Court Opinion

ID: 9373399
Source: CourtListenerOpinion
Date Created: 2023-02-22 16:04:45.690529+00
Date Added: 2024-06-11T17:16:41.322240
License: Public Domain

UNITED STATES OF AMERICA
                        MERIT SYSTEMS PROTECTION BOARD

     RABEE JASIM AL OBAIDI,                          DOCKET NUMBER
                   Appellant,                        AT-315H-22-0097-I-1

                  v.

     DEPARTMENT OF THE NAVY,                         DATE: September 22, 2022
                 Agency.

                  THIS ORDER IS NONPRECEDENTIAL 1

           Rabee Jasim Al Obaidi, Hanahan, South Carolina, pro se.

           Steven P. Hester, Esquire, North Charleston, South Carolina, for the
             agency.

                                           BEFORE

                               Cathy A. Harris, Vice Chairman
                                Raymond A. Limon, Member
                                 Tristan L. Leavitt, Member

                                     REMAND ORDER

¶1         The appellant has filed a petition for review of the initial decision, which
     dismissed his appeal from his separation for lack of jurisdiction . For the reasons
     discussed below, we GRANT the appellant’s petition for review, REVERSE the
     administrative judge’s finding that the Board lacks jurisdiction over the appeal

     1
        A nonprecedential order is one that the Board has determined does not add
     significantly to the body of MSPB case law. Parties may cite nonprecedential orders,
     but such orders have no precedential value; the Board and administrative judges are not
     required to follow or distinguish them in any future decisions. In contrast, a
     precedential decision issued as an Opinion and Order has been identified by the Board
     as significantly contributing to the Board’s case law. See 5 C.F.R. § 1201.117(c).
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     because the appellant’s former position was subject to a 3-year probationary
     period, and REMAND the case to the Atlanta Regional Office for further
     adjudication in accordance with this Remand Order.

                                       BACKGROUND
¶2        The agency appointed the appellant to a position in the competitive service
     as an Engineer with the Naval Information Warfare Center Atlantic 2 (NIWC
     Atlantic), effective January 22, 2019. Initial Appeal File (IAF), Tab 1 at 8-9.
     On the Standard Form (SF) 50 documenting the appellant’s appointment, the
     agency identified that it appointed him to this position pursuant to its direct hire
     authority and cited P.L. 103-337 as the legal authority for the appointment. Id.
     The remarks section of the appellant’s SF-50 also stated that the appointment was
     subject to the completion of a 3-year initial probationary period beginning on
     January 22, 2019. Id. at 9. The agency issued a letter dated December 1, 2021,
     terminating the appellant approximately 2 years and 10 months after the
     January 22, 2019 effective date of his appointment. Id. at 10-13.         The letter
     informed the appellant that his termination was effective that day, concluding that
     he failed to meet performance expectations during the course of his 3-year
     probationary period. Id. at 10.
¶3        On December 3, 2021, the appellant filed a timely appeal with the Board
     challenging the merits of the agency’s action and alleging that it was the product
     of discrimination. Id. at 1, 6. On his appeal form, the appellant indicated that he
     was not serving a probationary period and that he was a permanent employee.
     Id. at 1. He also requested a hearing on his appeal. Id. at 2. The administrative
     judge issued an order informing the appellant of the limited Board appeal rights
     of probationary employees in the competitive service and instructing him to file

     2
       The agency subcomponent was previously known as the Space and Naval Warfare
     Systems Center Atlantic (SSC Atlantic), as reflected on the appellant ’s appointment
     Standard Form (SF) 50 and the agency’s termination letter. Initial Appeal File (IAF),
     Tab 1 at 8-10.
                                                                                        3

