A-48143, APRIL 5, 1933, 12 COMP. GEN. 573

A-48143: Apr 5, 1933

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THE PERIOD DURING WHICH SECTION 101 (B) OF THE ECONOMY ACT WAS IN OPERATION. SUCH ADJUSTMENTS SHOULD BE MADE ON THE BASIS OF THE ACTUAL SALARY RATE PAID THE EMPLOYEES WHEN THE EXCESS DEDUCTIONS WERE MADE. DEDUCTIONS WOULD HAVE BEEN REQUIRED AT THE RATE PAID HIM WHEN THE LEGISLATIVE FURLOUGH WAS TAKEN. AS FOLLOWS: YOUR DECISION IS RESPECTFULLY REQUESTED TO A QUESTION RAISED REGARDING PROPER FULL MONTHS' DEDUCTION IN THE SALARY OF AN EMPLOYEE WHOSE SALARY ON JULY 1. WAS $7. THE DEDUCTION FROM SEPTEMBER 16TH TO NOVEMBER 30TH WAS ON THE BASIS OF THE SALARY OF $6. SINCE SEPTEMBER ONLY ONE FURTHER DAY'S LEAVE WAS TAKEN BY THIS EMPLOYEE. AS OF THIS DATE THE TOTAL LEAVE TAKEN IS 19 DAYS 3 1/2 HOURS.

A-48143, APRIL 5, 1933, 12 COMP. GEN. 573

ECONOMY ACT, AMENDED - LEGISLATIVE FURLOUGH - FINAL ADJUSTMENT AS OF MARCH 31, 1933 THERE WOULD BE NO AUTHORITY TO AVERAGE THE COMPENSATION RATE OF AN EMPLOYEE DURING THE ENTIRE PERIOD OF NINE MONTHS FROM JULY 1, 1932, TO APRIL 1, 1933, THE PERIOD DURING WHICH SECTION 101 (B) OF THE ECONOMY ACT WAS IN OPERATION, FOR THE PURPOSE OF MAKING ADJUSTMENTS FOR EXCESS DEDUCTIONS FROM COMPENSATION, BUT SUCH ADJUSTMENTS SHOULD BE MADE ON THE BASIS OF THE ACTUAL SALARY RATE PAID THE EMPLOYEES WHEN THE EXCESS DEDUCTIONS WERE MADE. IF AN EMPLOYEE HAD TAKEN ALL OF THE LEGISLATIVE FURLOUGH, DEDUCTIONS WOULD HAVE BEEN REQUIRED AT THE RATE PAID HIM WHEN THE LEGISLATIVE FURLOUGH WAS TAKEN, AND NO FURTHER DEDUCTIONS WOULD BE REQUIRED SOLELY BECAUSE OF THE FACT THAT THE EMPLOYEE LATER RECEIVED AN INCREASE IN COMPENSATION.

COMPTROLLER GENERAL MCCARL TO THE CHAIRMAN OF THE UNITED STATES SHIPPING BOARD, APRIL 5, 1933:

CONSIDERATION HAS BEEN GIVEN YOUR LETTER OF MARCH 22, 1933, AS FOLLOWS:

YOUR DECISION IS RESPECTFULLY REQUESTED TO A QUESTION RAISED REGARDING PROPER FULL MONTHS' DEDUCTION IN THE SALARY OF AN EMPLOYEE WHOSE SALARY ON JULY 1, 1932, WAS $7,500.00 PER ANNUM AND REDUCED ON SEPTEMBER 16, 1932, TO $6,000.00 PER ANNUM.

