B-31744, JANUARY 20, 1943, 22 COMP. GEN. 678

B-31744: Jan 20, 1943

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- WHO ARE RECRUITED LOCALLY OUTSIDE THE CONTINENTAL LIMITS OF THE UNITED STATES. WHOSE SALARY RATES ARE ADMINISTRATIVELY FIXED BY GIVING APPROPRIATE CONSIDERATION TO LOCAL WAGE LEVELS AND WITHOUT REGARD TO THE SALARY RATES FIXED BY LAW ADMINISTRATIVE ACTION FOR AMERICAN CITIZENS SERVING ABROAD. ARE EXCLUDED FROM THE BENEFITS OF THE OVERTIME AND ADDITIONAL COMPENSATION ACT OF DECEMBER 22. WHO ARE PAID IN ACCORDANCE WITH LOCAL PREVAILING NATIVE WAGE RATES FOR THE AREA IN WHICH EMPLOYED.'. WHO ARE RECRUITED LOCALLY OUTSIDE THE CONTINENTAL LIMITS OF THE UNITED STATES. HAVE BEEN INCREASED BECAUSE OF THE INCREASE IN HOURS FOR OTHER FOREIGN SERVICE EMPLOYEES. THAT FACT IS NOT SUFFICIENT TO BRING THESE EMPLOYEES WITHIN THE PURVIEW OF THE PROVISIONS OF THE OVERTIME AND ADDITIONAL COMPENSATION OF FEDERAL EMPLOYEES GENERALLY.

B-31744, JANUARY 20, 1943, 22 COMP. GEN. 678

COMPENSATION - ADDITIONAL OR OVERTIME - NATIVE EMPLOYEES IN THE FOREIGN SERVICE NATIVE EMPLOYEES IN THE FOREIGN SERVICE, DEPARTMENT OF STATE--- INCLUDING CLASS 3 JUNIOR CLERKS, AND FOREIGN SERVICE AUXILIARY AND MISCELLANEOUS EMPLOYEES--- WHO ARE RECRUITED LOCALLY OUTSIDE THE CONTINENTAL LIMITS OF THE UNITED STATES, AND WHOSE SALARY RATES ARE ADMINISTRATIVELY FIXED BY GIVING APPROPRIATE CONSIDERATION TO LOCAL WAGE LEVELS AND WITHOUT REGARD TO THE SALARY RATES FIXED BY LAW ADMINISTRATIVE ACTION FOR AMERICAN CITIZENS SERVING ABROAD, ARE EXCLUDED FROM THE BENEFITS OF THE OVERTIME AND ADDITIONAL COMPENSATION ACT OF DECEMBER 22, 1942, BY THE PROVISION THEREOF WHICH EXCLUDES FROM ITS BENEFITS "EMPLOYEES OUTSIDE THE CONTINENTAL LIMITS OF THE UNITED STATES, INCLUDING ALASKA, WHO ARE PAID IN ACCORDANCE WITH LOCAL PREVAILING NATIVE WAGE RATES FOR THE AREA IN WHICH EMPLOYED.' ALTHOUGH THE HOURS OF WORK PER WEEK FOR NATIVE EMPLOYEES OF THE FOREIGN SERVICE, DEPARTMENT OF STATE, WHO ARE RECRUITED LOCALLY OUTSIDE THE CONTINENTAL LIMITS OF THE UNITED STATES, AND PAID ON THE BASIS OF NATIVE WAGE LEVELS, HAVE BEEN INCREASED BECAUSE OF THE INCREASE IN HOURS FOR OTHER FOREIGN SERVICE EMPLOYEES, THAT FACT IS NOT SUFFICIENT TO BRING THESE EMPLOYEES WITHIN THE PURVIEW OF THE PROVISIONS OF THE OVERTIME AND ADDITIONAL COMPENSATION OF FEDERAL EMPLOYEES GENERALLY, BUT SUCH FACT WOULD BE FOR CONSIDERATION ADMINISTRATIVELY ONLY IN DETERMINING WHETHER THE INCREASED HOURS OF WORK EXCEED THE HOURS WORKED LOCALLY BY THE SAME CLASS OF EMPLOYEES EITHER WITH OR WITHOUT ADDITIONAL COMPENSATION.

