A-44239, OCTOBER 25, 1932, 12 COMP. GEN. 421

A-44239, OCTOBER 25, 1932, 12 COMP. GEN. 421

ECONOMY ACT - PIECEWORKERS ON A 5-DAY WEEK IN COMPUTING THE COMPENSATION OF EMPLOYEES UPON PIECEWORK OR COMBINED PIECEWORK AND PER DIEM WORK WHO REGULARLY WORKED 5 1/2 DAYS A WEEK FOR SIX DAYS' PAY PRIOR TO JULY 1, 1932, AND ARE NOW UPON A 5-DAY WEEK BASIS, THE FOLLOWING METHOD WILL BE USED: TO THE UNIT RATE FOR PIECEWORK, PER HOUR, OR PER DIEM IN FORCE PRIOR TO JULY 1, 1932, ADD 1/11 AND MULTIPLY BY THE NUMBER OF UNITS WORKED. THE RESULT (A) IS THE NET AMOUNT (SUBJECT TO PROPER RETIREMENT DEDUCTIONS) TO BE PAID THE WORKER. THE RETIREMENT DEDUCTIONS ARE TO BE COMPUTED ON A GROSS AMOUNT (B) WHICH IS ARRIVED AT BY ADDING TO (A), 1/10 THEREOF, WHICH 1/10 REPRESENTS, ALSO, THE AMOUNT TO BE CHARGED AGAINST THE APPROPRIATION FOR IMPOUNDING. THE 3 1/2 PERCENT OF THE GROSS AMOUNT (B), REPRESENTING RETIREMENT DEDUCTIONS, SHOULD BE DEDUCTED FROM THE NET AMOUNT (A), THE RESULT (C) BEING THE CASH TO BE PAID THE EMPLOYEE.

COMPTROLLER GENERAL MCCARL TO THE SECRETARY OF THE NAVY, OCTOBER 25, 1932:

CONSIDERATION HAS BEEN GIVEN YOUR LETTER OF OCTOBER 7, 1932, AS FOLLOWS:

IN YOUR DECISION A-44239 DATED SEPTEMBER 29, 1932, YOU STATE THAT IT IS BELIEVED THAT THE GENERAL ACCOUNTING OFFICE HAS LAID DOWN SUFFICIENT RULES FOR COMPUTING THE COMPENSATION OF ALL PIECEWORKERS ON A FIVE-DAY WEEK. HOWEVER, THIS DEPARTMENT IS STILL IN DOUBT AS TO THE APPLICATION OF THESE RULES TO ACTUAL PAY-ROLL CONDITIONS AS ILLUSTRATED IN MY LETTER TO YOU OF SEPTEMBER 14, 1932.

ONE OF THE QUESTIONS INVOLVED IS THE CREDIT FOR ONE-HALF DAY'S PAY AT THE OLD RATE IN ADDITION TO PIECEWORK EARNINGS AUTHORIZED BY YOUR DECISION A- 43198 OF AUGUST 10, 1932. IT SEEMS CLEAR THAT IF AN EMPLOYEE WORKS FIVE FULL DAYS ON PIECEWORK HE IS ENTITLED TO PAY AT PIECEWORK RATES INCREASED BY 1/10, PLUS ONE-HALF DAY'S PAY ON ACCOUNT OF SATURDAY HALF HOLIDAY, BUT IT IS NOT CLEAR THAT HE WOULD BE ALSO ENTITLED TO THIS CREDIT FOR SATURDAY AFTERNOON IN THE EVENT THAT HE ONLY WORKED ONE DAY OR A PART OF A DAY DURING THE WEEK.

IT IS FURTHER STATED IN YOUR DECISION A-43198 DATED JULY 16, 1932--- THIS PART OF THE RULE APPARENTLY NOT BEING MODIFIED BY YOUR DECISION OF AUGUST 10, 1932--- THAT FOR PER DIEM HOURS WORKED EMPLOYEES ARE ENTITLED TO THE HOURLY RATE COMPUTED IN ACCORDANCE WITH YOUR DECISION A-43126 OF JULY 8, 1932, TO THE PUBLIC PRINTER. THE HOURLY RATE REFERRED TO IS THE RATE IN EFFECT PRIOR TO JULY 1, 1932, MULTIPLIED BY SIX AND DIVIDED BY FIVE. THE CASE OF AN EMPLOYEE ASSIGNED TO PIECEWORK BUT WHO IS ACTUALLY PAID A PER DIEM FOR ALL FIVE DAYS OF THE WEEK, WOULD SUCH AN EMPLOYEE BE ENTITLED TO ANY CREDIT FOR SATURDAY AFTERNOON IN ADDITION TO THE NEW DAILY RATE OF AY?

