Repayment of Lump-Sum Leave Payment and Restoration to Duty

A Federal employee requested that his lump-sum payment for annual leave not be deducted from his backpay award. The employee was removed from his position with the Department of Transportation (DOT) and, in connection with that action, received a lump-sum payment for 255 hours of annual leave. Subsequently, the employer appealed his removal to the Civil Service Commission which reversed the removal action and ordered the employee's restoration to duty. Accordingly, the employee was reinstated and received backpay retroactive to the date of his removal. However, DOT deducted from his backpay award the amount of the lump-sum leave payment. The employee protested. Moreover, he requested waiver of the repayment of the lump sum and cancellation of the 255 hours of annual leave. GAO held there was no authority to permit the employer to elect the option of retaining his lump-sum payment and canceling his annual leave. Nor was the waiver appropriate in this case since there was no net indebtedness. Accordingly, GAO held the agency acted properly in deducting the lump-sum payment from the employee's backpay award and recrediting him with 255 hours of annual leave.