COMPTROLLER GENERAL WARREN TO THE SECRETARY OF STATE, JANUARY 20, 1943:

I HAVE YOUR LETTER OF JANUARY 13, 1943, REF. FA, AS FOLLOWS:

PURSUANT TO THE PROVISIONS OF THE JOINT RESOLUTION OF CONGRESS APPROVED DECEMBER 22, 1942, PUBLIC LAW 821, AND THE REGULATIONS ISSUED THEREUNDER ( EXECUTIVE ORDER 9289, DECEMBER 26, 1942), ORDERS HAVE BEEN ISSUED BY THE SECRETARY OF STATE EXTENDING THE WORK WEEK OF ALL OFFICERS AND EMPLOYEES IN THE FOREIGN SERVICE OF THE UNITED STATES FROM 39 TO 48 HOURS EFFECTIVE BEGINNING DECEMBER 26, 1942. THIS EXTENSION OF OFFICIAL WORKING HOURS IS IN ACCORD WITH THE PRESIDENT'S MEMORANDUM OF DECEMBER 22, 1942, REQUESTING THE ESTABLISHMENT OF A MINIMUM 48-HOUR WEEK FOR BOTH THE DEPARTMENTAL AND FIELD SERVICE.

SECTION ONE OF PUBLIC LAW 821 PROVIDES FOR THE PAYMENT OF OVERTIME COMPENSATION "TO ALL CIVILIANS EMPLOYED IN OR UNDER THE UNITED STATES GOVERNMENT * * *, PROVIDED * * *, THAT SUCH EXTENSION SHALL NOT APPLY TO * * * (D) EMPLOYEES OUTSIDE THE CONTINENTAL LIMITS OF THE UNITED STATES, INCLUDING ALASKA, WHO ARE PAID IN ACCORDANCE WITH LOCAL PREVAILING NATIVE WAGE FOR THE AREA IN WHICH EMPLOYED: * * *" IN VIEW OF THE FOREGOING, YOUR DECISION IS REQUESTED CONCERNING THE PAYMENT OF OVERTIME COMPENSATION TO THE FOLLOWING GROUPS OF CIVILIAN EMPLOYEES:

1. JUNIOR FOREIGN SERVICE CLERKS OF CLASS 3.

2. MISCELLANEOUS EMPLOYEES IN THE FOREIGN SERVICE.

3. FOREIGN SERVICE AUXILIARY EMPLOYEES.

THE SALARIES OF FOREIGN SERVICE CLERKS ARE NOT FIXED BY PROVISIONS OF FOREIGN LAW OR BY FOREIGN WAGE BOARDS OR SIMILAR AUTHORITY, BUT ARE DETERMINED AS FOLLOWS:

(A) FOR SALARIES FROM $2500 TO $4000 PER ANNUM (JUNIOR CLERKS OF CLASSES 1 AND 2 AND SENIOR CLERKS) BY CLASSIFICATION UNDER SECTION 1 OF THE ACT OF FEBRUARY 23, 1931 (22 U.S.C. 23A); AND

(B) FOR SALARIES FROM $120 TO $2250 PER ANNUM (JUNIOR CLERKS OF CLASS 3) BY ADMINISTRATIVE ACTION OF THE SECRETARY OF STATE.

NATURE OF DUTIES, SENIORITY AND EFFICIENCY, HAVE BEEN THE CONTROLLING FACTORS IN FIXING THE SALARY RATES OF ALL CLERKS, WHETHER IN THE SENIOR OR JUNIOR GRADE. IN ADMINISTRATIVE PRACTICE, APPROPRIATE CONSIDERATION HAS ALSO BEEN GIVEN TO LOCAL WAGE LEVELS AS A FACTOR IN DETERMINING RATES OF PAY OF CERTAIN OF THE JUNIOR CLERKS IN CLASS 3, PARTICULARLY THOSE CLERKS IN THE LOWER CLERICAL SALARY BRACKETS OF CLASS 3 WHO ARE CUSTOMARILY RECRUITED LOCALLY AT THE FOREIGN SERVICE POSTS, AS DISTINGUISHED FROM THE CLERKS IN THE INTERMEDIATE SALARY BRACKETS (COMMENCING ROUGHLY AT ABOUT $1680 PER ANNUM) WHO ARE CUSTOMARILY RECRUITED IN THE UNITED STATES.

