[Request for Reconsideration of Claims Group Denial of Waiver of Overpayments]

A civilian naval employee requested reconsideration of the denial of a waiver of overpayments of pay she received based on an erroneous promotion. GAO noted that: (1) the Navy recommended approval of the waiver since the employee performed the higher level duties during the time she was erroneously promoted; and (2) the waiver was denied on the basis that the employee was on notice that her promotion was erroneous and in violation of regulatory requirements for competitive promotion. GAO found that: (1) an individual who performs the duties of an invalid appointment position with apparent right and claim of title to the position is considered a de facto employee and is entitled to retain compensation already received; (2) recoupment of such pay is only necessary where an absolute statutory bar exists which prohibits the payment of appropriated funds to the individual; (3) the de facto rule permits individuals to be paid accrued, unpaid compensation where they can establish that their services were rendered in good faith; and (4) since the employee performed the duties of the position in good faith, and the appointment did not result from an statutory bar prohibiting payment, the claimant was entitled to retain the pay as a de facto employee. Accordingly, the employee was not indebted for the additional compensation received.