Prevailing Rate Systems; Technical Corrections and Clarifications

SUMMARY: The Office of Personnel Management is issuing a final rule to

correct and clarify certain matters relating primarily to pay

administration under the Federal Wage System. This rule corrects errors

and eliminates ambiguities in the administration of the system.

EFFECTIVE DATE: January 8, 1996..

FOR FURTHER INFORMATION CONTACT:

Paul Shields, (202) 606-2848.

SUPPLEMENTARY INFORMATION: On July 14, 1995, OPM published a proposed

rule to correct and clarify matters relating primarily to pay

administration under the Federal Wage System. The purpose is to correct

errors and eliminate ambiguities in the administration of the system.

The proposed rule provided a 30-day period for public comment. OPM

received no comments during the comment period. Therefore, the proposed

rule is being adopted as a final rule.

Regulatory Flexibility Act

I certify that these regulations will not have a significant

economic impact on a substantial number of small entities because they

will 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 is amending 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 unweighed matches

and for each nonappropriated fund job having at least 5 unweighed

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 definition of Change to a lower grade is

removed, a new definition for Change to lower grade is added, and the

definition of Promotion is revised to read as follows:

Sec. 532.401 Definitions.

* * * * *

Change to lower grade 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 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 representative 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.

* * * * *

(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

[[Page 62702]]

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. 95-29700 Filed 12-06-95; 8:45 am]

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