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Claim for Retroactive Salary Adjustment

B-196686 Jan 17, 1980
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Highlights

An employee requested an appeal of a Claims Division settlement which denied her claim for a retroactive salary adjustment. The GS-2, step 1 employee had been previously employed as a GS-5, step 6 by another agency, and contended that she was entitled to have her previous salary matched by her present employing agency on the ground that it was matching the previous salaries of other new employees. In denying her claim, the agency stated that no error had been made and the action was in accordance with agency instructions and a discretionary pay setting policy existing at that time. The Claims Division concluded that she had no vested right to receive the highest salary rate previously paid to her, and that the agency had the discretion to fix her initial salary rate at the minimum salary of the grade to which she was appointed. In her request for reconsideration, the employee contended that the Claims Division did not thoroughly investigate her claim or interview witnesses who could have established that previous salaries of other new employees were being matched. It has been consistently held that an employee has no vested right upon transfer or reemployment to receive the highest salary rate paid. Entitlement of an employee to receive pay in a new position based on the the highest previous rate is discretionary with the agency and subject to agency regulations. Under agency regulations in effect at the time of the employee's reemployment, the use of the employee's highest previous rate was to be discretionary and not automatic. The employee did not submit any additional evidence to support her claim. According to regulations, GAO does not conduct adversary hearings or interview witnesses. It considers claims on the basis of the written record only, and the burden of proof is on the claimant to establish a right to payment. There was no legal basis to allow any portion of the claim, and the disallowance of the claim was sustained.

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