AS AT SEPTEMBER 16, 1932, THIS EMPLOYEE HAD TAKEN 18 DAYS 3 1/2 HOURS ANNUAL LEAVE, AND IN ACCORDANCE WITH THE REQUIREMENTS UNDER THE ECONOMY ACT THERE HAD BEEN DEDUCTED FROM HIS SALARY THE EQUIVALENT OF 23 3/4 DAYS PAY, OR $494.81. BETWEEN THE PERIODS SEPTEMBER 16TH AND NOVEMBER 30, 1932, EACH PAY-ROLL PERIOD INCLUDED A FURTHER DEDUCTION OF THE NORMAL 1 1/4 DAYS, SO THAT AS AT NOVEMBER 30TH THERE HAD BEEN DEDUCTED THE FULL 30 DAYS OR ONE CALENDAR MONTH. THE DEDUCTION FROM SEPTEMBER 16TH TO NOVEMBER 30TH WAS ON THE BASIS OF THE SALARY OF $6,000.00, AND THE TOTAL DEDUCTION MADE AGAINST THIS EMPLOYEE AMOUNTED TO $599.01. SINCE SEPTEMBER ONLY ONE FURTHER DAY'S LEAVE WAS TAKEN BY THIS EMPLOYEE, AND AS OF THIS DATE THE TOTAL LEAVE TAKEN IS 19 DAYS 3 1/2 HOURS.

TWO THEORIES HAVE ADVANCED THEMSELVES WITH RESPECT TO THE PROPER ADJUSTMENT OF THE DEDUCTIONS MADE AGAINST THIS EMPLOYEE. ONE SUGGESTION MADE IS THAT THE AVERAGE SALARY EARNED FOR THE YEAR BE DETERMINED AND 8 1/3 PERCENT DEDUCTION CALCULATED THEREFROM. IN THAT EVENT WE HAVE OVERDEDUCTED $72.97. THE SECOND THEORY SUGGESTED IS THAT THE EMPLOYEE BE CHARGED ONLY WITH THE NORMAL DEDUCTION OF 1 1/4 DAYS FOR EACH PAY PERIOD AT THE RATE OF $7,500.00 PER ANNUM FOR THE PERIOD JULY 1ST THROUGH SEPTEMBER 15, 1932, AND THAT THEREAFTER THE BALANCE OF THE 30 DAYS' DEDUCTION BE CALCULATED ON THE BASIS OF $6,000.00 PER ANNUM. ON THAT BASIS, THE NORMAL DEDUCTIONS FOR THE PERIOD IN WHICH THIS EMPLOYEE EARNED $7,500.00 PER ANNUM AMOUNTS TO $130.25, AND FOR THE BALANCE OF THE FISCAL YEAR NORMAL DEDUCTIONS WOULD REQUIRE FURTHER DEDUCTION OF $395.96, OR A TOTAL IN ALL FOR THE FULL CALENDAR MONTH OF $526.21. IN THIS EVENT, THERE HAS BEEN OVERDEDUCTED $72.80.

THE QUESTION AT ISSUE, HOWEVER, IS NOT SO MUCH WITH RESPECT AS TO WHICH METHOD ABOVE MAY BE PURSUED, BUT RATHER WHETHER OR NOT THE DEDUCTIONS AS MADE HAVE BEEN CORRECT. THE ACTUAL LEAVE TAKEN BY THIS EMPLOYEE WAS DURING THE PERIOD HIS SALARY WAS $7,500.00 PER ANNUMAND THE DEDUCTION FOR 23 3/4 DAYS' PAY WAS ON THAT BASIS. THE GOVERNMENT, DURING THAT PERIOD, WAS WITHOUT THE SERVICES OF A $7,500.00 EMPLOYEE. IF THE DEDUCTIONS AS MADE MAY BE CONSIDERED AS CORRECT, WHAT WOULD THE SITUATION BE WHERE THE EMPLOYEE HAD BEEN EARNING $6,000.00 DURING THE EARLY PART OF THE FISCAL YEAR AND HAD TAKEN ALL HIS LEAVE DURING THAT PERIOD AND SUBSEQUENTLY BEEN INCREASED TO $7,500.00 PER ANNUM? IN SUCH A SITUATION THE GOVERNMENT WOULD NOT RECEIVE ITS FULL 8 1/3 PERCENT DEDUCTION FROM THE AVERAGE EARNING OF THE EMPLOYEE OVER THE FISCAL YEAR.

