B-41486, JULY 18, 1944, 24 COMP. GEN. 30

B-41486: Jul 18, 1944

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" THERE IS NO AUTHORITY TO GRANT COMPENSATORY TIME OFF FOR WORK PERFORMED BETWEEN 44 AND 48 HOURS PER WEEK WHERE THE ADMINISTRATIVE WORKWEEK IS 44 HOURS PER WEEK. THE $300 GUARANTEE IS SATISFIED AND THE EMPLOYEE BECOMES ENTITLED ONLY TO THE OVERTIME COMPENSATION. IF SUFFICIENT OVERTIME IS WORKED TO SATISFY A PORTION OF THE GUARANTEE. PER ANNUM EMPLOYEES WHO ARE REQUIRED TO WORK IN EXCESS OF AN ADMINISTRATIVELY ESTABLISHED 44-HOUR WORKWEEK SHOULD BE PAID OVERTIME COMPENSATION UNDER SECTION 2 OF THE WAR OVERTIME PAY ACT OF 1943 FOR ALL OF SUCH EXCESS WORK ON AN ACTUAL-TIME BASIS RATHER THAN ON A PRORATED BASIS. 1944: I HAVE YOUR LETTER OF JUNE 24. AS FOLLOWS: THIS IS TO SUPPLEMENT MY LETTER OF APRIL 14.

B-41486, JULY 18, 1944, 24 COMP. GEN. 30

WAR OVERTIME PAY ACT OF 1943 - OVERTIME IN ADDITION TO REGULAR WORKWEEK SINCE SECTION 2 OF THE WAR OVERTIME PAY ACT OF 1943 LIMITS THE ADMINISTRATIVE AUTHORITY TO GRANT COMPENSATORY TIME OFF IN LIEU OF PAYING OVERTIME COMPENSATION TO "WORK IN EXCESS OF FORTY-EIGHT HOURS IN ANY ADMINISTRATIVE WORKWEEK," THERE IS NO AUTHORITY TO GRANT COMPENSATORY TIME OFF FOR WORK PERFORMED BETWEEN 44 AND 48 HOURS PER WEEK WHERE THE ADMINISTRATIVE WORKWEEK IS 44 HOURS PER WEEK, SO THAT OVERTIME COMPENSATION MUST BE PAID FOR SUCH WORK IN EXCESS OF THE ADMINISTRATIVE WORKWEEK. IN ANY PAY PERIOD IN WHICH AN EMPLOYEE WORKS SUFFICIENT OVERTIME (EITHER DURING THE REGULAR ADMINISTRATIVE WORKWEEK OR IN ADDITION THERETO) TO ENTITLE HIM TO OVERTIME COMPENSATION, COMPUTED IN ACCORDANCE WITH SECTION 2 OF THE WAR OVERTIME PAY ACT OF 1943, AT A PER ANNUM RATE NOT LESS THAN THE $300 RATE SPECIFIED BY SECTION 3 (B) OF THE ACT AS THE MINIMUM RATE OF ADDITIONAL WARTIME COMPENSATION PAYABLE TO EMPLOYEES ENTITLED TO ITS BENEFITS, THE $300 GUARANTEE IS SATISFIED AND THE EMPLOYEE BECOMES ENTITLED ONLY TO THE OVERTIME COMPENSATION; ALSO, IF SUFFICIENT OVERTIME IS WORKED TO SATISFY A PORTION OF THE GUARANTEE, THERE MUST BE A PROPORTIONATE REDUCTION IN THE GUARANTEE. PER ANNUM EMPLOYEES WHO ARE REQUIRED TO WORK IN EXCESS OF AN ADMINISTRATIVELY ESTABLISHED 44-HOUR WORKWEEK SHOULD BE PAID OVERTIME COMPENSATION UNDER SECTION 2 OF THE WAR OVERTIME PAY ACT OF 1943 FOR ALL OF SUCH EXCESS WORK ON AN ACTUAL-TIME BASIS RATHER THAN ON A PRORATED BASIS, SUBJECT TO ADJUSTMENT ON THE BASIS OF THE $300 PER ANNUM RATE GUARANTEED BY SECTION 3 (B) OF THE ACT.

