A-54605, JUNE 14, 1934, 13 COMP. GEN. 437

A-54605: Jun 14, 1934

Additional Materials:

Contact:

Edda Emmanuelli Perez
(202) 512-2853
EmmanuelliPerezE@gao.gov

 

Office of Public Affairs
(202) 512-4800
youngc1@gao.gov

PAYABLE FROM NATIONAL RECOVERY ADMINISTRATION FUNDS AND WHO WAS NOT ENTITLED TO ANY INCREASE UPON HIS CLASSIFICATION UNDER THE SCHEDULE PRESCRIBED BY EXECUTIVE ORDER. AS SUCH INCREASE WOULD HAVE EQUALED OR EXCEEDED ONE SALARY STEP. MAY BE GRANTED AN INCREASE BY REASON OF SUCH CLASSIFICATION ONLY IF THE INCREASE LESS 10 PERCENT DEDUCTION DOES NOT EQUAL OR EXCEED ONE SALARY STEP AND WILL NOT BE ENTITLED TO ANY FURTHER INCREASE IN COMPENSATION PRIOR TO JULY 1. IT WAS STATED THAT WHERE THE PROPER ADJUSTMENT OF PAY UNDER EXECUTIVE ORDER NO. 6440 WOULD RESULT IN AN INCREASE EQUAL TO OR MORE THAN ONE SALARY STEP IN THE CORRESPONDING CLASSIFICATION GRADE. THE RATE OF COMPENSATION TO BE PAID SHOULD REMAIN THE SAME AS LONG AS THE POSITION IS HELD BY THE SAME EMPLOYEE.

A-54605, JUNE 14, 1934, 13 COMP. GEN. 437

ECONOMY ACT, AMENDED - COMPENSATION - REDUCTION IN PERCENTAGE FROM 15 TO 10 PERCENT AN EMPLOYEE APPOINTED AT A NET SALARY OF $1,800, WITHOUT PERCENTAGE DEDUCTION, PAYABLE FROM NATIONAL RECOVERY ADMINISTRATION FUNDS AND WHO WAS NOT ENTITLED TO ANY INCREASE UPON HIS CLASSIFICATION UNDER THE SCHEDULE PRESCRIBED BY EXECUTIVE ORDER, AS SUCH INCREASE WOULD HAVE EQUALED OR EXCEEDED ONE SALARY STEP, DOES NOT BECOME ENTITLED TO ANY ADDITIONAL COMPENSATION BY THE REDUCTION BY THE ACT OF MARCH 28, 1934, OF THE PERCENTAGE TO BE DEDUCTED FROM THE COMPENSATION OF OTHER CLASSIFIED EMPLOYEES. AN EMPLOYEE WHO RECEIVED AN INCREASE IN COMPENSATION NOT THE EQUIVALENT OF ONE SALARY STEP BY REASON OF CLASSIFICATION OF HIS POSITION, SUBJECT TO A 15-PERCENT DEDUCTION, MAY RECEIVE FROM FEBRUARY 1, 1934, OR THE DATE OF HIS CLASSIFICATION IF AFTER THAT DATE AND BEFORE MARCH 28, 1934, AN INCREASE EQUIVALENT TO 5 PERCENT OF HIS BASIC CLASSIFIED SALARY, SUCH BEING A STATUTORY INCREASE AND NOT AN ADMINISTRATIVE PROMOTION. AN EMPLOYEE CLASSIFIED AFTER MARCH 28, 1934, MAY BE GRANTED AN INCREASE BY REASON OF SUCH CLASSIFICATION ONLY IF THE INCREASE LESS 10 PERCENT DEDUCTION DOES NOT EQUAL OR EXCEED ONE SALARY STEP AND WILL NOT BE ENTITLED TO ANY FURTHER INCREASE IN COMPENSATION PRIOR TO JULY 1, 1934.

COMPTROLLER GENERAL MCCARL TO THE SECRETARY OF THE TREASURY, JUNE 14, 1934:

THERE HAS BEEN RECEIVED YOUR LETTER OF MAY 26, 1934, AS FOLLOWS:

IN YOUR DECISION OF MARCH 31, 1934, (A-54605), IT WAS STATED THAT WHERE THE PROPER ADJUSTMENT OF PAY UNDER EXECUTIVE ORDER NO. 6440 WOULD RESULT IN AN INCREASE EQUAL TO OR MORE THAN ONE SALARY STEP IN THE CORRESPONDING CLASSIFICATION GRADE, THE RATE OF COMPENSATION TO BE PAID SHOULD REMAIN THE SAME AS LONG AS THE POSITION IS HELD BY THE SAME EMPLOYEE.

