B-234398 July 14, 1989

B-234398 July 14, 1989

1. Under an administrative settlement to a Title VII action, an employee may, but is not required to, receive attorney fees. 2. Under an administrative settlement to a Title VII action, an employee may receive a monetary award not to exceed what he would have received had a finding of discrimination been made under Title VII and backpay awarded in an amount computed in accord with the Back Pay Act, Since the employee's award arises under the authority of Title VII, it cannot be stated that interest would be payable on the employee's backpay award even though a 1987 amendment to the Back Pay Act authorizes interest to be paid on award made under that Act.

Mr. Louis Foster 4201 Dressell Street St. Louis, Missouri 63120

Dear Mr. Foster:

This is in response to your letter of January 11, 1989, asking whether an agency is required to pay attorney fees and interest on backpay in regard to an administrative settlement of a discrimination action arising under section 717 of Title VII of the Civil Rights Act of 1964, as amended, 42 U.S.C. 2000e-16. Although your submission is inappropriate for a decision of the Comptroller General, we are providing the following informal advice to assist you in this matter.

It is clear that agencies may enter into administrative settlements of discrimination actions brought under Title VII and grant employees monetary and other relief with or without a finding of discrimination. 62 Comp.Gen. 239 (1983); see 29 C.F.R. 1613.217. Attorney fees may be paid, but are not required to be paid, under this type of administrative settlement. 29 C.F.R. 1613.217(a).

In regard to whether interest is payable for any backpay you may receive, you have referenced the Back Pay Act, 5 U.S.C. 5596, as amended by Pub. L. 100-202, 101 Stat. 1329, Dec. 22, 1987, as the potential source of authority for such a payment. Under this amendment, any individual receiving backpay under the Back Pay Act on or after December 27, 1987, is entitled to receive interest on the award. Under an administrative settlement of a discrimination action with or without a finding of discrimination an employee may receive an award of backpay. See 62 Comp. Gen. 239, supra; 29 C.F.R. 1613.217. It is critical, however, to recognize that any award of backpay under an administrative settlement of a discrimination action is not authorized under the Back Pay Act but rather is authorized under Title VII. See 62 Comp.Gen. 239, supra, at 242-245 (1985). Consequently, it cannot be stated that interest would be payable for a backpay award made pursuant to Title VII and its current implementing regulations in 29 C.F.R. part 1613 (1988).

We emphasize that the above discussion is not to be considered as the formal view of the General Accounting Office. We also note that the discussion was based solely on the facts as stated by you. It may well be that certain other relevant facts would be put forth by the agency that would alter our analysis.

As you requested, we are enclosing a copy of the regulations implementing Public Law 100-200, and we are also enclosing a copy of all cited cases and regulations.

Sincerely yours,

David F. Engstrom Assistant General Counsel

Enclosures