ACTING COMPTROLLER GENERAL YATES TO THE DIRECTOR OF CENSORSHIP, JULY 18, 1944:

I HAVE YOUR LETTER OF JUNE 24, 1944, AS FOLLOWS:

THIS IS TO SUPPLEMENT MY LETTER OF APRIL 14, 1944, INDICATING THAT THE ADMINISTRATIVE WORKWEEK AT OUR SAN JUAN, BALBOA, AND HONOLULU STATIONS WAS ESTABLISHED AT 44 HOURS EFFECTIVE JULY 1, 1943, WITH PROVISION FOR WORK IN EXCESS OF 44 HOURS PER WEEK WHEN NECESSARY. THE ORDER ESTABLISHING THE SHORTER WORKWEEK PROVIDED THAT WORK PERFORMED BETWEEN 44 AND 48 HOURS PER WEEK WOULD BE COMPENSATED FOR, EITHER BY OVERTIME PAY OR COMPENSATORY TIME OFF, AS DETERMINED BY THE STATION HEAD,AND THAT WORK PERFORMED IN EXCESS OF 48 HOURS WOULD BE COMPENSATED FOR BY COMPENSATORY TIME OFF. ENCLOSED WITH MY LETTER OF APRIL 14 WAS A TABLE OF RATES (DEVISED FOR USE IN COMPUTING ADDITIONAL COMPENSATION FOR REGULAR FULL-TIME PER ANNUM EMPLOYEES FOR OVERTIME WORKED IN EXCESS OF 44 HOURS PER WEEK) WHICH HAD BEEN FORWARDED TO THIS OFFICE BY OUR SAN JUAN POSTAL STATION. ADVICE WAS REQUESTED IN MY PREVIOUS LETTER AS TO WHETHER OR NOT THE METHOD USED TO ARRIVE AT THE COMPUTATIONS SHOWN ON THE TABLE OF RATES WAS CORRECT.

YOUR REPLY DATED MAY 1, 1944, B-41486, STATED: "AN EXAMINATION OF THE TABLE DISCLOSES THAT THE INDICATED OVERTIME HAD BEEN COMPUTED UPON THE BASIS OF 4 HOURS PER WEEK, SAID 4 HOURS REPRESENTING THE TIME WORKED IN EXCESS OF 40 HOURS PER WEEK, SUBJECT TO THE REQUIREMENT OF THE WAR OVERTIME PAY ACT OF 1943, APPROVED MAY 7, 1943, PUBLIC LAW 49, THAT THE AMOUNT OF THE ADDITIONAL COMPENSATION BE AT THE RATE OF NOT LESS THAN $300 PER ANNUM. WHILE THE RATES SHOWN ON THE TABLE HAVE NOT BEEN VERIFIED, THE METHOD EMPLOYED APPEARS TO BE CORRECT.'

ADDITIONAL INFORMATION, TOGETHER WITH A REQUEST FOR FURTHER CLARIFICATION OF THIS MATTER IS PRESENTED BELOW, SINCE RECENT DEVELOPMENTS INDICATE THAT THERE ARE THREE POSSIBLE METHODS OF COMPUTING PAYMENT FOR ADDITIONAL OVERTIME WORKED IN EXCESS OF 44 HOURS PER WEEK.

