`[Federal Register Volume 90, Number 26 (Monday, February 10, 2025)]
[Rules and Regulations]
[Pages 9220-9222]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2025-02338]


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POSTAL SERVICE

39 CFR Part 961


Debt Collection Act Petitions Against Current Employees

AGENCY: Postal Service.

ACTION: Final rule.

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SUMMARY: This amends the rules of practice prescribed by the Judicial 
Officer for ease of understanding and to reflect current practice.

DATES: Effective February 10, 2025.

ADDRESSES: Postal Service Judicial Officer Department, 2101 Wilson 
Boulevard, Suite 600, Arlington, VA 22201-3078.

FOR FURTHER INFORMATION CONTACT: Staff Counsel Zahava Colicelli at 
(708) 812-1927.

SUPPLEMENTARY INFORMATION: 

A. Background

    The Judicial Officer Department reviewed its rules for Debt 
Collection Act Petitions and found it necessary to make some revisions 
for the reader's ease of understanding. Some changes also reflect 
current practices.

B. Explanation of Changes

Amendments to 39 CFR Part 961

    The rule is revised for better ease of understanding and to reflect 
current practices.

List of Subjects in 39 CFR Part 961

    Administrative practice and procedure, Claims, Government 
employees, Wages.

    Accordingly, for the reasons stated, the Postal Service revises 39 
CFR part 961 to read as follows:

PART 961--DEBT COLLECTION ACT PROCEEDINGS AGAINST CURRENT EMPLOYEES

Sec.
961.1 (Rule 1) Authority for rules in this part.
961.2 (Rule 2) Scope of rules in this part.
961.3 (Rule 3) Definitions.
961.4 (Rule 4) Employee petition for a hearing.
961.5 (Rule 5) Effect of filing a petition.
961.6 (Rule 6) Filing, docketing, and serving documents; computation 
of time; representation of parties.
961.7 (Rule 7) Answer to petition.
961.8 (Rule 8) Hearing Official's authority and responsibilities.
961.9 (Rule 9) Oral hearing or submission on the written record.
961.10 (Rule 10) Effect of Hearing Official's decision; motion for 
reconsideration.
961.11 (Rule 11) Consequences for failure to comply with rules in 
this part.
961.12 (Rule 12) Ex parte communications.

    Authority: 39 U.S.C. 204, 401; 5 U.S.C. 5514.


Sec.  961.1  (Rule 1) Authority for rules in this part.

    This part is issued by the Judicial Officer under authority 
delegated by the Postmaster General.


Sec.  961.2  (Rule 2) Scope of rules in this part.

    This part applies to:
    (a) The hearing provided by section 5 of the Debt Collection Act of 
1982, as amended, 5 U.S.C. 5514, and in accordance with the Employee 
and Labor Relations Manual, sections 450 and 460, challenging the 
existence, amount, or the repayment schedule of an employee debt to the 
Postal Service; or
    (b) A hearing under section 5 of the Debt Collection Act when the 
Judicial Officer Department adjudicates a petition for a creditor 
agency under an agreement between the Postal Service and that agency. 
In such cases, all references to Postal Service in this part will be 
construed to refer to the creditor agency.


Sec.  961.3  (Rule 3) Definitions.

    As used in this part:
    (a) Employee. A current Postal Service employee who is alleged to 
be indebted to the Postal Service.
    (b) General Counsel. The General Counsel of the Postal Service or 
the General Counsel's designee.
    (c) Hearing Official. (1) An Administrative Law Judge qualified to 
hear cases under the Administrative Procedure Act;
    (2) An Administrative Judge appointed under the Contract Disputes 
Act of 1978, as amended; or
    (3) Any other qualified person who is not under the control or 
supervision of the Postmaster General and is designated by the Judicial 
Officer to conduct the hearing.
    (d) Judicial Officer. The Judicial Officer, Associate Judicial 
Officer, or Acting Judicial Officer of the Postal Service.
    (e) Notice of involuntary administrative salary offset. The formal 
written notice required by section 5 of the Debt Collection Act, 
including the provision of notice of the procedures under this part, 
before involuntary offset may be taken from an employee's salary.
    (f) Days. Calendar days.
    (g) Recorder. The Recorder, Judicial Officer Department, United 
States Postal Service, located at 2101 Wilson Boulevard, Suite 600, 
Arlington, VA 22201-3078. The Recorder's telephone number is (703) 812-
1900, and the fax number is (703) 812-1901.


Sec.  961.4  (Rule 4) Employee petition for a hearing.

