B-63473, MARCH 5, 1947, 26 COMP. GEN. 658

B-63473, MARCH 5, 1947, 26 COMP. GEN. 658

COMPENSATION - AGGREGATE LIMITATION - APPLICABILITY TO PER ANNUM WAGE BOARD, ETC., EMPLOYEES PAID OVERTIME COMPENSATION PURSUANT TO SECTION 203, FEDERAL EMPLOYEES PAY ACT OF 1945 PER ANNUM EMPLOYEES OF THE GOVERNMENT PRINTING OFFICE WHOSE COMPENSATION IS FIXED BY THE PUBLIC PRINTER PURSUANT TO THE PROVISIONS IN 44 U.S.C. 40, AND, HENCE, ARE WITHIN THE PURVIEW OF SECTION 203 OF THE FEDERAL EMPLOYEES PAY ACT OF 1945, AUTHORIZING PAYMENT OF OVERTIME COMPENSATION IN ACCORDANCE WITH THE FORTY-HOUR WEEK STATUTE OF MARCH 28, 1934, TO EMPLOYEES WHOSE BASIC COMPENSATION IS FIXED ON AN ANNUAL OR MONTHLY BASIS BY WAGE BOARDS OR SIMILAR ADMINISTRATIVE AUTHORITY, ARE SUBJECT TO THE $10,000 PER ANNUM AGGREGATE COMPENSATION LIMITATION OF SECTION 603 (B) OF THE 1945 ACT, AS AMENDED, INSOFAR AS CONCERNS BASIC PLUS OVERTIME COMPENSATION FOR ANY PAY PERIOD.

COMPTROLLER GENERAL WARREN TO THE PUBLIC PRINTER, MARCH 5, 1947.

THERE HAS BEEN CONSIDERED YOUR LETTER OF JANUARY 28, 1947, AS FOLLOWS:

THE QUESTION HAS ARISEN AS TO THE PROPER METHOD OF COMPUTING PAY, WITH RESPECT TO ANY PAY PERIOD, OF THE EMPLOYEES OF THE GOVERNMENT PRINTING OFFICE WHO COME WITHIN THE PROVISIONS OF SECTION 40, TITLE 44, U.S. CODE, SECTION 23 OF THE ACT OF MARCH 28, 1934, AND SECTION 203 OF THE FEDERAL EMPLOYEES' PAY ACT OF 1945, AND WHOSE BASIC COMPENSATION PLUS ADDITIONAL COMPENSATION FOR OVERTIME EXCEED $10,000 PER ANNUM.

SECTION 40, TITLE 44, U.S. CODE, READS IN PART AS FOLLOWS:

"THE PUBLIC PRINTER MAY EMPLOY, AT SUCH RATES OF WAGES AND SALARIES, INCLUDING COMPENSATION FOR NIGHT AND OVERTIME WORK AS HE MAY DEEM FOR THE INTEREST OF THE GOVERNMENT AND JUST TO THE PERSONS EMPLOYED * * *.'

SECTION 23 OF THE ACT OF MARCH 28, 1034 (40-HOUR-WEEK LAW) READS AS FOLLOWS:

"THE WEEKLY COMPENSATION, MINUS ANY GENERAL PERCENTAGE REDUCTION WHICH MAY BE PRESCRIBED BY ACT OF CONGRESS, FOR THE SEVERAL TRADES AND OCCUPATIONS, WHICH IS SET BY WAGE BOARDS OR OTHER WAGE-FIXING AUTHORITIES, SHALL BE REESTABLISHED AND MAINTAINED AT RATES NOT LOWER THAN NECESSARY TO RESTORE THE FULL WEEKLY EARNINGS OF SUCH EMPLOYEES IN ACCORDANCE WITH THE FULL-TIME WEEKLY EARNINGS UNDER THE RESPECTIVE WAGE SCHEDULES IN EFFECT ON JUNE 1, 1932: PROVIDED, THAT THE REGULAR HOURS OF LABOR SHALL NOT BE MORE THAN FORTY PER WEEK; AND ALL OVERTIME SHALL BE COMPENSATED FOR AT THE RATE OF NOT LESS THAN TIME AND ONE HALF.'

SECTION 203 OF THE FEDERAL EMPLOYEES' PAY ACT OF 1945, PUBLIC LAW NO. 106, APPROVED JUNE 30, 1945, READS AS FOLLOWS:

"EMPLOYEES WHOSE BASIC RATE OF COMPENSATION IS FIXED ON AN ANNUAL OR MONTHLY BASIS AND ADJUSTED FROM TIME TO TIME IN ACCORDANCE WITH PREVAILING RATES BY WAGE BOARDS OR SIMILAR ADMINISTRATIVE AUTHORITY SERVING THE SAME PURPOSE SHALL BE ENTITLED TO OVERTIME PAY IN ACCORDANCE WITH THE PROVISIONS OF SECTION 23 OF THE ACT OF MARCH 28, 1934 ( U.S.C. 1940 EDITION, TITLE 5, SEC. 673C). THE RATE OF COMPENSATION FOR EACH HOUR OF OVERTIME EMPLOYMENT OF ANY SUCH EMPLOYEE SHALL BE COMPUTED AS FOLLOWS:

