[Computation of Backpay on Reinstatement to Duty]

A former naval employee requested review of a Claims Group settlement which held that there was no error in the computation of the employee's backpay, annual leave, or sick leave for the period of his involuntary separation. The employee had been removed from his position due to excessive absenteeism and, after he appealed this action, the Merit Systems Protection Board (MSPB) ordered the separation canceled and the employee returned to work. The employee had claimed backpay for the full period of separation, but the Navy did not award him backpay for a period during which the employee refused a temporary appointment. The employee claimed that he had refused the temporary appointment because he feared that the Navy would use a medical examination to his detriment. GAO concurred with court decisions which have held that an employee is under no obligation to seek or accept employment while appellate administrative proceedings are in progress, because the employee should be afforded ample opportunity to prepare for hearings dealing with the agency's action. Under the circumstances, GAO found that the employee had no obligation to accept the temporary employment offered by the Navy and denial of backpay to the employee for this period could not be justified. Therefore, denial of backpay for this period could not be sustained and the Claims Group settlement should be modified with appropriate adjustments in annual and sick leave for that period. GAO found that the Navy's computation of overtime backpay due the employee for the period of his separation was based on a proper computation formula, but stated that the employee was entitled to a recomputation of his overtime award to reflect the overtime for the additional period of wrongful separation. GAO found that the employee failed to file the appropriate forms to substantiate a further claim for travel expenses. Accordingly, a settlement may be made in the amount found due for the payment of additional backpay to the employee.