A-57321, OCTOBER 1, 1934, 14 COMP. GEN. 266

A-57321: Oct 1, 1934

Additional Materials:

Contact:

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

 

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

CLASSIFICATION OF EMERGENCY EMPLOYEES - INCREASE IN COMPENSATION WHERE EMERGENCY EMPLOYEES WERE ORIGINALLY ADMINISTRATIVELY CLASSIFIED PRIOR TO MARCH 1. THE EMPLOYEES WERE GIVEN A NET SALARY RATE REPRESENTING A CLASSIFICATION RATE. THE POSITIONS ARE RECLASSIFIED AFTER MARCH 1. PURSUANT TO THE REQUIREMENTS OF THE EXECUTIVE ORDER CERTAIN SUCH EMERGENCY POSITIONS IN THE LIGHTHOUSE SERVICE WERE CLASSIFIED AND ALLOCATED TO RANGES EFFECTIVE BEGINNING MARCH 1. PAYMENTS WERE MADE FROM THAT DATE AT THE MINIMUM OF THE GRADE TO WHICH ASSIGNED MINUS THE 15 PERCENT LEGISLATIVE SALARY DEDUCTION THEN APPLICABLE. AMONG THE POSITIONS SO CLASSIFIED WERE THE FOLLOWING: CHART STATUS OF POSITIONS PRIOR TO MAR. 1.

A-57321, OCTOBER 1, 1934, 14 COMP. GEN. 266

CLASSIFICATION OF EMERGENCY EMPLOYEES - INCREASE IN COMPENSATION WHERE EMERGENCY EMPLOYEES WERE ORIGINALLY ADMINISTRATIVELY CLASSIFIED PRIOR TO MARCH 1, 1934, TO A GRADE, BUT THE EMPLOYEES WERE GIVEN A NET SALARY RATE REPRESENTING A CLASSIFICATION RATE, LESS THE 15 PERCENT DEDUCTION, AND THE POSITIONS ARE RECLASSIFIED AFTER MARCH 1, 1934, IN A HIGHER GRADE INVOLVING AN INCREASE IN COMPENSATION OF MORE THAN ONE STEP, THE SALARY RATE OF THE EMPLOYEE MAY BE ADJUSTED SO AS TO CONTINUE TO PAY THE NET RATE PREVIOUSLY RECEIVED PLUS THE PERCENTAGE RESTORATION AUTHORIZED BY LAW.

COMPTROLLER GENERAL MCCARL TO THE SECRETARY OF COMMERCE, OCTOBER 1, 1934:

THERE HAS BEEN RECEIVED YOUR LETTER OF AUGUST 8, 1934, AS FOLLOWS:

IN REFERENCE TO DECISIONS REGARDING THE APPLICATION OF EXECUTIVE ORDER NO. 6440 OF NOVEMBER 18, 1933, AND PARTICULARLY TO DECISION A 52844 TO THE SECRETARY OF COMMERCE DATED JUNE 7, 1934; PURSUANT TO THE REQUIREMENTS OF THE EXECUTIVE ORDER CERTAIN SUCH EMERGENCY POSITIONS IN THE LIGHTHOUSE SERVICE WERE CLASSIFIED AND ALLOCATED TO RANGES EFFECTIVE BEGINNING MARCH 1, 1934, AND PAYMENTS WERE MADE FROM THAT DATE AT THE MINIMUM OF THE GRADE TO WHICH ASSIGNED MINUS THE 15 PERCENT LEGISLATIVE SALARY DEDUCTION THEN APPLICABLE. AMONG THE POSITIONS SO CLASSIFIED WERE THE FOLLOWING:

CHART STATUS OF POSITIONS PRIOR TO MAR. 1, 1934, WITH NO LEGISLATIVE DEDUCTION

SHOWN ON PAY ROLL POSITION ANNUAL CASH

NO. DESIGNATION PAY REMARKS

1 CLERK -------------- $1,224 ADMINISTRATIVELY ARRIVED AT

BY SUBTRACTING 15 PERCENT

FROM $1,440.

2 DRAFTSMAN ---------- 1,530 ADMINISTRATIVELY ARRIVED AT

BY SUBTRACTING 15 PERCENT

FROM $1,800.

3 DRAFTSMAN ---------- 1,800

CHART STATUS OF ABOVE POSITIONS BEGINNING MARCH 1, 1934, AFTER CLASSIFICATION

TO TO EXECUTIVE ORDER NO. 6440, WHEN A 15 PERCENT LEGISLATIVE DEDUCTION

WAS SHOWN ON PAY ROLL POSITION DESIGNATION ANNUAL PAY AND GRADE ANNUAL CASH

NO. PAY

1 CLERK -------------------- $1,440 ($1,440-$1,800) --- $1,224

2 DRAFTSMAN ---------------- $2,300 ($2,300-$2,900) --- 1,955

3 DRAFTSMAN ---------------- $2,300 ($2,300-$2,900) --- 1,955

IN ADJUSTING THE PAYMENTS MADE IN THESE CASES PURSUANT TO DECISIONS RENDERED SUBSEQUENT TO MARCH 1ST, SOME QUESTION HAS ARISEN AS TO THE EFFECT ON THESE CASES OF SECTION 21 OF THE ACT OF MARCH 28, 1934, AMENDING THE LEGISLATIVE SALARY CUT TO 10 PERCENT RETROACTIVE TO FEBRUARY 1, 1934, AND TO 5 PERCENT BEGINNING JULY 1, 1934. INFORMATION IS, THEREFORE, REQUESTED AS TO WHETHER THE FOLLOWING PAYMENTS ARE AUTHORIZED:

CHART POSITION DESIGNATION MARCH 1, 1934 JULY 1, 1934

NO.