     evidence and argument establishing a nonfrivolous allegation of Board
     jurisdiction over his appeal.   IAF, Tab 2 at 1-5.      In a subsequent order, the
     administrative judge noted that it appeared the agency was asserting that the
     appellant’s position was subject to a 3-year probationary period instead of the
     2-year probationary period for Department of Defense (DoD) employees set forth
     under the general provisions of 10 U.S.C. § 1599e.              IAF, Tab 6 at 1.
     He nevertheless concluded that it was unclear from the record under what
     authority the agency extended the appellant’s probationary period, and
     consequently ordered the agency to provide evidence of the applicable authority it
     was relying on to extend the appellant’s probationary period to 3 years. Id.
¶4         The agency provided its response, IAF, Tab 7, and the administrative judge
     subsequently ordered the agency to provide additional information, including
     specific citations to the U.S. Code and the Code of Federal Regulations regarding
     the agency’s authority to extend the appellant’s probationary period, IAF, Tab 8.
     After reviewing the agency’s second response, the administrative judge issued an
     order noting that it appeared that the agency had the authority to set the
     appellant’s probationary period at 3 years and ordered the appellant to show cause
     as to why his appeal should not be dismissed for lack of jurisdiction based on his
     status as a probationer.
¶5         After the appellant failed to respond to the order, the administrative judge
     issued an initial decision based on the written record dismissing the appeal for
     lack of jurisdiction, finding that the appellant failed to nonfrivolously allege that
     the Board had jurisdiction over his appeal. IAF, Tab 11, Initial Decision (ID)
     at 1-5. Specifically, the administrative judge found that the hiring authority for
     the appellant’s appointment permitted the agency to extend the probationary
     period to 3 years, and the agency terminated the appellant prior to his completion
     of the 3-year probationary period. ID at 3-4. Consequently, he concluded that
     the appellant failed to nonfrivolously allege that he was an “employee” with
     Board appeal rights under 5 U.S.C. § 7511(a)(1)(A), and further, absent an
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     otherwise appealable action, the Board lacked jurisdiction over the appellant ’s
     claim that his termination was the product of unlawful discrimination based on
     race. ID at 4.
¶6         The appellant has filed a petition for review once again challenging the
     merits of the agency’s termination decision and reasserting that his termination
     was the result of discrimination based on race. Petition for Review (PFR) File,
     Tab 1 at 6-7. The agency filed a response in opposition to the appellant ’s petition
     for review and the appellant has not filed a reply. PFR File, Tab 3.

