Arbitration Award of Per Diem for Travel to Nearby Duty Station

An assistant secretary of the Department of the Treasury, requested a ruling as to whether the Department had the authority to implement arbitration awards of per diem for travel to nearby temporary duty stations. The arbitrator's award of per diem to the employees should be resubmitted to him since the award was based on a finding that the agency's definition of the Chicago commuting area was improper. No determination was made that the employees' residences were outside their commuting areas, as required by Internal Revenue Service instruction.