1 CLERK -------------------- $1,440 MINUS 10 PERCENT $1,440 MINUS

5 PERCENT.

2 DRAFTSMAN ---------------- $1,530 PLUS 5 PERCENT $1,530 PLUS

OF $2,300. 10 PERCENT OF

$2,300.

3 DRAFTSMAN ---------------- $1,800 PLUS 5 PERCENT $1,800 PLUS 10

OF $2,300. PERCENT OF

$2,300.

IN OTHER WORDS, WHILE IT APPEARS FROM THE DECISION CITED IN PARAGRAPH ONE THAT THE PROPOSED ADJUSTMENT IN THE CASE OF CLERK POSITION NO. 1 IS PROPER, IT IS NOT CLEAR THAT THE PROPOSED ADJUSTMENT IN THE CASE OF DRAFTSMEN POSITIONS NOS. 2 AND 3 ARE PROPER, THE PARTICULAR POINT OF DOUBT BEING THE SALARY RATE ON WHICH THE 5 PERCENT RESTORATION SHOULD BE COMPUTED BEGINNING MARCH 1, 1934, AND THE FURTHER 5 PERCENT RESTORATION BEGINNING JULY 1, 1934. THE DEPARTMENT WILL APPRECIATE A DECISION AS EARLY AS PRACTICABLE.

THE DECISION OF JUNE 7, 1934, 13 COMP. GEN. 411, CITED BY YOU HELD AS FOLLOWS (QUOTING FROM THE SYLLABUS):

WHERE EMERGENCY POSITIONS WERE ORIGINALLY ADMINISTRATIVELY CLASSIFIED TO AN APPROPRIATE GRADE BUT THE EMPLOYEES WERE GIVEN A NET SALARY RATE REPRESENTING THE CLASSIFICATION RATE LESS 15 PERCENT, IN PUTTING INTO EFFECT EXECUTIVE ORDER NO. 6440 OF NOVEMBER 18, 1933, THE EMPLOYEES MAY BE GIVEN THE CLASSIFICATION RATE LESS 10 PERCENT NOTWITHSTANDING THERE RESULTS AN INCREASE OF AS MUCH AS ONE STEP IN THE CORRESPONDING SALARY GRADE.

REFERRING TO POSITION 1, AS THE NET SALARY RATE BEFORE MARCH 1, WHEN THE ALLOCATION WAS PUT INTO EFFECT, WAS $1,224, AND THE ALLOCATION UNDER THE EXECUTIVE ORDER WAS IN GRADE E.O. 4 WITH SALARY RATE OF $1,440 PER ANNUM, LESS 15 PERCENT DEDUCTION THEN REQUIRED, UNDER THE PRINCIPLE STATED IN THE QUOTED DECISION, THE RATE FIXED AT $1,440 PER ANNUM LESS 15 PERCENT AS OF MARCH 1, 1934, WAS PROPER. IF THE 15 PERCENT WAS DEDUCTED FOR THE MONTH OF MARCH, ONE-THIRD THEREOF OR 5 PERCENT, IS AUTHORIZED TO BE REFUNDED AND PAYMENT IS AUTHORIZED TO CONTINUE THEREAFTER AT THE RATE OF $1,440 PER ANNUM LESS 10 PERCENT TO JUNE 30, 1934, AND $1,440 LESS 5 PERCENT BEGINNING JULY 1, 1934.

REFERRING TO POSITION 2, ACCEPTING THE ADMINISTRATIVE STATEMENT THAT THE NET SALARY RATE OF $1,530 PAID PRIOR TO MARCH 1, 1934, REPRESENTED $1,800 LESS 15 PERCENT, THE INCREASE IN THE NET COMPENSATION EFFECTIVE MARCH 1, 1934, FROM $1,530 ($1,800 LESS 15 PERCENT), TO $1,955 PER ANNUM ($2,300 LESS 15 PERCENT), EXCEEDS THE AMOUNT OF ONE SALARY STEP OF $100 AND IS NOT AUTHORIZED. THE GROSS SALARY RATE FIXED FOR THIS POSITION SHOULD CONTINUE AT $1,800 PER ANNUM FROM AND AFTER MARCH 1, 1934. THAT IS TO SAY, IN MAKING THE ADJUSTMENT NOW MADE NECESSARY BECAUSE OF THE ERRONEOUS FIXING OF THE SALARY AT $2,300 BEGINNING MARCH 1, 1934, THE EMPLOYEE MAY BE ALLOWED TO RETAIN--- PROVIDED NO REFUND OF PERCENTAGE DEDUCTION HAS BEEN MADE FOR THE MONTH OF MARCH--- SALARY AT THE NET RATE OF $1,620 PER ANNUM FROM MARCH 1 TO JUNE 30, 1934, AND AT THE NET RATE OF $1,710 BEGINNING JULY 1, 1934.

REFERRING TO POSITION 3, THE DECISION OF JUNE 14, 1934, 13 COMP. GEN. 437, 438, HELD AS OLLOWS:

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 ACT, 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.

ACCORDINGLY, THE EMPLOYEE IN POSITION NO. 3 AS STATED IN YOUR LETTER IS NOT ENTITLED TO ANY PERCENTAGE RESTORATION IN COMPENSATION. AND IN MAKING THE NECESSARY ADJUSTMENT AS IN THE CASE OF POSITION NO. 2, SUPRA, THE EMPLOYEE MAY BE ALLOWED A GROSS SALARY RATE OF $2,000 PER ANNUM FROM MARCH 1, 1934, MAKING A NET ALLOWANCE OF $1,800 PER ANNUM FROM MARCH 1 TO JUNE 30 AND A NET ALLOWANCE OF $1,900 BEGINNING JULY 1, 1934.