"/A) IF THE BASIC RATE OF COMPENSATION OF THE EMPLOYEE IS FIXED ON AN ANNUAL BASIS, DIVIDE SUCH BASIC RATE OF COMPENSATION BY TWO THOUSAND AND EIGHTY AND MULTIPLY THE QUOTIENT BY ONE AND ONE-HALF; AND

"/B) IF THE BASIC RATE OF COMPENSATION OF THE EMPLOYEE IS FIXED ON A MONTHLY BASIS, MULTIPLY SUCH BASIC RATE OF COMPENSATION BY TWELVE TO DERIVE A BASIC ANNUAL RATE OF COMPENSATION, DIVIDE SUCH BASIC ANNUAL RATE OF COMPENSATION BY TWO THOUSAND AND EIGHTY, AND MULTIPLY THE QUOTIENT BY ONE AND ONE-HALF.'

IN VIEW OF THE ABOVE, HOW WOULD THE OVERTIME COMPENSATION IN THE FOLLOWING CASE BE COMPUTED? 1. AN EMPLOYEE WHOSE ANNUAL BASIC SALARY IS $8,017.80 PER ANNUM RECEIVES A GROSS AMOUNT OF $308.37 PER BIWEEKLY PAY PERIOD AND IS REQUIRED TO WORK 22 HOURS' OVERTIME DURING THAT PERIOD. THIS OVERTIME WHEN COMPUTED ON THE BASIS OF TIME AND ONE-HALF OF HIS BASIC SALARY EQUALS $127.21. HIS COMPENSATION, BASIC PLUS OVERTIME, AMOUNTS TO $435.58. IF THIS EMPLOYEE WOULD BE REQUIRED TO WORK THE SAME AMOUNT OF OVERTIME DURING EACH PAY PERIOD FOR THE CURRENT CALENDAR YEAR, HIS GROSS SALARY WOULD AMOUNT TO $11,325.08, OR $1,325.08 IN EXCESS OF $10,000. WOULD THE EMPLOYEE BE PERMITTED THE FULL PAY, NAMELY $435.58, FOR THE PAY PERIOD OR WOULD HIS OVERTIME COMPENSATION HAVE TO BE REDUCED SO THAT HIS BASIC SALARY AND OVERTIME COMPENSATION WOULD NOT EXCEED $10,000 PER ANNUM? IN OTHER WORDS, DOES THE LIMIT OF $10,000 PER ANNUM APPLY TO EMPLOYEES OF THE GOVERNMENT PRINTING OFFICE WHO COME WITHIN THE PROVISIONS OF SECTION 40, TITLE 44, U.S. CODE, AND SECTION 23 OF THE ACT OF MARCH 28, 1934?

2. IF YOUR ANSWER IS NEGATIVE, SHOULD THE PAYMENTS WHICH HAVE BEEN MADE TO EMPLOYEES WHOSE BASIC SALARY AND ADDITIONAL COMPENSATION FOR OVERTIME WERE LIMITED TO $10,000 PER ANNUM BE RECOMPUTED?

SECTION 603 (B) OF THE FEDERAL EMPLOYEES PAY ACT OF 1945, 59 STAT. 303, AS AMENDED BY SECTION 7 (A) OF THE FEDERAL EMPLOYEES PAY ACT OF 1946, 60 STAT. 218, PROVIDES:

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.

IT WILL BE NOTED THAT THE INHIBITION CONTAINED IN THE ABOVE-QUOTED SECTION 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.' SECTION 203 OF THE FEDERAL EMPLOYEES PAY ACT OF 1945, 59 STAT. 297, QUOTED IN YOUR LETTER, SPECIFICALLY PROVIDES THAT EMPLOYEES WHOSE BASIC RATE OF COMPENSATION IS FIXED ON AN ANNUAL OR MONTHLY BASIS AND ADJUSTED FROM TIME TO TIME BY WAGE BOARDS OR SIMILAR ADMINISTRATIVE AUTHORITY SHALL BE ENTITLED TO OVERTIME COMPENSATION IN ACCORDANCE WITH THE PROVISIONS OF SECTION 23 OF THE ACT OF MARCH 28, 1934, 48 STAT. 522. HENCE, IT IS CLEAR THAT PERSONS EMPLOYED BY THE PUBLIC PRINTER UNDER THE AUTHORITY VESTED IN HIM BY THE PROVISIONS OF 44 U.S.C. 40, AND WHO ARE PAID ON AN ANNUAL BASIS, ARE ENTITLED, UNDER THE PROVISIONS OF THE SAID SECTION 203 OF THE 1945 STATUTE, TO OVERTIME COMPENSATION AS PRESCRIBED BY SECTION 23 OF THE ACT OF MARCH 28, 1934. CONSEQUENTLY SO FAR AS CONCERNS THE PAYMENT OF BASIC COMPENSATION PLUS OVERTIME, SUCH EMPLOYEES ARE SUBJECT TO THE $10,000 LIMITATION PRESCRIBED BY SECTION 603 (B) OF THE 1945 FEDERAL EMPLOYEES PAY ACT, AS AMENDED.