IN DECISION OF MARCH 30, 1933, A-47548, TO THE SECRETARY OF THE NAVY, IT WAS STATED:

WHERE AN OFFICER OR EMPLOYEE DOES NOT TAKE LEGISLATIVE FURLOUGH IN EXCESS OF THE NORMAL DEDUCTIONS OF 2 1/2 DAYS' PAY EACH MONTH, THE DEDUCTIONS SO MADE AND IMPOUNDED ARE COMPUTED UPON THE RATE OF PAY THE OFFICER OR EMPLOYEE IS RECEIVING DURING THE RESPECTIVE MONTHS IN WHICH THE DEDUCTIONS ARE MADE. LIKEWISE, WHEN AN OFFICER OR EMPLOYEE TAKES LEGISLATIVE FURLOUGH IN EXCESS OF THE NORMAL DEDUCTIONS, THE PAY FOR THE TIME SO ABSENT IS REQUIRED TO BE DEDUCTED FROM HIS COMPENSATION FOR THAT PARTICULAR MONTH AT THE RATE OF 1 1/4 DAYS' PAY FOR EACH WORKING DAY'S ABSENCE, AND THE NORMAL DEDUCTIONS MUST THEREAFTER CONTINUE UNTIL ONE CALENDAR MONTH'S PAY HAS BEEN DEDUCTED AND IMPOUNDED. 12 COMP. GEN. 16.

THERE WOULD BE NO AUTHORITY, AS SUGGESTED IN YOUR LETTER, TO AVERAGE THE COMPENSATION OF AN EMPLOYEE DURING THE ENTIRE PERIOD OF NINE MONTHS FROM JULY 1, 1932, TO MARCH 31, 1933, THE PERIOD DURING WHICH SECTION 101 (B) OF THE ECONOMY ACT WAS IN OPERATION, FOR THE PURPOSE OF MAKING ADJUSTMENTS FOR EXCESS DEDUCTIONS FROM COMPENSATION.

ASSUMING THAT THE 18 WORKING DAYS' LEGISLATIVE FURLOUGH WAS TAKEN IN PERIODS OF MORE THAN 2 DAYS IN JULY, AUGUST, AND SEPTEMBER, THE SECOND STATEMENT QUOTED FROM SAID DECISION IS APPLICABLE IN THE CASE STATED IN YOUR LETTER, AND ON THAT BASIS DEDUCTIONS WOULD APPEAR TO HAVE BEEN PROPERLY MADE AT THE SALARY RATE OF $7,500 PER ANNUM FOR 19 WORKING DAYS' LEGISLATIVE FURLOUGH UP TO SEPTEMBER 16, 1933, THAT IS, A DEDUCTION OF 23 3/4 DAYS' PAY, AND THE NORMAL DEDUCTION OF 1 1/4 DAYS' PAY FOR EACH SEMIMONTHLY PAY PERIOD FROM AND AFTER SEPTEMBER 16, 1932, WAS PROPERLY MADE ON THE BASIS OF THE SALARY RATE OF $6,000 PER ANNUM.

UPON THE FACTS AS PRESENTED THE ONLY ADJUSTMENT AUTHORIZED IS THE PAYMENT AT THE RATE OF $6,000 PER ANNUM OF 1 1/4 DAYS' PAY FOR THE DIFFERENCE BETWEEN 24 AND THE NUMBER OF WORKING DAYS ABSENT ON LEGISLATIVE FURLOUGH UP TO MARCH 31, 1933. SEE DECISION OF THIS OFFICE OF MARCH 23, 1933, A- 47718, 12 COMP. GEN. 555. REFERRING TO THE ASSUMED CASE STATED IN THE LAST PART OF YOUR CONCLUDING PARAGRAPH, IF AN EMPLOYEE HAS TAKEN ALL OF HIS LEGISLATIVE FURLOUGH WHILE RECEIVING THE SALARY RATE OF $6,000 PER ANNUM, DEDUCTIONS WOULD HAVE BEEN REQUIRED AT THAT RATE ONLY, AND NO FURTHER DEDUCTIONS WOULD BE REQUIRED SOLELY BECAUSE OF THE FACT THAT HE LATER RECEIVED AN INCREASE IN COMPENSATION TO $7,5000 PER ANNUM.