(a) Each Department of Labor agency which has delinquent debts owed
under its program is responsible for collecting its claims by means of
administrative offset, in accordance with guidelines established by the
Chief Financial Officer.
(b) Before collecting a claim by means of administrative offset, the
responsible agency must ensure that administrative offset is feasible,
allowable and appropriate, and must notify the debtor of the
Department's policies for collecting a claim by means of administrative
offset.
(c) Whether collection by administrative offset is feasible is a
determination to be made by the creditor agency on a case-by-case basis,
in the exercise of sound discretion. Agencies shall consider not only
whether administrative offset can be accomplished, both practically and
legally, but also whether offset is best suited to further and protect
all of the Government's interests. In appropriate circumstances,
agencies may give due consideration to the debtor's financial condition,
and are not required to use offset in every instance in which there is
an available source of funds. Agencies may also consider whether offset
would substantially interfere with or defeat the purposes of the program
authorizing the payments against which offset is contemplated.
(d) Before advising the debtor that the delinquent debt will be
subject to administrative offset, the agency head
(or designee) responsible for administering the program under which the
debt arose shall review the claim and determine that the debt is valid
and overdue. In the case where a debt arises under the programs of two
or more Department of Labor agencies, or in such other instances as the
Chief Financial Officer, or his or her designee, may deem appropriate,
the Chief Financial Officer, or his or her designee, may determine which
agency (or agencies), or official (or officials), shall have
responsibility for carrying out the provisions of this subpart.
(e) Administrative offset shall be considered by agencies only after
attempting to collect a claim under Section 3(a) of the Federal Claims
Collection Act, except that no claim under this Act that has been
outstanding for more than 10 years after the Government's right to
collect the debt first accrued may be collected by means of
administrative offset, unless facts material to the right to collect the
debt were not known and could not reasonably have been known by the
official of the Agency who was charged with the responsibility to
discover and collect such debts. When the debt first accrued should be
determined according to existing laws regarding the accrual of debts,
such as under 28 U.S.C. 2415.