                      DISCUSSION OF ARGUMENTS ON REVIEW
¶7         The definition of an employee with adverse action appeal rights to the
     Board under chapter 75 is found at 5 U.S.C. § 7511(a)(1). Calixto v. Department
     of Defense, 120 M.S.P.R. 557, ¶ 7 (2014).          An individual appointed to a
     competitive service position at the DoD ordinarily qualifies as an “employee”
     under 5 U.S.C. § 7511(a)(1) if he is not serving a 2-year probationary or trial
     period under an initial appointment or he has completed 2 years of current
     continuous service under other than a temporary appointment limited to 2 years or
     less in the civilian service.     5 U.S.C. § 7511(a)(1)(A)(i)-(ii); see 10 U.S.C.
     § 1599e(a), (b)(1)(A), (d).
¶8         Despite the general provision limiting probationary periods for DoD
     employees to 2 years, 10 U.S.C. § 1599e(a) also notes that the “Secretary
     concerned may extend a probationary period under this subsection at the
     discretion of such Secretary.” As relevant here, the hiring authority cited for the
     appellant’s appointment, P.L. 103-337, references DoD’s authority to set up
     demonstration projects.       National Defense Authorization Act for Fiscal Year
     1995, Pub. L. No. 103-337, 108 Stat 2663 (1994). Additionally, 5 U.S.C. § 4703
     grants broad authority to the Office of Personnel Management and an employing
     agency regarding how a demonstration project is conducted.             See Redditt v.
     Department of the Army, 88 M.S.P.R. 41, ¶ 8 (2001). As the administrative judge
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     observed, the National Defense Authorization Act for Fiscal Year 2010 (2010
     NDAA), Pub. L. No. 111-84, § 1105(a)(16), 123 Stat. 2190, 2486-87 (2009)
     designated the Space and Naval Warfare Systems Center, Atlantic as a science
     and technology reinvention laboratory (STRL), which permitted the DoD to set up
     demonstration projects within the NIWC Atlantic. ID at 3-4.
¶9        In the initial decision, the administrative judge further observed that the
     NDAA for 2010 “designat[ed] Naval Air Warfare Center Weapons Division
     [(NAWCWD)] an STRL subject to the STRL demonstration project,” and cited
     76 Fed. Reg. 8530, 8546-47, 8559-61 (Feb. 14, 2011), for the proposition that the
     initial probationary period for career-conditional or career employees in the
     competitive    service    in   scientific     and   engineering     positions    under     the
     demonstration project would be extended to 3 years. ID at 4; see 76 Fed. Reg.
     at 8546 (stating that the 1-year probationary period will be extended to 3 years for
     newly   appointed       career-conditional,     career    employees,     and     the   1-year
     probationary period will be extended to 3 years for newly appointed term
     employees classified to a job series in the Science and Engineering occupational
     families, among others).       He further noted that pursuant to the same Federal
     Register notice, provisions of 5 U.S.C. chapter 75 and 5 C.F.R. part 315,
     subpart H and part 752, were waived to allow a 3-year probationary period in the
     competitive service, consistent with 5 U.S.C. § 4703(a) and (c), and, absent
     veterans’ preference rights, to permit termination during the probationary period
     without adverse action procedures.            ID at 4; see 76 Fed. Reg. at 8559-61.
     The administrative judge determined that, because it was undisput ed that the
     appellant     was   a     nonpreference-eligible         employee      serving     under     a
     career-conditional appointment to a position in the competitive service under the
     agency’s direct hire authority within this STRL demonstration project, and the
     agency terminated the appellant while he was serving his 3 -year probationary
     period, he failed to nonfrivolously allege that he was an “employee” with Board
     appeal rights and dismissed the appeal for lack of jurisdiction. ID at 4.
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¶10          However, the Federal Register notice the administrative judge relied on to
      conclude that the Secretary of the Navy extended competitive service scientific
      and engineering positions (including the one the appellant occupied) to 3 years
      instead of 2 appears to apply to a different subcomponent of the Department of
      the Navy than the one that formerly employed the appellant. Specifically, 76 Fed.
      Reg. at 8530-01 makes clear that it only applies to the Naval Air Warfare Center,
      Aircraft Division (NAWCAD) and the NAWCWD, identifying that these
      subcomponents were listed in the 2010 NDAA “as two of the newly designated
      STRLs,” and that these two STRLs “will be the participants in the demonstration
      project proposal described in this Federal Register Notice. ”     By contrast, the
      appellant’s SF-50 and the termination letter clearly identify that his former
      position was within the NIWC, not the NAWCWD or NAWCAD. IAF, Tab 1
      at 8, 10.
¶11          Additionally, the Federal Register notice the administrative judge relied on
      also    includes     a   response    to    commenters     suggesting    that    the
      NAWCAD/NAWCWD STRL demonstration project at issue was similar to an
      existing demonstration project within the National Security Personnel S ystem.
      76 Fed. Reg. at 8531. In response to the comments, the notice acknowledges that
      there are conceptual similarities to the NAWCD/NAWCAD STLR and other
      existing STLR demonstration projects, as well as the Navy Personnel
      Management Demonstration Project “that covered Space and Naval Warfare
      Systems Command (SPAWAR) organizations as well as NAWCWD for more than
      25 years.”    Id.   This response, drawing a distinction between the NAWCWD
      program and the Space and Naval Warfare Systems Command, which is the
      subcomponent that formerly employed the appellant, further indicates that this
      Federal Register notice is not applicable to the STRL demonstration project for
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      the appellant’s agency. 3 See IAF, Tab 1 at 8 (Boxes 22 and 46 of the appellant’s
      SF-50 identifying his employing department or agency as “SPAWARSYSCEN
      ATLANTIC” and “Space and Naval Warfare Systems Command,” respectively),
      and 10 (termination letter identifying the appellant’s employing agency as the
      “Space and Naval Warfare Systems Center (SPAWARSYSCEN) Atlantic”).
¶12        Based on the foregoing, the record does not support the administrative
      judge’s finding that the appellant was appointed to a position with a 3-year
      probationary period pursuant to the agency’s direct hire authority as outlined in
      10 U.S.C. § 1599e(a) and 5 U.S.C. § 4703(a).          Because the agency failed to
      establish that the appellant was serving in a probationary period at the time the
      agency separated him, and it is undisputed that he had completed at least 2 years
      of service at the time the agency terminated him, the appellant was an “employee”
      under 5 U.S.C. § 7511(a)(1)(A) with Board appeal rights under 5 U.S.C.
      § 7513(d), and the Board has jurisdiction over his appeal. An agency’s failure to
      provide a tenured public employee with an opportunity to present a response,
      either in person or in writing, to an appealable agency action that deprives him of
      his property right in his employment constitutes an abridgement of his
      constitutional right to minimum due process, including prior notice and
      an opportunity to respond.    See, e.g., Stephen v. Department of the Air Force,
      47 M.S.P.R. 672, 681 (1991) (holding that an appealable agency action taken
      without affording an appellant prior notice of the charges, an explanation of the
      agency’s evidence, and an opportunity to respond, must be reversed because such

