Opinion

Jason Terry v. Department of the Air Force

  • 2024 MSPB 19
Court
Merit Systems Protection Board
Filed
Dec 20, 2024
Status
Published
Cited by
3 cases
Authority
More cited than 65.5%

The opinion

UNITED STATES OF AMERICA

MERIT SYSTEMS PROTECTION BOARD

2024 MSPB 19

Docket No. DE-3330-23-0125-I-1

Jason Terry,

Appellant,

v.

Department of the Air Force,

Agency.

December 20, 2024

Neil C. Bonney , Esquire, Virginia Beach, Virginia, for the appellant.

Lieutenant Colonel Neal Patrick Rodak , Esquire, Phoenix, Arizona,

for the agency.

BEFORE

Cathy A. Harris, Chairman

Raymond A. Limon, Vice Chairman

Henry J. Kerner, Member

OPINION AND ORDER

The appellant has filed a petition for review of the initial decision, which

dismissed his Veterans Employment Opportunities Act of 1998 (VEOA) appeal

for failure to state a claim on which relief could be granted. For the reasons

discussed below, we GRANT the appellant’s petition for review, VACATE the

initial decision, and REMAND the appeal for further adjudication in accordance

with this Opinion and Order.

2

BACKGROUND

The appellant began working as a GS-9 General Supply Specialist with the

Arizona Air National Guard (AZ ANG) in May 2021. Initial Appeal File (IAF),

Tab 4 at 9, Tab 11 at 86. He held that position as a dual-status National Guard

technician pursuant to 32 U.S.C. § 709. IAF, Tab 11 at 86. In December 2022,

he applied for the GS-11 Supervisory General Supply Specialist position with the

AZ ANG pursuant to vacancy announcement AZ-11738400-23-NW-22-205C,

which was open to the public. IAF, Tab 1 at 5, Tab 11 at 36. In his application,

the appellant claimed a 10-point veterans’ preference based on his Veterans

Affairs (VA) rating of a 30% or more service-connected disability. IAF, Tab 4

at 8, Tab 11 at 36, 101. The agency interviewed the appellant for the position but

selected another applicant. IAF, Tab 11 at 17, 72.

The appellant filed a VEOA complaint with the Department of Labor

(DOL), which DOL later notified him that it had closed, although it indicated that

it had found the complaint “to have merit.” IAF, Tab 1 at 9. DOL determined, as

it explained to the agency, that the selectee was deemed to have no veterans’

preference at the time of selection, and that the agency provided no evidence that

it properly followed the required “pass over” procedures through the Office of

Personnel Management (OPM) when a nonpreference eligible is hired over an

applicant with veterans’ preference eligibility as set forth in 5 U.S.C. § 3318.

IAF, Tab 11 at 36-37. DOL notified the appellant of his right to a Board appeal,

which the appellant timely filed. IAF, Tab 1. He asserted that the agency

violated his veterans’ preference rights and requested a hearing. Id. at 2, 5.

The agency moved to dismiss the appeal, asserting that it had cancelled the

selection and submitted a pass over request to OPM. IAF, Tab 9. Therefore, it

argued, the appeal was not ripe for adjudication. Id. The appellant objected to

the agency’s motion, arguing that an agency’s unilateral modification of its action

after an appeal has been filed cannot divest the Board of jurisdiction. IAF,

Tab 11 at 4. The administrative judge issued a show cause order assuming that

3

the Board had jurisdiction but stating that it appeared that the Board would

nonetheless lack the authority to order relief if the appellant prevailed. IAF,

Tab 12 at 1. The administrative judge explained that, pursuant to the holding of

the U.S. Court of Appeals for the Federal Circuit (Federal Circuit) in Singleton v.

Merit Systems Protection Board, 244 F.3d 1331 (Fed. Cir. 2001), the Board only

has the authority under 5 U.S.C. § 1204(a)(2) to “order any Federal agency or

employee” to comply with corrective action, and the Arizona Adjutant General is

not a “Federal employee” as defined in Title 5 of the United States Code. Id.

at 1-2. Accordingly, he ordered the appellant to show cause why he should not

dismiss the appeal for failure to state a claim on which relief can be granted. Id.

at 2-3.

In response to the show cause order, the appellant appears to have argued

that the vacancy announcement at issue was a Title 5 civilian position with the

National Guard under the appointment authority codified at 10 U.S.C. § 10508.

