[Federal Register Volume 67, Number 17 (Friday, January 25, 2002)]
[Rules and Regulations]
[Pages 3581-3582]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-1604]



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 Rules and Regulations
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  Federal Register / Vol. 67, No. 17 / Friday, January 25, 2002 / Rules 
and Regulations  

[[Page 3581]]



OFFICE OF PERSONNEL MANAGEMENT

5 CFR Part 534

RIN: 3206-AJ47


Basic Pay for Employees of Temporary Organizations

AGENCY: Office of Personnel Management.

ACTION: Interim rule with request for comments.

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SUMMARY: The Office of Personnel Management is issuing interim 
regulations on setting pay for employees of temporary organizations 
established by law or Executive order. These regulations will enable 
agencies to determine the rate of basic pay and locality payments for 
employees of temporary organizations.

DATES: Effective Date: The regulations are effective on January 25, 
2002.
    Applicability Dates: The regulations apply on the first day of the 
first applicable pay period beginning on or after January 25, 2002.
    Comments Date: Comments must be received on or before March 26, 
2002.

ADDRESSES: Comments may be sent or delivered to Donald J. Winstead, 
Assistant Director for Compensation Administration, Workforce 
Compensation and Performance Service, Office of Personnel Management, 
Room 7H31, 1900 E Street NW., Washington, DC 20415, FAX: (202) 606-
0824, or email: [email protected].

FOR FURTHER INFORMATION CONTACT: Ron Genua, (202) 606-2858.

SUPPLEMENTARY INFORMATION: The Office of Personnel Management (OPM) is 
issuing interim regulations on compensation for employees of temporary 
organizations established by law or Executive order. Section 1101 of 
the Floyd D. Spence National Defense Authorization Act for fiscal year 
2001 (Public Law 106-398, October 30, 2000), adds a new subchapter IV 
to chapter 31 of title 5, United States Code. Subchapter IV provides 
that the head of a temporary organization may make excepted service 
appointments of up to 3 years to fill positions of the temporary 
organization. The appointments may be extended for an additional 2 
years consistent with regulations published by OPM. This authority is 
available to executive and legislative branch agencies. In addition, 
subchapter IV provides that, upon request by the head of a temporary 
organization, the head of any department or agency of the Government 
may detail employees on a nonreimbursable basis to the temporary 
organization to assist the temporary organization in carrying out its 
duties.
    Subchapter IV defines a temporary organization as a commission, 
committee, board, or other organization that is established for a 
specific period of time, not in excess of 3 years, for the purpose of 
performing a specific study or other project. Such a temporary 
organization generally terminates upon completion of the study or 
project.
    Subchapter IV provides OPM with authority to establish regulations 
to determine the rate of basic pay for employees of temporary 
organizations without regard to the provisions of chapter 51 and 
subchapter III of chapter 53 of title 5, United States Code. (See 5 
U.S.C. 3161(d).) These interim regulations do not apply to temporary 
organizations established prior to October 30, 2000.
    Subchapter IV also provides that the rate of basic pay for the 
chairman, a member, an executive director, a staff director, or other 
executive level position of a temporary organization may not exceed the 
maximum rate of basic pay established for the Senior Executive Service 
(SES) under section 5382 of title 5, United States Code. The rate of 
basic pay for other positions in a temporary organization may not 
exceed the maximum rate of basic pay for GS-15. However, the rate of 
basic pay for a senior staff position of a temporary organization may, 
in a case determined by the head of the agency to be exceptional, 
exceed the maximum rate of basic pay for GS-15, but may not exceed the 
maximum rate of basic pay for the SES. Subchapter IV defines basic pay 
as including locality pay provided under section 5304 of title 5, 
United States Code.
    In setting rates of basic pay for staff and other non-executive 
level positions, the interim regulations require that the head of a 
temporary organization give consideration to the significance, scope, 
and technical complexity of the position and the qualifications 
required for the work involved. This is consistent with a parallel 
requirement established under regulations published by the General 
Services Administration for setting basic pay for advisory committee 
members and staff under the Federal Advisory Committee Act. (See 41 CFR 
101-6.1033.) The interim regulations also require the head of a 
temporary organization to take into account rates of basic pay paid to 
Federal employees who have duties that are similar in terms of 
difficulty and responsibility.
    The interim regulations provide General Schedule locality payments 
to all executive level and staff positions of temporary organizations. 
The regulations set maximum rates of basic pay and locality-adjusted 
rates of pay for employees of temporary organizations. This will make 
it easier to determine pay when employees move from General Schedule 
positions to positions in temporary organizations, and vice versa.
    The compensation authority in 5 U.S.C. 3161(d) is limited to 
determining rates of basic pay and locality-adjusted rates of pay for 
employees of temporary organizations. In addition, subchapter IV 
provides that an employee of a temporary organization is entitled to 
the same benefits provided to temporary employees under title 5, United 
States Code. The interim regulations clarify, however, that subchapter 
IV provides no new independent authority for the head of a temporary 
organization to establish other forms of compensation and benefits not 
authorized by title 5, United States Code, or another specific 
authority. For example, the law does not create any new authority for 
providing premium pay, bonuses, awards, leave, or benefits differently 
than under title 5 or any other already existing statute.
    The interim regulations require that the head of a temporary 
organization comply with section 5504 of title 5, United States Code, 
including the requirement for biweekly pay periods and requirements for 
converting an annual rate of basic pay to a basic

[[Page 3582]]

hourly, daily, weekly, or biweekly rate. The regulations also require 
that employees of temporary organizations receive basic pay on an 
hourly basis. These requirements will facilitate compliance with the 
laws and regulations on crediting and using leave on an hourly basis, 
or fractions thereof.
    Finally, subchapter IV provides criteria under which the head of a 
temporary organization may accept volunteer services without regard to 
section 1342 of title 31, United States Code.

