B-125101, FEB. 10, 1956
Highlights
THE HOURLY RATES FOR EMPLOYEES WHO CONTINUE TO RECEIVE THEIR EXISTING BASIC RATE OF COMPENSATION AT THE TIME OF CONVERSION WERE. THE LETTER FURTHER STATES THAT THIS HAS RESULTED IN SMALL REDUCTIONS IN GROSS ANNUAL SALARIES TO SOME EMPLOYEES AND THAT SUCH EMPLOYEES HAVE PROTESTED THE REDUCTION CALLING ATTENTION TO SECTION 114 OF PUBLIC LAW 763. BASIC PER ANNUM RATES OF COMPENSATION ESTABLISHED BY OR PURSUANT TO LAW SHALL BE REGARDED AS PAYMENT FOR EMPLOYMENT DURING FIFTY-TWO BASIC ADMINISTRATIVE WORKWEEKS OF FORTY HOURS. "/2) WHENEVER FOR ANY SUCH PURPOSE IT IS NECESSARY TO CONVERT A BASIC MONTHLY OR ANNUAL RATE TO A BASIC BIWEEKLY. WHICH IS THUS INCORPORATED AS PART OF ALL PAY SCHEDULES.
B-125101, FEB. 10, 1956
TO HONORABLE FRANKLIN G. FLOETE, ADMINISTRATOR, GENERAL SERVICES ADMINISTRATION:
IN LETTER OF JANUARY 19, 1956, THE ASSISTANT ADMINISTRATOR, STATES THAT IN ESTABLISHING RATES OF PAY FOR GENERAL SERVICES ADMINISTRATION EMPLOYEES CONVERTED TO WAGE BOARD UNDER PUBLIC LAW 763, APPROVED SEPTEMBER 1, 1955, THE HOURLY RATES FOR EMPLOYEES WHO CONTINUE TO RECEIVE THEIR EXISTING BASIC RATE OF COMPENSATION AT THE TIME OF CONVERSION WERE, PURSUANT TO OUR DECISION OF AUGUST 31, 1955, B-125101, COMPUTED BY MOVING THE FRACTION OF FIVE MILLS AND ABOVE TO THE NEXT FULL CENT AND DROPPING FRACTIONS OF LESS THAN FIVE MILLS. THE LETTER FURTHER STATES THAT THIS HAS RESULTED IN SMALL REDUCTIONS IN GROSS ANNUAL SALARIES TO SOME EMPLOYEES AND THAT SUCH EMPLOYEES HAVE PROTESTED THE REDUCTION CALLING ATTENTION TO SECTION 114 OF PUBLIC LAW 763. THAT SECTION PROVIDES THAT THE "EXISTING RATE OF BASIC COMPENSATION OF ANY PRESENT EMPLOYEE" SHALL NOT BE REDUCED IN CARRYING OUT THE APPLICABLE PROVISIONS OF THE ACT.
SECTION 604 (D) OF FEDERAL EMPLOYEES PAY ACT OF 1949, AS AMENDED BY SECTION 1203 OF THE CLASSIFICATION ACT OF OCTOBER 28, 1949, 63 STAT. 973, PROVIDES AS FOLLOWS:
"/D) (1) HEREAFTER, FOR ALL PAY COMPUTATION PURPOSES AFFECTING OFFICERS OR EMPLOYEES IN OR UNDER THE EXECUTIVE BRANCH, THE JUDICIAL BRANCH, OR THE DISTRICT OF COLUMBIA MUNICIPAL GOVERNMENT,BASIC PER ANNUM RATES OF COMPENSATION ESTABLISHED BY OR PURSUANT TO LAW SHALL BE REGARDED AS PAYMENT FOR EMPLOYMENT DURING FIFTY-TWO BASIC ADMINISTRATIVE WORKWEEKS OF FORTY HOURS.
"/2) WHENEVER FOR ANY SUCH PURPOSE IT IS NECESSARY TO CONVERT A BASIC MONTHLY OR ANNUAL RATE TO A BASIC BIWEEKLY, WEEKLY, DAILY, OR HOURLY RATE, THE FOLLOWING RULES SHALL GOVERN:
"/A) A MONTHLY RATE SHALL BE MULTIPLIED BY TWELVE TO DERIVE AN ANNUAL RATE;
"/B) AN ANNUAL RATE SHALL BE DIVIDED BY FIFTY-TWO OR TWENTY-SIX, AS THE CASE MAY BE, TO DERIVE A WEEKLY OR BI-WEEKLY RATE;
"/C) A WEEKLY OR BIWEEKLY RATE SHALL BE DIVIDED BY FORTY OR EIGHTY, AS THE CASE MAY BE, TO DERIVE AN HOURLY RATE; AND
"/D) A DAILY RATE SHALL BE DERIVED BY MULTIPLYING AN HOURLY RATE BY THE NUMBER OF DAILY HOURS OF SERVICE REQUIRED.
"/3) ALL RATES SHALL BE COMPUTED TO THE NEAREST CENT, COUNTING ONE HALF CENT AND OVER AS A WHOLE CENT.'
IN VIEW OF THE FOREGOING STATUTORY PROVISION, WHICH IS THUS INCORPORATED AS PART OF ALL PAY SCHEDULES, THE FEW CENTS DECREASE IN THE REGULAR PERIODIC PAYMENTS OF THE ANNUAL SALARIES OF EMPLOYEES RESULTING FROM THAT STATUTORY METHOD OF COMPUTATION IS NOT CONSIDERED AS DECREASING "THE EXISTING RATE OF BASIC COMPENSATION" OF SUCH EMPLOYEE WITHIN THE MEANING OF SECTION 114 OF PUBLIC LAW 763.
UNDER THE ABOVE-QUOTED STATUTORY METHOD OF COMPUTING COMPENSATION THERE WOULD BE NO AUTHORITY ,TO MOVE ALL FRACTIONS UP TO THE NEXT FULL PENNY, IN COMPUTING SAVED HOURLY RATES" AS SUGGESTED IN THE CONCLUDING PARAGRAPH OF YOUR ADMINISTRATION'S LETTER.