A-44494, SEPTEMBER 14, 1932, 12 COMP. GEN. 350

A-44494: Sep 14, 1932

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ECONOMY ACT - 5-DAY WEEK - LEGISLATIVE FURLOUGH A PER DIEM EMPLOYEE ON A 5-DAY WEEK IS NOT SUBJECT TO LEGISLATIVE FURLOUGH UNDER SECTION 101 (B) OF THE ECONOMY ACT. A PER DIEM EMPLOYEE WORKING EVERY DAY IN THE YEAR IS SUBJECT TO THE PROVISIONS OF SECTION 101 (B) OF THE ECONOMY ACT REQUIRING LEGISLATIVE FURLOUGH OF ONE CALENDAR MONTH OR 24 WORKING DAYS TAKEN FRACTIONALLY. AS FOLLOWS: REFERENCE IS MADE TO YOUR DECISION A-44079. THE DEDUCTION OF 1 1/4 DAYS' PAY WILL NOT PRODUCE THE CORRECT TOTAL. OF WHICH 8 1/3 PERCENT IS $102.32. AS IS THE CASE AT SOME OF OUR EXPERIMENTAL FARMS. OF WHICH 8 1/3 PERCENT IS $121.67. A CAREFUL RUNNING ACCOUNT MUST BE KEPT IN EACH CASE AT FAR GREATER COST OF TIME THAN IF A DEDUCTION AT ONE FIXED RATE WERE MADE EACH MONTH OR FOR EACH DAY OF LEGISLATIVE FURLOUGH ABSENCE.

A-44494, SEPTEMBER 14, 1932, 12 COMP. GEN. 350

ECONOMY ACT - 5-DAY WEEK - LEGISLATIVE FURLOUGH A PER DIEM EMPLOYEE ON A 5-DAY WEEK IS NOT SUBJECT TO LEGISLATIVE FURLOUGH UNDER SECTION 101 (B) OF THE ECONOMY ACT, BUT THERE SHOULD BE DEDUCTED AND IMPOUNDED ONE-ELEVENTH OF THE COMPENSATION OF THE EMPLOYEE UNDER THE PROVISIONS OF SECTION 101 (A) OF THE ECONOMY ACT, AND DEDUCTIONS FROM COMPENSATION FOR ABSENCE FROM DUTY SHOULD BE MADE IN ACCORDANCE WITH THE USUAL RULES IN FORCE PRIOR TO JULY 1, 1932, RELATIVE TO ABSENCE WITHOUT PAY. A PER DIEM EMPLOYEE WORKING EVERY DAY IN THE YEAR IS SUBJECT TO THE PROVISIONS OF SECTION 101 (B) OF THE ECONOMY ACT REQUIRING LEGISLATIVE FURLOUGH OF ONE CALENDAR MONTH OR 24 WORKING DAYS TAKEN FRACTIONALLY.

COMPTROLLER GENERAL MCCARL TO THE SECRETARY OF AGRICULTURE, SEPTEMBER 14, 1932:

CONSIDERATION HAS BEEN GIVEN TO YOUR LETTER OF SEPTEMBER 2, 1932, AS FOLLOWS:

REFERENCE IS MADE TO YOUR DECISION A-44079, CONFIRMING A RULING THERETOFORE ANNOUNCED IN A-43642, THAT FROM THE PAY OF PERMANENT PER DIEM EMPLOYEES ASSIGNED TO THE 101 (B) BASIS THERE SHOULD BE DEDUCTED 8 1/3 PERCENT OF THE PAY FOR THE PAY PERIOD IF WITHIN IT THE EMPLOYEE HAS NOT BEEN ON LEGISLATIVE FURLOUGH; 1 1/4 OF THE REGULAR DAY'S PAY FOR EACH DAY OF LEGISLATIVE FURLOUGH; ALL DEDUCTIONS NOT TO EXCEED 8 1/3 PERCENT OF THE TOTAL ANNUAL SALARY.

