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Part 6. Human Resources Management

Chapter 500. Pay and Allowances

Section 1. Pay Administration (Cont. 1)

6.500.1  Pay Administration (Cont. 1)

6.500.1.9 
General Provisions for Grade and Pay Retention

6.500.1.9.10  (07-01-2003)
Criteria for a "Reasonable Offer"

  1. For the purposes of this policy, an offer of a position, in order to be considered a reasonable one, must fulfill all of the following conditions:

    1. The offer must be in writing, and must include an official position description of the offered position; and

    2. The offer must inform the employee that an entitlement to grade or pay retention will be terminated if the offer is declined and that the employee may appeal the reasonableness of the offer as provided in 5 CFR 536.302; and

    3. The offered position must be of tenure equal to or greater than that of the position creating the grade or pay retention entitlement; and

    4. The offered position must be in an agency, as defined in 5 U.S.C. 5102, although not necessarily in the same agency in which the employee is serving at the time of the offer; and

    5. The offered position must be full-time, unless the employee's position immediately before the change creating entitlement to grade or pay retention was less than full-time, in which case the offered position must have a work schedule of no less time than that of the position held before the change; and

    6. The offered position must be in the same commuting area as the employee's position immediately before the offer, unless the employee is subject to a mobility agreement or a published agency policy, which requires employee mobility.

6.500.1.9.11  (07-01-2003)
Loss of Eligibility for Grade Retention

  1. Eligibility for grade retention under 5 CFR 536.103(a) ceases if any of the following conditions occur at any time after the employee receives written notice of the reduction in grade action, but before the commencement of the 2-year period of grade retention period:

    1. The employee has a break in service of 1 workday or more; or

    2. The employee is demoted for personal cause or at the employee's request; or

    3. The employee is placed in, or declines a reasonable offer of, a position the grade of which is equal to or higher than the retained grade; or

    4. The employee elects in writing to terminate the benefits of grade retention.

  2. Eligibility for grade retention as a result of entitlement under 5 CFR 536.103(b) ceases if any of the following conditions occur at any time after the employee is informed of an impending reorganization or reclassification resulting in reduction in grade, but before the commencement of the 2-year period of grade retention:

    1. Any of the conditions listed in (1), above, except that an employee's request for placement in a lower graded position, in lieu of displacing an employee at his or her grade under reduction-in-force procedures, is not a declination of a reasonable offer for grade retention purposes; or

    2. The employee fails to enroll in, or to comply with reasonable written requirements established to assure full consideration under a program providing priority consideration for placement.

6.500.1.9.12  (07-01-2003)
Termination of Grade Retention

  1. Grade retention terminates if any of the conditions listed in 5 CFR 536.207(a) occur after commencement of the 2-year period of grade retention.

  2. Grade retention, as provided by 5 CFR 536.103(b), also terminates if any of the conditions listed in 5 CFR 536.207(b) occur after the commencement of the 2-year period of grade retention.

  3. The effective date of termination of grade retention benefits is:

    1. The day before placement if the termination is the result of the employee's placement in another position; or

    2. At the end of the last day of the pay period which the employee declines a reasonable offer; elects to waive grade retention benefits; or fails to enroll in, or comply with reasonable written requirements established to assure full consideration under a program providing priority consideration for placement.

  4. Grade retention terminates on the day before the first day of the first pay period beginning on or after April 23, 1991, in the case of a GS-14 employee who, on that date, becomes subject to the senior-level pay system established under 5 U.S.C. 5376 and 5 CFR part 534 subpart E for senior-level professional and technical employees.

6.500.1.9.13  (07-01-2003)
Loss of Eligibility for, or Termination of, Pay Retention

  1. Eligibility for pay retention ceases if any of the following conditions occurs at any time after the employee receives written notification that his or her pay is to be reduced:

    1. The employee has a break in service of 1 workday or more; or .

    2. The employee is entitled to a rate of basic pay which is equal to or higher than the rate of pay under pay retention; or

    3. The employee declines the offer of a position with the rate of basic pay for which is equal to or higher than the rate to which the employee is entitled under pay retention; or

    4. The employee is demoted for personal cause or at the employee's request, including the election to waive grade retention.

  2. The effective date of termination of pay retention benefits is:

    1. The day before placement or conversion if the termination is the result of the employee's placement in another position or conversion to the senior-level pay system established under 5 U.S.C. 5376 and 5 CFR part 534 subpart E.

    2. The end of the last day of the pay period in which the employee declines a reasonable offer.

6.500.1.9.14  (07-01-2003)
Appeal or Termination of Benefits Because of a Reasonable Offer

  1. The termination of grade or pay benefits because of the refusal of a reasonable offer may be appealed under 5 CFR 536.302.

6.500.1.9.15  (07-01-2003)
Documentation

  1. The application of the provisions of this part shall be documented in writing as a permanent part of the employee's Official Personnel Folder. At a minimum, this documentation will include a copy of the letter described in 5 CFR 536.304.

