A-5561, OCTOBER 22, 1924, 4 COMP. GEN. 395

A-5561: Oct 22, 1924

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ALTHOUGH THE RESULT WILL BE A FURTHER EXCEEDING OF THE ALREADY EXCESSIVE SALARY AVERAGE IN THE GRADE TO WHICH THE POSITION HAS BEEN REALLOCATED. IF THE JOB IS ALLOCATED TO GRADE CAF 8 AT THE PRESENT TIME. KARSNER WAS RECEIVING ON JUNE 30. WAS $2. THE EMPLOYEE WAS ADVISED BY THE PERSONNEL CLASSIFICATION BOARD THAT HIS POSITION MAY NOT BE REALLOCATED TO THAT GRADE. IT IS STATED THAT THIS RULING IS BASED ON THE DECISION OF THIS OFFICE DATED JULY 19. REQUIRING CHANGES IN COMPENSATION IN A GRADE IN WHICH THE SALARY AVERAGE IS EXCESSIVE. IF THE EMPLOYEE WAS SO ADVISED BY THE PERSONNEL CLASSIFICATION BOARD. IT IS APPARENT THAT THERE HAS BEEN A MISUNDERSTANDING AS TO THE MEANING AND INTENT OF THE CITED DECISIONS OF THIS OFFICE AND THE APPLICATION THEREOF TO THE RESTRICTIONS CONTAINED IN THE AVERAGE" PROVISION APPEARING IN THE APPROPRIATION ACTS FOR 1925.

A-5561, OCTOBER 22, 1924, 4 COMP. GEN. 395

CLASSIFICATION OF CIVILIAN EMPLOYEES - INITIAL SALARY RATE UNDER REALLOCATION MADE SUBSEQUENT TO JULY 1, 1924 THE INITIAL RATE OF COMPENSATION OF EMPLOYEES UNDER REALLOCATION OF A POSITION HELD JUNE 30, 1924, MADE SUBSEQUENT TO JULY 1, 1924, MUST BE BASED ON THE RATE RECEIVED ON JUNE 30, 1924, IN ACCORDANCE WITH THE RULES OF SECTION 6 OF THE CLASSIFICATION ACT OF MARCH 4, 1923, 42 STAT. 1490, AND MAY BE PAID FROM THE BEGINNING OF THE PAY PERIOD CURRENT UPON THE DATE OF RECEIPT BY THE ADMINISTRATIVE OFFICE OF THE REALLOCATION, ALTHOUGH THE RESULT WILL BE A FURTHER EXCEEDING OF THE ALREADY EXCESSIVE SALARY AVERAGE IN THE GRADE TO WHICH THE POSITION HAS BEEN REALLOCATED.

COMPTROLLER GENERAL MCCARL TO THE CHAIRMAN, FEDERAL TRADE COMMISSION, OCTOBER 22, 1924:

I AM IN RECEIPT OF YOUR LETTER OF OCTOBER 2, 1924, REQUESTING DECISION OF THE FOLLOWING QUESTIONS:

1. THE COMMISSION HAVING APPROVED THE APPEAL OF MR. J. W. KARSNER, CHIEF, DOCKET SECTION OF THE FEDERAL TRADE COMMISSION, FOR A CORRECTION OF THE ORIGINALLY ERRONEOUS ALLOCATION OF HIS POSITION TO GRADE CAF 7, AT $2,900, BY ITS ALLOCATION TO GRADE CAF 8, AT $2,900, CAN THE PERSONNEL CLASSIFICATION BOARD GRANT THIS RELIEF?

2. IF THE JOB IS ALLOCATED TO GRADE CAF 8 AT THE PRESENT TIME, BEING A CORRECTION OF AN ORIGINALLY ERRONEOUS ALLOCATION, DOES THIS NOT EFFECT A PROPER ORIGINAL ALLOCATION, AND DO NOT THE MANDATORY PROVISIONS OF PARAGRAPH 4, SECTION 6, OF THE CLASSIFICATION ACT OF 1923, REQUIRE THAT SUCH ALLOCATION SHOULD BE AT THE SALARY OF $2,900, AND ABSOLUTELY PROHIBIT A REDUCTION?

