[Change in Pay Computation Factor]

A labor union requested a decision concerning the Department of Health and Human Services' (HHS) continued use of a higher pay computation divisor after October 1, 1985, when the statutory authority for such use expired. GAO found that the divisor, which resulted in a reduction in the employee pay rate, was in effect during fiscal years 1984 and 1985 and resumed after March 1, 1986; however, there was no legal authority for agencies to use it during the interim period. Accordingly, to the extent that HHS and other agencies paid their employees on the basis of the divisor during that period, those employees are entitled to backpay for the difference in their pay.