A-43612, AUGUST 4, 1932, 12 COMP. GEN. 176

A-43612: Aug 4, 1932

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ECONOMY ACT - FURLOUGH DEDUCTIONS FROM COMPENSATION IN ANY CASE WHERE AN EMPLOYEE IS FURLOUGHED FOR "ONE CALENDAR MONTH. AS FOLLOWS: ATTENTION IS INVITED TO SECTIONS 101-B AND 205 OF THE SO-CALLED ECONOMY ACT. THERE IS SOME DOUBT AS TO THE AMOUNT OF DEDUCTION TO BE MADE FROM THE COMPENSATION OF SUCH EMPLOYEE. THERE ARE 22 1/2 WORKING DAYS. WHICH FOR PAY ROLL PURPOSES ARE COUNTED AS 23 DAYS. IS IT NECESSARY TO DEDUCT COMPENSATION FOR THE 24TH DAY ON THE AUGUST 15TH PAY ROLL. IN THIS CASE 3 1/2 PERCENT OF THE EMPLOYEE'S BASIC COMPENSATION WILL BE DEDUCTED FOR THE RETIREMENT FUND. YOUR ADVICE IS REQUESTED AS TO THE METHOD TO BE USED IN DEDUCTING AN AGGREGATE OF 103 1/2 PERCENT FROM THE BASIC SALARY OF AN EMPLOYEE.

A-43612, AUGUST 4, 1932, 12 COMP. GEN. 176

ECONOMY ACT - FURLOUGH DEDUCTIONS FROM COMPENSATION IN ANY CASE WHERE AN EMPLOYEE IS FURLOUGHED FOR "ONE CALENDAR MONTH," I.E., JULY, AUGUST, ETC., THERE SHOULD BE NO PAYMENT OF COMPENSATION ON THE SEMIMONTHLY PAY DAY.

COMPTROLLER GENERAL MCCARL TO THE ATTORNEY GENERAL, AUGUST 4, 1932:

CONSIDERATION HAS BEEN GIVEN TO YOUR LETTER OF JULY 23, 1932, AS FOLLOWS:

ATTENTION IS INVITED TO SECTIONS 101-B AND 205 OF THE SO-CALLED ECONOMY ACT, APPROVED JUNE 30, 1932, AND WHICH READ IN PART AS FOLLOWS:

"101-B. EACH OFFICER OR EMPLOYEE RECEIVING COMPENSATION ON AN ANNUAL BASIS AT THE RATE OF MORE THAN $1,000 PER ANNUM SHALL BE FURLOUGHED WITHOUT COMPENSATION FOR ONE CALENDAR MONTH, OR FOR SUCH PERIODS AS SHALL IN THE AGGREGATE BE EQUIVALENT TO ONE CALENDAR MONTH, FOR WHICH LATTER PURPOSE TWENTY-FOUR WORKING DAYS (COUNTING SATURDAY AS ONE-HALF DAY) SHALL BE CONSIDERED AS THE EQUIVALENT OF ONE CALENDAR MONTH: * * *"

"205. * * * PROVIDED, THAT RETIREMENT DEDUCTIONS AUTHORIZED BY LAW TO BE MADE FROM THE SALARY, PAY, OR COMPENSATION OF OFFICERS OR EMPLOYEES AND TRANSFERRED OR DEPOSITED TO THE CREDIT OF A RETIREMENT FUND, SHALL BE BASED ON THE REGULAR RATE OF SALARY, PAY, OR COMPENSATION INSTEAD OF ON THE RATE AS TEMPORARILY REDUCED UNDER THE PROVISIONS OF THIS ACT.'

IN THE CASE OF AN EMPLOYEE WHO HAS BEEN GRANTED LEGISLATIVE FURLOUGH LEAVE FOR THE ENTIRE CALENDAR MONTH OF JULY, I.E., JULY 1 TO 31, INCLUSIVE, THERE IS SOME DOUBT AS TO THE AMOUNT OF DEDUCTION TO BE MADE FROM THE COMPENSATION OF SUCH EMPLOYEE. THE FIRST PORTION OF SECTION 101- B PROVIDES THAT AN EMPLOYEE SHALL BE FURLOUGHED FOR ONE CALENDAR MONTH OR FOR SUCH PERIODS AS SHALL IN THE AGGREGATE BE EQUIVALENT TO ONE CALENDAR MONTH, FOR WHICH LATTER PURPOSE 24 WORKING DAYS SHALL BE USED AS THE BASIS FOR SUCH CONSTRUCTION. IN THE CASE OF THE MONTH OF JULY, THERE ARE 22 1/2 WORKING DAYS, WHICH FOR PAY ROLL PURPOSES ARE COUNTED AS 23 DAYS. IN THE CASE OF AN EMPLOYEE ON LEGISLATIVE FURLOUGH LEAVE THE ENTIRE MONTH OF JULY, IS IT NECESSARY TO DEDUCT COMPENSATION FOR THE 24TH DAY ON THE AUGUST 15TH PAY ROLL, OR DOES THE 22 WORKING DAYS IN THIS CASE CONSTITUTE ONE MONTH?

