Lubow v. Dep’t of State

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Plaintiffs worked in the State Department as Diplomatic Security Special Agents and volunteered to serve one-year in Iraq. They arrived in Iraq in February 2004. Initially, their permanent duty station was in Washington, D.C., so they received “locality pay” in addition to base salary intended to equalize federal employees’ compensation with that of non-federal workers in the same geographic area, 5 U.S.C. 5301, 5304. Months later, their permanent duty station changed to the U.S. Embassy in Baghdad and they no longer received locality pay. Plaintiffs also received compensation for a significant number of overtime hours. In 2005, they returned to the U.S. After the Office of Personnel Management’s new regulations took effect, the plaintiffs received notices of a review of premium pay earnings involving Iraq, that “the rate of the annual premium pay cap that applies to you is $128,200,” that earnings to date “have already or will shortly put you above the cap for the current pay year,” and that the Department would seek collection of any overpayments. Each later received a letter requiring repayment of from $435.94 to $10,514.98. The D.C. Circuit held that the Department permissibly construed the statute and did not act arbitrarily in denying a discretionary waiver of the obligation to repay. View "Lubow v. Dep't of State" on Justia Law