YOU STATE THAT MR. KARSNER WAS RECEIVING ON JUNE 30, 1924, COMPENSATION AT THE RATE OF $2,880 PER ANNUM, ON THE BASIS OF WHICH THE INITIAL RATE OF COMPENSATION OF HIS POSITION JULY 1, 1924, UNDER AN ALLOCATION TO GRADE 7 OF THE CLERICAL, ADMINISTRATIVE, AND FISCAL SERVICE, IN ACCORDANCE WITH THE RULES OF SECTION 6 OF THE CLASSIFICATION ACT OF 1923, WAS $2,900 PER ANNUM. IT APPEARS THAT THE SALARY AVERAGE OF THE TOTAL NUMBER OF PERSONS NOW IN GRADE 8 OF THE CLERICAL, ADMINISTRATIVE, AND FISCAL SERVICE IN THE FEDERAL TRADE COMMISSION EXCEEDS THE RATE AVERAGE FOR THAT GRADE. YOU STATE THAT BECAUSE OF THIS CONDITION IN THE AVERAGE OF GRADE 8, THE EMPLOYEE WAS ADVISED BY THE PERSONNEL CLASSIFICATION BOARD THAT HIS POSITION MAY NOT BE REALLOCATED TO THAT GRADE, FROM GRADE 7, WITHOUT A LOSS OF $200 IN THE RATE OF COMPENSATION. IT IS STATED THAT THIS RULING IS BASED ON THE DECISION OF THIS OFFICE DATED JULY 19, 1924, 4 COMP. GEN. 79, REQUIRING CHANGES IN COMPENSATION IN A GRADE IN WHICH THE SALARY AVERAGE IS EXCESSIVE, TO BE MADE AT THE MINIMUM SALARY RATE OF THE GRADE, AND DECISION OF SEPTEMBER 8, 1924, 4 COMP. GEN. 280, FIXING AN EFFECTIVE DATE FOR PAYMENT OF COMPENSATION UNDER ALLOCATIONS OR REALLOCATIONS MADE SUBSEQUENT TO JULY 1, 1924. IF THE EMPLOYEE WAS SO ADVISED BY THE PERSONNEL CLASSIFICATION BOARD, IT IS APPARENT THAT THERE HAS BEEN A MISUNDERSTANDING AS TO THE MEANING AND INTENT OF THE CITED DECISIONS OF THIS OFFICE AND THE APPLICATION THEREOF TO THE RESTRICTIONS CONTAINED IN THE AVERAGE" PROVISION APPEARING IN THE APPROPRIATION ACTS FOR 1925.

THE SECOND EXCEPTION TO THE "AVERAGE" PROVISION APPEARING IN THE ACT OF JUNE 7, 1924, PUBLIC 214, APPROPRIATING FOR THE INDEPENDENT OFFICES OF THE GOVERNMENT, INCLUDING THE FEDERAL TRADE COMMISSION, IS AS FOLLOWS:

* * * PROVIDED, THAT THIS RESTRICTION SHALL NOT APPLY * * * (2) TO REQUIRE THE REDUCTION IN SALARY OF ANY PERSON WHOSE COMPENSATION IS FIXED AS OF JULY 1, 1924, IN ACCORDANCE WITH THE RULES OF SECTION 6 OF SUCH ACT,

UNDER THE RULES OF SECTION 6 OF THE CLASSIFICATION ACT, THE INITIAL COMPENSATION OF EMPLOYEES HOLDING POSITIONS ALLOCATED UNDER THE ACT WAS BASED ON THE RATE RECEIVED JUNE 30, 1924. THIS IS THE ONLY BASIS ON WHICH THE INITIAL RATE OF COMPENSATION OF AN EMPLOYEE WHO HELD A POSITION JUNE 30, 1924, AND CONTINUED TO HOLD THE POSITION SUBSEQUENT TO JULY 1, 1924, MAY LAWFULLY BE FIXED WHETHER UNDER AN ORIGINAL ALLOCATION OR REALLOCATION. ACCORDINGLY, NEITHER THE DECISION OF JULY 19, 1924, NOR ANY OTHER DECISION OF THIS OFFICE CONSIDERED OR DECIDED ANY QUESTION INVOLVING THE EFFECT OF A CHANGE IN THE INITIAL SALARY RATE OF AN EMPLOYEE BY REASON OF THE REALLOCATION OF HIS POSITION SUBSEQUENT TO JULY 1, 1924, ON THE AVERAGE OF THE GRADE TO WHICH THE POSITION WAS REALLOCATED. THE DECISION OF JULY 19, 1924, SUPRA, AND SUBSEQUENT DECISIONS BASED THEREON, RELATE TO CHANGES IN COMPENSATION OF EMPLOYEES MADE BY THE ADMINISTRATIVE OFFICE. THE DECISION OF SEPTEMBER 8, 1924, CITED BY YOU, IN SO FAR AS HERE APPLICABLE HELD AS FOLLOWS:

