Wage Retention for Prevailing Rate Employees

A decision was requested regarding the propriety of a proposed amendment to the Federal Personnel Manual (F.P.M.) Supplement 532-1 with regard to the retention of rate of pay for prevailing rate employees and with regard to the legality of three existing pay-savings regulations established prior to the enactment of P.L. 92-392. The proposed regulation which would provide indefinite wage retention for prevailing rate employees where a lower wage schedule would result from changes made by the Civil Service Commission (CSC) in the operating policies and procedures of the Federal Wage System would exceed CSC authority. The congressional intent to permit policies and procedures in effect upon enactment of P.L. 92-392 to continue could be viewed as permitting the existing CSC wage retention regulations to remain in effect. Since the three existing administrative wage retention regulations are inconsistent with the statutory retention provisions applicable to certain categories of prevailing rate employees, the CSC should take action to similarly limit the pay retention periods in the administrative regulations.