Entitlement to Wage Increase in Lump-Sum Annual Leave Payment

A decision was requested on whether prevailing rate employees being separated from employment are entitled to have their lump-sum annual leave payment include a wage increase when they are on the rolls on the date the order granting the increase is issued, but are separated before the effective date of the increase, and the period covered by their accrued leave extends beyond the effective date of the increase. GAO was also asked to decide whether such employees are entitled to have their lump-sum annual leave payment include a wage increase when they separate prior to the date the wage increase order is issued, but the period covered by their accrued leave extends beyond the effective date of the increase. For salary purposes only, employees who separate prior to the effective date of a wage increase are considered to be on the rolls of the agency until the accrued leave expires. Therefore, such employees are entitled to any salary increases they would have received if they had remained in the service for the period covered by their leave. Employees who separate prior to the date a statute authorizing a wage increase was passed are entitled to receive a lump-sum annual leave payment if they are separated after a wage survey is ordered to be made, and the order granting the new wage rate is issued prior to the the effective date in the statute.