Arbitrator's Award of Punitive Damages

A decision was requested as to whether appropriated funds could be disbursed to implement an arbitrator's award of punitive damages. Although the agency stipulated that it had violated a collective bargaining agreement provision that consultants would not be hired to perform work that could be performed by agency employees, the agency refused the union's demand that the consultant repay the salary to the U.S. Treasury. Prior to the arbitration hearing, the consultant resigned. The arbitrator's award of punitive damages to be paid by the agency may not be implemented since there was no authority to award punitive damages against the United States or one of its agencies.