      3
        We note that it appears, pursuant to 76 Fed. Reg. 1924, 1932 (Jan. 11, 2011), that
      candidates hired under the NWIC Atlantic/SSC Atlantic STRL demonstration project to
      positions classified to the Science and Engineering and Administrative
      Specialist/Professional occupational families serve 3-year probationary periods, while
      personnel assigned to positions classified to the Science and Engineering
      Technical/Technical and General Support occupational famil ies serve 1-year
      probationary periods. We make no findings as to whether the appellant ’s former
      position was within these job series.
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      action violates his constitutional right to minimum due process under Cleveland
      Board of Education v. Loudermill, 470 U.S. 532 (1985)).
¶13         On its face, the agency’s termination letter did not provide the appellant
      with constitutional minimum due process because he was not given advance
      notice and an opportunity to respond prior to his termination.          IAF, Tab 7
      at 13-16.   Consequently, the agency’s action must be reversed.         Claiborne v.
      Department of Veterans Affairs, 118 M.S.P.R. 491, ¶ 8 (2012) (reversing an
      agency’s action when the appellant was not provided with an opportunity to
      respond to the charges). Nevertheless, the appeal must be remanded because the
      appellant alleged discrimination in connection with his removal. IAF, Tab 1 at 6.
      He is entitled to have his discrimination claim adjudicated even thoug h the Board
      has not upheld the removal. Rivas v. U.S. Postal Service, 62 M.S.P.R. 480, 483
      (1994).

                                            ORDER
¶14         Accordingly, this appeal is remanded for adjudication of the appellant’s
      discrimination claim. See Cowart v. U.S. Postal Service, 117 M.S.P.R. 572, ¶ 11
      (2012); Rivas, 62 M.S.P.R. at 483.
¶15         We ORDER the agency to cancel the appellant’s termination and reinstate
      him to his former position effective December 1, 2021.         See Kerr v. National
      Endowment for the Arts, 726 F.2d 730 (Fed. Cir. 1984).            The agency must
      complete this action no later than 20 days after the date of this decision.
¶16         We also ORDER the agency to pay the appellant the correct amount of back
      pay, interest on back pay, and other benefits under the Office of Personnel
      Management’s regulations, no later than 60 calendar days after the date of this
      decision. We ORDER the appellant to cooperate in good faith in the agency ’s
      efforts to calculate the amount of back pay, interest, and benefits due, and to
      provide all necessary information the agency requests to help it carry out the
      Board’s Order. If there is a dispute about the amount of back pay, interest due,
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      and/or other benefits, we ORDER the agency to pay the appellant the undisputed
      amount no later than 60 calendar days after the date of this decision.
¶17         We further ORDER the agency to tell the appellant promptly in writing
      when it believes it has fully carried out the Board’s Order and of the actions it has
      taken to carry out the Board’s Order. The appellant, if not notified, should ask
      the agency about its progress. See 5 C.F.R. § 1201.181(b).
¶18         No later than 30 days after the agency tells the appellant that it has fully
      carried out the Board’s Order, the appellant may file a petition for enforcement
      with the office that issued the initial decision on this appeal if the appellant
      believes that the agency did not fully carry out the Board’s Order. The petition
      should contain specific reasons why the appellant believes that the agency has not
      fully carried out the Board’s Order, and should include the dates and results of
      any communications with the agency. 5 C.F.R. § 1201.182(a).
¶19         For agencies whose payroll is administered by either the National Finance
      Center of the Department of Agriculture (NFC) or the Defense Finance and
      Accounting Service (DFAS), two lists of the information and documentation
      necessary to process payments and adjustments resulting from a Board decision
      are attached. The agency is ORDERED to timely provide DFAS or NFC with all
      documentation necessary to process payments and adjustments resulting from the
      Board’s decision in accordance with the attached lists so that payment can be
      made within the 60-day period set forth above.

