B-61845, DECEMBER 11, 1946, 26 COMP. GEN. 402

B-61845: Dec 11, 1946

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" SUCH AGGREGATE COMPENSATION LIMITATION IS NOT APPLICABLE TO THE BASIC COMPENSATION OF SUCH EMPLOYEES. 26 COMP. WHERE THE BASIC COMPENSATION OF A PERSON EMPLOYED UNDER CONTRACT OR OTHERWISE ON A PER DIEM BASIS IS FIXED ADMINISTRATIVELY UNDER THE AUTHORITY OF SECTION 8 OF THE MILITARY APPROPRIATION ACT. - IS NOT AT A RATE IN EXCESS OF THE $10. AS FOLLOWS: MILITARY APPROPRIATION ACTS FOR THE PAST SEVERAL YEARS HAVE INCLUDED PROVISIONS SIMILAR IN PURPOSE BUT VARYING SOMEWHAT IN DETAIL FROM THE LANGUAGE OF SECTION 8 OF THE CURRENT LAW MAKING APPROPRIATIONS FOR THE MILITARY ESTABLISHMENT FOR THE FISCAL YEAR 1947. IF IN HIS OPINION THE EXISTING FACILITIES OF THE WAR DEPARTMENT ARE INADEQUATE.

B-61845, DECEMBER 11, 1946, 26 COMP. GEN. 402

FEDERAL EMPLOYEES PAY ACTS OF 1945 AND 1946 - APPLICABILITY TO CONTRACT, ETC., EMPLOYEES - AGGREGATE COMPENSATION LIMITATION PERSONS APPOINTED BY CONTRACT OR OTHERWISE AT PER DIEM RATES OF COMPENSATION FIXED PURSUANT TO SECTION 8 OF THE MILITARY APPROPRIATION ACT, 1947, BEING CIVILIAN OFFICERS OR EMPLOYEES OF THE GOVERNMENT, SHOULD BE PAID OVERTIME COMPENSATION UNDER SECTION 201 OF THE FEDERAL EMPLOYEES PAY ACT OF 1945 FOR EMPLOYMENT IN EXCESS OF 40 HOURS IN ANY ADMINISTRATIVE WORKWEEK IF OTHERWISE ENTITLED THERETO, NOTWITHSTANDING THE ADMINISTRATIVE INTENT THAT SUCH PER DIEM RATES REPRESENT THE TOTAL COMPENSATION PAYABLE FOR SERVICES RENDERED IN ANY ONE DAY REGARDLESS OF THE NUMBER OF HOURS WORKED. SINCE THE BASIC COMPENSATION RECEIVED BY PERSONS EMPLOYED UNDER CONTRACT OR OTHERWISE AT THE MAXIMUM PER DIEM RATE OF $40, A RATE IN EXCESS OF $10,000 PER ANNUM, PURSUANT TO THE AUTHORITY IN SECTION 8 OF THE MILITARY APPROPRIATION ACT, 1947, MAY NOT, IN VIEW OF THE $10,000 AGGREGATE COMPENSATION LIMITATION PROVISION OF SECTION 603 (B) OF THE FEDERAL EMPLOYEES PAY ACT OF 1945, AS AMENDED, BE INCREASED UNDER SECTION 602 (B) OF SAID ACT, AUTHORIZING PERCENTAGE INCREASES IN BASIC COMPENSATION "SPECIFICALLY PRESCRIBED BY STATUTE," SUCH AGGREGATE COMPENSATION LIMITATION IS NOT APPLICABLE TO THE BASIC COMPENSATION OF SUCH EMPLOYEES. 26 COMP. GEN. 227, AMPLIFIED. WHERE THE BASIC COMPENSATION OF A PERSON EMPLOYED UNDER CONTRACT OR OTHERWISE ON A PER DIEM BASIS IS FIXED ADMINISTRATIVELY UNDER THE AUTHORITY OF SECTION 8 OF THE MILITARY APPROPRIATION ACT, 1947, AT A RATE LESS THAN $10,000 PER ANNUM, OVERTIME COMPENSATION FOR WORK IN EXCESS OF 40 HOURS IN ANY ADMINISTRATIVE WORKWEEK MAY BE PAID UNDER SECTION 201 OF THE FEDERAL EMPLOYEES PAY ACT OF 1945, PROVIDED THE TOTAL COMPENSATION PAID--- BASIC PLUS OVERTIME--- IS NOT AT A RATE IN EXCESS OF THE $10,000 PER ANNUM AGGREGATE COMPENSATION LIMITATION OF SECTION 603 (B) OF THE 1945 PAY ACT AS AMENDED. 26 COMP. GEN. 227, AMPLIFIED.