THE DEDUCTION OF 1 1/4 DAYS' PAY WILL NOT PRODUCE THE CORRECT TOTAL. TAKE, FOR INSTANCE, AN EMPLOYEE AT $4 PER DIEM WORKING 5 DAYS A WEEK; FOR 24 WORKING DAYS THE DEDUCTION WOULD BE $120. THE ANNUAL SALARY ON THE BASIS OF 307 WORKING DAYS IN THE YEAR WOULD BE $1,228, OF WHICH 8 1/3 PERCENT IS $102.32. IF THE EMPLOYEE WORKS EVERY DAY IN THE YEAR, AS IS THE CASE AT SOME OF OUR EXPERIMENTAL FARMS, HE WOULD RECEIVE $1,460 FOR THE YEAR, OF WHICH 8 1/3 PERCENT IS $121.67. MOREOVER, THE SYSTEM REQUIRES TWO KINDS OF DEDUCTION, THE 8 1/3 PERCENTAGE OR 1 1/4 DAYS' PAY ACCORDING AS THE EMPLOYEE DOES OR DOES NOT TAKE FURLOUGH DURING THE PAY PERIOD; AND WITH THE NEED TO BE SURE THAT NOT MORE OR LESS THAN 8 1/3 PERCENT OF THE YEAR'S PAY HAS BEEN DEDUCTED, A CAREFUL RUNNING ACCOUNT MUST BE KEPT IN EACH CASE AT FAR GREATER COST OF TIME THAN IF A DEDUCTION AT ONE FIXED RATE WERE MADE EACH MONTH OR FOR EACH DAY OF LEGISLATIVE FURLOUGH ABSENCE.

APPARENTLY A SIMPLER PLAN WOULD BE TO TREAT EACH DAY'S PAY FOR DEDUCTION PURPOSES AS 1/360 OF THE PREDETERMINED ANNUAL SALARY. THE DEDUCTIONS WOULD THEN BE ON THE SAME BASIS WHETHER FURLOUGH WERE TAKEN OR NOT, AND THE AMOUNTS TAKEN OUT FOR THE 24 WORKING DAYS WOULD BE AN EXACT 1/12 OF THE ANNUAL SALARY. AT LEAST ONE OF OUR BUREAUS WHICH HAS PER DIEM EMPLOYEES ON THE 101 (B) BASIS WOULD LIKE TO FOLLOW THE PLAN PROPOSED. SHOULD BE GLAD TO LEARN WHETHER YOU SEE OBJECTION THERETO.

IN DECISION OF AUGUST 22, 1932, A-44079, 12 COMP. GEN. 266, IT WAS STATED AS FOLLOWS:

IN DECISION OF JULY 28, 1932, TO THE SECRETARY OF THE NAVY, A-43641, IT WAS HELD AS FOLLOWS:

"IT MUST FOLLOW, THEREFORE, THAT WHERE PER DIEM EMPLOYEES ARE CONTINUED ON A 5 1/2-DAY WEEK AND REQUIRED TO TAKE LEGISLATIVE FURLOUGH WITHOUT PAY, THEIR COMPENSATION IS FOR ADJUSTMENT UNDER THE TERMS OF SUBSECTION (B), *

"THE TERM "ONE CALENDAR MONTH" (IN SECTION 101 (B) ( REFERS TO JULY, AUGUST, ETC., AND CONVERTED INTO TERMS OF COMPENSATION MEANS 1/12 OR 8 1/3 PERCENT OF THE ANNUAL RATE OF COMPENSATION. THAT IS TO SAY, 1/12 OR 8 1/3 PERCENT OF THE PER ANNUM EQUIVALENT IS THE MAXIMUM DEDUCTION REQUIRED BY REASON OF THIS PROVISION, WHETHER THE COMPENSATION IS COMPUTED ON THE BASIS OF THE YEAR, THE DAY, THE HOUR, OR THE PIECE * * *