      FOR THE BOARD:                                    /s/ for
                                                Jennifer Everling
                                                Acting Clerk of the Board
      Washington, D.C.
                                 DEFENSE FINANCE AND ACCOUNTING SERVICE
                                           Civilian Pay Operations

                          DFAS BACK PAY CHECKLIST
The following documentation is required by DFAS Civilian Pay to compute and pay back pay
pursuant to 5 CFR § 550.805. Human resources/local payroll offices should use the following
checklist to ensure a request for payment of back pay is complete. Missing documentation may
substantially delay the processing of a back pay award. More information may be found at:
https://wss.apan.org/public/DFASPayroll/Back%20Pay%20Process/Forms/AllItems.aspx.

NOTE: Attorneys’ fees or other non-wage payments (such as damages) are paid by
vendor pay, not DFAS Civilian Pay.

☐ 1) Submit a “SETTLEMENT INQUIRY - Submission” Remedy Ticket. Please identify the
       specific dates of the back pay period within the ticket comments.

Attach the following documentation to the Remedy Ticket, or provide a statement in the ticket
comments as to why the documentation is not applicable:

☐ 2) Settlement agreement, administrative determination, arbitrator award, or order.

☐ 3) Signed and completed “Employee Statement Relative to Back Pay”.

☐ 4) All required SF50s (new, corrected, or canceled). ***Do not process online SF50s
       until notified to do so by DFAS Civilian Pay.***

☐ 5) Certified timecards/corrected timecards. ***Do not process online timecards until
       notified to do so by DFAS Civilian Pay.***

☐ 6) All relevant benefit election forms (e.g. TSP, FEHB, etc.).

☐ 7) Outside earnings documentation. Include record of all amounts earned by the employee
       in a job undertaken during the back pay period to replace federal employment.
       Documentation includes W-2 or 1099 statements, payroll documents/records, etc. Also,
       include record of any unemployment earning statements, workers’ compensation,
       CSRS/FERS retirement annuity payments, refunds of CSRS/FERS employee premiums,
       or severance pay received by the employee upon separation.

Lump Sum Leave Payment Debts: When a separation is later reversed, there is no authority
under 5 U.S.C. § 5551 for the reinstated employee to keep the lump sum annual leave payment
they may have received. The payroll office must collect the debt from the back pay award. The
annual leave will be restored to the employee. Annual leave that exceeds the annual leave
ceiling will be restored to a separate leave account pursuant to 5 CFR § 550.805(g).
NATIONAL FINANCE CENTER CHECKLIST FOR BACK PAY CASES
Below is the information/documentation required by National Finance Center to process
payments/adjustments agreed on in Back Pay Cases (settlements, restorations) or as ordered by
the Merit Systems Protection Board, EEOC, and courts.
1.      Initiate and submit AD-343 (Payroll/Action Request) with clear and concise information
     describing what to do in accordance with decision.
2.      The following information must be included on AD-343 for Restoration:
        a.       Employee name and social security number.
        b.       Detailed explanation of request.
        c.       Valid agency accounting.
        d.       Authorized signature (Table 63).
        e.       If interest is to be included.
        f.       Check mailing address.
        g.       Indicate if case is prior to conversion. Computations must be attached.
        h.       Indicate the amount of Severance and Lump Sum Annual Leave Payment to be
             collected (if applicable).
Attachments to AD-343
1.       Provide pay entitlement to include Overtime, Night Differential, Shift Premium, Sunday
     Premium, etc. with number of hours and dates for each entitlement (if applicable).
2.       Copies of SF-50s (Personnel Actions) or list of salary adjustments/changes and amounts.
3.       Outside earnings documentation statement from agency.
4.       If employee received retirement annuity or unemployment, provide amount and address
     to return monies.
5.       Provide forms for FEGLI, FEHBA, or TSP deductions. (if applicable)
6.       If employee was unable to work during any or part of the period involved, certification of
     the type of leave to be charged and number of hours.
7.       If employee retires at end of Restoration Period, provide hours of Lump Sum Annual
     Leave to be paid.
NOTE: If prior to conversion, agency must attach Computation Worksheet by Pay Period and
required data in 1-7 above.
The following information must be included on AD-343 for Settlement Cases: (Lump Sum
Payment, Correction to Promotion, Wage Grade Increase, FLSA, etc.)
        a.      Must provide same data as in 2, a-g above.
        b.      Prior to conversion computation must be provided.
        c.      Lump Sum amount of Settlement, and if taxable or non-taxable.
If you have any questions or require clarification on the above, please contact NFC’s
Payroll/Personnel Operations at 504-255-4630.