IAF, Tab 13 at 4-9. He argued that the National Defense Authorization Act for

Fiscal Year 2017, Pub. L. No. 114-328, 130 Stat. 2000 (2017 NDAA), amended

10 U.S.C. § 10508 to subject the state adjutants general and the various National

Guards to the Board’s enforcement authority under 5 U.S.C. § 1204(a)(2). Id.

at 4-7. In its response to the show cause order, the agency argued that state

National Guards and state adjutants general remain outside the definition of a

“Federal agency or employee,” and, thus, the Board does not have statutory

enforcement authority under 5 U.S.C. § 1204(a)(2) over either. IAF, Tab 14 at 5.

Without holding the requested hearing, the administrative judge issued an

initial decision dismissing the appeal for failure to state a claim on which relief

can be granted. IAF, Tab 15, Initial Decision (ID). He found that, although the

Board has jurisdiction, it could not grant relief because it could not order

compliance by the Adjutant General of Arizona, the Governor of Arizona, or any

other person or entity. ID at 3-6. Specifically, he found that the 2017 NDAA did

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not resolve the issue that the Federal Circuit confronted in Singleton, 244 F.3d

at 1336, because it did not amend 5 U.S.C. § 1204(a)(2). ID at 5.

The appellant has filed a timely petition for review, arguing that the

administrative judge failed to address 10 U.S.C. § 10508. Petition for Review

(PFR) File, Tab 1 at 7. 1 The agency has not responded to the appellant’s petition

for review.

ANALYSIS

The Board has jurisdiction over the appellant’s VEOA appeal.

To establish the Board’s jurisdiction over a VEOA appeal based on an

alleged violation of veterans’ preference rights, an appellant establishes

jurisdiction by (1) showing that he exhausted his remedy with DOL; and

(2) making nonfrivolous allegations that: (a) he is a preference eligible within

the meaning of VEOA; and (b) the agency violated his rights under a statute or

regulation relating to veterans’ preference. 5 U.S.C. § 3330a; Jarrard v. Social

Security Administration, 115 M.S.P.R. 397, ¶ 7 (2010), aff’d sub nom. Jarrard v.

Department of Justice, 669 F.3d 1320 (Fed. Cir. 2012); see Davis v. Department

of Defense, 2022 MSPB 20, ¶ 5 n.1 (determining that an accurate exposition of

VEOA’s jurisdictional elements may omit reference to the requirement that an

appellant nonfrivolously allege that the action at issue took place on or after the

October 30, 1998 enactment date of VEOA). We agree with the administrative

judge that the appellant met his burden to prove that he exhausted his

administrative remedy with DOL and nonfrivolously alleged that his nonselection

1

Following the submission of his petition for review, the appellant moved to present

supplemental authority and corresponding argument based on the U.S. Supreme Court’s

decision in Ohio Adjutant General’s Department v. Federal Labor Relations Authority ,

598 U.S. 449, 453-54 (2023), issued on May 18, 2023, PFR File, Tab 3, and the Board’s

decision in Erdel v. Department of the Army, 2023 MSPB 27; PFR File, Tab 5. The

Board generally does not permit additional pleadings on review unless the party

demonstrates a need for such a pleading. See 5 C.F.R. § 1201.114(a)(4). In this matter,

there is no need for additional argument. Therefore, we DENY the appellant’s motions.

5

and another candidate’s selection violated his veterans’ preference rights. ID

at 3. We revisit the jurisdictional issue to expressly find that the alleged VEOA

violation was committed by an “agency” within the meaning of VEOA.

VEOA does not define “agency,” and there is nothing in the Act’s

legislative history to illuminate the meaning of that word in the context of

5 U.S.C. § 3330a. Willingham v. Department of the Navy, 118 M.S.P.R. 21, ¶ 9

(2012). However, the Board has held that the remedial purpose of VEOA and the

congressional solicitude for veterans reflected therein strongly favor reading

section 3330a broadly in favor of the veteran when possible. Id., ¶ 15. For the

reasons discussed below, we find that the alleged appointment authority for the

vacancy announcement at issue shows that the appointment was to be made

pursuant to the Department of Defense (DOD) civilian personnel system, and,

therefore, the appellant’s nonselection comes within the purview of VEOA.

