A-89253, OCTOBER 21, 1937, 17 COMP. GEN. 359

A-89253: Oct 21, 1937

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WHERE LESS THAN THE MINIMUM NUMBER OF HOURS REQUIRED HAVE BEEN WORKED FOR THE PAY PERIOD. THE COMPENSATION PAYABLE IS FOR DETERMINATION BY THE USE OF THE NUMBER OF HOURS WORKED AS THE NUMERATOR. IT IS FOUND THAT THERE IS LACK OF UNIFORMITY IN COMPUTING COMPENSATION WHERE THE EMPLOYEE DOES NOT WORK FULL TIME DURING THE MONTH OR PAY PERIOD INVOLVED AND THAT THE USE OF DIFFERENT RULES FOR SUCH COMPUTATIONS RESULTS IN DIFFERENT AMOUNTS BEING PAID TO DIFFERENT EMPLOYEES FOR THE SAME AMOUNT OF SERVICE. STATE ADMINISTRATORS ARE HEREBY AUTHORIZED TO ESTABLISH MINIMUM MONTHLY HOURS OF WORK FOR SUCH EMPLOYEES. IT WAS HELD AS FOLLOWS: IT IS CLEAR. THAT THE COMPUTATION OF COMPENSATION OF SUPERVISORY AND ADMINISTRATIVE EMPLOYEES FOR A FRACTIONAL PART OF A MONTH OR WHEN FULL TIME IS NOT WORKED IS REQUIRED TO BE UPON THE SAME BASIS AS THAT PROVIDED BY LAW FOR OTHER FEDERAL EMPLOYEES WHOSE COMPENSATION IS FIXED BY THE MONTH OR YEAR.

A-89253, OCTOBER 21, 1937, 17 COMP. GEN. 359

WORKS PROGRESS ADMINISTRATION PROJECTS - ADMINISTRATIVE AND SUPERVISORY PERSONNEL - COMPENSATION FOR FRACTIONAL PERIODS HEREAFTER, IN VIEW OF CHANGES IN THE CONTROLLING STATUTES AND EXECUTIVE ORDERS AND SECTION 3 (B) OF WORKS PROGRESS ADMINISTRATION ORDER NO. 54, DATED MARCH 4, 1937, ISSUED PURSUANT THERETO, COMPENSATION FOR FRACTIONAL PARTS OF A MONTH OF SUPERVISORY AND ADMINISTRATIVE EMPLOYEES ENGAGED ON WORKS PROGRESS ADMINISTRATION PROJECTS AND PAID FROM PROJECT FUNDS, AS DISTINGUISHED FROM ADMINISTRATIVE EMPLOYEES PAID FROM ALLOCATIONS FOR ADMINISTRATIVE EXPENSES, SHOULD BE COMPUTED FOR SEMI-MONTHLY PAY PERIODS BY HALVING THE REQUIRED MINIMUM MONTHLY HOURS OF WORK AND COMPENSATION AND, WHERE LESS THAN THE MINIMUM NUMBER OF HOURS REQUIRED HAVE BEEN WORKED FOR THE PAY PERIOD, THE COMPENSATION PAYABLE IS FOR DETERMINATION BY THE USE OF THE NUMBER OF HOURS WORKED AS THE NUMERATOR, AND THE NUMBER OF HOURS REQUIRED FOR THE PAY PERIOD AS THE DENOMINATOR OF THE FRACTIONAL PART OF THE FULL PAY PERIOD COMPENSATION, BUT WHERE THE EMPLOYEE WORKS THE MINIMUM NUMBER OF HOURS REQUIRED DURING A PAY PERIOD, NO DEDUCTION SHOULD BE MADE FOR ANY DAYS OR HOURS NOT WORKED. 15 COMP. GEN. 1038, MODIFIED.

ACTING COMPTROLLER GENERAL ELLIOTT TO THE ADMINISTRATOR, WORKS PROGRESS ADMINISTRATION, OCTOBER 21, 1937:

IN THE AUDIT OF PAY-ROLL ACCOUNTS FROM THE VARIOUS PARTS OF THE COUNTRY INVOLVING PAYMENTS OF COMPENSATION TO SUPERVISORY AND ADMINISTRATIVE EMPLOYEES ENGAGED ON WORKS PROGRESS ADMINISTRATION PROJECTS, PAID ON AN ANNUAL OR MONTHLY BASIS, IT IS FOUND THAT THERE IS LACK OF UNIFORMITY IN COMPUTING COMPENSATION WHERE THE EMPLOYEE DOES NOT WORK FULL TIME DURING THE MONTH OR PAY PERIOD INVOLVED AND THAT THE USE OF DIFFERENT RULES FOR SUCH COMPUTATIONS RESULTS IN DIFFERENT AMOUNTS BEING PAID TO DIFFERENT EMPLOYEES FOR THE SAME AMOUNT OF SERVICE.