IN CONNECTION WITH THE ABOVE MENTIONED TABLE OF RATES IT WILL BE OBSERVED THAT, SINCE THE ADMINISTRATIVE WORKWEEK HAS BEEN ESTABLISHED AT 44 HOURS PER WEEK, EMPLOYEES IN GRADES HAVING A BASIC COMPENSATION(INCLUDING THE 25 PERCENT DIFFERENTIAL FOR FOREIGN SERVICE) OF $2270 OR LESS, DO NOT EARN OVERTIME IN AN AMOUNT SUFFICIENT TO REACH THE $300 MINIMUM PRESCRIBED BY PUBLIC LAW 49. FOR PAYMENT OF TIME WORKED IN EXCESS OF 44 HOURS PER WEEK, THE SAN JUAN POSTAL STATION APPEARS TO HAVE PREPARED THAT PORTION OF THE SUBJECT TABLE OF RATES TITLED " BALANCE TO BE PAID FOR OVERTIME AT 4 HOURS PER WEEK IN EXCESS OF 44 HOURS" ON THE PREMISE THAT THE DIFFERENCE BETWEEN THE AMOUNT OF OVERTIME PAYABLE FOR A 48-HOUR WORKWEEK, LESS THE MINIMUM PAYMENT REQUIRED BY PUBLIC LAW 49 FOR A 44-HOUR WORKWEEK, IS THE DIFFERENCE TO BE PAID FOR WORK BETWEEN THE 44 AND 48-HOUR WORKWEEK. AS AN EXAMPLE, A GRADE CAF-4 EMPLOYEE WITH AN ANNUAL SALARY (INCLUDING THE 25 PERCENT DIFFERENTIAL FOR FOREIGN SERVICE) OF $2250 ON THE BASIS OF A 48- HOUR WORKWEEK WOULD BE ENTITLED TO $20.31 OVERTIME PAY. ON A 44-HOUR WORKWEEK, HOWEVER, SUCH EMPLOYEE WOULD EARN $10.15 BUT WOULD BE PAID, IN ADDITION TO THAT AMOUNT, A GRATUITY OF $2.35 TO REACH THE MINIMUM PAYMENT OF $12.50, AND FOR TIME WORKED IN EXCESS OF 44 HOURS WOULD BE PAID AT THE RATE OF .9112 PER HOUR COMPUTED BY DIVIDING THE DIFFERENCE BETWEEN THE $20.31 OVERTIME EARNED ON THE BASIS OF A 48 HOUR WORKWEEK AND THE MINIMUM PAYMENT OF $12.50, OR $7.81, BY 15 (THE NUMBER OF DAYS IN THE PAY PERIOD) THUS DETERMINING THE AMOUNT OF OVERTIME PER DAY TO BE $0.52, OR $4.28 FOR 14 DAYS OR 2 WEEKS, BUT PAYABLE ON THE BASIS OF 4 HOURS PER WEEK, OR $3.64 PER WEEK DIVIDED BY 4 HOURS, THEREFORE MAKING THE PAYMENT PER HOUR $0.91.

IN ACCORDANCE WITH THE METHOD OF COMPUTATION SET FORTH ON THE ABOVE MENTIONED TABLE OF RATES, A GRADE CAF-4 EMPLOYEE WHO WORKED A 46-HOUR WEEK AND A 47-HOUR WEEK IN THE SAME PAY PERIOD (ASSUMING THE 15TH DAY TO BE IN A 44-HOUR WORKWEEK) WOULD BE PAID AS FOLLOWS:

TABLE

BASE PAY ----------------------------------------------- $93.75

PLUS MINIMUM OVERTIME COMPENSATION --------------------- 12.50

106.25

5 HOURS X .9112 (RATE PER HOUR) ------------------------ 4.56

TOTAL PAYMENT ------------------------------------ $110.81

HOWEVER, IF THE FORMULA SET FORTH IN SUPPLEMENT 116 TO GENERAL ACCOUNTING OFFICE GENERAL REGULATIONS NO. 54, DATED OCTOBER 30, 1943, IS FOLLOWED, A GRADE CAF-1 EMPLOYEE, WITH AN ANNUAL SALARY OF $2250 (INCLUDING THE 25 PERCENT DIFFERENTIAL FOR FOREIGN SERVICE) WHO WORKED A 46-HOUR AND A 47- HOUR WEEK DURING THE SAME PAY PERIOD (WITH THE 15TH DAY ASSUMED TO BE IN A 44-HOUR WORKWEEK) SHOULD BE PAID AS FOLLOWS,*

