B-32242, FEBRUARY 10, 1943, 22 COMP. GEN. 783

B-32242, FEBRUARY 10, 1943, 22 COMP. GEN. 783

OVERTIME COMPENSATION UNDER ACT OF DECEMBER 22, 1942 - METHOD OF COMPUTATION FOR FULL TIME EMPLOYEES PAID ON PER DIEM BASIS FOR EVERY DAY OF THE YEAR UNDER THE OVERTIME ACT OF DECEMBER 22, 1942, AND EXECUTIVE ORDER NO. 9289 ISSUED IN CONNECTION THEREWITH, OVERTIME COMPENSATION FOR FULL TIME EMPLOYEES WHO RECEIVE PER DIEM COMPENSATION FOR EVERY DAY OF THE YEAR SHOULD BE COMPUTED BY MULTIPLYING THE PRESENT DAILY RATE BY 365 TO DETERMINE THE ANNUAL RATE, WHICH SHOULD BE DIVIDED BY 360 TO ASCERTAIN THE DAILY RATE FOR OVERTIME PURPOSES, AND SUCH DAILY RATE SHOULD BE MULTIPLIED BY ONE AND ONE-HALF (THE OVERTIME RATE) AND THAT AMOUNT MULTIPLIED BY 52 (WEEKS IN A YEAR) TO DETERMINE THE PER ANNUM OVERTIME RATE, FROM WHICH AMOUNT THE DAILY RATE OF OVERTIME COMPENSATION IS OBTAINED BY DIVIDING THE SAID PER ANNUM OVERTIME RATE BY 365.

COMPTROLLER GENERAL WARREN TO THE SECRETARY OF COMMERCE, FEBRUARY 10, 1943:

I HAVE YOUR LETTER OF FEBRUARY 3, 1943, AS FOLLOWS:

IN CONNECTION WITH PUBLIC LAW 821, 77TH CONGRESS, IT IS REQUESTED THAT THE FOLLOWING BE CONSIDERED AND A DECISION BE RENDERED FOR THE BUREAU OF THE CENSUS.

THE DIRECTOR OF THE CENSUS IS PERMITTED BY LAW ( U.S.C. TITLE 13, SEC. 203) TO APPOINT, WITHOUT REGARD TO THE PROVISIONS OF SECTIONS 661- - 673 AND 674 OF U.S.C. TITLE 5, FOR ANY PERIOD NOT EXTENDING BEYOND THE DECENNIAL CENSUS PERIOD AT RATES OF COMPENSATION TO BE FIXED BY HIM, AS MANY TEMPORARY EMPLOYEES IN THE DISTRICT OF COLUMBIA AS MAY BE NECESSARY TO MEET THE REQUIREMENTS OF THE WORK.

EMPLOYEES HIRED UNDER THIS AUTHORITY ARE APPOINTED ON A "PER DIEM EVERY DAY" BASIS AND ARE THEREFORE PAID FOR 365 DAYS PER YEAR. THESE EMPLOYEES WORK 8 HOURS EACH DAY EXCEPT SUNDAYS AND HOLIDAYS.

SINCE THE RATES PAID ARE NOT SUBJECT TO ADJUSTMENT FROM TIME TO TIME IN ACCORDANCE WITH PREVAILING RATES BY WAGE BOARDS OR SIMILAR ADMINISTRATIVE AUTHORITY SERVING THE SAME PURPOSE, IT IS UNDERSTOOD THAT THESE EMPLOYEES ARE ENTITLED TO OVERTIME. IT IS THEREFORE REQUESTED THAT THIS BUREAU BE ADVISED OF THE FORMULA TO BE USED IN ARRIVING AT THE AMOUNT OF OVERTIME TO BE PAID FOR EACH DAY. FOR EXAMPLE, WHAT INCREASE PER DAY SHOULD BE GIVEN AN EMPLOYEE FOR OVERTIME WHOSE DAILY RATE OF PAY IS NOW $3.95?

PUBLIC LAW 821, APPROVED DECEMBER 22, 1942, 56 STAT. 1068, EXTENDS TO ALL CIVILIAN EMPLOYEES IN OR UNDER THE UNITED STATES GOVERNMENT (WITH CERTAIN EXCEPTIONS NOT HERE INVOLVED) THE SAME FORMULA FOR PAYING OVERTIME COMPENSATION THAT WAS PRESCRIBED IN THE SEVERAL EARLIER STATUTES MENTIONED IN THE JOINT RESOLUTION OF JULY 3, 1942, PUBLIC LAW 652, AS AMENDED BY JOINT RESOLUTION APPROVED OCTOBER 2, 1942, 56 STAT. 765, PUBLIC LAW 728. THAT FORMULA IS THE SAME IN ALL OF SAID EARLIER STATUTES AND IS AS FOLLOWS (QUOTING FROM SECTION 1 OF THE ACT OF JUNE 3, 1941, 55 STAT. 241, ONE OF THE STATUTES MENTIONED IN SAID JOINT RESOLUTION OF JULY 3, 1942):

THAT COMPENSATION FOR EMPLOYMENT IN EXCESS OF FORTY HOURS IN ANY ADMINISTRATIVE WORKWEEK COMPUTED AT A RATE OF ONE AND ONE-HALF TIMES THE REGULAR RATE IS HEREBY AUTHORIZED TO BE PAID * * * PROVIDED, THAT IN DETERMINING THE OVERTIME COMPENSATION OF THE FOREGOING PER ANNUM EMPLOYEES THE PAY FOR ONE DAY SHALL BE CONSIDERED TO BE ONE THREE HUNDRED-AND- SIXTIETH OF THE RESPECTIVE PER ANNUM SALARIES.

ACCORDINGLY, THE INCREASED COMPENSATION ON AN "OVERTIME" BASIS FOR EMPLOYEES OF THE BUREAU OF THE CENSUS WHO RECEIVE PER DIEM COMPENSATION FOR EVERY DAY OF THE YEAR (FULL-TIME EMPLOYEES), SHOULD BE COMPUTED BY MULTIPLYING THE PRESENT DAILY RATE BY 365 TO DETERMINE THE ANNUAL RATE WHICH ANNUAL RATE SHOULD BE DIVIDED BY 360 TO DETERMINE THE DAILY RATE FOR OVERTIME PURPOSES, TO BE PRORATED ON A PER ANNUM BASIS PURSUANT TO SECTION 3 OF THE PRESIDENT'S REGULATIONS, EXECUTIVE ORDER NO. 9289, DATED DECEMBER 26, 1942, VIZ, $3.95 MULTIPLIED BY 365 EQUALS $1,441.75 PER ANNUM; $1,441.75, THE ANNUAL COMPENSATION, DIVIDED BY 360 EQUALS $4.004, THE PER DIEM RATE FOR OVERTIME PURPOSES; THAT PER DIEM RATE MULTIPLIED BY 1 1/2 EQUALS $6.006, WHICH AMOUNT MULTIPLIED BY 52 (WEEKS IN THE YEAR), WOULD EQUAL $312.31, THE PER ANNUM RATE OF OVERTIME COMPENSATION. THE OVERTIME ON A DAILY BASIS FOR EVERY DAY OF THE YEAR WOULD BE DETERMINED BY DIVIDING $312.31 BY 365, WHICH WOULD EQUAL THE SUM OF $0.85564.