6.500.1.9.16  (07-01-2003)
Issuance of Employee Letters

  1. Under guidance issued by Agency-Wide Shared Services, when an employee is entitled to grade and/or pay retention, the employing division, function, or agency shall give to the employee, along with a copy of the " Notification of Personnel Action (SF-50)," documenting entitlement to grade and/or pay retention, a letter describing the circumstances warranting grade and/or pay retention, and the nature of that entitlement.

6.500.1.9.17  (07-01-2003)
Availability of Information

  1. The OPM, upon receiving a request identifying an individual from whose file the information is sought, shall disclose the following information from an appeal file to a member of the public, except when the disclosure would constitute a clearly unwarranted invasion of personal privacy

    1. Confirmation of the name of the individual from whose file the information is sought and the names of the other parties concerned;

    2. The status of the appeal;

    3. The results of the appeal (i.e., proper title, pay plan, series, and grade);

    4. The classification requested (i.e., title, pay plan, series, and grade); and

    5. With the consent of the parties concerned, other reasonable identified information from the file.

  2. The OPM will disclose to the parties concerned, the information contained in an appeal file in proceedings under this part, except when the disclosure would violate the proscription against the disclosure of medical information in 5 CFR 297.204(c). For the purposes of this section, " the parties concerned" means the Government employee or former Government employee involved in the proceedings, his or her representative designated in writing, and the representative of the agency involved in the proceeding.

6.500.1.9.18  (07-01-2003)
Applicability of Retained Grade

  1. Except as provided in (2), below, when an employee is entitled to grade retention, the retained grade shall be treated as the employee's grade for all purposes, including pay and pay administration, retirement, life insurance, and eligibility for training.

  2. The retained grade may not be used-

    1. In any reduction-in-force procedure;

    2. To determine whether an employee has been demoted for the purpose of terminating grade or pay retention;

    3. To determine whether an employee retains status as a GM employee (as defined in 5 CFR 531.202; or

    4. To determine whether an employee is exempt or nonexempt from the Fair Labor Standards Act of 1938 (as amended).

6.500.1.10  (07-01-2003)
Repayment of Student Loans

  1. PLACE HOLDER

6.500.1.11  (07-01-2003)
Premium Pay-General Provisions

  1. Coverage and exemptions:

    1. These provisions apply to each IRS employee, except those identified in b, below.

  2. These provisions do not apply to:

    1. An employee covered by the Federal Wage System,

    2. An employee outside the continental United States or in Alaska who is paid in accordance with local prevailing wage rates for the area in which employed,

    3. A student-employee as defined by 5 U.S.C. 5351,

    4. A member of the Senior Executive Service.

  3. Except for the purpose of determining hours of work in excess of 8 hours in a day, paragraphs 6.500.1.11.2, of this section and 5 CFR 550.112, 550.113, and 550.114 do not apply to an employee covered by section 7 of the Fair Labor Standards Act and section 6.500.1.12.

  4. Entitlement: Each employee's entitlement to premium pay must be determined consistent with 5 U.S.C. chapter 55 subchapter V and 5 CFR part 550 subpart A.

  5. Definitions: The definitions at 5 CFR 550.103 apply with regard to premium pay.

6.500.1.11.1  (07-01-2003)
Maximum Earnings Limitations

  1. Biweekly maximum earnings limitation:

    1. Except as provided in b, below, an employee may be paid premium pay under this subpart only to the extent that the payment does not cause the total of his or her basic pay and premium pay for any pay period to exceed the maximum rate for GS-15, including a locality-based comparability payment under 5 U.S.C. 5304; and a special salary rate established under 5 U.S.C. 5305.

    2. This paragraph does not apply to any pay period during which an employee performs work in connection with an emergency under 5 CFR 550.106(a); or a law enforcement officer.

  2. Annual maximum earnings limitation for work in connection with an emergency:

    1. For any pay period in which appropriate authority, as defined at 5 CFR 550.106, determines that an emergency exists, an employee performing work in connection with the emergency shall be paid premium pay under the annual limitation described in c., below, instead of under the biweekly limitation described 6.500.1.11.1(1), above.

    2. The determination under a., above, should be implemented as soon as practicable after the emergency begins. Entitlement to premium pay under the annual limitation shall be effective on the first day of the pay period in which the emergency began.

    3. In any calendar year during which an employee has performed work in connection with an emergency, he or she shall be paid premium pay to the extent that the payment does not cause the total of annual basic pay and premium pay to exceed the maximum rate for GS-15 in effect on the last day of the calendar year, including a locality-based comparability payment under 5 U.S.C. 5304; and a special salary rate established under 5 U.S.C. 5305.