TABLE

HOURS WORKED--- 8 X DAYS WORKED--- 360 EQUALS 2880

PER ANNUM SALARY--- $2250 DIVIDED BY YEARLY HOURS WORKED--- 2880 EQUALS

RATE PER HOUR .781250 PLUS 1/2 RATE PER HOUR .390625

TIME AND ONE-HALF TIME EQUALS $1.171875

47-HOUR WEEK

ANNUAL OVERTIME - 7 HOURS X 52 WEEKS EQUALS 364 HOURS

364 HOURS X $1.171875 EQUALS $426.56

$426.56 DIVIDED BY 24 EQUALS $17.77 OVERTIME PER PAY PERIOD

$17.77 DIVIDED BY 15 EQUALS $1.18 (466) OVERTIME PER DAY

$1.18 (466) X 7 EQUALS $8.29 (626) EQUALS $8.29 OVERTIME FOR ONE WEEK.

46-HOUR WEEK

ANNUAL OVERTIME--- 6 HOURS X 52 WEEKS EQUALS 312 HOURS

312 HOURS X $1.171875 EQUALS 365.62

$365.62 DIVIDED BY 24 EQUALS $15.23 OVERTIME PER PAY PERIOD.

$15.23 DIVIDED BY 15 EQUALS $1.01 (533) OVERTIME PER DAY

$1.01 (533) X 7 EQUALS $7.10 (733) EQUALS $7.10 OVERTIME FOR ONE WEEK

44-HOUR WEEK

ANNUAL OVERTIME - 4 HOURS X 52 WEEKS EQUALS 208 HOURS

208 HOURS X $1.171875 EQUALS $243.75

$243.75 DIVIDED BY 24 EQUALS $10.15 (625) OVERTIME PER PAY PERIOD

$10.15 (625) DIVIDED BY 15 EQUALS $0.67 (708) EQUALS $0.67 OVERTIME PER

DAY

ANNUAL SALARY $2250 DIVIDED BY 24 PAY PERIODS EQUALS $93.75 PER PAY

PERIOD

BASE SALARY EQUALS --------------------------------------------$ 93.75

OVERTIME EQUALS 1 DAY--- 44-HOUR WEEK EQUALS ---------- .67

7 DAYS--- 46-HOUR WEEK EQUALS --------- 7.10

7 DAYS--- 47-HOUR WEEK EQUALS --------- 8.29

TOTAL OVERTIME ------------------------------------------ 16.06

TOTAL EARNED -------------------------------------------- 109.81

IT APPEARS, HOWEVER, THAT BOTH OF THE ABOVE MENTIONED METHODS OF COMPUTATION MAY BE INCORRECT IN VIEW OF YOUR HOLDING IN 22 COMP. GEN. 778 TO THE SECRETARY OF AGRICULTURE THAT "WHILE--- THE REGULATIONS AND THE LAW AUTHORIZES PAYMENT OF INCREASED COMPENSATION PURSUANT TO AN OVERTIME FORMULA, ALSO, FOR EMPLOYMENT BEYOND THE OFFICIALLY ESTABLISHED WORKWEEK WHEN ORDERED OR APPROVED BY THE PROPER ADMINISTRATIVE OFFICER, THE PRORATING ON AN ANNUAL BASIS OF SUCH ADDITIONAL INCREASE IN COMPENSATION WOULD BE IMPRACTICABLE AND IS NOT AUTHORIZED OR REQUIRED. ACCORDINGLY, THIS OFFICE IS IN AGREEMENT WITH THE VIEW EXPRESSED IN THE LAST SENTENCE OF THE THIRD PARAGRAPH OF YOUR LETTER "THAT EXCESS OVERTIME WHICH MAY BE REQUIRED FROM TIME TO TIME SHOULD BE PAID ON AN ACTUAL BASIS, I.E., ONE AND ONE-HALF TIMES THE BASIC HOURLY RATE CALCULATED AS REQUIRED BY THE ACT AND ORDER, FOR SUCH EXCESS OVERTIME HOURS.'"