IN THIS CASE 3 1/2 PERCENT OF THE EMPLOYEE'S BASIC COMPENSATION WILL BE DEDUCTED FOR THE RETIREMENT FUND, LEAVING A BALANCE OF 96 1/2 PERCENT. SECTION 101-B CONTEMPLATES A 100 PERCENT DEDUCTION OF ONE MONTH'S SALARY, YOUR ADVICE IS REQUESTED AS TO THE METHOD TO BE USED IN DEDUCTING AN AGGREGATE OF 103 1/2 PERCENT FROM THE BASIC SALARY OF AN EMPLOYEE. SUCH AN EMPLOYEE, YOU ARE ADVISED THAT THE PAY ROLLS OF THIS DEPARTMENT FOR THE PERIOD OF JULY 1 TO 15 CARRIED THE EMPLOYEE AT THE BASIC OR GROSS SALARY LESS 3 1/2 PERCENT FOR RETIREMENT DEDUCTIONS, LESS DEDUCTIONS FOR 11 WORKING DAYS, AS FOLLOWS:

TABLE

ANNUAL SALARY----------------------------- $2,400.00

BASIC SALARY, 1-15------------------------ 100.00

RETIREMENT DEDUCTION---------------------- 3.50

LEGISLATIVE FURLOUGH DEDUCTION------------ 91.74

NET PAID---------------------------------- 4.76

INASMUCH AS YOUR DECISION INVOLVES THE PREPARATION OF THE PAY ROLLS OF THIS DEPARTMENT FOR THE PERIOD JULY 16 TO 31, A PROMPT REPLY WILL BE APPRECIATED.

IN DECISION OF JULY 21, 1932, TO THE DIRECTOR OF PUBLIC BUILDINGS AND PUBLIC PARKS OF THE NATIONAL CAPITAL, A-43420, 12 COMP. GEN. 97, A QUESTION WAS STATED AND ANSWERED AS FOLLOWS:

"4. IN THE CASE OF EMPLOYEES WHO ARE TAKING 24 DAYS' FURLOUGH DURING THE MONTH OF JULY, NECESSITATING THE DEDUCTION OF THE FULL MONTH'S PAY, AND THE IMPOUNDMENT OF SAME, WHAT METHOD IS TO BE FOLLOWED IN MAKING THE RETIREMENT DEDUCTION OF 3 1/2 PERCENT FOR THAT MONTH IF SUCH DEDUCTION IS TO BE MADE?

THERE ARE NOT 24 WORKING DAYS IN THE MONTH OF JULY, 1932. HOWEVER, IF AN EMPLOYEE SUBJECT TO THE PROVISIONS OF SECTION 101 (B) OF THE ECONOMY ACT PROVIDING FOR THE LEGISLATIVE FURLOUGH ,WITHOUT COMPENSATION FOR ONE CALENDAR MONTH" IS ABSENT THE ENTIRE CALENDAR MONTH OF JULY, HE WOULD NOT BE ENTITLED TO ANY COMPENSATION FOR THAT MONTH, AND RETIREMENT DEDUCTION AT THE RATE OF 3 1/2 PERCENT OF THE TOTAL SALARY RATE COVERING JULY SHOULD BE DEDUCTED FROM HIS COMPENSATION AT THE NEXT REGULAR PAY DAY AFTER HE RETURNS TO DUTY.

IN ANY CASE WHERE AN EMPLOYEE IS FURLOUGHED FOR "ONE CALENDAR MONTH," THAT IS, JULY, AUGUST, ETC., THERE SHOULD BE NO PAYMENT OF COMPENSATION ON THE SEMIMONTHLY PAY DAY. THE STATUTE SPECIFICALLY PROVIDES THAT AN AGGREGATE OF 24 WORKING DAYS SHALL BE CONSIDERED THE EQUIVALENT OF ONE CALENDAR MONTH ONLY WHEN THE FURLOUGH IS TAKEN IN PERIODS OF LESS THAN ONE CALENDAR MONTH. THEREFORE, THE MINIMUM DEDUCTION OF 1 1/4 DAYS' PAY DURING A PAY PERIOD AND ADDITIONAL DEDUCTIONS AT THE SAME RATE FOR MORE THAN ONE DAY'S ABSENCE ON FURLOUGH DO NOT APPLY TO EMPLOYEES WHO TAKE THEIR ENTIRE FURLOUGH IN ONE PERIOD OF A FULL CALENDAR MONTH. ACCORDINGLY, IN THE ILLUSTRATION GIVEN, THE AMOUNT ERRONEOUSLY PAID THE EMPLOYEE ON JULY 15, 1932, SHOULD BE COLLECTED FROM ANY PAY ACCRUING AFTER JULY 31, 1932. SEE, ALSO, DECISION TO YOU DATED JULY 26, 1932, A-43481, 12 COMP. GEN. 123.