HOWEVER, ALL OF THE EXISTING SALARY RATES FOR FOREIGN SERVICE CLERKS, WHETHER RECRUITED IN AMERICA OR ABROAD, WHETHER AMERICAN OR ALIEN, AND WHETHER IN THE LOWER OR UPPER SALARY BRACKETS, ARE PREMISED UPON A 39 HOUR WORK WEEK, AND BASED PRINCIPALLY UPON NATURE OF DUTIES, SENIORITY AND EFFICIENCY. THEREFORE, IN AS MUCH AS SALARIES OF JUNIOR FOREIGN SERVICE CLERKS OF CLASS 3 ARE ESTABLISHED IN ACCORDANCE WITH RATES DETERMINED BY THE SECRETARY OF STATE, THE DEPARTMENT PROPOSES, SUBJECT TO YOUR CONCURRENCE, TO AUTHORIZE OVERTIME PAY FOR ALL JUNIOR FOREIGN SERVICE CLERKS UNDER THE PROVISIONS OF PUBLIC LAW 821, JUST AS IN THE CASE OF SENIOR CLERKS.

SUBSTANTIALLY THE SAME SITUATION AS DESCRIBED ABOVE WITH RESPECT TO FOREIGN SERVICE CLERKS EXISTS IN CONNECTION WITH THE MISCELLANEOUS EMPLOYEES IN THE FOREIGN SERVICE WITH THE EXCEPTION THAT ALL OF THE SALARY RATES OF MISCELLANEOUS EMPLOYEES ARE FIXED ADMINISTRATIVELY BY THE SECRETARY OF STATE, AND NONE DIRECTLY BY LAW. THE MISCELLANEOUS EMPLOYEES INCLUDE COURIERS, SUPERVISORS OF CONSTRUCTION, RADIO OPERATORS, TRANSLATORS, TELEPHONE OPERATORS, GUARDS, MESSENGERS, ET AL., AND THE SALARY RATES RANGE FROM $12 TO $4600 PER ANNUM.

THE EMPLOYEES IN THE HIGHER SALARY BRACKETS ARE MOSTLY AMERICANS, SOME RECRUITED IN THE UNITED STATES, AND THOSE IN THE LOWER SALARY BRACKETS ARE MOSTLY ALIENS RECRUITED ABROAD. AS IN THE CASE OF FOREIGN SERVICE CLERKS THE SALARY RATES OF THE INDIVIDUAL EMPLOYEES WERE FIXED WHEN A 39-HOUR WORK WEEK WAS THE PRESCRIBED MINIMUM FOR THE FOREIGN SERVICE: CONSEQUENTLY, IT IS PROPOSED TO EXTEND THE BENEFIT OF PAY AT THE RATE OF TIME AND ONE-HALF FOR OVERTIME UNDER THE PROVISIONS OF PUBLIC LAW 821 TO THOSE EMPLOYEES WITH REGULARLY ESTABLISHED WORKING HOURS, AND THE 10 PER CENT PROVISO OF THE SAME ACT TO THOSE WHOSE WORKING HOURS ARE IRREGULAR, INTERMITTENT OR PART TIME.