Waiver of Notice of Proposed Rulemaking and Delay in Effective Date

    Pursuant to 5 U.S.C. 553(b)(3)(B) and 5 U.S.C. 553(d)(3), I find 
that good cause exists for waiving the general notice of proposed 
rulemaking and making this rule effective on the date of its 
publication in the Federal Register. This waiver is appropriate because 
the interim regulations are being published to implement changes in law 
that are already in effect.

E.O. 12866, Regulatory Review

    This rule has been reviewed by the Office of Management and Budget 
in accordance with E.O. 12866.

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 apply only to Federal agencies and employees.

List of Subjects in 5 CFR Part 534

    Government employees, Hospitals, Students, Wages.

Office of Personnel Management.
Kay Coles James,
Director.

    Accordingly, OPM is amending part 534 of title 5 of the Code of 
Federal Regulations as follows:

PART 534--PAY UNDER OTHER SYSTEMS

    1. The authority citation for part 534 is revised to read as 
follows:

    Authority: 5 U.S.C. 1104, 3161(d), 5307, 5351, 5352, 5353, 5376, 
5383, 5384, 5385, 5541, and 5550a.


    2. Subpart C of part 534 is added to read as follows:
Subpart C--Basic Pay for Employees of Temporary Organizations
  
534.301    General.
534.302    Applicability.
534.303    Basic pay for executive level positions.
534.304    Basic pay for staff positions.
534.305    Pay periods and computation of pay.

Subpart C--Basic Pay for Employees of Temporary Organizations


Sec. 534.301  Coverage.

    This subpart provides rules for setting rates of basic pay for 
employees who are appointed to positions in temporary organizations in 
accordance with subchapter IV of chapter 31 of title 5, United States 
Code (5 U.S.C. 3161). Such temporary organizations are established by 
law or Executive order. Employees appointed under 5 U.S.C. 3161(b) are 
not subject to the provisions applicable to General Schedule employees 
covered by chapter 51 and subchapter III of chapter 53 of title 5, 
United States Code.


Sec. 534.302  Applicability.

    The regulations in this subpart are applicable to employees of 
temporary organizations who are appointed and compensated under 5 
U.S.C. 3161. The rates of basic pay for employees appointed under 5 
U.S.C. 3161(b) must be established under the regulations in this 
subpart. This subpart provides rules for determining rates of basic pay 
and locality-adjusted rates of basic pay. This subpart does not provide 
authority to establish other forms of compensation and benefits not 
authorized by title 5, United States Code, or another specific 
statutory authority.


Sec. 534.303  Basic pay for executive level positions.

    (a) Rates of basic pay for executive level positions of temporary 
organizations may not exceed the maximum rate of basic pay established 
for the Senior Executive Service under 5 U.S.C. 5382. Therefore, the 
highest rate of basic pay for executive level positions of temporary 
organizations, not including any applicable locality-based 
comparability payment under 5 U.S.C. 5304, may not exceed the rate of 
basic pay for level IV of the Executive Schedule.
    (b) Employees in executive level positions of temporary 
organizations must be paid locality payments in addition to basic pay 
in the same manner as employees covered by 5 U.S.C. 5304. Locality-
adjusted rates of basic pay for executive level positions may not 
exceed the rate of basic pay for level III of the Executive Schedule.


Sec. 534.304  Basic pay for staff positions.

    (a)(1) Rates of basic pay for staff or other non-executive level 
positions of temporary organizations may not exceed the maximum rate of 
basic pay for grade GS-15 of the General Schedule under 5 U.S.C. 5332, 
excluding any locality-based comparability payment under 5 U.S.C. 5304.
    (2) In establishing rates of basic pay for staff and other non-
executive level positions of temporary organizations, the head of a 
temporary organization must give consideration to the significance, 
scope, and technical complexity of the position and the qualifications 
required for the work involved. The head of a temporary organization 
must also take into account the rates of pay applicable to Federal 
employees who have duties that are similar in terms of difficulty and 
responsibility.
    (b) Employees in staff and other non-executive level positions of 
temporary organizations must be paid locality payments in addition to 
basic pay in the same manner as employees covered by 5 U.S.C. 5304. 
Locality-adjusted rates of basic pay may not exceed the locality-
adjusted rate of basic pay for grade GS-15 of the General Schedule 
under 5 U.S.C. 5304, for the locality pay area involved.
    (c) Notwithstanding the limitations in paragraphs (a) and (b) of 
this section, the rate of basic pay and locality-adjusted rate of basic 
pay for a senior staff position of a temporary organization may, in a 
case determined by the head of a temporary organization to be 
exceptional, exceed the maximum rates established under those 
paragraphs. However, the higher payable rates may not exceed the 
applicable maximum rate of basic pay or locality-adjusted rate of basic 
pay authorized under this subpart for an executive level position.


Sec. 534.305  Pay periods and computation of pay.

    (a) The requirements of 5 U.S.C. 5504, must be applied to employees 
of temporary organizations. This includes requirements for biweekly pay 
periods and requirements for converting an annual rate of basic pay to 
a basic hourly, daily, weekly, or biweekly rate.
    (b) Employees of temporary organizations must receive basic pay on 
an hourly basis.
[FR Doc. 02-1604 Filed 1-24-02; 8:45 am]
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