IT IS BELIEVED THAT THE FORMULATION OF INSTRUCTIONS TO THE FIELD ACTIVITIES UNDER THE NAVAL ESTABLISHMENT WOULD BE MATERIALLY ASSISTED IF THE COMPLETE AND CORRECT PAY-ROLL ENTRIES FOR THE FOUR ACTUAL CASES GIVEN IN MY LETTER OF SEPTEMBER 14, 1932, COULD BE SUPPLIED, AND IT IS REQUESTED THAT THIS BE DONE. THE EMPLOYEES IN QUESTION WERE PAID AT PIECEWORK RATES FOR ANY WORK PERFORMED ON SATURDAY MORNING PRIOR TO JULY 1, 1932, AND UNDER YOUR DECISION A-38695, SEPTEMBER 29, 1931, THEIR RIGHT TO SATURDAY HALF HOLIDAY WITH PAY PRIOR TO JULY 1, 1932, DEPENDED UPON THEIR PAY STATUS ON SATURDAY MORNING.

THERE IS ENCLOSED HEREWITH A DRAFT OF PROPOSED INSTRUCTIONS TO THE BOSTON NAVY YARD FOR COMPUTING THE PAY OF PIECEWORKERS AT THAT YARD. YOUR COMMENT AS TO THE CORRECTNESS OF THESE INSTRUCTIONS, TOGETHER WITH ANY CHANGES DEEMED NECESSARY THEREIN, IS REQUESTED. PARTICULAR ATTENTION IS INVITED TO THE FACT THAT THESE INSTRUCTIONS DO NOT OUTLINE A PROCEDURE FOR EMPLOYEES WORKING ONE DAY OR LESS, PENDING RECEIPT OF YOUR DECISION REQUESTED ABOVE.

IT IS BELIEVED THAT MUCH OF THE DIFFICULTY EXPERIENCED IN COMPUTING COMPENSATION FOR PIECEWORK UNDER THE ECONOMY ACT HAS BEEN DUE TO THE FACT THAT, FOR CONVENIENCE IN COMPUTATION, YOUR DEPARTMENT PRIOR TO JULY 1, 1932, HAD BEEN PAYING PIECEWORKERS ON A PER DIEM BASIS FOR SATURDAY AFTERNOONS WHEN THEY DID NOT WORK.

THE SATURDAY HALF HOLIDAY ACT OF MARCH 3, 1931, 46 STAT. 1482, PROVIDES:

* * * FOUR HOURS, * * * SHALL CONSTITUTE A DAY'S WORK ON SATURDAYS THROUGHOUT THE YEAR, WITH PAY OR EARNINGS FOR THE DAY THE SAME AS ON OTHER DAYS WHEN FULL TIME IS WORKED * * * WHETHER ON THE HOURLY, PER DIEM, PER ANNUM, PIECEWORK, OR OTHER BASIS: * * *