THE AUXILIARY FOREIGN SERVICE WAS ESTABLISHED DURING THE 1942 FISCAL YEAR AND FUNDS WERE PROVIDED INITIALLY THROUGH THE ALLOCATION OF FUNDS FROM THE PRESIDENT'S EMERGENCY FUND AND SUBSEQUENTLY UNDER THE TITLE OF " FOREIGN SERVICE, AUXILIARY (EMERGENCY)" IN THE ANNUAL DEPARTMENT OF STATE APPROPRIATION ACT. THE AUXILIARY PERSONNEL CONSISTS OF AMERICAN OFFICERS AND OF AMERICAN AND ALIEN CLERKS AND MISCELLANEOUS EMPLOYEES, WITH SALARIES RANGING FROM $36 TO $8,700 PER ANNUM, FIXED ADMINISTRATIVELY BY THE SECRETARY OF STATE. WORKING HOURS AND OTHER CONDITIONS ARE THE SAME AS FOR REGULAR FOREIGN SERVICE PERSONNEL. IT APPEARS, THEREFORE, THAT YOUR DECISION CONCERNING THE PROPOSED ACTION OF THE DEPARTMENT IN APPLYING THE OVERTIME COMPENSATION PROVISIONS OF PUBLIC LAW 821 TO FOREIGN SERVICE CLERKS AND MISCELLANEOUS EMPLOYEES IN THE REGULAR FOREIGN SERVICE WILL APPLY EQUALLY TO THE EMPLOYEES IN THE AUXILIARY FOREIGN SERVICE.

IN VIEW OF THE FACT THAT ALL OFFICERS IN THE FIELD HAVE BEEN INSTRUCTED TO WITHHOLD PAYMENT FOR OVERTIME SERVICE PENDING RECEIPT OF YOUR DECISION, AN EARLY REPLY WILL BE APPRECIATED.

WITH REGARD TO EMPLOYEES GROUPED UNDER HEADING,"1. JUNIOR FOREIGN SERVICE CLERKS OF CLASS 3," SECTION 23A, TITLE 22, U.S. CODE, PROVIDES:

JUNIOR CLERKS. CLASS 1, $2,750; CLASS 2, $2,500; CLASS 3, ALL CLERKS WHOSE COMPENSATION AS FIXED BY THE SECRETARY OF STATE IS LESS THAN $2,500 PER ANNUM. ( FEB. 23, 1931, CH. 276, SEC. 1, 46 STAT. 1207.)

IT IS UNDERSTOOD THE AUTHORITY FOR THE EMPLOYMENT OF, AND PAYMENT OF COMPENSATION TO THOSE EMPLOYEES EMBRACED UNDER HEADING,"2. MISCELLANEOUS EMPLOYEES IN THE FOREIGN SERVICE," IS FOUND IN THE ANNUAL APPROPRIATION ACT UNDER THE CAPTION," MISCELLANEOUS SALARIES AND ALLOWANCES, FOREIGN SERVICE," AS FOLLOWS (QUOTING FROM THE ACT OF JULY 2, 1942, 56 STAT. 472, PUBLIC LAW 644):

* * * FOR SALARIES OR COMPENSATION OF KAVASSES, GUARDS, DRAGOMANS, PORTERS, INTERPRETERS, PRISON KEEPERS, TRANSLATORS, ARCHIVE COLLATORS, CHINESE WRITERS, MESSENGERS, COURIERS, TELEPHONE OPERATORS, SUPERVISORS OF CONSTRUCTION, AND CUSTODIAL AND OPERATING FORCE FOR MAINTENANCE AND OPERATION OF GOVERNMENT-OWNED AND LEASED DIPLOMATIC AND CONSULAR PROPERTIES IN FOREIGN COUNTRIES, INCLUDING SALARIES WHILE UNDER INSTRUCTION IN THE UNITED STATES AND DURING TRANSIT TO AND FROM THEIR HOMES IN THE UNITED STATES UPON THE BEGINNING AND AFTER TERMINATION OF SERVICE IN FOREIGN COUNTRIES; COMPENSATION OF AGENTS AND EMPLOYEES OF DISPATCH, AGENCIES AT NEW YORK, SAN FRANCISCO, SEATTLE, AND NEW ORLEANS; *