The appellant nonfrivolously alleges that the vacancy announcement was

for a Title 5 civilian position with the AZ ANG open under the authority of the

2017 NDAA. 2 IAF, Tab 13 at 4; PFR File, Tab 1; see also IAF, Tab 1 at 12,

Tab 11 at 16, 36-37. At this stage, we accept the appellant’s allegations that the

appointment authority for the vacancy was 10 U.S.C. § 10508 and that the

position was a Title 5 civilian position. See Ohio Adjutant General’s Department

v. Federal Labor Relations Authority, 598 U.S. 449, 453-54 (2023) (concluding

that dual-status technicians are Federal civilian employees). Section 10508, as

amended by the 2017 NDAA, states that “[t]he Chief of the National Guard

Bureau may . . . appoint, employ, [and] administer . . . persons” within the

Bureau and the National Guard of each jurisdiction under certain listed sections

of Title 5 and Title 32. 10 U.S.C. § 10508(b)(1). As we explained in Lane v.

Department of the Army, 2024 MSPB 4, ¶ 8, a state National Guard acts through

2

The appellant’s allegation that the vacancy announcement was for a Title 5 civilian

position is consistent with DOL’s conclusion that Title 5 veterans’ preference rights

applied. IAF, Tab 11 at 36-37.

6

the authority delegated to it by the National Guard Bureau and its Chief, which

are integrated into the DOD. See 10 U.S.C. §§ 10501, 10502(a)-(b), (d). The

Chief can delegate his 10 U.S.C. § 10508(b)(1) appointing, employing, and

administering authority to the various adjutants general. 10 U.S.C.

§ 10508(b)(2). Because of this arrangement, we find that the AZ ANG is an

“agency” for purposes of 5 U.S.C. § 3330a. See Willingham, 118 M.S.P.R. 21,

¶¶ 16-18 (finding that a non-appropriated fund instrumentality integrated into the

DOD civilian personnel system should be viewed as an agency for purposes of

5 U.S.C. § 3330a). Furthermore, 10 U.S.C. § 10508(b)(3)(A) specifies that, for

administrative claims arising from, or relating to, “personnel actions or

conditions of employment, including adverse actions under Title 5, pertaining to a

person appointed, employed, or administered by an adjutant general under this

subsection,” the individual state National Guard shall be considered the

“employing agency.” 10 U.S.C. § 10508(b)(3)(A) (emphasis added).

Accordingly, because we find that the appellant exhausted his remedy with DOL,

and he has made nonfrivolous allegations that he is a preference eligible and that

an agency violated his rights under a regulation relating to veterans’ preference,

we find that the Board has jurisdiction over this appeal. See 5 U.S.C. § 3330a.

The appellant has stated a claim on which relief can be granted.

The Board has the authority to “order any Federal agency or employee to

comply with any order or decision issued by the Board” in matters falling within

its jurisdiction. 5 U.S.C. § 1204(a)(1)-(2); see Lane, 2024 MSPB 4, ¶ 6. The

administrative judge relied on the Federal Circuit’s decision in Singleton,

244 F.3d at 1333, 1336-37, which held that, prior to the 2017 NDAA, Board

orders were unenforceable against adjutants general of the National Guard

because adjutants general were not Federal employees. The administrative judge

applied the holding in Singleton and determined that, while the 2017 NDAA

amended statutory provisions at Titles 5 and 32 to provide dual-status National

Guard technicians with Title 5 appeal rights under certain circumstances, it did

7

not warrant a different outcome because it did not amend 5 U.S.C. § 1204(a) to

provide the Board with enforcement authority against adjutants general. ID at 5.

Since the issuance of the initial decision, we have held otherwise. Lane,

2024 MSPB 4, ¶¶ 7-11; Erdel v. Department of the Army, 2023 MSPB 27,

¶¶ 11-16. As the Supreme Court has determined, “[w]hile it is state adjutants

general who ‘employ and administer’ dual-status technicians working for their

respective State National Guard units, they can only do so pursuant to an express

‘designat[ion]’ of authority by the Secretary of the Army or the Secretary of the

Air Force.” Ohio Adjutant General’s Department, 598 U.S. at 454 (citations

omitted). Because National Guard technicians are ultimately employees of the

Department of the Army and the Department of the Air Force, which are Federal

agencies, the Board has the authority to order the employing agency of a National

Guard technician to take an employment action under 5 U.S.C. § 1204(a)(2).