    4. This section does not apply to a law enforcement officer.

  3. Special maximum earnings limitation for law enforcement officers: A law enforcement officer may be paid premium pay only to the extent that the payment does not cause the total of his or her basic pay and premium pay for any pay period to exceed the greater of-

    1. 150 percent of the minimum rate for GS-15, including a locality-based comparability payment under 5 U.S.C. 5304, or special law enforcement adjustment under section 404 of the Federal Employees Pay Comparability Act of 1990 (Pub. L. 101-509) and any special salary rate established under 5 U.S.C. 5305, rounded to the nearest whole cent, or

    2. The rate payable for Level V of the Executive Schedule.

6.500.1.11.2  (07-01-2003)
Overtime Pay

  1. Overtime work will be authorized as provided for at 5 CFR 550.111.

  2. The calculations of overtime pay is subject to the conditions at 5 CFR 550.112, with regard to: principal activities; pre- and post-shift activities; leave with pay; leave without pay; absence during overtime periods; holiday work; call back overtime; standby duty; on-call status; and sleep and meal times.

  3. The authority to order or approve the performance of paid overtime duty provided funds are available for such duty and to order or approve the performance of overtime duty for which compensatory time off will be granted in lieu of overtime pay in accordance with applicable statutes, executive orders, regulations, and policies is delegated no lower than to second-level supervisors.

6.500.1.11.2.1  (07-01-2003)
Time in Travel Status

  1. Time in travel status away from the official duty station of an employee is deemed employment only when:

    1. It is within the employee's regularly scheduled administrative workweek, including regular overtime work; or

    2. The travel involves the performance of actual work while traveling (including any work ordered by a manager while the employee is actually traveling); is incident to travel that involves the performance of work while traveling; is carried out under such arduous and unusual conditions that the travel is inseparable from work; or results from an event not scheduled or controlled administratively, including travel by an employee to such an event and the return of the employee to his or her official-duty station.

    3. An employee may not earn credit hours or earn any entitlement to overtime for time spent solely for the purpose of traveling when no work is performed.

    4. However, an employee, with prior supervisory approval, may perform bona fide work during periods of travel and earn credit hours.

6.500.1.11.2.2  (07-01-2003)
Official Duty Station

  1. To travel outside the official duty station, for the purposes of entitlement to overtime pay for travel under 6.500.1.11.2.1, above, an employee must travel more than 40 miles from the permanent station or office and also more than 40 miles from the employee's home, measured using the most common route. Hours resulting from travel within the local area are not compensable.

  2. Normal home to work travel. Travel from home to work and vice versa is not hours of work. When an employee travels directly from home to a temporary duty location outside the limits of his or her official duty station, the time the employee would have spent in normal home to work travel shall be deducted from hours of work.

  3. Travel within the confines of the official duty station, as described at (1), above, is not compensable. Nor may such travel serve to decrease the hours of work defined by the administratively scheduled workday or workweek.

6.500.1.11.2.3  (07-01-2003)
Computation of Overtime Pay

  1. For an employee whose rate of basic pay does not exceed the minimum rate for GS-10, the hourly overtime rate is 1 and 1/2 times his or her hourly rate of basic pay.

    1. For each employee exempt from the FLSA whose rate of basic pay exceeds the minimum rate for GS-10, the overtime hourly rate is 1 and 1/2 times the hourly rate of basic pay for the minimum rate for GS-10, except as provided in 5 U.S.C. 5542(a)(3) and (4) and 5 CFR 550.110.

    2. The overtime rate for an employee performing overtime work on a Sunday or a holiday is the same rate as for any other day.

  2. Compensatory time off: As provided by 5 U.S.C. 5543 and 5 CFR 550.114:

    1. An employee may request and be granted compensatory time off from his or her regularly scheduled tour of duty instead of receiving overtime pay for irregular or occasional overtime work.

    2. For an employee exempt from the FLSA whose rate of basic pay exceeds the maximum rate for GS-10, management may determine to grant compensatory time off instead of paying overtime pay for irregular or occasional overtime work.

    3. Under 5 U.S.C. 6122, an employee under a flexible work schedule may request and be granted compensatory time off instead of overtime pay, regardless whether the overtime is irregular or occasional in nature.

    4. The Department, at TPPM Chapter 550 Subchapter 1, Items 4(e) and 9 has set certain conditions and limitations for the use and payment of compensatory time off.

6.500.1.11.3  (07-01-2003)
Night Pay

  1. Authorization of night pay differential. A night differential of 10 percent of the applicable rate of pay must be paid when an employee is regularly scheduled to perform work at night as provided by 5 U.S.C. 5545(a) and 5 CFR 550.121, and following. However, an employee may not receive the night differential while in training, except as provided by 5 CFR 410.402.

  2. Computation of night pay differential:

    1. An employee is entitled to a night pay differential when excused from nightwork on a holiday or other non-workday and for hours in an official travel status, regardless whether the employee actually performs work.

    2. An employee will receive a night pay differential for a period of paid annual or sick leave only when the amount of such leave, including both night and day hours, is less than 8 hours in a pay period. Paid hours of absence charged to credit hours, compensatory time off, time off for religious observance, military leave, court leave, excused absence, and other such paid absences are not included in the 8 hours of paid leave after which night differential is no longer payable.