THE APPROPRIATION ITEM FROM WHICH EMPLOYEES GROUPED UNDER HEADING,"3. FOREIGN SERVICE AUXILIARY EMPLOYEES" , ARE PAID READS (QUOTING FROM THE ACT OF JULY 2, 1942, PUBLIC LAW 644):

FOREIGN SERVICE, AUXILIARY (EMERGENCY): FOR ALL NECESSARY EXPENSES TO ENABLE THE DEPARTMENT OF STATE DURING THE FISCAL YEAR 1943 TO CONTINUE TO PERFORM FUNCTIONS OR ACTIVITIES IN CONNECTION WITH THE AUXILIARY FOREIGN SERVICE FOR THE PERFORMANCE OF WHICH, DURING THE FISCAL YEARS 1941 AND 1942, THE DEPARTMENT OF STATE RECEIVED ALLOCATIONS OF FUNDS FROM THE APPROPRIATIONS " EMERGENCY FUND FOR THE PRESIDENT" CONTAINED IN THE MILITARY APPROPRIATION ACT, 1941, AND THE INDEPENDENT OFFICES APPROPRIATION ACT, 1942, INCLUDING THE OBJECTS FOR WHICH AND SUBJECT TO THE CONDITIONS UNDER WHICH SUCH ALLOCATIONS WERE PROVIDED OR EXPENDED DURING THE FISCAL YEARS 1941 AND 1942, $750,000.

THE PRESIDENT'S ALLOCATION LETTER, NO. 90, DATED JUNE 28, 1941, AS AMENDED BY HIS LETTER OF SEPTEMBER 16, 1941, MADE THE ALLOTMENT OF FUNDS FOR THE FISCAL YEAR 1942 AVAILABLE "FOR ALL SALARIES AND EXPENSES NECESSARY IN CONNECTION WITH THE ASSIGNMENT OF ADDITIONAL NONCAREER OFFICERS AND EMPLOYEES AT POSTS THROUGHOUT THE WORLD AS WELL AS IN LATIN AMERICA, FOR SPECIAL SERVICES IN CONNECTION WITH EMERGENCIES AFFECTING THE NATIONAL SECURITY AND DEFENSE.'

UNDER ALL OF THE STATUTES ABOVE QUOTED, THE SECRETARY OF STATE HAS AUTHORITY TO FIX SALARY RATES OF NATIVE EMPLOYEES RECRUITED LOCALLY IN A FOREIGN COUNTRY WITHOUT REGARD TO THE SALARY RATES FIXED BY LAW OR BY ADMINISTRATIVE ACTION FOR AMERICAN CITIZENS SERVING ABROAD. IT IS UNDERSTOOD FROM YOUR LETTER THAT APPROPRIATE CONSIDERATION IS GIVEN TO LOCAL WAGE LEVELS AS A FACTOR IN DETERMINING RATES OF PAY OF NATIVE EMPLOYEES RECRUITED LOCALLY WHOSE SALARY RATES ARE SUBJECT TO FIXING SOLELY WITHIN THE DISCRETION OF THE SECRETARY OF STATE AS TO ALL THREE OF THE CLASSES OF EMPLOYEES MENTIONED IN YOUR LETTER REGARDLESS OF THE APPROPRIATION FROM WHICH THE SALARIES ARE PAID.