COMPTROLLER GENERAL WARREN TO THE SECRETARY OF WAR, DECEMBER 11, 1946:

THERE HAS BEEN CONSIDERED YOUR LETTER OF NOVEMBER 5, 1946, AS FOLLOWS:

MILITARY APPROPRIATION ACTS FOR THE PAST SEVERAL YEARS HAVE INCLUDED PROVISIONS SIMILAR IN PURPOSE BUT VARYING SOMEWHAT IN DETAIL FROM THE LANGUAGE OF SECTION 8 OF THE CURRENT LAW MAKING APPROPRIATIONS FOR THE MILITARY ESTABLISHMENT FOR THE FISCAL YEAR 1947. THE ABOVE CITED SECTION PROVIDES AS FOLLOWS:

"SEC. 8. WHENEVER, DURING THE FISCAL YEAR ENDING JUNE 30, 1947, THE SECRETARY OF WAR SHOULD DEEM IT TO BE ADVANTAGEOUS TO THE NATIONAL DEFENSE, AND IF IN HIS OPINION THE EXISTING FACILITIES OF THE WAR DEPARTMENT ARE INADEQUATE, HE IS HEREBY AUTHORIZED TO EMPLOY, BY CONTRACT OR OTHERWISE, WITHOUT REFERENCE TO SECTION 3709, REVISED STATUTES, CIVIL- SERVICE OR CLASSIFICATION LAWS, OR SECTION 5 OF THE ACT OF APRIL 6, 1914 (38 STAT. 335), AND AT SUCH RATES OF COMPENSATION (NOT TO EXCEED $40 PER DAY AND TRAVEL EXPENSES, INCLUDING ACTUAL TRANSPORTATION AND PER DIEM IN LIEU OF SUBSISTENCE WHILE TRAVELING FROM THEIR HOMES OR PLACES OF BUSINESS TO OFFICIAL DUTY STATION AND RETURN AS MAY BE AUTHORIZED IN TRAVEL ORDERS OR LETTERS OF APPOINTMENT FOR INDIVIDUALS) AS HE MAY DETERMINE, THE SERVICES OF ARCHITECTS, ENGINEERS, OR FIRMS OR CORPORATIONS THEREOF, AND OTHER TECHNICAL AND PROFESSIONAL PERSONNEL AS MAY BE NECESSARY.'

QUESTION HAS ARISEN CONCERNING PROPER APPLICATION OF THE ABOVE AUTHORITY IN THOSE INSTANCES WHERE SECTIONS 201 AND 603 (B) OF THE FEDERAL EMPLOYEES PAY ACT OF 1945 WOULD AFFECT THE AMOUNT OF COMPENSATION PAYABLE IF THAT STATUTE IS CONSTRUED TO APPLY TO EXPERTS AND CONSULTANTS EMPLOYED OR ENGAGED UNDER THE AUTHORITY QUOTED ABOVE. DECISIONS OF YOUR OFFICE HAVE INDICATED THAT CERTAIN TYPES OF EMPLOYMENT IN THIS CATEGORY WERE SUBJECT TO THE BASIC RATE INCREASES, OVERTIME, AND SALARY LIMITATION PROVISIONS OF THE PAY ACT (25 COMP. GEN. 86, ID. 138, ID. 452, AND ID. 464). SINCE SOME OF THESE DECISIONS APPEAR TO REST ON THE FACT THAT THE DAILY RATES WERE DERIVED FROM CLASSIFICATION ACT SALARY SCHEDULES, DOUBT EXISTED AS TO WHETHER THEY WERE APPLICABLE TO SITUATIONS SIMILAR TO THAT OBTAINING IN AN AGENCY HAVING SUCH BROAD AUTHORITY AS IS REPRESENTED BY THE PORTION OF THE DEPARTMENT'S APPROPRIATION ACT QUOTED ABOVE. IN FACT, IT WAS THE DEPARTMENT'S INTENTION IN REQUESTING AN INCREASE IN MAXIMUM PER DIEM RATES FROM $25 TO $40 THAT THE LATTER AMOUNT WOULD BE A FLAT RATE PAYABLE FOR EACH DAY OF SERVICE, WITHOUT REGARD TO BASIC RATE INCREASES, OVERTIME AUTHORIZATION, OR OTHER PROVISIONS OF THE FEDERAL EMPLOYEES PAY ACTS OF 1945 OR 1946. CERTIFYING OFFICERS HAVE QUESTIONED THE VALIDITY OF THIS VIEW, HOWEVER, AND YOUR ADVICE IS REQUESTED AS TO THE PROPER APPLICATION OF THE STATUTES INVOLVED.