* * * HEREAFTER ALLOCATIONS MAY BE GIVEN EFFECT TO ONLY FOR THE PAY PERIOD CURRENT UPON THE DATE OF RECEIPT BY THE ADMINISTRATIVE OFFICE OF THE ALLOCATION, WHETHER IT BE AN ORIGINAL ALLOCATION, OR AN ALLOCATION RESULTING FROM AN APPEAL.

THIS REFERRED TO THE EFFECTIVE DATE OF ANY INCREASE OR DECREASE IN THE SALARY OF AN EMPLOYEE RESULTING FROM AN ALLOCATION OR REALLOCATION. WAS THE ADOPTION OF A PRACTICAL ACCOUNTING PROCEDURE DUE TO THE POSSIBILITY OF CONFUSION ARISING FROM SO MANY CHANGES IN ALLOCATION OF POSITIONS BASED ON LARGE NUMBERS OF APPEALS BY EMPLOYEES, AND DID NOT AND COULD NOT ALTER THE BASIS FOR FIXING THE INITIAL SALARY RATE UNDER A REALLOCATION OF A POSITION HELD JUNE 30, 1924, SUBSEQUENT TO JULY 1, 1924, NOR AFFECT IN ANY WAY THE RELATION OF SUCH INITIAL COMPENSATION RATE TO THE "AVERAGE" PROVISION APPEARING IN THE APPROPRIATION ACT.

INITIAL RATES OF COMPENSATION UNDER SUCH REALLOCATIONS MADE SUBSEQUENT TO JULY 1, 1924, IN ACCORDANCE WITH SECTION 6 OF THE CLASSIFICATION ACT, ARE AS MUCH WITHIN THE QUOTED EXCEPTION TO THE "AVERAGE" PROVISION AS WERE THOSE ORIGINALLY MADE EFFECTIVE JULY 1, 1924. ACCORDINGLY, THE INITIAL RATE OF COMPENSATION OF EMPLOYEES UNDER REALLOCATION OF POSITIONS HELD JUNE 30, 1924, AND CONTINUED TO BE HELD SUBSEQUENT TO JULY 1, 1924, IS BASED ON THE RATE RECEIVED JUNE 30, 1924, AND MAY BE PAID FROM THE BEGINNING OF THE PAY PERIOD CURRENT UPON THE DATE OF RECEIPT BY THE ADMINISTRATIVE OFFICE OF THE REALLOCATION. THE MATTER MAY BE SUMMARIZED BY SAYING THAT WHERE APPOINTMENT, TRANSFER, REINSTATEMENT, PROMOTION, OR DEMOTION OF AN EMPLOYEE IS MADE TO A GRADE IN WHICH THERE IS AN EXCESS OF THE AVERAGE, THE EMPLOYEE CAN ONLY GO INTO THAT GRADE AT THE MINIMUM SALARY OF SUCH GRADE. BUT WHERE CLASSIFICATION OF THE POSITION IS BEING MADE AS ON APPEAL FROM THAT WHICH HAS BEEN MADE THE CLASSIFICATION THEREUPON IS TO BE UNDERSTOOD AS NOW CORRECTLY DETERMINING THE GRADE AND THE EMPLOYEE GOES INTO THAT GRADE ON THE SAME BASIS WITH RESPECT TO EXCESS OF THE AVERAGE AS THE OTHER EMPLOYEES WHO WERE PLACED THEREIN BY CLASSIFICATION AND NOT BY APPOINTMENT, TRANSFER, REINSTATEMENT, PROMOTION, OR DEMOTION.

IF AND WHEN THE PERSONNEL CLASSIFICATION BOARD REALLOCATES THE POSITION HELD BY MR. KARSNER FROM GRADE 7 TO GRADE 8 OF THE CLERICAL, ADMINISTRATIVE, AND FISCAL SERVICE, HE MAY BE PAID INITIALLY AT THE RATE OF $2,900 PER ANNUM, EFFECTIVE WITH THE PAY PERIOD CURRENT AS STATED IN DECISION OF SEPTEMBER 8, 1924.