    3. An employee may not receive night pay differential when earning or charging credit hours, under 5 U.S.C. 6122. An employee may not receive night pay differential when earning or taking compensatory time off as provided by 5 U.S.C. 5543. However, an employee covered by a flexible work schedule who requests compensatory time off instead of overtime pay for regularly scheduled overtime work performed at night, under 5 U.S.C. 6123, receives night pay differential for that regularly scheduled overtime work when it is performed, but does not receive night differential pay when the compensatory time off is taken.

    4. When an employee is temporarily assigned during the administrative workweek to a daily tour of duty, the employee continues to be entitled to a night pay differential. This temporary change is distinguished from a period of irregular or occasional overtime work in addition to the employee's regularly scheduled administrative workweek 5 CFR 550.122(d).

6.500.1.11.4  (07-01-2003)
Pay for Holiday Work

  1. As provided by 5 U.S.C. 5546(b) and 5 CFR 550.131, an full-time employee who is ordered to perform non-overtime work on a holiday is entitled to holiday premium pay at his or her rate of basic pay up to 8 hours.

  2. For an employee on a compressed work schedule, under 5 U.S.C. 6127 and 5 CFR 610.406, for the non-overtime hours the employee is otherwise scheduled to work on the holiday.

  3. A part-time employee regularly scheduled to work on a day, which is a holiday, and who is ordered to work on that day is entitled to holiday premium pay for up to 8 hours.

  4. An intermittent employee who is ordered to work on a holiday is not entitled to holiday premium pay but is entitled to straight time pay for up to 8 hours worked on a holiday.

  5. An employee ordered to work on a holiday is entitled to at least 2 hours pay for holiday work.

  6. An employee who works overtime on a holiday is entitled to overtime pay

  7. An employee is not entitled to holiday premium pay while in training, except as provided in 5 CFR 410.402.

  8. The authority to order and approve holiday pay provided funds are available for such is delegated no lower than to second-level supervisors.

6.500.1.11.5  (07-01-2003)
Regularly Scheduled Standby Duty Pay

  1. Annual premium pay for standby duty. In those rare occasions when such pay is appropriate, it will be provided in accordance with 5 U.S.C. 5545(c)(1) and 5 CFR 550.141.

6.500.1.11.6  (07-01-2003)
Administratively Uncontrollable Work

  1. Annual premium pay administratively uncontrollable overtime. Annual premium pay for this purpose will be paid as provided by 5 U.S.C. 5545(c)(2) and 5 CFR 550.151 and following. However:

    1. An employee who receives law enforcement availability pay under 5 U.S.C. 5545a and 5 CFR 550.181 and following may not receive pay under this paragraph; and

    2. An employee subject to Section 7 of the Fair Labor Standards Act is ineligible to receive pay under this subsection.

  2. The authority to prescribe eligibility requirements for and resolve questions concerning the payment of annual premium pay for administratively uncontrollable overtime and standby duty is delegated to the Director, Strategic Human Resources. The authority may not be redelegated.

  3. The authority to approve payment of administratively uncontrollable overtime-premium pay is delegated to:

    1. Deputy Division Commissioners; Deputy Division Chiefs; Deputy Commissioner for Modernization/Chief Information Officer; Deputy National Taxpayer Advocate for employees under their supervision and control; and

    2. National Headquarters Directors and Chiefs (and their Deputies) who report directly to the Commissioner, Deputy Commissioner, or Assistant Deputy Commissioner for employees under their supervision and control.

    3. The authority may not be redelegated.

6.500.1.11.7  (07-01-2003)
Law Enforcement Availability Pay

  1. Each employee who meets the definition of criminal investigator at 5 CFR 550.103 and who fulfills the conditions and requirements of 5 U.S.C. 5545a and 5 CFR 550.181 through 550.186, must receive availability pay as compensation for unscheduled duty in excess of the 40-hour workweek based on the needs of the employing agency. Such payment will be administered as provided by the laws and regulations indicated in this paragraph.

  2. The authority to certify that a special agent is available to perform irregular and unscheduled duty and receive availability pay is delegated no lower than to first-level supervisors of special agents.

6.500.1.11.8  (07-01-2003)
Advances in Pay

  1. This guidance facilitates providing advances in pay to an individual employed in or under an agency appointed to a position with a regularly scheduled tour of duty; it is intended to be read and implement with 5 U.S.C. 5241 and 5 CFR part 550, subpart B.

6.500.1.11.8.1  (07-01-2003)
Definitions

  1. The definitions used in this subsection are the same as the definitions at 5 CFR 550.202.

6.500.1.11.8.2  (07-01-2003)
Administration of Advances in Pay

  1. The official designated in paragraph 6.500.1.11.8.5(1) below may approve an payment of basic pay of not more than 2 pay periods to a newly appointed employee.

  2. The maximum payment that may be advanced is based on the rate of basic pay of the employee on the date of the new appointment, reduced by any allotments or deductions that would normally be deducted from the employee's first regular paycheck.

  3. An advanced payment may be made no earlier than the date of appointment and no later than 60 days after the date of appointment.

