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A Defense Logistics Agency (DLA) employee, who requested a downgrade from a wage grade position to a lower graded General Schedule (GS) position, challenged the application of the policy by which his pay was set under regulations issued by the Defense General Supply Center at a representative rate. The employee argued that his rate should have been set higher since his wage grade rate exceeded all rates in the GS classification to which he was assigned. He argued that the rate of pay of other DLA employees had been set giving them the maximum benefit of a highest previous rate rule. When an agency formulates its own policy, an employee does not have a right to be paid at the maximum allowable under the highest previous rate rule. Since GAO found that a valid DLA regulation authorized the setting of the employee's rate at a representative rate, GAO found no basis upon which to disturb the action of the agency.


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