IT IS THE DEPARTMENT'S BELIEF, ESPECIALLY IN VIEW OF CONGRESSIONAL ACTION TO INCREASE THE MAXIMUM DAILY RATE, THAT THIS AUTHORITY WAS INTENDED TO PROVIDE TEMPORARY EXPERT AND CONSULTATIVE SERVICE WITHOUT REGARD TO THE USUAL RULES FOR APPOINTMENT AND COMPENSATION OF GOVERNMENT EMPLOYEES. FOR EACH DAY OF SERVICE A FLAT RATE NOT TO EXCEED $40 WAS AUTHORIZED, WHETHER SUCH SERVICES BE PERFORMED OVER A LONG PERIOD ON AN INTERMITTENT BASIS OR FOR A SHORT BUT SUBSTANTIALLY CONTINUOUS PERIOD. ANY OTHER VIEW WOULD SEEM TO DO VIOLENCE TO A RATHER SIMPLE AND DIRECT INTENT.

AS AN EXAMPLE OF THE COMPLEX SITUATION THAT WOULD RESULT IF THE CONTRARY VIEW WERE TO BE ADOPTED, THE DEPARTMENT HAS SECURED THE SERVICES OF A VERY COMPETENT ADVISOR ON EUROPEAN AFFAIRS AND HAS FIXED HIS RATE AT THE MAXIMUM. OVER A RELATIVELY SHORT PERIOD, HIS SERVICES ARE BEING UTILIZED FULL-TIME, USUALLY SIX OR SEVEN DAYS PER WEEK. IT WOULD SEEM THAT CONGRESS INTENDED THAT HE WOULD RECEIVE THE DAILY RATE OF $40 FOR EACH SUCH DAY. HOWEVER, IF THE OVERTIME PAY PROVISIONS APPLICABLE TO REGULAR EMPLOYEES ARE REQUIRED TO BE APPLIED, HE COULD RECEIVE ONLY A SMALL FRACTION OF THE DAILY RATE FOR HOURS WORKED IN EXCESS OF 40 PER WEEK AND IT WOULD BE REQUIRED THAT A FORTY HOUR TOUR BE ESTABLISHED DESPITE THE FACT THAT HIS RATE OF COMPENSATION IS PRESCRIBED ON A DAILY BASIS WITHOUT REGARD TO HOURS. LIKEWISE, IT IS CONCEIVABLE THAT APPLICATION OF THE OVERTIME PROVISIONS TO SUCH EMPLOYMENT MIGHT CAUSE HIS COMPENSATION TO EXCEED $384.61 IN A PAY PERIOD, THE MAXIMUM PAYABLE UNDER SUBSECTION 7 (B) OF THE FEDERAL EMPLOYEES PAY ACT OF 1946 WHEN EITHER OVERTIME OR BASIC PAY INCREASES ARE INVOLVED. THE ABSURDITY OF THIS RESULT IS EVIDENT WHEN IT IS OBSERVED THAT BY WORKING FIVE EIGHT-HOUR DAYS EACH WEEK DURING THE SAME PERIOD HE COULD RECEIVE A TOTAL OF $400 WITHOUT CONTRAVENING TH LAST CITED PROVISION OF LAW.