  4. An advance in pay under this authority may not be made when the Service expects to make an advance in pay under 5 U.S.C. 5927 for relocating to a foreign area to the same employee within 2 pay periods after the employee's appointment.

6.500.1.11.8.3  (07-01-2003)
Procedures for Providing an Advance Payment

  1. Decisions to make advances in pay shall be documented and recorded to provide the following information:

    1. Why the request for advance payment was approved or denied, and

    2. Why the repayment of all or part of an advance payment may be waived.

  2. Before receiving an advance payment, the employee must sign an agreement to repay any amount of the repayment not waived by the agency head under 5 CFR 550.206.

  3. Before making an advance payment, the Service must make the following information available to the employee in writing:

    1. How the advance in pay will be recovered; i.e., in installments under agency procedures for payroll deductions or by salary offset procedures under 5 CFR part 550 subpart K ;

    2. The total amount of the advance in pay, the total number of pay periods for repayment of the advance, the amount that will be deducted from the pay of the employee by payroll deductions or salary offset for each pay period, and the date when the deductions will commence;

    3. A statement that all or part of the balance of the advance payment may be prepaid before the money is due, including instructions on how such prepayments may be made;

    4. A statement that any of the advance not yet repaid or waived must be repaid if the employee transfers to another agency or leaves the agency for any reason; and

    5. A statement that any of the balance of the advance in pay, not waived or repaid on transfer or termination must be recovered by salary offset under 5 CFR part 550 subpart K or another method as provided by law.

6.500.1.11.8.4  (07-01-2003)
Recovery of Advances in Pay

  1. Unless repayment is waived under 5 CFR 550.206, the Service must recover an advance in pay by installments under the procedures for payroll deductions or by salary offset . An employee may prepay all or part of the remaining balance at any time before payments are due.

  2. A recovery period to repay an advance in pay must be established, but no recovery period may exceed 14 pay periods beginning on the date the advance in pay is made. If the employee requires a longer period for repayment, recovery may be accomplished under salary-offset procedures established under 5 CFR part 550 subpart K. An employee may elect in writing a recovery period of less than 14 pay periods.

  3. If an employee transfers to another agency or leaves the Service for any reason, the remaining balance of the advance in pay becomes due and must be repaid unless repayment is waived under 5 CFR 550.206.

  4. Any remaining balance not waived or repaid upon transfer or termination must be recovered by salary offset or by such other method as provided by law.

6.500.1.11.8.5  (07-01-2003)
Approval and Waiver of Repayment

  1. The authority to approve an advance in pay and waive the requirement to repay an advance in pay provided under 5 U.S.C. 5524a, in whole or in part, when it is determined that recovery would be against equity and good conscience or against the public interest is delegated to:

    1. Deputy Division Commissioners; Deputy Division Chiefs; Deputy Commissioner for Modernization/Chief Information Officer; Deputy National Taxpayer Advocate for employees under their supervision and control; and

    2. National Headquarters Directors and Chiefs (and their Deputies) who report directly to the Commissioner, Deputy Commissioner, or Assistant Deputy Commissioner for employees under their supervision and control.

    3. The authority may not be redelegated.

6.500.1.11.9  (07-01-2003)
Allotments and Assignments from Federal Employees

  1. The definitions used in the following provisions are the same as those at 5 CFR 550.301.

6.500.1.11.9.1  (07-01-2003)
General Provisions

  1. Under the provisions at 5 U.S.C. 5525 and 5 CFR part 550 subpart C, employees may make payroll allotments for the following purposes:

    1. For dues to a labor organization under 5 U.S.C. 7115,

    2. For dues to an association of management officials and/or supervisors under 5 CFR 550.331,

    3. For charitable contributions to a Combined Federal Campaign under 5 CFR 550.341 and 550.342,

    4. For income tax withholding under 5 CFR 550.351,

    5. Up to two allotments for savings under 31 CFR 209,

    6. For an employee assigned to a post of duty outside the continental United States under 5 CFR 550.361,

    7. For child support and/or alimony payments under 5 CFR 550.371, and

    8. To pay an employee's share of Federal Employees Health Benefits premiums, consistent with 5 CFR part 892.

6.500.1.11.9.2  (07-01-2003)
General Limitations

  1. 5 CFR 550.312 defines the limitations and requirements for making such allotments.

6.500.1.11.9.3  (07-01-2003)
Order of Precedence

  1. When there is insufficient pay to cover all employee allotments and assignments, the order of payment is defined at 5 CFR 550.313.

6.500.1.11.10  (07-01-2003)
Pay from More Than One Position

  1. 5 U.S.C. 5533 and 5 CFR part 550 subpart E apply only when the total number of hours worked by an employee holding more than one position exceeds 40 in a week.

  2. This guidance and the cited law and regulation apply to department and agency in the legislative (except as provided 5 U.S.C. 5533(c)), judicial, and executive branches of the Government of the United States and to the government of the District of Columbia.

  3. But does not apply to pay:

    1. From a position for services performed under emergency conditions relating to health, safety, protection of life and property, or national emergency, or

    2. When a department, agency, or the government of the District of Columbia encounters difficulty in obtaining employees to perform required personal services because of 5 U.S.C. 5533(a).

