Claim for Retroactive Wage Adjustment

An employee appealed the Claims Division disallowance of his claim for a retroactive salary adjustment for the period 1970 through 1978. The Claims Division first received the employee's claim on September 20, 1977. Legislation provides that every claim cognizable by GAO shall be forever barred unless received within 6 years after the date the claim first accrued. Thus, the portion of the claim which accrued prior to September 20, 1970, was barred from consideration. The claim was properly litigated in the District Court for the Southern District of New York, where the complaints against the Department of Transportation (DOT) and the Civil Service Commission were dismissed. In considering an appeal, the Court of Appeals held that there was no error in the District Court's determination that the employees were being paid in accordance with prevailing rates and practices in the maritime industry as required by law, and dismissed the appeal. Accordingly, GAO held that there was no basis for further consideration of the employee's claims, and the Claims Division action was sustained.