YOUR RECENT DECISION TO THE SECRETARY OF STATE (B-60736, OCTOBER 2, 1946) IS BASED ON LEGISLATIVE LANGUAGE SIMILAR IN SCOPE AND INTENT TO THAT PROVIDED IN SECTION 8 OF THE MILITARY APPROPRIATION ACT, 1947. THE LAST PARAGRAPH OF THAT DECISION WOULD SEEM TO PROVIDE AN ANSWER TO THE PRESENT INQUIRY, EXCEPT THAT NO REFERENCE IS MADE TO THE APPLICABILITY OF THE FEDERAL EMPLOYEES PAY ACTS OF 1945 AND 1946OTHER THAN SUBSECTION 7 (B) OF THE LATTER ACT. IN VIEW OF THAT FACT, I HAVE DEFERRED ISSUING INSTRUCTIONS TO CERTIFYING OFFICERS PENDING YOUR FURTHER ADVICE IN THE MATTER. THE INFERENCE OF THIS RECENT DECISION IS THAT THE PAY ACTS ARE NOT APPLICABLE TO ANY PERSONS EMPLOYED UNDER SUCH GENERAL AUTHORITY SINCE, OTHERWISE, IT IS ENTIRELY POSSIBLE THAT APPLICATION OF OTHER OF THEIR SECTIONS WOULD RESULT IN VIOLATION OF THE MAXIMUM SALARY PROVISIONS OF SUBSECTION 7 (B).

IF YOUR DECISION IN THIS MATTER IS IN ACCORD WITH THE DEPARTMENT'S VIEW AS EXPRESSED ABOVE, A FURTHER QUESTION ARISES AS TO WHETHER ANY DISTINCTION SHOULD BE MADE ON THE BASIS OF A RATE FIXED BELOW THE MAXIMUM PROVIDED BY LAW. THAT IS, IF THE RATE IS FIXED AT $20 PER DAY, IS IT NECESSARY TO APPLY A DIFFERENT RULE? AGAIN THE DEPARTMENT FEELS THAT THE INTENT OF CONGRESS DOES NOT REQUIRE SUCH DISTINCTION, SINCE A FLAT DAILY RATE WAS CONTEMPLATED.

THE PROVISION OF THE MILITARY APPROPRIATION ACT QUOTED ABOVE WAS ENACTED SUBSEQUENT TO THE OTHER STATUTES INVOLVED AND PROVIDES A MAXIMUM RATE WHICH, POTENTIALLY AT LEAST, COULD EXCEED THAT FIXED BY THE PAY ACT (E.G. 260 X $40 EQUALS $10,400). WHILE IT WAS UNDER CONSIDERATION BEFORE THE APPROPRIATE SUBCOMMITTEE OF THE COMMITTEE ON APPROPRIATIONS, A REPRESENTATIVE OF THE DEPARTMENT CALLED ATTENTION, BRIEFLY TO THE NEED FOR INCREASING THE MAXIMUM RATE COMMENSURATE WITH THE INCREASE PREVIOUSLY GRANTED TO REGULAR EMPLOYEES (HEARINGS AT PAGE 853). THESE FACTORS, COMBINED WITH YOUR RECENT DECISION, STRENGTHEN THE DEPARTMENT'S BELIEF THAT THE VIEWS EXPRESSED HEREIN ARE THE ONLY CORRECT ONES THAT WOULD BE CONSISTENT WITH THE PURPOSE OF THE AUTHORITY GRANTED BY CONGRESS. ONLY THE POSSIBLE NECESSITY FOR APPLYING RULES LAID DOWN IN YOUR EARLIER DECISIONS (CITED IN THE SECOND PARAGRAPH OF THIS LETTER) CREATES DOUBT ON THE QUESTION.