  4. The authority to approve exceptions to restrictions on pay for working in excess of 40 hours in more than one position (dual employment) covered under his or her immediate responsibility, including Executive Resources Board covered positions is delegated to managers of the appropriate embedded personnel functions in the business units.

  5. The authority to request a waiver of the dual compensation act (dual pay and dual employment) through the Department of the Treasury to the Office of Personnel Management to reemploy retired military and civilian personnel without loss of pay or annuity, as provided by the Federal Employees Pay Comparability Act of 1990, is delegated to the Director, Strategic Human Resources, and may not be redelegated.

6.500.1.11.11  (07-01-2003)
Severance Pay

  1. These guidance and procedures are to be read and implemented with 5 U.S.C. 5595 and 5 CFR part 550 subpart H, authorizing severance pay for employees who are involuntarily separated from Federal service and who meet other conditions of eligibility.

  2. Except as provided in 5 U.S.C. 5595(a)(2) (i) through (viii), this policy applies to each full-time or part-time IRS employee with a regularly scheduled tour of duty who is serving under a qualifying appointment, as defined in 5 CFR 550.703.

  3. The definitions found at 5 CFR 550.703 apply with regard to severance pay.

6.500.1.11.11.1  (07-01-2003)
Eligibility for Severance Pay

  1. To be eligible for severance pay, an employee must:

    1. Be serving under a qualifying appointment;

    2. Have completed at least 12 months of continuous service, as described in 5 CFR 550.705; and

    3. Be removed from Federal service by involuntary separation.

  2. An employee is not eligible for severance pay if he or she:

    1. Is serving under a non-qualifying appointment;

    2. Declines a reasonable offer;

    3. Is receiving injury compensation under 5 U.S.C. chapter 81 subchapter I unless the compensation is received concurrently with pay or is the result of someone else's death; or

    4. Is eligible upon separation for an immediate annuity from a Federal system. Such an employee is ineligible even if all or part of the annuity is offset by payments from a non-Federal retirement system the employee elected instead of Federal civilian retirement benefits or disability benefits received from the Department of Veterans Affairs.

6.500.1.11.11.2  (07-01-2003)
Criteria for Meeting the Requirement for 12 Months of Continuous Employment

  1. An employee meets the requirement for 12 months of continuous employment if, on the date of separation, an employee has held one or more civilian Federal positions over a period of 12 months without a single break in service of more than 3 calendar days. In addition, the position(s) held must have been under:

    1. One or more qualifying appointments;

    2. One or more non-qualifying temporary appointments that were preceded by a qualifying appointment.

  2. When a break in service covered by severance pay interrupts otherwise continuous Federal employment, the entire period is considered continuous service.

  3. A period during which an employee receives continuation of pay or compensation for an injury on the job under 5 U.S.C. chapter 81 that is considered continuous Federal service.

6.500.1.11.11.3  (07-01-2003)
Criteria for Involuntary Separation

  1. An employee who resigns expecting to be involuntarily separated is considered to have been involuntarily separated if the employee resigns after receiving-

    1. Specific written notice that he or she will be involuntarily separated by a particular action effective on a particular date; or

    2. A general written notice of reduction in force or transfer of function.

  2. The general written notice must:

    1. Be issued by a properly authorized agency official;

    2. Announce that the agency has decided to abolish, or transfer to another commuting area, all positions in the competitive area (as defined in 5 CFR 351.402) by a particular date (no more than 1 year after the date of the notice); and

    3. State that, for severance pay purposes, a resignation following receipt of the notice is an involuntary separation.

  3. Except for resignations under the conditions described in (1), above, all resignations are voluntary separations and do not provide entitlement to severance pay.

  4. A resignation is not considered an involuntary separation if the specific or general written notice is canceled before the actual separation (based on that resignation) takes effect.

6.500.1.11.11.4  (07-01-2003)
Computation of Severance Pay Fund

  1. The basic severance pay fund and allowance will be computed as provided at 5 CFR 550.707.

  2. Age adjustment allowance. The basic severance pay allowance is increased by an age adjustment allowance consisting of 2.5 percent of the basic severance pay allowance for each full 3 months of age over 40 years.

  3. Lifetime limitation. The severance pay fund is limited to that amount which would provide 52 weeks of severance pay (taking into account weeks of severance pay previously received, as provided in 5 CFR 550.712).

6.500.1.11.11.5  (07-01-2003)
Creditable Service

  1. The following service is creditable for computing an employee's severance pay under 5 CFR 550.707:

    1. Civilian service as an employee (as defined in 5 U.S.C. 2105), excluding time during a period that is not creditable for annual leave accrual purposes under 5 U.S.C. 6303(a);

    2. Service performed with the United States Postal Service or the Postal Rate Commission;

    3. Military service, including active or inactive training with the National Guard, when performed by an employee who returns to civilian service through the exercise of a restoration right provided by law, Executive order, or regulation.