SECTION 3 (B) OF WORKS PROGRESS ADMINISTRATION ADMINISTRATIVE ORDER NO. 54, DATED MARCH 4, 1937, PROVIDES AS FOLLOWS:

RATES OF PAY FOR SUPERVISORY AND ADMINISTRATIVE EMPLOYEES ENGAGED UPON PROJECTS AND PAID FROM PROJECT FUNDS SHALL BE ESTABLISHED ON A MONTHLY BASIS. STATE ADMINISTRATORS ARE HEREBY AUTHORIZED TO ESTABLISH MINIMUM MONTHLY HOURS OF WORK FOR SUCH EMPLOYEES. DEDUCTIONS FOR NON-PAY STATUS FOR EMPLOYEES ON A MONTHLY BASIS SHALL BE MADE IN THE RATIO OF THE NUMBER OF HOURS LOST TO THE MINIMUM MONTHLY HOURS REQUIRED.

IN DECISION OF MAY 27, 1936, 15 COMP. GEN. 1038, IT WAS HELD AS FOLLOWS:

IT IS CLEAR, THEREFORE, THAT THE COMPUTATION OF COMPENSATION OF SUPERVISORY AND ADMINISTRATIVE EMPLOYEES FOR A FRACTIONAL PART OF A MONTH OR WHEN FULL TIME IS NOT WORKED IS REQUIRED TO BE UPON THE SAME BASIS AS THAT PROVIDED BY LAW FOR OTHER FEDERAL EMPLOYEES WHOSE COMPENSATION IS FIXED BY THE MONTH OR YEAR, AND NOT IN ACCORDANCE WITH THE PROCEDURE PRESCRIBED WITH REGARD TO PERSONS RECEIVING THE SECURITY WAGE. ALSO, SUCH EMPLOYEES ARE NOT ENTITLED TO ANY ADDITIONAL COMPENSATION FOR OVERTIME WORK NOR TO HAVE THE OVERTIME WORK COUNTED IN DETERMINING THE NUMBER OF DAYS FOR WHICH COMPENSATION IS PAYABLE FOR THE WEEK.

UNDER THIS STATUTE WHERE COMPENSATION IS FIXED ON THE BASIS OF THE MONTH OR YEAR BUT IS PAID BY THE WEEK, THE AMOUNT TO BE PAID FOR THE WEEK IS TO BE DETERMINED BY MULTIPLYING THE DAILY RATE ( 1/360 OF THE ANNUAL RATE OR 1/30 OF THE MONTHLY RATE) BY THE NUMBER OF DAYS THE EMPLOYEE WAS IN A PAY STATUS DURING THE WEEK NOT COUNTING THE 31ST DAY OF ANY MONTH AND COUNTING FEBRUARY 28 AS 3 DAYS AND FEBRUARY 29 AS 2 DAYS. HENCE, WHEN SUCH AN EMPLOYEE WORKS FULL TIME DURING ANY WEEK IN WHICH THE 31ST DAY OF A MONTH OCCURS--- AS FOR THE WEEK BEGINNING MARCH 29 AND ENDING APRIL 4--- THE DAILY RATE SHOULD BE MULTIPLIED BY 6 TO DETERMINE THE COMPENSATION FOR THE WEEK.

THE AUDIT OF ACCOUNTS INVOLVING PAYMENTS TO THE CLASS OF EMPLOYEES IN QUESTION FOR PAY PERIODS HEREAFTER ACCRUING WILL BE UPON THE BASIS APPLICABLE TO REGULAR EMPLOYEES OF THE GOVERNMENT AS ABOVE INDICATED. HOWEVER, WITH RESPECT TO SUCH PAYMENTS HERETOFORE MADE CREDIT WILL BE ALLOWED THEREFOR IN THE ACCOUNTS OF THE DISBURSING OFFICERS INVOLVED IF FOUND TO BE OTHERWISE CORRECT AND PROPER.

SUBSEQUENT TO THE DATE OF THAT DECISION THERE WERE ENACTED THE EMERGENCY RELIEF APPROPRIATION ACTS OF 1936 AND 1937, EACH OF WHICH REQUIRES THAT THE RATES OF PAY FOR PERSONS ENGAGED UPON PROJECTS SHALL BE NOT LESS THAN THE PREVAILING RATES OF PAY FOR WORK OF A SIMILAR NATURE IN THE SAME LOCALITY AS DETERMINED BY THE WORKS PROGRESS ADMINISTRATION WITH THE APPROVAL OF THE PRESIDENT. BECAUSE OF SAID PROVISION IN THE TWO ACTS, THE EXECUTIVE ORDERS OF JUNE 22, 1936, AND JUNE 29, 1937 (7396 AND 7649) DIRECTED THAT THE FUNDS APPROPRIATED BY SAID ACTS BE EXPENDED AND ADMINISTERED IN ACCORDANCE WITH THE ORDERS, RULES, AND REGULATIONS RELATING TO THE FUNDS APPROPRIATED BY THE 1935 ACT "EXCEPT AS TO RATES OF PAY.' ALSO, THE EXECUTIVE ORDER OF JUNE 22, 1936, SPECIFICALLY AUTHORIZED AND EMPOWERED THE WORKS PROGRESS ADMINISTRATION TO PRESCRIBE SUCH RULES AND REGULATIONS AS MAY BE NECESSARY TO CARRY OUT THE PURPOSES OF THE ALLOCATIONS AND THE PROVISIONS OF THE EMERGENCY RELIEF APPROPRIATION ACT OF 1936. THIS AUTHORIZATION IS APPLICABLE, ALSO, TO EXPENDITURES UNDER THE ACT OF 1937.

