Prevailing Rate Systems; Technical Corrections and Clarifications

SUMMARY: The Office of Personnel Management (OPM) is issuing proposed

regulations to correct and clarify certain matters relating primarily

to pay administration under the Federal Wage System (FWS). The proposed

regulations would correct errors and eliminate ambiguities in the

administration of the system.

DATES: Comments must be received by August 14, 1995.

ADDRESSES: Send or deliver comments to Donald J. Winstead, Assistant

Director for Compensation Policy, Human Resources Systems Service,

Office of Personnel Management, Room 6H31, 1900 E Street NW.,

Washington, DC 20415.

FOR FURTHER INFORMATION CONTACT:

Paul Shields, (202) 606-2848.

SUPPLEMENTARY INFORMATION: Federal agencies have been instrumental in

helping OPM to identify the need for several corrections and

clarifications in FWS regulations. In some cases, errors were noted. In

other instances, regulatory provisions were found to be ambiguous.

Accordingly, the proposed changes include the following: (1)

Clarification of provisions governing the analysis of usable wage

survey data in Sec. 532.241; (2) clarification of the definitions of

two terms in Sec. 532.401; (3) a description of limitations on the use

of a rate of pay earned on temporary promotion as a ``highest previous

rate'' in Sec. 532.405; (4) correction for conformance with 5 CFR part

536 of provisions on the application of pay retention when a wage

schedule is reduced in Sec. 532.415; (5) and insertion of a mistakenly

deleted Standard Industrial Classification code in Sec. 532.267(c)(1).

The Federal Prevailing Rate Advisory Committee reviewed this

recommendation and by consensus recommended approval.

Regulatory Flexibility Act

I certify that these regulations would not have a significant

economic impact on a substantial number of small entities because they

would affect only Federal agencies and employees.

List of Subjects in 5 CFR Part 532

Administrative practice and procedure, Freedom of information,

Government employees, Reporting and recordkeeping requirements, Wages.

Office of Personnel Management.

Lorraine A. Green,

Deputy Director.

Accordingly, OPM proposes to amend 5 CFR part 532 as follows:

PART 532--PREVAILING RATE SYSTEMS

1. The authority citation for part 532 continues to read as

follows:

Authority: 5 U.S.C. 5343, 5346; Sec. 532.707 also issued under 5

U.S.C. 552.

Subpart B--Prevailing Rate Determinations

2. Section 532.241 is amended by revising paragraph (a)(1) to read

as follows:

Sec. 532.241 Analysis of usable wage survey data.

(a)(1) The lead agency shall compute a weighted average rate for

each appropriated fund survey job having at least 10 unweighted matches

and for each nonappropriated fund job having at least 5 unweighted

matches. The weighted average rates shall be computed using the survey

job data collected in accordance with Secs. 532.235 and 532.247 and the

establishment weight.

* * * * *

3. In Sec. 532.267, paragraph (c)(1) is revised to read as follows:

Sec. 532.267 Special wage schedules for aircraft, electronic, and

optical instrument overhaul and repair positions in Puerto Rico.

* * * * *

(c) * * *

(1) Surveys shall, at a minimum, include the air transportation and

electronics industries in SIC's 3571, 3572, 3575, 3577, 3663, 3669,

3672, 3674, 3679, 3695, 3812, 4512, 4513, 4522, 4581, 5044, and 5045.

* * * * *

Subpart D--Pay Administration

4. In Sec. 532.401, the definitions of change to lower grade and

promotion are revised to read as follows:

Sec. 532.401 Definitions.

* * * * *

Change to lower grade means to change in the position of an

employee who, while continuously employed--

(1) Move from a position in one grade of a prevailing rate schedule

established under this part to a position in a lower grade of the same

type prevailing rate schedule, whether in the same or different wage

area;

(2) Moves from a position under a prevailing rate schedule

established under this part to a position under a different prevailing

rate schedule (e.g., WL to WG) with a lower representative rate; or

(3) Moves from a position not under a prevailing rate schedule to a

position with a lower representative rate under a prevailing rate

schedule.

* * * * *

Promotion means a change in the position of an employee who, while

continuously employed--

(1) Moves from a position in one grade of a prevailing rate

schedule established under this part to a position in a higher grade of

the same type prevailing rate schedule, whether in the same or

different wage area;

(2) Moves from a position under a prevailing rate schedule

established under this part to a position under a different prevailing

rate schedule (e.g., WG to WL) with a higher representatives rate; or

(3) Moves from a position not under a prevailing rate schedule to a

position with a higher representative rate under a prevailing rate

schedule.

* * * * *

5. In Sec. 532.405, paragraph (d) is added to read as follows:

Sec. 532.405 Use of highest previous rate.

* * * * *

[[Page 36239]]

(d) The highest previous rate may be based upon a rate of pay

received during a temporary promotion, so long as the temporary

promotion is for a period of not less than 1 year. This limitation does

not apply upon permanent placement in a position at the same or higher

grade.

6. In Sec. 532.415, paragraph (c) is revised to read as follows:

Sec. 532.415 Application of new or revised wage schedules.

* * * * *

(c) In applying a new or revised wage schedule, the scheduled rate

of pay of an employee paid at one of the steps of the employee's grade

on an old wage schedule shall be adjusted upward to the newly adjusted

rate for the same numerical step of the grade whenever there is an

increase in rates. Except when there is a decrease in wage rates

because of a statutory reduction in scheduled rates, the employee is

entitled to pay retention as provided in 5 CFR 536.104(a)(3).

[FR Doc. 95-17278 Filed 7-13-95; 8:45 am]

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