Allegation of Improper Demotion by FAA Employee

An employee claimed he was improperly demoted from grade GS-12, step 2 to grade GS-11, step 3 instead of GS-11, step 8. The employee was promoted from a GS-11 to a GS-12 position, a developmental position, which required successful completion of a specified training program. When he did not pass the training requirements and qualify for promotion to GS-13, his training was terminated, and pursuant to a voluntary request for demotion, he was demoted to GS-11, step 3, the step to which he would have been entitled had he not been promoted to GS-12. The employee contended that the agency misapplied the intent of its order and guidelines, and believed that although he failed the training requirements for promotion to GS-13, he did meet the requirements for work performance of GS-12 since he performed at an acceptable level of competence and was advanced to GS-12, step 2. The agency guidelines provide that when an employee voluntarily requests a demotion and his salary rate falls between two step rates in the lower grade, he shall be paid the rate of the lower step. Federal regulations provide that an agency may pay a demoted employee at any rate of his grade which does not exceed his highest previous rate. GAO viewed this regulation as vesting discretion in the agency regarding application of the previous rate rule in establishing an employee's rate of pay. GAO found that since the employee did not meet the specified training requirements, his pay rate could not be set at the higher rate, and that the agency exercised proper administrative discretion in placing the demoted employee in the step in the lower grade to which he would have been entitled if he had remained in that grade. Therefore, the claim was denied.