6.500.1.11.11.6  (07-01-2003)
Accrual and Payment of Severance Pay

  1. Severance pay accrues and is paid as provided by 5 CFR 550.709 on a day-to-day basis; that is 1 day of severance pay accrues for each workday or applicable holiday left in the pay period at the same rate at which basic pay would have accrued if the recipient were still employed.

6.500.1.11.11.7  (07-01-2003)
Suspension of Severance Pay

  1. Severance pay is suspended if an individual entitled to severance pay is re-employed by the Government of the United States or the government of the District of Columbia under a non-qualifying time-limited appointment. Severance pay is suspended for the life of the appointment. Severance pay resumes, without any re-computation, when the employee separates from the non-qualifying time-limited appointment. The resumed severance payments are the responsibility of the agency that originally triggered the individual's severance pay entitlement by separating the individual while he or she was serving under a qualifying appointment.

6.500.1.11.11.8  (07-01-2003)
Termination of Severance Pay Entitlement

  1. Entitlement to severance pay ends when the individual entitled to severance pay is employed by the Government of the United States or the government of the District of Columbia, unless employed under a non-qualifying time-limited appointment as defined at 5 CFR 550.703; or

  2. The severance pay fund is exhausted.

6.500.1.11.11.9  (07-01-2003)
Reemployment; Re-Credit of Service

  1. When a former employee is reemployed, the Service shall record on the appointment document the number of weeks of severance pay received (including partial weeks).

  2. If an employee again becomes entitled to severance pay, the severance pay allowance must be recalculated on the basis of all creditable service and current age and deduct from the number of weeks it would take to exhaust the allowance the number of weeks for which severance pay previously was received.

6.500.1.11.11.10  (07-01-2003)
Records

  1. IRS must maintain records, by fiscal year, of the number of employees who receive severance pay and the total amount of severance pay paid. The Office of Personnel Management may require agencies to report such information to it.

6.500.1.11.12  (07-01-2003)
Back pay, Applicability

  1. These guidance and procedures for processing back pay, as provided by 5 U.S.C. 5596, and 5 CFR part 550 subpart H, authorize the payment of back pay, interest, and reasonable attorney fees for the purpose of making an employee financially whole (to the extent possible) when, on the basis of a timely appeal or an administrative determination (including a decision relating to an unfair labor practice or a grievance), the employee is found by an appropriate authority to have been affected by an unjustified or unwarranted personnel action that resulted in the withdrawal, reduction, or denial of all or part of the pay, allowances, and differentials otherwise due to the employee. This guidance should be read and applied together with the cited law and regulations.

  2. Back pay does not apply to any reclassification action, unless the reclassification determination states that it applies retroactively and not within the generally time allowed by the classification appeals process.

6.500.1.11.12.1  (07-01-2003)
Coverage

  1. This information applies to all IRS employees who make back pay claims and may refer to former employees.

6.500.1.11.12.2  (07-01-2003)
Definitions

  1. The definitions used in this guidance are the same as those at 5 CFR 550.803. In addition, an administrative error means a ministerial action of omission or commission that results in a loss of pay or benefit to which an employee otherwise is entitled by law or regulation.

6.500.1.11.12.3  (07-01-2003)
Determining Entitlement to Back Pay

  1. The servicing personnel office is responsible for determining whether an employee was affected by an unjustified or unwarranted personnel action. When that determination is made, the employee shall be entitled to back pay under 5 U.S.C. 5596 and 5 CFR part 550 subpart H only if the unjustified or unwarranted personnel action resulted in the withdrawal, reduction, or denial of all or part of the pay, allowances, and differentials otherwise due the employee.

  2. The criteria for such determinations may be found at 5 CFR 550.804.

  3. The employee or personal representative may initiate an appeal or grievance under an appeal or grievance system, including appeal or grievance procedures included in a collective bargaining agreement; a claim against the Government of the United States; a discrimination complaint; or an unfair labor practice charge.

  4. An unwarranted or unjustified personnel action is corrected when the serving personnel office, after a review, corrects or directs the correction of the unjustified or unwarranted personnel action that resulted in the loss of pay or benefit.

    1. The pay and benefits paid as back pay (including payments made under any grievance or arbitration decision or any settlement agreement) may not exceed that authorized by any applicable law, rule, regulation, or collective bargaining agreement, including any applicable statute of limitations.

    2. The IRS may not authorize any pay or benefit in any case for a period beginning more than 6 years before the date of the filing of the appeal, or, absent such filing, the date of the administrative determination that the employee is entitled to back pay, consistent with 31 U.S.C. 3702(b). (See also 50 CFR 178.104 and 550.804(e).)

    3. For back pay claims under the Fair Labor Standards Act, as amended 29 U.S.C. 207, et seq., an agency must apply the 2-year statute of limitations (3 years for willful violations) in 29 U.S.C. 255a. (See also 5 CFR 178.104, 550.804(e), and 551.702.)