THE CONGRESS, BY EXCLUDING FROM THE BENEFITS OF THE JOINT RESOLUTION APPROVED DECEMBER 22, 1942, 56 STAT. 1068, PUBLIC LAW 821,"EMPLOYEES OUTSIDE THE CONTINENTAL LIMITS OF THE UNITED STATES, INCLUDING ALASKA, WHO ARE PAID IN ACCORDANCE WITH LOCAL PREVAILING NATIVE WAGE RATES FOR THE AREA IN WHICH EMPLOYED" (QUOTING FROM EXCEPTION (D) APPEARING IN THE SECOND PROVISO OF SECTION 1 OF THE STATUTE), MANIFESTED AN INTENTION TO LIMIT THE SCOPE OF THE LAW GRANTING INCREASES IN COMPENSATION TO EMPLOYEES WHOSE SALARIES OR WAGES ARE FIXED ON THE BASIS OF THE AMERICAN STANDARD OF LIVING. THIS OFFICE HAS HELD CONSISTENTLY THAT EMPLOYEES IN ANY BRANCH OF THE FEDERAL SERVICE WHO ARE NATIVES AND WHO ARE RECRUITED LOCALLY OUTSIDE THE CONTINENTAL LIMITS OF THE UNITED STATES AND ARE PAID COMPENSATION IN ACCORDANCE WITH THE LOCAL PREVAILING NATIVE WAGE RATES FOR THE LOCALITY WHERE EMPLOYED, ARE NOT ENTITLED TO THE BENEFITS OF SALARY LAWS CONTROLLING PAYMENTS TO AMERICAN CITIZENS. SEE THE DECISION OF JANUARY 23, 1931, 10 COMP. GEN. 322, 323, WHEREIN IT WAS STATED:

* * * WHILE SECTION 2 OF THE BROOKHART SALARY ACT, ABOVE QUOTED, IS BROAD ENOUGH TO EMBRACE ALL EMPLOYEES CARRIED UNDER GROUP 4-B, INCLUDING DRAFTING GROUPS, IN THE SCHEDULE OF WAGES FOR CIVIL EMPLOYEES UNDER THE NAVAL ESTABLISHMENTS, AND MAKES NO DISTINCTION BETWEEN DIFFERENT CLASSES OF EMPLOYEES WHO COME WITHIN SAID GROUP 4-B, NEVERTHELESS, I AM CONSTRAINED TO VIEW THE MATTER, AS YOU HAVE DONE, THAT THE CONGRESS COULD NOT HAVE INTENDED TO INCLUDE EMPLOYEES BEYOND THE CONTINENTAL LIMITS OF THE UNITED STATES THERETOFORE PAID UNDER NATIVE AND ALIEN SCHEDULES WHICH ARE NOT AT ALL COMPARABLE WITH THE SCHEDULES ESTABLISHED BY THE CLASSIFICATION OF CIVILIAN EMPLOYEES, AND THE ESTABLISHMENT OF THE SALARY RATES PRESCRIBED BY THE CLASSIFICATION ACT, AS ORIGINALLY ENACTED AND AS AMENDED, HAVE BEEN ON THE AMERICAN STANDARD OF LIVING AND NOT ON THE STANDARDS MAINTAINED AMONG NATIVES LIVING IN THE INSULAR OR ISLAND POSSESSIONS OF THE UNITED STATES. * * * SEE, ALSO, 13 COMP. GEN. 370 (RELATIVE TO THE 40-HOUR WEEK STATUTE); 18 ID. 206, 209 (RELATIVE TO THE HOLIDAY STATUTE); 20 ID. 552 (RELATIVE TO EMPLOYMENT OF NATIVES IN CLERICAL AND STENOGRAPHIC POSITIONS IN THE SELECTIVE SERVICE SYSTEM IN PUERTO RICO); AND 21 ID. 947 (RELATING TO THE FIXING OF A DIFFERENTIAL UNDER THE PROVISIONS OF EXECUTIVE ORDER NO. 8955, DATED DECEMBER 1, 1941, ISSUED PURSUANT TO THE PROVISIONS OF SECTION 3 (A) AND 3 (C), TITLE II, OF THE ACT OF NOVEMBER 26, 1940, 54 STAT. 1212, 1213). THERE APPEARS NO SOUND BASIS IN LAW FOR CONCLUDING THAT THE CONGRESS INTENDED TO INCLUDE NATIVE EMPLOYEES IN THE FOREIGN SERVICE WITHIN THE BENEFITS OF THE ACT OF DECEMBER 22, 1942, PROVIDING FORMULAS FOR INCREASING COMPENSATION OF FEDERAL EMPLOYEES, AND TO EXCLUDE NATIVE EMPLOYEES IN OTHER BRANCHES OF THE FEDERAL SERVICE. IT WOULD BE UNREASONABLE TO PAY OVERTIME COMPENSATION OR ADDITIONAL COMPENSATION ON A 10 PERCENT BASIS TO NATIVE EMPLOYEES IN THE FOREIGN SERVICE AND TO DENY THE SAME BENEFITS TO NATIVE EMPLOYEES IN OTHER BRANCHES OF THE FEDERAL SERVICE WHO MAY PERFORM SUBSTANTIALLY THE SAME CLASS OF WORK IN THE SAME LOCALITIES OUTSIDE THE CONTINENTAL LIMITS OF THE UNITED STATES.

