NTEU entered into a settlement agreement with the SEC, effective as of March 17, which partially resolves the union’s Fair Labor Standards Act (FLSA) overtime rates grievance, and includes back pay and damages for numerous affected employees.

This grievance alleged that the SEC incorrectly exempted a number of bargaining unit positions from the overtime provisions of the FLSA and, by extension, failed to pay them sufficiently for overtime worked. Under the settlement, the SEC will convert employees in a number of positions (listed below) to nonexempt (or covered) status under the FLSA. The shift to nonexempt status means that the overtime provisions of the FLSA will apply to these employees, and that they are entitled to full time-and-a-half pay for overtime hours worked.

Eligible employees will also receive a retroactive pay adjustment for back pay that is due under the FLSA during the applicable period, plus negotiated damages.

Affected employees should receive a Notice and Claim Form from NTEU and the SEC, which should be reviewed carefully. Affected employees who have not received the form by March 22, 2008, should contact David Cunningham in HR (202-551-7897) by May 21, 2008.

Employees who received overtime and/or compensatory time during the applicable recovery period will also receive a summary showing the amount of back pay/liquidated damages they will receive. There will be a claims procedure provided for employees who disagree with the SEC’s calculations, or who believe that they worked compensable overtime for which they were not paid at all. Employees who have questions should contact Steward Patricia Copeland (202-551-6855).

“We are pleased with this settlement, which was achieved through cooperative efforts by representatives on both sides over the past few months,” Chapter 293 President Greg Gilman recently observed. “This agreement will correct overtime problems at the agency for a large number of employees, and also provide them with payments for past overtime worked.”

The positions that will be reclassified, and the effective date of the reclassification, are:

• Administrative Program Specialist (Grade 9), as of April 30, 2006
• ARP Specialist (Grades 9-11), as of March 17, 2008
• Budget Analyst (Grade 9), as of April 30, 2006
• Case Management Specialist (Grades 9-11), as of March 17, 2008
• Contract Administrator (Grade 9), as of March 17, 2008
• EDGAR Operations Assistant (Grade 9), as of April 30, 2006
• General Supply Specialist (Grade 9), as of April 30, 2006
• Internet Surveillance Specialist (Grade 9-11), as of March 17, 2008
• Investor Assistance Specialist (Grades 9-11), as of March 17, 2008
• Legal Instruments Examiner (Grades 8-9), as of November 26, 2006
• Market Surveillance Specialist (Grades 7-11), as of March 17, 2008
• Paralegal Specialist (Grades 7-9], as of April 30, 2006
• Paralegal Specialist [Grades 11-13], as of October 29, 2006
• Program Analyst (Grades 8-11), as of March 17, 2008
• Program Information Specialist (Grades 9-11), as of April 30, 2006
• Program Support Assistant/ Specialist (Grade 9), as of April 30, 2006
• Regulation Specialist (Grade 11), as of March 17, 2008
• Research Assistant/ Specialist (Grades 7-9), as of April 30, 2006
• Research Specialist (Grade 11), as of March 17, 2008
• Securities Compliance Examiner (Grades 7-9), as of April 30, 2006
• Securities Regulation Specialist (Grades 9-11), as of March 17, 2008
• Space Management Specialist (Grades 9-11), as of March 17, 2008
• Telecommunications Specialist (Grade 9), as of April 30, 2006