THESE SUBSEQUENT ENACTED RELIEF STATUTES, THE EXECUTIVE ORDERS ISSUED PURSUANT THEREOF, AND THE ABOVE-QUOTED WORKS PROGRESS ADMINISTRATION ADMINISTRATIVE ORDER NO. 54 HAD THE EFFECT OF SUPERSEDING AND RENDERING INOPERATIVE THE RULES STATED IN THE DECISION OF MAY 27, 1936, SUPRA, FOR COMPUTING THE COMPENSATION FOR FRACTIONAL PARTS OF A MONTH OF SUPERVISORY AND ADMINISTRATIVE EMPLOYEES ENGAGED UPON PROJECTS AND PAID FROM PROJECT FUNDS, AS DISTINGUISHED FROM ADMINISTRATIVE EMPLOYEES PAID FROM ALLOCATIONS FOR ADMINISTRATIVE EXPENSES.

THE SUPERVISORY AND ADMINISTRATIVE EMPLOYEES HERE INVOLVED, THAT IS, THOSE ENGAGED ON PROJECTS AND PAID FROM PROJECT FUNDS, WHOSE COMPENSATION IS FIXED ON A MONTHLY BASIS AND WHO ARE NOW PAID ONLY FOR TIME ACTUALLY WORKED (SEC. 4 OF THE ADMINISTRATIVE ORDER NO. 54), ARE NOT TO BE REGARDED AS "IN THE SERVICE OF THE UNITED STATES" WITHIN THE PURVIEW OF SECTION 6 OF THE ACT OF JUNE 30, 1906, 34 STAT. 736, WHICH STATUTE IS THE BASIS OF THE RULE STATED IN SAID DECISION OF MAY 27, 1936.

IN COMPUTING THE COMPENSATION UNDER SECTION 3 (B) OF WORKS PROGRESS ADMINISTRATION ORDER NO. 54, WHERE LESS THAN THE MINIMUM HOURS REQUIRED DURING A PAY PERIOD HAVE BEEN WORKED, THERE SHOULD BE CONSIDERED THE DAYS OF ACTUAL SERVICE DURING THE PAY PERIOD RATHER THAN THE DAYS OF ABSENCE. THE MINIMUM HOURS OF WORK REQUIRED PER MONTH AND THE MONTHLY RATE OF COMPENSATION FIXED FOR SUCH MONTHS' SERVICE SHOULD BE DIVIDED INTO TWO PARTS--- ONE-HALF FOR EACH SEMIMONTHLY PAY PERIOD. AND WHERE THE EMPLOYEE WORKS LESS THAN THE MINIMUM NUMBER OF HOURS REQUIRED DURING A PAY PERIOD, THE DENOMINATOR OF THE FRACTION TO BE USED IN DETERMINING THE FRACTIONAL PART OF THE FULL HALF-MONTH'S SALARY PAYABLE SHOULD BE THE MINIMUM NUMBER OF HOURS REQUIRED DURING THE PAY PERIOD, THAT IS, ONE-HALF OF THE MINIMUM NUMBER OF HOURS ASSIGNED FOR THE MONTH, AND THE NUMERATOR SHOULD BE THE ACTUAL NUMBER OF HOURS WORKED. WHERE SUCH AN EMPLOYEE WORKS THE MINIMUM NUMBER OF HOURS REQUIRED DURING A PAY PERIOD, NO DEDUCTION SHOULD BE MADE FROM HIS COMPENSATION FOR ANY DAYS OR HOURS NOT WORKED. FOR INSTANCE, REFERENCE IS MADE TO VOUCHER NO. 12283 FROM THE ACCOUNTS OF E. D. FELTON, DISBURSING CLERK, UNITED STATES TREASURY, STATE DISBURSING OFFICER, ARKANSAS, WORK PROJECT NO. 165-63-2125, FOR THE PERIOD JULY 15 TO 29, 1937, WHERE THE PROPER METHOD APPEARS TO HAVE BEEN USED. THE MINIMUM NUMBER OF HOURS ASSIGNED PER MONTH WAS 160, OR 80 FOR THE SEMI-MONTHLY PERIOD. THE MONTHLY COMPENSATION WAS $100, OR $50 FOR THE SEMIMONTHLY PERIOD. THE EMPLOYEE ACTUALLY WORKED 64 HOURS DURING THE PERIOD AND WAS CORRECTLY PAID 64/80 OF $50, OR $40.

AUDIT ACTION BY THIS OFFICE HEREAFTER WILL BE IN ACCORDANCE WITH THE RULE ABOVE STATED, BUT OTHERWISE PROPER PAYMENTS MADE FOR PAY PERIODS HERETOFORE EXPIRING IN ACCORDANCE WITH OTHER RULES WILL NOT BE DISTURBED.