BY WAY OF ILLUSTRATION THERE WAS CONSIDERED IN YOUR DECISION ABOVE REFERRED TO THE CASE OF AN EMPLOYEE WHO WAS FORMERLY PAID AT THE NET RATE OF $1,800 PER ANNUM, WITH NO COMPENSATION DEDUCTIONS, BUT WHO WAS ADMINISTRATIVELY CLASSIFIED UNDER THE EXECUTIVE ORDER IN EOS, $2,300 PER ANNUM, LESS 15 PERCENT, LEAVING A NET COMPENSATION OF $1,955 PER ANNUM. YOU DECIDED THAT THE SALARY SHOULD REMAIN AT $1,800 PER ANNUM.

BY THE ACT OF MARCH 28, 1934, THE RATE OF COMPENSATION DEDUCTION WAS CHANGED TO 10 PERCENT, EFFECTIVE FEBRUARY 1, 1934. USING THE SAME EXAMPLE, WHAT IS THE PROPER RATE OF PAY FOR APRIL AND SUBSEQUENT MONTHS SO LONG AS THE RATE OF COMPENSATION DEDUCTION REMAINS AT 10 PERCENT? ALSO, ASSUMING THE EMPLOYEE WAS IN THE SERVICE ON MARCH 31, 1934, IS HE ENTITLED TO ANY PART OF THE 15 PERCENT DEDUCTION ($345) MADE ON HIS FEBRUARY OR MARCH PAY ROLL, AND, IF SO, HOW MUCH?

THERE IS ALSO THE QUESTION OF WHAT SHOULD BE DONE WITH RESPECT TO AN EMPLOYEE WHO, BY REASON OF THE APPLICATION OF THE 15 PERCENT COMPENSATION DEDUCTION, RECEIVED AN INCREASE OF LESS THAN ONE STEP, BUT WHO, UNDER THE 10 PERCENT RATE OF DEDUCTION, WOULD RECEIVE AN INCREASE EQUAL TO OR IN EXCESS OF ONE STEP. IS HE ENTITLED TO ANY PART OF THE COMPENSATION DEDUCTIONS OF 15 PERCENT TAKEN ON HIS FEBRUARY AND MARCH PAY ROLLS, AND, IF SO, HOW MUCH? SHOULD HE BE PAID FOR APRIL AND SUBSEQUENT MONTHS AT HIS CLASSIFIED RATE OF PAY LESS 10 PERCENT SO LONG AS THE RATE OF COMPENSATION DEDUCTION REMAINS AT 10 PERCENT, EVEN THOUGH THIS WOULD RESULT IN A NET INCREASE IN PAY OVER THAT RECEIVED PRIOR TO CLASSIFICATION EQUAL TO OR IN EXCESS OF ONE STEP IN THE CORRESPONDING CLASSIFICATION GRADE? OR, DOES HE REVERT TO THE SALARY RATE PAID PRIOR TO HIS CLASSIFICATION. IF SO, SHOULD HE BE REQUIRED TO REFUND THE DIFFERENCE BETWEEN HIS OLD RATE OF PAY AND THE AMOUNT ACTUALLY RECEIVED FOR FEBRUARY AND MARCH?

DOES THE ANSWER TO ANY OF THE ABOVE QUESTIONS DEPEND ON WHETHER OR NOT THE EMPLOYEE WAS CLASSIFIED UNDER THE EXECUTIVE ORDER ON OR BEFORE FEBRUARY 1, 1934, OR THEREAFTER, AND, IF SO, TO WHAT EXTENT, ASSUMING OF COURSE THAT PRIOR TO BEING CLASSIFIED HE WAS IN THE SERVICE AND RECEIVED PAYMENT FOR SERVICES RENDERED?

ON ACCOUNT OF THE RAPID TURNOVER OF THIS CLASS OF PERSONNEL IT WOULD BE APPRECIATED IF YOUR DECISION IN THIS MATTER COULD BE EXPEDITED.