    (a) If an employee wants to challenge the existence, amount, or 
repayment schedule of a debt assessed under section 5 of the Debt 
Collection Act, the employee or their representative must file a 
written petition electronically at https://usps-judicialoffice.journaltech.com, or by mail at Recorder, Judicial 
Officer Department, United States Postal Service, 2101 Wilson 
Boulevard, Suite 600, Arlington, VA 22201-3078. The petition must be 
filed on or before the 15th day following the receipt of the Postal 
Service's notice of involuntary administrative salary offset. The 
Hearing Official may waive this deadline for good cause timely shown. 
If the Postal Service initiated involuntary administrative salary 
offset without issuing a notice as required by the Debt Collection Act, 
the Hearing Official may retain authority to resolve the debt 
assessment as if a notice had been issued and may order the Postal 
Service to return any improperly offset money.
    (b) A sample petition is available at the Judicial Officer 
Electronic Filing website (https://usps-judicialoffice.journaltech.com). The petition should include the 
following:
    (1) The words ``Petition for Hearing under the Debt Collection 
Act'' at the top of the first page.
    (2) The employee's name, work address, home address, primary 
telephone number, email address, and, if applicable, any other address 
and telephone number at which the employee may be contacted during 
normal business hours.
    (3) The date on which the employee received the notice of 
involuntary administrative salary offset.
    (4) A copy of the notice of involuntary administrative salary 
offset.
    (5) A statement indicating whether the employee challenges:

[[Page 9221]]

    (i) The existence of the debt identified in the notice of 
involuntary administrative salary offset;
    (ii) The amount of the debt identified in the notice of involuntary 
administrative salary offset; and
    (iii) The involuntary repayment terms established by the Postal 
Service in the notice of involuntary administrative salary offset.
    (iv) For each challenge, the petition should describe the basis of 
the employee's disagreement. The employee should identify and explain 
the facts, evidence, and legal arguments that support the petition.
    (6) Copies of all records in the employee's possession that relate 
to the debt.
    (7) If an employee contends that the Postal Service's proposed 
offset schedule would result in a severe financial hardship for either 
the employee or the employee's spouse or dependents, the employee must 
propose an alternative offset schedule. The employee must provide a 
statement and supporting documents showing the employee's financial 
status. This statement must address total income from all sources; 
assets; liabilities; number of dependents; and expenses for food, 
housing, clothing, transportation, medical care, and exceptional 
expenses, if any.
    (c) The employee must file any additional information directed by 
the Hearing Official.


Sec.  961.5  (Rule 5) Effect of filing a petition.

    After receipt and docketing of the employee's petition for a 
hearing, further collection activity by the Postal Service must cease 
as required by section 5 of the Debt Collection Act until the petition 
is resolved by the Hearing Official.


Sec.  961.6  (Rule 6) Filing, docketing, and serving documents; 
computation of time; representation of parties.

    (a) Filing. The Judicial Officer Department calculates all filing 
deadlines in Eastern Time. After a petition is filed, all documents 
relating to the petition must be filed using the electronic filing 
system, unless the Hearing Official permits otherwise. Documents 
submitted using the electronic filing system are considered filed as of 
the date and time (Eastern Time) reflected in the system. Documents 
mailed to the Recorder are considered filed on the date mailed. Filings 
by any other means are considered filed when the Recorder receives a 
complete copy of the filing during normal business hours. The 
Recorder's normal business hours are between 8:45 a.m. and 4:45 p.m., 
Eastern Time. Documents filed by other means after 4:45 p.m., Eastern 
Time, or on a Saturday, Sunday, or Federal holiday, will be considered 
filed on the next business day.
    (b) Docketing. The Recorder will maintain a record of Debt 
Collection Act petitions and will assign a docket number to each case. 
After notification of the docket number, the employee and the Postal 
Service must refer to the docket number on all further filings.
    (c) Service. If both parties have access to the electronic filing 
system, separate service on the opposing party is not required. 
Otherwise, documents must be served personally, by mail, or by email on 
the opposing party, noting on the document filed, or on the 
transmitting letter, that a copy has been so furnished.
    (d) Time computation. A filing period excludes the day the period 
begins, and includes the last day of the period, unless the last day is 
a Saturday, Sunday, or Federal holiday, in which case the period runs 
until the end of the next day that is not a Saturday, Sunday, or 
Federal holiday. Requests for extensions of time must:
    (1) Be made in writing before the date on which the submission is 
due;
    (2) State the reason for the request;
    (3) Represent that the moving party has contacted the opposing 
party about the request, or made reasonable efforts to do so; and
    (4) Indicate whether the opposing party consents to the extension. 
Requests for extensions of time submitted after the date on which the 
submission was due must explain why the moving party was unable to 
request an extension before the deadline.
    (e) Representation of parties. The Postal Service's representative, 
as designated by the General Counsel, must file a notice of appearance 
as soon as practicable, but no later than the date the answer is filed. 
Employees may represent themselves or be represented by an attorney or 
other designated person. As applicable, an employee's representative 
must file a notice of appearance as soon as practicable. The Postal 
Service must direct all further communications and documents to the 
employee's representative. A representative who later withdraws must 
file a notice that includes the name, mailing address, email address, 
and telephone number of the person who will assume responsibility for 
representing the party.


Sec.  961.7  (Rule 7) Answer to petition.

