they were made available to Federal employees through Public Law 95-454, October 13, 1978. These appeals are governed by 5 U.S.C. 5366 and 5 CFR Part 536 and provide a means for Federal civilian employees to contest the termination of their retained grade or pay. The right to appeal arises when the employees believe they have not been given a reasonable offer to a position for which the grade or pay was equal to or greater than the retained grade or pay. Decisions issued by OPM are final decisions.