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NALC and USPS have settled the interpretive dispute over the Postal Service’s method of calculating overtime pay, Sunday premium pay, general wage increases, and cost of living adjustments (COLAs) for Part-Time Flexible (PTF) city letter carriers in Step AA. The settlement upholds NALC’s position.

As a result of the Postal Service’s incorrect calculation, PTF’s currently at Step AA are being underpaid by $1.21 for each overtime hour worked, $1.61 for each penalty overtime hour and $0.20 for each hour of Sunday Premium. The calculation has also currently resulted in a nine-cent deviation of the straight time rates between PTFs at Step AA and Full-Time Regulars at Step A.

The dispute centered around the implementation of the new language contained in Article 9 Section 8 and Article 11 Section 7 of the 2019 National Agreement and how they interact with each other.

PTFs who were, or are currently in, Step AA will have their pay adjusted retroactively for all time spent in Step AA. No other employees were affected. The affected employees will be notified in writing that their pay will be adjusted consistent with this grievance resolution.

The settlement, M-01980 in NALC’s Materials Reference System, can be read here.