THERE ARE CURRENTLY EMPLOYED IN THE DEPARTMENT A SMALL NUMBER OF PERSONS WHOSE DUTIES ARE SUCH AS TO MAKE THEM AFFECTED BY THIS INQUIRY. PENDING CLARIFICATION, THEIR PAY PERIOD COMPENSATION IS BEING RESTRICTED TO $384.61. ACCORDINGLY, YOUR EARLY CONSIDERATION OF THE MATTER IS EARNESTLY SOLICITED SO THAT PROPER ADJUSTMENT MAY BE MADE, IF AUTHORIZED.

SECTION 101 (A) OF THE FEDERAL EMPLOYEES PAY ACT OF 1945, 59 STAT. 295, PROVIDES THAT, SUBJECT TO THE EXEMPTIONS SPECIFIED IN SECTION 102 OF THAT ACT, 59 STAT. 296, TITLES II AND III THEREOF SHALL APPLY, INTER ALIA, TO "ALL CIVILIAN OFFICERS AND EMPLOYEES IN OR UNDER THE EXECUTIVE BRANCH OF THE GOVERNMENT.' TITLE II, SECTION 201, OF THE SAID 1945 STATUTE, 59 STAT. 296, READS, IN PART, AS FOLLOWS:

OFFICERS AND EMPLOYEES TO WHOM THIS TITLE APPLIES SHALL, IN ADDITION TO THEIR BASIC COMPENSATION, BE COMPENSATED FOR ALL HOURS OF EMPLOYMENT, OFFICIALLY ORDERED OR APPROVED, IN EXCESS OF FORTY HOURS IN ANY ADMINISTRATIVE WORKWEEK, AT OVERTIME RATES * * *.

PERSONS APPOINTED BY CONTRACT OR OTHERWISE, IN ACCORDANCE WITH THE AUTHORITY VESTED IN THE SECRETARY OF WAR UNDER THE PROVISIONS OF SECTION 8 OF THE MILITARY APPROPRIATION ACT, 1947, 60 STAT. 564, QUOTED IN YOUR LETTER, CLEARLY ARE CIVILIAN OFFICERS OR EMPLOYEES OF THE GOVERNMENT. AND, CONSEQUENTLY, SUCH EMPLOYEES, NOT HAVING BEEN INCLUDED IN THE EXEMPTIONS SPECIFIED IN SECTION 102 OF THE FEDERAL EMPLOYEES PAY ACT OF 1945, ARE WITHIN THE PURVIEW OF THE OVERTIME COMPENSATION PROVISIONS OF SECTION 201 OF THAT ACT. HENCE, NOTWITHSTANDING THE ADMINISTRATIVE INTENT, AS DISCLOSED IN YOUR LETTER, THAT THE PER DIEM RATES OF COMPENSATION FIXED BY CONTRACT OR OTHERWISE PURSUANT TO THE AUTHORITY CONTAINED IN SECTION 8 OF THE MILITARY APPROPRIATION ACT, 1947, REPRESENT THE TOTAL COMPENSATION PAYABLE FOR SERVICES PERFORMED IN ANY ONE DAY REGARDLESS OF THE NUMBER OF HOURS WORKED, OVERTIME COMPENSATION AS PRESCRIBED BY SECTION 201 OF THE 1945 ACT, SUPRA, IS PAYABLE TO SUCH EMPLOYEES IF OTHERWISE ENTITLED THERETO. SEE 25 COMP. GEN. 86. COMPARE 23 ID. 398. FOR LIKE REASONS, THE NIGHT PAY DIFFERENTIAL AND PREMIUM PAY FOR HOLIDAYS AUTHORIZED BY TITLE III OF THE 1945 ACT, AS AMENDED, 60 STAT. 218, WOULD APPLY TO SUCH EMPLOYEES IN APPLICABLE CIRCUMSTANCES.