UNDER THAT METHOD OF COMPUTATION, I.E., ON THE BASIS OF STRAIGHT TIME AND ONE-HALF FOR HOURS WORKED IN EXCESS OF THE ADMINISTRATIVE WORKWEEK, A GRADE CAF-4 EMPLOYEE WITH AN ANNUAL SALARY (INCLUDING THE 25 PERCENT DIFFERENTIAL FOR FOREIGN SERVICE) OF $2250 WHO WORKED A 46 HOUR WEEK AND A 47-HOUR WEEK IN THE SAME PAY PERIOD (WITH THE 15TH DAY ASSUMED TO BE IN A 44-HOUR WEEK) WOULD BE AS FOLLOWS:

TABLE

BASE PAY ----------------------------------------------------- $93.75

PLUS MINIMUM OVERTIME COMPENSATION --------------------------- 12.50

$106.25

5 HOURS X $1.17187 (TIME AND HALF-TIME) (5.859) -------------- 5.86

$112.11

IN VIEW OF THE FOREGOING, YOUR ADVICE IS REQUESTED AS TO THE FOLLOWING:

1. SHOULD THE METHOD OF COMPUTATION USED BY THE SAN JUAN POSTAL STATION AS SET FORTH ON THE ABOVE-MENTIONED TABLE OF RATES BE USED TO COMPUTE THE AMOUNT OF OVERTIME PAYABLE FOR WORK PERFORMED IN EXCESS OF THE ADMINISTRATIVE WORKWEEK OF 44 HOURS PER WEEK?

2. SHOULD THE FORMULA SET FORTH IN SUPPLEMENT 16 TO GENERAL ACCOUNTING OFFICE GENERAL REGULATIONS NO 54 BE USED TO COMPUTE THE AMOUNT OF OVERTIME PAYABLE FOR THE WORK PERFORMED IN EXCESS OF THE ADMINISTRATIVE WORKWEEK OF 44 HOURS PER WEEK?

3. SHOULD STRAIGHT TIME AND ONE-HALF BE PAID FOR OVERTIME PERFORMED IN EXCESS OF THE ADMINISTRATIVE WORKWEEK OF 44 HOURS PER WEEK?

4. IF EITHER THE METHOD REFERRED TO IN PARAGRAPHS NUMBERED ONE OR THREE ABOVE BE DETERMINED AS THE PROPER METHOD, SHOULD THE COMPENSATION OF AN EMPLOYEE WHO HAS EARNED ADDITIONAL COMPENSATION FOR WORK IN EXCESS OF THE 44-HOUR WORKWEEK BE REDUCED BY THE AMOUNT OF THE GRATUITY PAID TO REACH THE MINIMUM OVERTIME PAYMENT REQUIRED BY LAW WHEN SUCH EMPLOYEE HAS BEEN PAID SUCH GRATUITY?

5. IF NONE OF THE METHODS SET FORTH IN PARAGRAPHS NUMBERED ONE, TWO, AND THREE FOR COMPUTING OVERTIME FOR WORK PERFORMED IN EXCESS OF THE 44-HOUR WORKWEEK ARE CORRECT, WHAT METHOD OF COMPUTATION SHOULD BE USED?

