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B-197140(MGB) 1 (1980-05-23)

handle is hein.gao/gaobabjto0001 and id is 1 raw text is: 




GAO
Un ted States Generai Accounting Offce                   Office of
Washington, DC 20548                                     General Counsel
                                                         In Reply
                                                         Referto: B-197140 (MG]








   Mr. W. J. McDonald
   Assistant Secretary
   (Administration)
   Department of the Treasury
   Washington, D.C. 20220

   Dear Mr. McDonald:

       This is in further response to your letter dated Zovernber 30,
   1979, requesting an opinion as to the legality of thebse of agency
   funds to make cash settlements of discrimination complaints7. [t
   is our understanding that you wish to make such settlemen't& with-
   out regard to an employeers entitlement to backpay, and without
   any findings or admissions of discrimination or of an unwarranted
   or unjustified personnel action.

       The Back Pay Act, 5 U.S.C. 5596, would not consititute authori-
   zation for cash settlements under the circumstances described in
   your letter. The Back Pay Act requires a finding by an appropriate
   authority that an employee has been affected by an unwarranted or
   unjustified personnel action. 54 Comp. Gen. 760 (1975); B-189239,
   October 8, 1976. See 5 C. F. R. 550. 803(b) (1979); and 5 C. F. R
   550. 803(c). No such finding is contained in the proposed settle-
   ment submitted, and it is clear from the record that such a finding
   is not contemplated. Accordingly, and apart from other considera-
   tions, the Back Pay Act does not provide authority for the cash
   settlements you have proposed.

       With respect to the application of Title VII of the Civil Rights
   Act of 1964, as amended, we note that Title VII clearly provides
   authority for the payment of money damages in the form of a
   backpay award, and in fact, the courts have permitted the denial of
   backpay only in limited circumstances. Albermarle Paoer Co. v.
   loody, 422 U. S. 405, 421 (1975); see, e.   Kober v. \ estinziiouse
   Electric Co. 480 F. 2d 240 (3rd Cir. 1973). However, we assun-,e




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