SECTION 603 (B) OF THE FEDERAL EMPLOYEES PAY ACT OF 1945, AS AMENDED BY SECTION 7 (A) OF THE FEDERAL EMPLOYEES PAY ACT OF 1946, 60 STAT. 218, AND SECTION 7 (B) OF THE LATER ACT RESPECTIVELY PROVIDE:

(B) NOTWITHSTANDING ANY OTHER PROVISION OF THIS ACT, NO OFFICER OR EMPLOYEE SHALL, BY REASON OF THE ENACTMENT OF THIS ACT, OR ANY AMENDMENT THERETO, BE PAID, WITH RESPECT TO ANY PAY PERIOD, BASIC COMPENSATION, OR BASIC COMPENSATION PLUS ANY ADDITIONAL COMPENSATION PROVIDED BY THIS ACT, AT A RATE IN EXCESS OF $10,000 PER ANNUM, EXCEPT THAT (1) ANY OFFICER OR EMPLOYEE WHO WAS RECEIVING OVERTIME COMPENSATION ON JUNE 30, 1945, AND WHOSE AGGREGATE RATE OF COMPENSATION ON SUCH DATE WAS IN EXCESS OF $10,000 PER ANNUM MAY RECEIVE OVERTIME COMPENSATION AT SUCH RATE AS WILL NOT CAUSE HIS AGGREGATE RATE OF COMPENSATION FOR ANY PAY PERIOD TO EXCEED THE AGGREGATE RATE OF COMPENSATION HE WAS RECEIVING ON JUNE 30, 1945, UNTIL HE CEASES TO OCCUPY THE OFFICE OR POSITION HE OCCUPIED ON SUCH DATE OR UNTIL THE OVERTIME HOURS OF WORK IN HIS ADMINISTRATIVE WORKWEEK ARE REDUCED BY ACTION OF THE HEAD OF HIS DEPARTMENT OR INDEPENDENT ESTABLISHMENT OR AGENCY, OR GOVERNMENT-OWNED OR CONTROLLED CORPORATION, AND WHEN SUCH OVERTIME HOURS ARE REDUCED SUCH RATE OF OVERTIME COMPENSATION SHALL BE REDUCED PROPORTIONATELY, AND (2) ANY OFFICER OR EMPLOYEE WHO, BECAUSE OF THE RECEIPT OF ADDITIONAL COMPENSATION IN LIEU OF OVERTIME COMPENSATION, WAS RECEIVING AGGREGATE COMPENSATION AT A RATE IN EXCESS OF $10,000 PER ANNUM ON JUNE 30, 1945, MAY CONTINUE TO RECEIVE SUCH RATE OF AGGREGATE COMPENSATION SO LONG AS HE CONTINUES TO OCCUPY THE OFFICE OR POSITION HE OCCUPIED ON SUCH DATE BUT IN NO CASE BEYOND JUNE 30, 1947.

7 (B) NOTWITHSTANDING ANY OTHER PROVISION OF THIS ACT, NO OFFICER OR EMPLOYEE SHALL, BY REASON OF THE ENACTMENT OF THIS ACT, BE PAID WITH RESPECT TO ANY PAY PERIOD, BASIC COMPENSATION, OR BASIC COMPENSATION PLUS ANY ADDITIONAL COMPENSATION PROVIDED BY THE FEDERAL EMPLOYEES PAY ACT OF 1945, AS AMENDED, AT A RATE IN EXCESS OF $10,000 PER ANNUM.