Erdel, 2023 MSPB 27, ¶¶ 11-14. In Lane, we extended the holding in Erdel to

find that the Board has the authority to provide relief in Title 5, chapter 75

adverse action appeals to any National Guard employees who were appointed to

civilian positions under the authority of 10 U.S.C. § 10508. Lane, 2024 MSPB 4,

¶¶ 8-11. In doing so, we recognized that in the 2017 NDAA, Congress provided

that the applicable adjutant general and National Guard “shall promptly

implement all aspects of any final administrative order, judgment, or decision” in

connection with an administrative proceeding challenging its adverse action

against an individual hired under 10 U.S.C. § 10508(b). Lane, 2024 MSPB 4,

¶ 11 (citing 130 Stat. at 2363-64 (codified at 10 U.S.C. § 10508(b)(3)(A)-(B))).

This language effectively authorizes the Board to enforce orders against the

various National Guards. Id.

The reasoning applied in Erdel and Lane is equally applicable here. The

right of preference-eligible Federal employees, like the appellant, to appeal an

agency’s violation of a veterans’ preference rule to the Board exists pursuant to

5 U.S.C. § 3330a. We previously concluded herein that the AZ ANG is an

8

“agency” for the purposes of 5 U.S.C. § 3330a. Supra pp. 5-6. Further, the

2017 NDAA provided that “all personnel actions or conditions of employment,

including adverse actions under Title 5, pertaining to a person appointed,

employed, or administered by an adjutant general under [10 U.S.C. § 10508(b)]”

may be subject to administrative complaints, grievances, claims, or actions, and

that the relevant National Guard “shall promptly implement all aspects of any

final administrative order, judgment, or decision.” 130 Stat. at 2363-64 (codified

at 10 U.S.C. § 10508(b)(3)(A)-(B)); see Lane, 2024 MSPB 4, ¶ 9 (finding that an

employee appointed under 10 U.S.C. § 10508(b) may file “an administrative

complaint, grievance, claim or action” challenging a Title 5 adverse action). A

violation of veterans’ preference rules in hiring involves a “personnel action or

condition of employment.” See 5 U.S.C. §§ 3309 (providing for the addition of

points to a preference eligible’s score for hiring purposes), 3311 (providing credit

for a preference eligible’s experience for hiring purposes), 3318(c) (providing

that an agency must obtain permission from OPM before passing over a

preference-eligible veteran for hiring).

It would be implausible for Congress to have specifically provided for an

administrative remedy under VEOA but for there to be no relief available to

certain Federal employees, like the appellant, from the Board, which has

jurisdiction to adjudicate such claims. See Erdel, 2023 MSPB 27, ¶ 11 (finding

that it would be beyond strange for Congress to have specifically amended two

statutory provisions in different Titles of the U.S. Code to provide dual-status

technicians with Board appeal rights, but for there to be no relief available from

the Board); see also Willingham, 118 M.S.P.R. 21, ¶¶ 16-18 (finding Board

jurisdiction and adjudicating a claim for corrective action under VEOA after

concluding that a non-appropriated fund instrumentality operating as a component

of the U.S. Marine Corps came within the purview of VEOA). We can conceive

of no reason why 5 U.S.C. § 1204(a)(2) would preclude the Board from enforcing

orders against state National Guards in Title 5 VEOA appeals when it does not

9

preclude the Board from doing so in Title 5, chapter 75 adverse action appeals.

10 U.S.C. § 10508(b)(3)(B); see Lane, 2024 MSPB 4, ¶¶ 8-11; see also

Willingham, 118 M.S.P.R. 21, ¶¶ 14-15 (discussing the long-standing solicitude

of Congress for veterans). Thus, we conclude that the Board has the authority

under 5 U.S.C. § 1204(a)(2) to order the DOD and, by extension, the state

National Guard to provide relief in this matter. Accordingly, we vacate the initial

decision, which came to the opposite conclusion.

ORDER

For the reasons discussed above, we remand this case to the Denver Field

Office for further adjudication in accordance with this Opinion and Order.

FOR THE BOARD:

Gina K. Grippando

Clerk of the Board

Washington, D.C.

This is a copy of a public record, reproduced as it was published. It is not legal advice, and it may not be the version a court would rely on. Check the official source before you cite it.

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