The American Federation of Government Employees (AFGE) Local 2463 and the Smithsonian Institution Enter Into $7 Million Settlement of Fair Labor Standards Act (FLSA) & Overtime Union Grievances

The Smithsonian Institution and American Federation of Government Employees (AFGE) Local 2463 announced today that a settlement has been reached in AFGE’s FLSA & Overtime Grievance filed against the Smithsonian. AFGE Local 2463 is pleased to resolve this matter through cooperative efforts with the Smithsonian.

Demonstrating its commitment to ensure that the Fair Labor Standards Act (FLSA) is fully complied with by all managers and supervisory personnel within the Agency, AFGE Local 2463, currently led by President David Hendrick, filed Grievances in 2015 on behalf of all Smithsonian bargaining unit employees. The essence of the actions was that certain employees were erroneously designated as exempt from the FLSA. The FLSA is a federal law ensuring employees are properly compensated for overtime work. Other key Grievance allegations included the denial of the choice of overtime payments in lieu of compensatory time and failure to provide any compensation for “off the clock” work, commonly referred to as suffer or permit overtime or induced overtime.

The terms of the settlement provide for the Smithsonian to pay $7,000,000 to resolve all claims made by the Union, including those on behalf of current and former employees who were not compensated properly. In addition, the Smithsonian agreed that a significant number of employees previously declared FLSA exempt will be covered by the FLSA and compensated accordingly.

This settlement reflects the Smithsonian’s cooperation and commitment to compliance with the FLSA. The Smithsonian is committed to fostering a workplace that respects and values the dedication, hard work, and talent of all employees.

The Union was represented in this case by the Law Offices of Snider & Associates, LLC, which has resolved many similar cases against federal government agencies nationwide. “Both sides worked together to reach a mutually beneficial resolution,” said lead counsel Michael J. Snider, adding “this settlement will help ensure the Smithsonian complies with the regulations under the FLSA and will protect both current and future employees.” “This resolution has been five years in the making and eliminated the need for what would have surely been many additional years of protracted and costly litigation,” noted Snider & Associates attorney and senior litigator Keith Kauffman.

Class Action Implementation Group (CAIG) will be handling the settlement implementation and distribution process. AFGE Local 2463 President Hendrick requests that employee inquiries concerning the matter be directed to