    The Postal Service must file an answer to the petition by the date 
set out in the docketing notice. The Postal Service must attach all 
documents that are available and relevant to the Postal Service's debt 
claim and the proposed administrative salary offset schedule. The 
answer must include a clear and thorough description of the basis for 
the alleged debt, a calculation of the amount of the alleged debt, and 
a proposed offset schedule.


Sec.  961.8  (Rule 8) Hearing Official's authority and 
responsibilities.

    The Hearing Official's authority includes, but is not limited to:
    (a) Ruling on motions and requests by the parties.
    (b) Issuing notices, orders, and memoranda to the parties 
concerning the hearing proceedings.
    (c) Conducting telephone conferences with the parties to expedite 
the proceedings and schedule further proceedings. The Hearing Official 
will prepare a memorandum of telephone conference, which will be sent 
to both parties and will serve as the official record of that 
conference.
    (d) Determining whether the petition will be decided after an oral 
hearing or on the written record. If an oral hearing is held, the 
Hearing Official will set the place, date, and time for a hearing.
    (e) Administering oaths and affirmations to witnesses.
    (f) Conducting the hearing in a manner to maintain discipline and 
decorum while ensuring that relevant, reliable, and probative evidence 
is elicited on the issues in dispute and irrelevant, immaterial, or 
repetitious evidence is excluded. The Hearing Official may examine 
witnesses to ensure that a satisfactory record is developed.
    (g) Establishing the record in the case. The weight to be attached 
to any evidence will rest within the Hearing Official's discretion. 
Except as the Hearing Official may otherwise allow, no evidence will be 
received after completion of an oral hearing or, in cases submitted on 
the written record, after notification by the Hearing Official that the 
record is closed. The Hearing Official may require either party, with 
appropriate notice to the other party, to submit additional evidence on 
any relevant matter at any time within the Hearing Official's 
discretion.

[[Page 9222]]

    (h) Granting reasonable time extensions, suspending proceedings, or 
other relief for good cause shown in the Hearing Official's sole 
discretion.
    (i) Issuing the final decision. The decision will include a 
determination of the validity and amount of the alleged debt and, where 
applicable, the repayment schedule. The Hearing Official will issue the 
decision as soon as practicable after the close of the record. 
Collection activity remains stayed until the decision is issued.


Sec.  961.9  (Rule 9) Oral hearing or submission on the written record.

    (a) An oral hearing may be held at the sole discretion of the 
Hearing Official. An oral hearing may be conducted in-person, by 
telephone, by video conference, or other appropriate means at the 
discretion of the Hearing Official. The Hearing Official will arrange 
for the preparation of a transcript of the hearing. That transcript 
will be the official record of the hearing. In the event of an 
unexcused absence of one of the parties, the hearing may proceed 
without the absent party.
    (b) If an oral hearing is not held, the record may be supplemented 
with affidavits or declarations. The Hearing Official's decision will 
be based on the written submissions. Submission on the written record 
does not relieve the parties from the necessity of proving the facts 
supporting their allegations or defenses.


Sec.  961.10  (Rule 10) Effect of Hearing Official's decision; motion 
for reconsideration.

    (a) After the receipt of written submissions or after the 
conclusion of the hearing, the Hearing Official will issue a written 
decision. The decision will include findings of fact and conclusions of 
law.
    (b) The Hearing Official will send each party a copy of the 
decision. The Hearing Official's decision is the final administrative 
determination on the employee's debt or repayment schedule, subject to 
a timely motion for reconsideration.
    (c) A motion for reconsideration must be filed within 10 days from 
receipt of the decision and will be allowed only at the discretion of 
the Hearing Official. A motion for reconsideration by the employee will 
not stay any collection action authorized by the Hearing Official's 
decision.


Sec.  961.11  (Rule 11) Consequences for failure to comply with rules 
in this part.

    (a) The Hearing Official may determine that the employee has waived 
their right to a hearing and that administrative offset may be 
initiated if the employee does not show good cause for failing to file 
a timely petition.
    (b) The Hearing Official may grant a petition, and as appropriate, 
invalidate a debt if, in the absence of good cause and after failing to 
comply with an order by the Hearing Official, the Postal Service fails 
to file a timely answer. If the petition is granted for this reason, 
the Postal Service will be prohibited from collecting the debt by 
involuntary administrative salary offset.
    (c) If a party fails to comply with this part or the Hearing 
Official's orders, the Hearing Official may take reasonable and proper 
action under the circumstances, including dismissing, denying, or 
granting the petition as appropriate.


Sec.  961.12  (Rule 12) Ex parte communications.

    Except as described in this section, a party may not communicate 
with a Hearing Official or other member of the Judicial Officer 
Department without the other party present. Exceptions:
    (a) A Hearing Official or other member of the Judicial Officer 
Department may talk to a party individually to discuss procedural 
matters.
    (b) A Hearing Official may talk to a party individually when a 
telephone conference or hearing has been scheduled and the other party 
does not appear.

Kevin Rayburn,
Attorney, Ethics and Legal Compliance.
[FR Doc. 2025-02338 Filed 2-7-25; 8:45 am]
BILLING CODE 7710-12-P`