AS THIS STATUTE MAKES IT COMPULSORY TO PAY FOR THE WHOLE OF SATURDAY THE SAME AS ON OTHER DAYS WHEN FULL TIME IS WORKED, IT MUST BE PRESUMED THAT THE ONE-HALF PER DIEM HERETOFORE PAID PIECEWORKERS REPRESENTS SUBSTANTIALLY WHAT THEY MIGHT HAVE BEEN EXPECTED TO EARN ON A PIECEWORK BASIS HAD THEY WORKED. ATTEMPTS TO SPREAD THIS PER DIEM CREDIT EQUITABLY OVER FRACTIONAL PARTS OF THE WEEK WHEN THE EMPLOYEES WERE ON A PIECEWORK BASIS TO DETERMINE THE AMOUNT PAYABLE UNDER THE ECONOMY ACT FOR FRACTIONAL PARTS OF A WEEK IN THE CASE OF EMPLOYEES WORKING ON 5-DAY-WEEK BASIS, HAS RESULTED IN COMPLICATED RULES, WHICH, WHILE IN THE MAIN CORRECT, SHOULD, IF POSSIBLE, BE SIMPLIFIED. IT IS BELIEVED,THEREFORE, THAT SUBSTANTIALLY THE SAME RESULTS WILL BE OBTAINED BY ADOPTING THE FOLLOWING METHOD OF COMPUTATION WHICH IS EQUALLY APPLICABLE TO PIECEWORK, PER HOUR, OR PER DIEM RATES WHERE THE EMPLOYEES PRIOR TO JULY 1, 1932, WORKED REGULARLY 5 1/2 DAYS A WEEK AND RECEIVED SIX DAYS' PAY AND WHO ARE NOW ON A 5-DAY-WEEK BASIS. TO THE UNIT RATE FOR PIECEWORK, PER HOUR, OR PER DIEM IN FORCE PRIOR TO JULY 1, 1932, ADD 1/11 AND MULTIPLY BY THE NUMBER OF UNITS WORKED. THE RESULT (A) IS THE NET AMOUNT (SUBJECT TO PROPER RETIREMENT DEDUCTIONS) TO BE PAID THE WORKER. THE RETIREMENT DEDUCTIONS ARE TO BE COMPUTED ON A GROSS AMOUNT (B) WHICH IS ARRIVED AT BY ADDING TO (A), SUPRA, 1/10 THEREOF, WHICH 1/10 REPRESENTS, ALSO, THE AMOUNT TO BE CHARGED AGAINST THE APPROPRIATION FOR IMPOUNDING. THE 3 1/2 PERCENT OF THE GROSS AMOUNT (B), REPRESENTING RETIREMENT DEDUCTIONS, SHOULD BE DEDUCTED FROM THE NET AMOUNT (A), THE RESULT (C) BEING THE CASH TO BE PAID THE EMPLOYEE.

TO ILLUSTRATE THIS METHOD OF COMPUTATION, THE FIRST EXAMPLE WILL BE TAKEN FROM THE PROPOSED INSTRUCTIONS SUBMITTED WITH YOUR LETTER:

(A) AN ELECTRIC WELDER WHOSE PER DIEM RATE PRIOR TO JULY 1, 1932, WAS $7.28 PER DIEM DURING A WEEK FAILED ON ONE DAY TO PRODUCE SUFFICIENT WORK TO ENTITLE HIM TO PAYMENT AT PIECEWORK RATES, AND FOR THIS DAY IS THEREFORE ENTITLED TO A PER DIEM RATE. ON ONE OTHER DAY HE WAS ABSENT ON AUTHORIZED LEAVE WITHOUT PAY. ON THE REMAINING THREE DAYS HE PRODUCED 1,044 UNITS FOR WHICH THE PIECEWORK RATE PRIOR TO JULY 1, 1932, WAS ?019 AND 951 UNITS FOR WHICH THE OLD PIECEWORK RATE WAS .015.

TABLE 1 DAY AT $7.28 PLUS 1/11 EQUALS $7.94 1,044 AT ?019 PLUS 1/11 EQUALS 21.64 951 AT .015 PLUS 1/11 EQUALS 15.55

NET AMOUNT (A) $45.13 NET AMOUNT (A) $45.13 EQUALS 10/11 OF GROSS RATE OF PAY. 1/10 OF (A) 4.51--- TO BE IMPOUNDED FROM APPROPRIATION.

(B) $49.64--- 11/11 OR GROSS RATE. NET AMOUNT (A) $45.13 LESS 3 1/2 OF

(B) 1.74--- TO RETIREMENT FUND.

(C) $43.39--- CASH PAYMENT TO EMPLOYEE.

THIS SIMPLIFIED METHOD IS FOR APPLICATION TO ALL PIECEWORK OR MIXED PIECEWORK AND PER DIEM EMPLOYEES WHO PRIOR TO JULY 1, 1932, REGULARLY WORKED 5 1/2 DAYS A WEEK FOR SIX DAYS' PAY AND ARE NOW ON A FIVE-DAY WEEK BASIS.