[Waiver of Overpayments]

The U.S. Customs Service appealed a Claims Group settlement waiving overpayments of holiday pay made to two inspectors. The timekeeper for the two inspectors improperly recorded work the employees performed on holidays as both overtime and holiday hours. As a result, the employees received holiday premium pay in addition to overtime compensation. The employees claimed that they were unaware of the error since the leave and earnings statements furnished them during the pay periods in question did not reflect additional pay for holidays. No copies of the leave and earnings statements were in the record, so the Claims Group accepted the employees' statements, and the employees were granted waiver under the provisions of applicable legislation. Customs argued that the employees knew or should have known that they were overpaid since it is common knowledge among Customs inspectors that such employees are compensated for holiday work under Custom's overtime laws and are not generally entitled premium pay. GAO held that waiver of overpayments is proper even though the agency's pay policies may be a matter of common knowledge because the standards to be applied in making waiver determination require consideration of particular facts surrounding overpayment. Accordingly, the Claims Group settlement waiving collection of the overpayments in question was sustained.