THE DECISION OF MARCH 17, 1934, 13 COMP. GEN. 243, 245, HELD AS FOLLOWS:

* * * THEREFORE, IN APPLYING THE PROVISIONS OF SAID ORDER TO OFFICERS AND EMPLOYEES IN THE SERVICE WHEN IT BECAME EFFECTIVE THERE MUST NOT RESULT A PROMOTION WITHIN THE MEANING OF THE PROVISIONS OF SECTION 7, SUPRA. WHERE, HOWEVER, UNDER THE ADJUSTMENT, THE NET SALARY RATE TO BE PAID AFTER WITHHOLDING THE APPLICABLE PERCENTAGE REDUCTION DOES NOT EXCEED THE NET SALARY PREVIOUSLY PAID FOR PERFORMANCE OF SUBSTANTIALLY THE SAME DUTIES BY AN AMOUNT EQUAL TO OR IN EXCESS OF THE AMOUNT OF ONE SALARY STEP IN THE CORRESPONDING SALARY GRADE UNDER THE CLASSIFICATION ACT, VIZ, $60, $100, $200, OR $500 PER ANNUM, AS THE CASE MAY BE, SUCH AN ADJUSTMENT WOULD NOT CONSTITUTE AN ADMINISTRATIVE PROMOTION WITHIN THE MEANING OF SAID SECTION 7 OF THE ACT OF MARCH 3, 1933. SEE DECISION OF MARCH 12, 1934, A-54227.

THE FIRST CASE SUBMITTED IN YOUR PRESENT LETTER RELATES TO AN EMPLOYEE BEING PAID AT THE NET RATE OF $1,800 PER ANNUM WITHOUT ANY PERCENTAGE REDUCTION UNDER THE ECONOMY ACT AND WHO WAS DENIED AN INCREASE BY REASON OF THE CLASSIFICATION OF HIS POSITION FOR THE REASON THAT THE INCREASE WOULD EQUAL OR EXCEED ONE SALARY STEP IN THE CLASSIFIED GRADE. WITH RESPECT TO THIS EMPLOYEE, YOU ARE INFORMED THAT, THERE HAVING BEEN NOTHING DEDUCTED FROM HIS COMPENSATION UNDER OR PURSUANT TO THE ECONOMY ACTS, THERE IS NOTHING TO BE RESTORED BY REASON OF THE PASSAGE OF THE ACT OF MARCH 28, 1934, NOR ANY AMOUNT TO BE REFUNDED TO HIM, AND THE FACT THAT THE PERCENTAGE OF REDUCTION WHICH WOULD BE APPLICABLE TO THE CLASSIFIED SALARY RATE WAS REDUCED FROM 15 TO 10 PERCENT EFFECTIVE FEBRUARY 1, 1934, MAKES THE DIFFERENCE BETWEEN HIS PRESENT SALARY AND THE NET SALARY RATE OF THE CLASSIFIED POSITION GREATER THAN BEFORE AND CONSEQUENTLY AUTHORIZES NO CHANGE IN HIS NET SALARY OF $1,800.

WITH RESPECT TO THE SECOND EXAMPLE OF THE EMPLOYEE WHO WAS PERMITTED TO RECEIVE AN INCREASE TO A CLASSIFIED RATE LESS 15 PERCENT BECAUSE SUCH NET INCREASE AMOUNTED TO LESS THAN ONE SALARY STEP, SUCH EMPLOYEE MAY BE PAID BEGINNING FEBRUARY 1, 1934, IF SO CLASSIFIED BEFORE THAT DATE, OR FROM EFFECTIVE DATE OF CLASSIFICATION IF CLASSIFIED AFTER THAT DATE AND BEFORE MARCH 28, 1934, AT THE CLASSIFIED RATE LESS 10 PERCENT NOTWITHSTANDING THAT THE DIFFERENCE BETWEEN SUCH RATE AND THE RATE RECEIVED BEFORE CLASSIFICATION WILL NOW EXCEED ONE SALARY STEP. SUCH ADDITIONAL INCREASE IS NOT DUE TO AN ADMINISTRATIVE PROMOTION BUT IS AN INCREASE AUTHORIZED BY STATUTE (A-52844, JUNE 7, 1934, 13 COMP GEN. 411).

WHAT IS STATED IN THE FOREGOING PARAGRAPH IS BASED UPON THE CONDITION THAT THE EMPLOYEES MUST HAVE BEEN CLASSIFIED AND/OR ENTITLED TO THE CLASSIFIED RATE LESS 15 PERCENT BEFORE THE PASSAGE OF THE ACT OF MARCH 28, 1934. IF THE ADJUSTMENT TO THE CLASSIFIED RATE IS MADE AFTER THE PASSAGE OF THAT ACT, THE INCREASE TO THE CLASSIFIED RATE LESS 10 PERCENT IS AUTHORIZED ONLY IF SUCH INCREASE DOES NOT THEN EQUAL ONE SALARY STEP.