IN CONNECTION WITH QUESTION NUMBER 4, IT SHOULD BE NOTED THAT IF YOUR ANSWER IS IN THE AFFIRMATIVE, THE SUM OF $2.35 SHOULD BE DEDUCTED FROM THE AMOUNTS COMPUTED UNDER THE FIRST AND LAST METHODS OF COMPUTATION CITED ABOVE. IT SHOULD ALSO BE NOTED THAT, ON A PAY PERIOD BASIS, EMPLOYEES EARNING LESS THAN $1585 PER ANNUM WORKING LESS THAN A 48-HOUR WEEK, REQUIRE A GRATUITY TO REACH THE MINIMUM OVERTIME PAYMENT; EMPLOYEES EARNING LESS THAN $1860 PER ANNUM, WORKING LESS THAN A 47-HOUR WEEK, REQUIRE A GRATUITY TO REACH THE MINIMUM; EMPLOYEES EARNING LESS THAN $2220 PER ANNUM, WORKING LESS THAN 46-HOUR WEEK, REQUIRE A GRATUITY TO REACH THE MINIMUM; AND EMPLOYEES EARNING LESS THAN $2770 PER ANNUM, WORKING LESS THAN A 45-HOUR WEEK, REQUIRE A GRATUITY TO REACH THE MINIMUM.

SECTIONS 2 AND 3 (B) OF THE WAR OVERTIME PAY ACT OF 1943, APPROVED MAY 7, 1943, 57 STAT. 76 ( PUBLIC LAW 49), PROVIDE AS FOLLOWS:

SEC. 2. OFFICERS AND EMPLOYEES TO WHOM THIS ACT APPLIES AND WHO ARE NOT ENTITLED TO ADDITIONAL COMPENSATION UNDER SECTION 3 SHALL BE PAID OVERTIME COMPENSATION COMPUTED ON THE SAME BASIS AS THE OVERTIME COMPENSATION WHICH WAS AUTHORIZED TO BE PAID UNDER PUBLIC LAW NUMBERED 821, SEVENTY-SEVENTH CONGRESS: PROVIDED, THAT SUCH OVERTIME COMPENSATION SHALL BE PAID ON SUCH PORTION OF AN OFFICER'S OR EMPLOYEE'S BASIC RATE OF COMPENSATION NOTWITHSTANDING THE FACT THAT SUCH PAYMENT WILL CAUSE HIS AGGREGATE COMPENSATION TO EXCEED A RATE OF $5,000 PER ANNUM: PROVIDED FURTHER, THAT SUCH OVERTIME COMPENSATION SHALL BE PAID ON SUCH PORTION OF AN OFFICER'S OR EMPLOYEE'S BASIC RATE OF COMPENSATION NOTWITHSTANDING THE FACT THAT SUCH PAYMENT WILL CAUSE HIS AGGREGATE COMPENSATION TO EXCEED A RATE OF $5,000 PER ANNUM: AND PROVIDED FURTHER, THAT IN LIEU OF OVERTIME COMPENSATION FOR WORK IN EXCESS OF FORTY-EIGHT HOURS IN ANY ADMINISTRATIVE WORKWEEK, THE HEADS OF DEPARTMENTS, ESTABLISHMENTS, AND AGENCIES MAY IN THEIR DISCRETION GRANT PER ANNUM EMPLOYEES COMPENSATORY TIME OFF FROM DUTY.

SEC. 3 (A) * * *

(B) ANY OFFICER OR EMPLOYEE TO WHOM THIS ACT APPLIES AND WHO IS ENTITLED TO NO ADDITIONAL COMPENSATION UNDER SUBSECTION (A) OR SUBSECTION (C) FOR A PAY PERIOD, SHALL BE PAID FOR SUCH PAY PERIOD, IN LIEU OF OVERTIME COMPENSATION UNDER SECTION 2, ADDITIONAL COMPENSATION AT THE RATE OF $300 PER ANNUM, UNLESS HIS OVERTIME COMPENSATION UNDER SECTION 2 FOR SUCH PAY PERIOD IS AT LEAST EQUAL TO SUCH ADDITIONAL COMPENSATION.

