Collections: Protect Your Income!
Recently I noticed that the United States Postal Service Accounting Services in Eagan Michigan had changed the method in which the USPS notifies an employee of an alleged debt. At times, Letters of Demand are mailed directly to the Employees address of record. However, Local Management has an obligation to discuss any Letter of Demands with their Employees. Management must to assure the alleged debt is valid as well as the Employee understands the alleged debt and how the purported amount was derived. Section 452.22 of the ELM states:
Notice to Employee When the postmaster or installation head receives an invoice reflecting an employee-owed debt from the Eagan ASC, he or she must give the employee a copy of the invoice and written notice of the Postal Service’s determination of the existence, nature, and amount of the debt
I encourage the Membership to make sure that ALL of their rights have been realized BEFORE the USPS attempts to collect any alleged debt from them. Management may fail to inform the Employee of all of their rights dealing with the collection procedure. Article 28 of the National Agreement states:
In advance of any money demand upon an employee for any reason, the employee must be informed in writing and the demand must include the reasons therefor.
That means Management has an obligation to explain the how the alleged debt was derived as well as a computation and accounting of how the Service arrived at the amount of the alleged debt. If this is not done to the satisfaction of the Employee, they have the right to grieve the collection of the alleged debt. I support my opinion with Arbitration Case C-21609 (D98N-4D-0024187) whereas Arbitrator Mark Lurie opined:
The Letter of Demand, in conjunction with the accompanying Invoice, should make it plain how the amount being billed was derived. Would any reasonable person receiving an invoice expect anything less?
It is important to note that the USPS must wait until the issues brought forward in a timely filed grievance are addressed through the Article 15 grievance procedure BEFORE the USPS is allowed to start the collection procedure. Article 28 Section 4.A of the National Agreement states on the Collection Procedure:
If a grievance is initiated and advanced through the grievance/arbitration procedure or a petition has been filed pursuant to the Debt Collection Act, regardless of the amount and type of debt, collection of the debt will be delayed until disposition of the grievance and/or petition has (have) been had, either through settlement or exhaustion of contractual and/or administrative remedies.
The 2021 JCAM goes on to state on Due Process/Delay in Collection:
Article 28.4.A prohibits the Postal Service from collecting a debt, regardless of the amount or type of debt, until all grievances concerning the debt have been resolved.
Another important thing to keep in mind is when a Carrier’s OWCP Claim is controverted by the Department of Labor, it often creates an Alleged Debt; usually based on the Services perception of owed Paid Leave and/or payments of benefits. It is my opinion that in cases as theses, whereas the Letter Carrier files an appeal of the denial of OWCP rights, that the alleged debt should be held in abeyance until such time that OWCP appeals process has been exhausted and/or the appeal has been adjudicated. My opinion is based on Arbitration case number C11M-1C-C 13160787 whereas Arbitrator Philip Parkinson awarded
“The grievance is granted to the extent that the matter of the issuance of a Letter of Demand was properly grieved and arbitrable and the Grievant's claim to retain his COP payment until all appeals under the procedures of the OWCP are exhausted.”
In addition to filing a grievance, Employees have the right to file a “waiver of claims” with Management to challenge the alleged debt. Many Employer Claims involve mistakes in which Carriers were overpaid. ELM Section 437 gives Carriers the right to file for waiver of a claim for overpayment. This section, titled Waiver of Claims for Erroneous Payment of Pay, outlines the steps that carriers must follow to request a waiver. Under this process the carrier files PS Form 3074, Request for Waiver of Claim for Erroneous Payment of Pay. ELM Section 437.32 states:
The applicant requests a waiver of a claim or a refund of money paid as a result of a claim by submitting PS Form 3074, Request for Waiver of Claim for Erroneous Payment of Pay, in triplicate to the installation head. The dates and amount of any payments made by the employee in response to the claim
The Installation Head investigates the claim, and writes a report of the investigation on the reverse side of the PS Form 3074. The report should contain the data and/or attachments indicated in ELM Section 437.4. The form is then forwarded to Human Resources for review and further completion. The entire file is then sent to the Eagan Accounting Service Center (ASC). Nothing contained in ELM Section 437 precludes an Employee from requesting a waiver where the employer erroneously failed to withhold any Employee insurance premiums.
In other words, an argument can be made that the Carrier should not be liable for a clear error made by the Postal Services accounting. Additionally, Management is obligated take care not to cause financial hardship to the employee. Article 28 Section 4.B of the National Agreement states:
No more that 15 percent of an employee’s disposable pay or 20 percent of the employee’s biweekly gross pay, whichever is lower, may be deducted each pay period to satisfy a postal debt, unless the parties agree, in writing, to a different amount.
The 2021 JCAM goes on to state:
Limit on Deduction Amount. Article 28.4.B of the National Agreement sets absolute limits on the amount the employer may deduct from an employee’s pay in collection of a debt, unless the employee agrees otherwise, voluntarily, and in writing.
ELM Section 452.234 states:
Request for Consideration of Alternative Offset Schedule If the employee acknowledges the debt, but contends that the proposed deductions of 15 percent of disposable pay would be too severe, he or she may propose an alternative offset schedule.
a. Proposal. The employee’s proposed offset schedule must be submitted in writing to the postmaster or installation head, along with a written statement and supporting documentation, stating the employee’s reasons for believing that the deductions proposed by the Postal Service would result in a “severe financial hardship,”…
b. Time Frame. The employee’s proposed alternative offset schedule and written submissions must be received by the postmaster or installation head no later than 15 calendar days from the date the employee receives the notice of the Postal Service’s determination of a debt…
Additionally; as we enter into the holiday season keep in mind that many of us are not as blessed with a strong support system. Depression and suicide spike around the holiday season. It does not cost anything to poke your head out of your case and give the gift of a smile or a kind word to the Carrier to your left and to your right. This season give the gift of a little encouragement to those that you see every day. Plant the seed of kindness that can improve the culture of your work environment. Try to take a little time after a work day to meet up with some of your coworkers for a cup of coffee; it does not have to be a catered affair. Remember: we have more in common than that which divides us!!!!
