Special Salary Rate Lawsuit

The Federal Government and the National Treasury Employees Union (NTEU) have agreed to settle a lawsuit affecting about 212,000 current and former "special rate" employees who were denied pay increases from 1982 to 1988. Under the agreement the government will pay about $173.5 million to settle the employees' back pay claims. The settlement includes three components: back pay, an additional 3 percent to account for unpaid premium pay, and interest on those amounts.

The parties filed their settlement papers with the U.S. Court of Federal Claims on March 15, 2002. On June 17, 2002, the court granted preliminary approval to the Settlement, finding that it "preliminarily appears to be a fair, reasonable, and adequate resolution of this matter." Judge Nancy Firestone has scheduled the final hearing for approval of the settlement on November 18, 2002. Class members should have received notice of the terms of the settlement at their home addresses during the week of July 1. That notice contains information about the background of the case, the terms of the settlement, and the process by which class members can submit any comments on or objections to the settlement. These comments must be received by August 28th to be heard.

Once the settlement is approved, the administrator estimates it will be nine to ten months before people start receiving back pay checks. Class members will get letters at home telling them how much they are owed and how to claim the money. If approved on November 18, the settlement agreement will be binding, preventing individuals covered by the lawsuit from bringing up additional claims in the future.

For more information on this Settlement, please go to the Website at http://www.specialratessettlement.com/ or call the NTEU's special hot line at 800-750-3406.