IT WILL BE NOTED THAT THE INHIBITION CONTAINED IN THE SECTIONS QUOTED ABOVE EXPRESSLY IS DIRECTED AGAINST THE PAYMENT OF BASIC COMPENSATION, OR BASIC COMPENSATION PLUS ANY ADDITIONAL COMPENSATION, FOR ANY PAY PERIOD, AT A RATE IN EXCESS OF $10,000 PER ANNUM "BY REASON OF THE ENACTMENT OF THIS ACT.' SO FAR AS CONCERNS THE MAXIMUM PER DIEM RATE OF BASIC COMPENSATION ($40) AUTHORIZED BY THE SAID SECTION 8 OF THE MILITARY APPROPRIATION ACT, 1947, IT IS CLEAR THAT, BY VIRTUE OF THE PROVISIONS OF SECTIONS 603 (B) AND 7 (B), SUPRA, SUCH BASIC RATE MAY NOT BE INCREASED UNDER THE PROVISIONS OF SECTION 602 (B) OF THE FEDERAL EMPLOYEES PAY ACT OF 1945, AS AMENDED, 60 STAT. 216, AUTHORIZING PERCENTUM INCREASES IN BASIC RATES OF COMPENSATION "SPECIFICALLY PRESCRIBED BY STATUTE OF CONGRESS.' HENCE, THE BASIC COMPENSATION OF PERSONS EMPLOYED AT SUCH PER DIEM RATE, NOT HAVING BEEN INCREASED BY ANY PROVISION OF EITHER THE FEDERAL EMPLOYEES PAY ACT OF 1945 OR OF 1946, IS NOT SUBJECT TO THE $10,000 LIMITATION CONTAINED IN SECTION 603 (B) AND SECTION 7 (B), SUPRA. HOWEVER, WHERE THE BASIC COMPENSATION--- AS ADMINISTRATIVELY DETERMINED UNDER THE AUTHORITY OF SECTION 8 OF THE SAID MILITARY APPROPRIATION ACT, 1947--- IS AT A RATE LESS THAN $10,000 PER ANNUM, AND, BY REASON OF THE EMPLOYEE HAVING BEEN REQUIRED TO WORK IN EXCESS OF 40 HOURS DURING ONE OR BOTH OF THE ADMINISTRATIVE WORKWEEKS COMPRISING SUCH PAY PERIOD, HE IS ENTITLED, UNDER THE PROVISIONS OF SECTION 201, TO OVERTIME COMPENSATION, THE $10,000 PER ANNUM RESTRICTION WOULD BE APPLICABLE SO AS TO LIMIT THE TOTAL COMPENSATION PAID--- BASIC PLUS OVERTIME--- TO A RATE NOT IN EXCESS OF $10,000 PER ANNUM. WITH RESPECT TO THE PARTICULAR EMPLOYEE REFERRED TO IN THE FOURTH PARAGRAPH OF YOUR LETTER, IT WILL BE OBSERVED THAT, ASSUMING HE IS EMPLOYED EVERY WORKDAY IN A GIVEN PAY PERIOD, AND, IN CONNECTION THEREWITH, HE WAS REQUIRED TO WORK IN EXCESS OF 40 HOURS IN EACH OF THE ADMINISTRATIVE WORKWEEKS INVOLVED (E.G., 10 DAYS AT 10 HOURS EACH DAY), HE WOULD BE ENTITLED TO BASIC COMPENSATION IN THE AMOUNT OF $400, BUT, BY VIRTUE OF THE SPECIFIC LIMITATION IN THE SAID SECTIONS 603 (B) AND 7 (B), HE WOULD NOT BE ENTITLED TO OVERTIME COMPENSATION. THUS, IT APPEARS THAT UNDER NO CIRCUMSTANCE WOULD THE APPLICATION OF SECTIONS 201 AND 603 (B) OF THE FEDERAL EMPLOYEES PAY ACT OF 1945, OPERATE TO REDUCE THE TOTAL COMPENSATION WHICH SUCH EMPLOYEE OTHERWISE WOULD RECEIVE IF PAID ON A STRAIGHT TIME DAILY BASIS, ONLY, AS APPEARS TO BE SUGGESTED.

THE STATEMENTS APPEARING IN THE DECISION OF OCTOBER 2, 1946, B 60736, 26 COMP. GEN. 227 REFERRED TO IN YOUR LETTER, WERE MADE WITH RESPECT TO THE BASIC COMPENSATION OF THE EMPLOYEES THERE UNDER CONSIDERATION--- NO QUESTION HAVING BEEN RAISED RESPECTING OVERTIME COMPENSATION AND OTHER PREMIUM RATES OF PAY AUTHORIZED BY THE FEDERAL EMPLOYEES PAY ACT OF 1945 OR 1946, WHICH WOULD OPERATE TO BRING SUCH EMPLOYEES WITHIN THE INHIBITION CONTAINED IN SECTION 603 (B) OR 7 (B) OF THOSE ACTS, RESPECTIVELY--- AND PROPERLY MAY NOT BE VIEWED AS HOLDING THAT PERSONS EMPLOYED WITHOUT REGARD TO CIVIL SERVICE AND CLASSIFICATION LAWS ARE EXEMPT FROM THE SAID $10,000 SALARY LIMITATION UNDER ALL CIRCUMSTANCES.