Lump-Sum Leave Payments for Prevailing Rate Employees

The Civil Service Commission requested concurrence in its application to prevailing rate employees of GAO's holding that lump-sum payments for accrued annual leave made to general schedule civil service employees upon separation should reflect the salary increase granted under P.L. 90-206. Retroactive adjustments to wages of prevailing rate employees are governed by 5 U.S.C. 5344 which places limitations on categories of employees entitled to such adjustments. Employees separated prior to the date a wage increase is ordered into effect may have wages and/or lump-sum leave payments adjusted only if they died or retired between the effective date of increase and the date the increase was ordered into effect or if they are in the service of the government actively or on terminal leave status on the date the increase is ordered into effect.