public health service Archives

USPHS Retirement Pay Class Action Voluntarily Dismissed Following Restoration of Funding; Firm Remains Prepared to Act if Payments Are Disrupted Again

Posted on March 1, 2026March 4, 2026 by Becky Haugen

The Law Offices of David P. Sheldon, PLLC has voluntarily dismissed the 2025 class action lawsuit filed on behalf of U.S. Public Health Service (USPHS) retirees regarding delayed retirement pay during the federal government shutdown.

The dismissal follows the end of the shutdown and the restoration of appropriations, as well as the government’s issuance of full back pay for previously missed retirement payments. With funding restored and payments made, the case no longer presented a live case or controversy required for continued litigation.

“This was a voluntary dismissal driven by changed circumstances,” the firm explained. “Once appropriations were restored and retirees were paid the amounts owed, the legal basis for maintaining the action no longer existed.”

The firm carefully evaluated whether additional claims could be pursued, including potential recovery of interest for delayed payments, but determined that such claims are not legally viable under existing law. As a result, no remaining damages could be asserted at this time.

Preservation of Rights and Readiness to Act

The voluntary dismissal does not waive or release any future claims. The firm emphasized that it remains prepared to take immediate legal action should the government again fail to appropriate funds for USPHS retirement pay or delay payments following a future shutdown.

“The underlying issue has not been resolved structurally,” the firm noted. “If retirement payments are disrupted again, we stand ready to act without delay.”

Congressional Advocacy Remains Critical

The firm also underscored that lasting protection for USPHS retirees can only be achieved through legislative reform. Unlike other uniformed services, USPHS officers continue to face unequal treatment during full government shutdowns.

Retirees are strongly encouraged to engage in congressional outreach to their Senators and Representatives to advocate for statutory changes that would:

Equalize USPHS retirement protections with other uniformed services
Ensure uninterrupted retirement payments during future shutdowns
Remove retirement pay from vulnerability to annual appropriations lapses

Staying Engaged

Although there is no active class action at this time, the Law Offices of David P. Sheldon, PLLC will continue monitoring funding developments and shutdown risk. Retirees who wish to remain informed or indicate continued interest in future action are encouraged to stay connected.

USPHS Class Action Update

Posted on November 20, 2025November 21, 2025 by Becky Haugen

USPHS Class Action Update: Back Pay and Ongoing Review

Update Class Action Memo 11_20_2025

The Law Offices of David P. Sheldon, PLLC has issued an update regarding Futch et al. v. United States (No. 1:25-cv-01915-EDK), the class action pending before the U.S. Court of Federal Claims on behalf of U.S. Public Health Service retirees and survivors affected by the 2025 government shutdown.

With the federal government now reopened, the Treasury Department has initiated back pay disbursements for USPHS retirees. While this is a welcome development, the legal question remains unresolved: whether the federal government can suspend pay for uniformed service retirees during future shutdowns.

As counsel for the class, David P. Sheldon and his team will continue to monitor proceedings and oppose any dismissal that fails to address the underlying structural issue.

Retirees and survivors with questions may contact the class coordination team at class.action@militarydefense.com or call 202-546-9575.

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A Promising Career Delayed: PHS Officer Seeks Correction After Mischaracterized Interservice Transfer

Posted on July 30, 2025September 10, 2025 by Becky Haugen

A decorated officer in the U.S. Public Health Service (USPHS) Commissioned Corps is seeking a correction to her military records after discovering that years of prior service in the U.S. Army have been excluded from her promotion timeline due to a mischaracterized transfer process. Represented by Attorney Dylan Thayer of the Law Offices of David P. Sheldon, PLLC, the officer has filed a formal application to the Board for Correction of PHS Commissioned Corps Records.

This case centers around a troubling bureaucratic failure: despite receiving multiple assurances from PHS officials that her five years of active-duty Army service would be recognized under an interservice transfer, the officer was later told that her commissioning into the PHS was processed as a direct appointment, rendering her previous rank and time in service irrelevant for promotion eligibility.

“When an officer makes career-defining decisions based on guidance from the very institution that recruits them, the burden to correct misinformation should not fall on the officer alone,” said Attorney Thayer. “We are asking for the recognition of service she has already rendered with distinction.”

The officer had served honorably as an Army psychologist and was selected for promotion to Major (O-4) before joining the PHS. She accepted her commission believing her time in service would count toward her next promotion. Only after repeated follow-ups did she discover that her file reflected a promotion eligibility date nearly three years later than expected.

This misclassification has real-world consequences. Without correction, it not only delays her promotion and financial compensation but may also impede future career advancement.

In her role at the Department of Defense, she has excelled by taking on supervisory duties typically assigned to more senior officers, earning a PHS Commendation Medal, and receiving nomination for a prestigious clinician award. Yet her official rank does not reflect this performance, due to what her legal team describes as administrative negligence.

The filing requests her immediate eligibility for promotion to Lieutenant Commander (O-4), retroactive to her accession date, along with corresponding backpay. In the alternative, the officer seeks compensation equal to the accession bonus she would have received had she been correctly classified.

“This case is not just about one officer,” Thayer emphasized. “It’s about setting a precedent to ensure that no service member is penalized for trusting the system. We expect accountability, clarity, and fairness for those who dedicate their lives to service.”

About the Law Offices of David P. Sheldon, PLLC
The Law Offices of David P. Sheldon, based in Washington, D.C., is a nationally recognized firm that defends the rights of uniformed service members and federal employees. With decades of experience in courts-martial, promotion disputes, medical board appeals, and security clearance litigation, the firm is committed to ensuring justice for those who serve.

Disclaimer:
This press release is for informational purposes only and does not constitute legal advice. Past outcomes do not guarantee future results. For personalized legal assistance, please contact an attorney licensed to practice in your jurisdiction.