REFERRING TO THE STATEMENT IN THE FIRST PARAGRAPH OF YOUR LETTER "THAT WORK PERFORMED BETWEEN 44 AND 48 HOURS PER WEEK WOULD BE COMPENSATED FOR, EITHER BY OVERTIME PAY OR COMPENSATORY TIME OFF, AS DETERMINED BY THE STATION HEAD," YOUR ATTENTION IS INVITED TO THE THIRD PROVISO IN SECTION 2 OF THE STATUTE, SUPRA, WHICH LIMITS ADMINISTRATIVE DISCRETION TO GRANT COMPENSATORY TIME OFF IN LIEU OF PAYING OVERTIME COMPENSATION "FOR WORK IN EXCESS OF FORTY-EIGHT HOURS IN ANY ADMINISTRATIVE WORKWEEK.' HENCE, OVERTIME COMPENSATION MUST BE PAID FOR ALL WORK PERFORMED BETWEEN 44 AND 48 HOURS PER WEEK. ALL OVERTIME COMPENSATION FOR EMPLOYEES COMING WITHIN THE PURVIEW OF THE QUOTED STATUTE IS REQUIRED TO BE COMPUTED IN ACCORDANCE WITH SECTION 2 OF THE STATUTE, WHETHER IT BE REGULAR, PRORATED OVERTIME COMPENSATION ON A 44-HOUR WORKWEEK BASIS, AS IN THIS INSTANCE, OR OVERTIME IN EXCESS OF THE REGULARLY ESTABLISHED WORKWEEK OF 44 HOURS WHICH IS FOR COMPUTING ON AN ACTUAL TIME BASIS. SECTION 3 (B) OF THE STATUTE MERELY SERVES AS A GUARANTEE THAT AN EMPLOYEE WILL NOT RECEIVE LESS ADDITIONAL WARTIME COMPENSATION IN LIEU OF OVERTIME COMPENSATION UNDER SECTION 2 OF THE STATUTE THAN AT THE RATE OF $300 PER ANNUM, WHETHER THE OVERTIME COMPENSATION IN LIEU OF WHICH THE GUARANTEE IS PAID IS PRORATED ON THE BASIS OF A REGULARLY ESTABLISHED WORKWEEK OR IS PAID ON AN ACTUAL TIME BASIS FOR OVERTIME PERFORMED IN EXCESS OF THE REGULARLY ESTABLISHED WORKWEEK. ACCORDINGLY, IN ANY PAY PERIOD IN WHICH AN EMPLOYEE WORKS SUFFICIENT OVERTIME TO ENTITLE HIM TO OVERTIME COMPENSATION AT A RATE OF NOT LESS THAN $300 PER ANNUM, THE GUARANTEE IS SATISFIED AND THE EMPLOYEE BECOMES ENTITLED ONLY TO THE OVERTIME COMPENSATION. LIKEWISE, IF SUFFICIENT OVERTIME IS WORKED TO SATISFY A PORTION OF THE GUARANTEE THERE MUST BE A PROPORTIONATE REDUCTION IN THE GUARANTEE OF $300 PER ANNUM.

IN VIEW OF THE ABOVE AND PURSUANT TO THE RULES STATED IN 22 COMP. GEN. 778, CITED IN YOUR LETTER, THE THIRD FORMULA STATED IN YOUR LETTER, WOULD BE THE CORRECT ONE FOR USING, SUBJECT, OF COURSE, TO AN ADJUSTMENT ALONG THE LINE STATED IN THE CONCLUDING PARAGRAPH OF YOUR LETTER AND IN CONSONANCE WITH THE PRINCIPLE STATED IN THE LAST TWO SENTENCES OF THE PRECEDING PARAGRAPH.

QUESTION 1 IS ANSWERED IN THE NEGATIVE.

REFERRING TO QUESTION 2, SUPPLEMENT NO. 16 OF REGULATION NO. 54 OF THIS OFFICE RELATED TO EMPLOYEES WORKING A 48-HOUR WEEK AND HAS BEEN SUPERSEDED BY SUPPLEMENT NO. 17 OF REGULATION NO 54, DATED OCTOBER 30, 1943, 23 COMP. GEN. 995. HENCE, QUESTION 2 IS ANSWERED IN THE NEGATIVE.

QUESTIONS 3 AND 4 ARE ANSWERED IN THE AFFIRMATIVE, MAKING IT UNNECESSARY TO ANSWER QUESTION 5.