REFERRING TO THE FOURTH PARAGRAPH OF YOUR LETTER, EXCEPTION (D) OF SECTION 1 OF THE JOINT RESOLUTION APPROVED DECEMBER 22, 1942, HERE INVOLVED, IS NOT CONDITIONED UPON WAGE BOARD PROCEDURE IN FIXING WAGE RATES FROM TIME TO TIME AS IS REQUIRED TO BRING EMPLOYEES WITHIN EXCEPTION (A) APPEARING IN THE SAME PROVISO TO THE STATUTE, NOR IS EXCEPTION (D) CONDITIONED UPON THE FACT THAT NATIVE RATES ARE REQUIRED OR AUTHORIZED TO BE FIXED BY FOREIGN LAWS.

REFERRING TO THE FIFTH PARAGRAPH OF YOUR LETTER, DOUBTLESS THE FACTORS,"NATURE OF DUTIES, SENIORITY AND EFFICIENCY" , ARE USED IN ADJUSTING THE WAGE RATES OF NATIVE EMPLOYEES RECRUITED AND SERVING ABROAD IN ALL BRANCHES OF THE FEDERAL SERVICE UNDER NATIVE WAGE SCHEDULES; BUT THE USE OF THOSE FACTORS IN ADJUSTING WAGES OF NATIVE EMPLOYEES WOULD NOT BE SUFFICIENT TO BRING THEM WITHIN THE PURVIEW OF THE JOINT RESOLUTION APPROVED DECEMBER 22, 1942, IF THE WAGES ARE FIXED AND ADJUSTED ADMINISTRATIVELY, TAKING INTO CONSIDERATION LOCAL WAGE LEVELS EXISTING IN LOCALITIES OUTSIDE THE CONTINENTAL LIMITS OF THE UNITED STATES WHICH ARE NOT BASED UPON THE AMERICAN STANDARD OF LIVING. NEITHER WOULD THE FACT THAT YOU HAVE INCREASED THE HOURS OF WORK PER WEEK FOR NATIVE EMPLOYEES PAID ON THE BASIS OF NATIVE WAGE LEVELS BECAUSE OF THE INCREASE IN THE HOURS FOR OTHER EMPLOYEES IN THE FOREIGN SERVICE BRING THE NATIVE EMPLOYEES WITHIN THE PURVIEW OF THE LAW PROVIDING FORMULAS FOR INCREASING COMPENSATION OF FEDERAL EMPLOYEES GENERALLY, BUT THAT FACT WOULD BE FOR CONSIDERATION ADMINISTRATIVELY ONLY IN DETERMINING WHETHER THE INCREASED HOURS OF WORK EXCEED THE HOURS WORKED LOCALLY BY THE SAME CLASS OF EMPLOYEES EITHER WITH OR WITHOUT ADDITIONAL COMPENSATION.

ACCORDINGLY, I AM UNABLE TO GIVE MY APPROVAL TO THE PROPOSAL STATED IN YOUR LETTER OF APPLYING THE FORMULAS FOR INCREASING COMPENSATION AS PRESCRIBED IN THE JOINT RESOLUTION APPROVED DECEMBER 22, 1942, TO ANY OF THE THREE CLASSES OF EMPLOYEES MENTIONED IN THE THIRD PARAGRAPH OF YOUR LETTER, WHO ARE NATIVES, AND RECRUITED AND SERVING OUTSIDE THE CONTINENTAL LIMITS OF THE UNITED STATES AND WHOSE WAGES ARE BASED ON LOCAL WAGE LEVELS.