"THEREFORE, THE PROCEDURE STATED IN THE DECISIONS OF JULY 8, 1932, A- 43276, AND JULY 12, 1932, A-42691, A-43276, SHOULD BE FOLLOWED WITH RESPECT TO PER DIEM EMPLOYEES TO WHOM THE PROVISIONS OF SECTION 101 (B) ARE APPLICABLE EXCEPT THAT THE TOTAL DEDUCTION OF COMPENSATION FOR THE FISCAL YEAR 1933, BY REASON OF THE LEGISLATIVE FURLOUGH SHALL NOT EXCEED 1/12 OR 8 1/3 PERCENT OF THE ANNUAL RATE OF COMPENSATION COMPUTED ON THE BASIS OF 313 DAYS PER ANNUM AS TO THE EMPLOYEES HERE UNDER CONSIDERATION, AND WHERE THERE ARE NO FURLOUGH ABSENCES DURING A PAY PERIOD, THE DEDUCTION MAY BE 8 1/3 PERCENT OF THE TOTAL AMOUNT OTHERWISE EARNED FOR SUCH PERIOD, WHETHER THE PAY PERIOD BE A WEEK, A HALF MONTH, A MONTH, OR OTHERWISE. WHEN 1/12 OR 8 1/3 PERCENT OF THE ANNUAL RATE OF COMPENSATION COMPUTED ON THE BASIS OF THE PER DIEM RATE FOR 313 DAYS HAS BEEN DEDUCTED, PURSUANT TO THE REQUIREMENTS OF THE ABOVE DECISIONS UNDER SECTION 101 (B), NO FURTHER DEDUCTIONS ARE REQUIRED SOLELY BECAUSE OF LEGISLATIVE FURLOUGH UNDER SAID SECTION.'

THE SAME RULE IS APPLICABLE TO ALL REGULAR FULL-TIME PER HOUR, PER DIEM, AND PIECEWORK EMPLOYEES WHO ARE WORKING ON A 5 1/2-DAY WEEK BASIS. THE REGULAR PERIODICAL LEGISLATIVE FURLOUGH DEDUCTIONS OF COMPENSATION, AND DEDUCTIONS FOR EACH ADDITIONAL DAY'S ABSENCE ON LEGISLATIVE FURLOUGH OF PIECEWORKERS, SHOULD BE AT THE RATE OF 1 1/4 TIMES THE DAILY RATE PREVIOUSLY PAID FOR A DAY'S AUTHORIZED LEAVE OF ABSENCE WITH PAY, WITH THE UNDERSTANDING THAT THERE IS REQUIRED TO BE DEDUCTED AND IMPOUNDED NOT TO EXCEED THE AMOUNT OF 8 1/3 PERCENT OF THE COMPENSATION ACTUALLY EARNED FOR THE FISCAL YEAR.

REFERRING TO YOUR FIRST EXAMPLE, A PER DIEM EMPLOYEE ON A 5-DAY WEEK IS NOT SUBJECT TO LEGISLATIVE FURLOUGH UNDER SECTION 101 (B) OF THE ECONOMY ACT, BUT THERE SHOULD BE DEDUCTED AND IMPOUNDED ONE-ELEVENTH OF THE COMPENSATION OF THE EMPLOYEE UNDER THE PROVISIONS OF SECTION 101 (A) OF THE ECONOMY ACT, AND DEDUCTIONS FROM COMPENSATION FOR ABSENCE FROM DUTY SHOULD BE MADE IN ACCORDANCE WITH THE USUAL RULES IN FORCE PRIOR TO JULY 1, 1932, RELATIVE TO ABSENCE WITHOUT PAY. SEE DECISION OF AUGUST 23, 1932, A-44085, 12 COMP. GEN. 273.

REFERRING TO YOUR SECOND EXAMPLE, WITH THE UNDERSTANDING THAT THE EMPLOYEE IS PAID ON A PER DIEM BASIS AT THE RATE OF $4 FOR EACH DAY IN THE YEAR, THE RULE QUOTED FROM THE DECISION OF AUGUST 22, 1932, SUPRA, WOULD BE APPLICABLE. HOWEVER, 24 DAYS' FURLOUGH ABSENCE AT 1 1/4 DAYS' PAY AT $4 PER DIEM EQUALS ONLY $120, WHICH WOULD BE THE MAXIMUM AMOUNT REQUIRED TO BE DEDUCTED FROM THIS EMPLOYEE'S TOTAL ANNUAL COMPENSATION ON ACCOUNT OF LEGISLATIVE FURLOUGH.

THE SUGGESTION OF GREATER TIME AND EXPENSE IF THERE ARE SUCH IN FACT IN KEEPING THE RECORD OF ABSENCES OF THE FEW EMPLOYEES IN QUESTION, OVERLOOKS THE NECESSITY FOR UNIFORM RULES OF ACCOUNTING APPLICABLE TO THE ENTIRE FEDERAL SERVICE.