Frequently Asked Questions
Q: Why was this grievance filed?
A: In April 2019, NAGE filed a national-level grievance alleging that the U.S. Department of Veterans Affairs (VA) violated the Fair Labor Standards Act (FLSA), Title V, and the Collective Bargaining Agreement by failing to properly compensate certain bargaining unit employees for overtime hours worked. Following many years of litigation and hard work by your Union and its attorneys at Snider & Associates, LLC, a Settlement was reached with the VA.
Q: Who was covered by this grievance?
A: The grievance covered tens of thousands of bargaining unit employees in non–Title 38 and non–designated hybrid positions across VA facilities nationwide who were represented by NAGE at some point between April 5, 2017 and October 16, 2024.
Q: What types of violations did the grievance allege?
A: The grievance alleged that the VA failed to properly compensate employees for:
- Suffered or permitted (SPOT) overtime under the FLSA
- Induced overtime (IOT) under Title V
- Overtime that was improperly capped or converted to “forced” compensatory time
- Related liquidated damages, interest, and employer tax obligations
Q: Who will receive a payment from the Settlement?
A: Covered employees who were represented by NAGE for at least 18 pay periods of the Grievance timeframe are eligible to receive a payment from the Settlement.
Q: How will my individual payment be determined?
A: Each employee’s settlement payment is based on a detailed review of VA records and other supporting data. Factors include position, employment dates, overtime hours worked, overtime pay received, pay rate, participation and the number of pay periods worked during the grievance timeframe.
Q: How will I know if I’m eligible, and how will I receive my payment?
A: NAGE has partnered with the Class Action Implementation Group (CAIG) to manage the settlement administration and payments. If you are eligible, CAIG will contact you in the coming months by email, phone, or mail with login credentials to access your individual payment information.
Q: Do I have to pay taxes on my settlement payment?
A: Yes. Part of your payment represents back pay wages, which will be reported on Form W-2, and another portion represents liquidated damages and/or interest, which will be reported on Form 1099. Taxes will be held where required, and you will receive a detailed explanation when you complete your payment process with CAIG. Depending on your personal tax situation, you may be entitled to a refund or may owe additional taxes when you file your return.
Q: When will payments be distributed?
A: The distribution process is now underway. Payments are expected to be made in the coming months. Updates will be posted regularly on the Settlement Updates page of this site.
Q: Will this settlement change how the VA handles overtime going forward?
A: The settlement resolves past overtime violations. However, NAGE continues to advocate for fair pay and proper FLSA classification for VA employees to ensure similar issues do not occur in the future.
All contact concerning Settlement payments must be with CAIG. Neither the VA, NAGE or Snider & Associates are able to provide any information not already contained on CAIGs website and the Settlement Updates page.