  5. The authority to review, take, direct, or recommend corrective action in any personnel matter, including cases involving classification actions, retroactive promotions and back pay, when submitted by National Headquarters and the business units for higher level administrative review and determination is delegated to the Director, Strategic Human Resources and may not be redelegated. This authority does not apply to Executive Resources Board covered positions and actions taken or approved by the Deputy Commissioner and Assistant Deputy Commissioner.

  6. The authority to approve personnel actions for corrective action in any personnel matter, including cases involving classification actions, retroactive promotions and back pay, for employees under their supervision and control is delegated to Directors of Human Resources in the business units.

6.500.1.11.12.4  (07-01-2003)
Back Pay Computations

  1. When the servicing personnel office corrects or directs the correction of an unjustified or unwarranted personnel action-

    1. The employee is deemed to have performed service for the IRS during the period covered by the corrective action; and

    2. The employee is entitled to the pay and benefits he or she would have received if the unjustified or unwarranted personnel action had not occurred.

  2. An employee shall not be granted more pay and benefits under 5 U.S.C. 5596 than he or she would have received if the unjustified or unwarranted personnel action had not occurred.

  3. Except as described in (4), below, a calculation of the amount of back pay payable under this subsection may not include any period during which the employee:

    1. Was not ready, willing, and able to perform his or her duties because of an incapacitating illness or injury; or

    2. Was unavailable for the performance of his or her duties for reasons other than those related to, or caused by, the unjustified or unwarranted personnel action.

  4. The IRS will grant, upon request of the employee, any sick or annual leave available to the employee for a period of incapacitation.

  5. The net amount of back pay payable must include the following offsets and deductions (in the order shown) from the gross back pay award:

    1. Any outside earnings to replace the employment from which the employee was separated by the unjustified or unwarranted personnel action. Outside earnings do not include earnings from additional or "moonlight" employment that the employee may have engaged in while employed by the IRS (before separation) and while erroneously separated.

    2. Any erroneous payments received as a result of the unjustified or unwarranted personnel action must be recovered as gross payments (before deductions) from the back pay award. (Erroneous payments will be deducted in the following order: retirement annuity payments; refunds of retirement contributions; severance pay; and a lump-sum payment for annual leave.)

    3. Authorized deductions that would have been made from the pay (if paid when properly due) in accordance with the normal order of precedence for deductions including, but not limited to, the following, as applicable: mandatory employee retirement contributions; Social Security taxes and Medicare taxes; health benefits premiums, if coverage continued during a period of erroneous retirement or if the employee elects to reinstate the insurance retroactively; and life insurance premiums; (To be considered an "authorized deduction," life insurance must have been: continued during a period of erroneous retirement; stopped during an erroneous suspension or separation and the employee suffered death or accidental dismemberment during that period; or there are additional premiums owed because of a retroactive increase in basic pay.); and Federal income tax withholdings.

    4. Administrative offsets under 31 U.S.C. 3716 to recover any outstanding debt(s) to the Federal Government.

  6. Interest as calculated in 5 CFR 550.806 is included in the amount from which deductions for erroneous payments are made, as required by 5 CFR 550.805(e)(2).

  7. Annual leave restored to an employee in excess of the maximum leave accumulation shall be credited to a separate leave account. The employee must schedule and use such annual leave as provided by 5 CFR 550.805 (g)(1) and (2)

  8. An employee's Thrift Savings Plan account must be corrected consistent with the Federal Retirement Thrift Investment Board regulations. (See 5 CFR parts 1605 and 1606.)

6.500.1.11.12.5  (07-01-2003)
Interest Computations

  1. Interest accrual

    1. Interest begins to accrue on the date or dates (usually one or more pay dates) on which the employee would have received the pay or benefits had the unjustified or unwarranted personnel action not occurred.

    2. Interest accrual ends no more than 30 days before the date of the back pay interest payment. No interest is payable if a complete back pay payment is made within 30 days after any erroneous withdrawal, reduction, or denial of a payment, and the interest accrual ending date is set to coincide with the interest accrual starting date.

  2. In computing the amount of interest due under 5 U.S.C. 5596, IRS shall follow the process detailed at 5 CFR 550.806.

6.500.1.11.12.6  (07-01-2003)
Payment of Reasonable Attorney Fees

  1. An employee or his or her personal representative may request payment of reasonable attorney fees related to an unjustified or unwarranted personnel action. Such a request may be presented only to the servicing personnel office that corrected or directed the correction of the unjustified or unwarranted personnel action. However, if an authority other than the employing agency provides the appeal that is the basis for a request for payment of attorney fees, the employee or representative shall present the request to the appropriate authority from which the appeal was taken.

  2. The finding authority shall provide an opportunity for the employing agency to respond to a request for payment of reasonable attorney fees.

  3. Except as provided in (4), below, when the authority corrects or directs the correction of an unjustified or unwarranted personnel action, the payment of reasonable attorney fees shall be deemed to be warranted only if-

    1. The payment is in the interest of justice, in accordance with standards established by the Merit Systems Protection Board under 5 U.S.C. 7701(g); and

    2. There is a specific finding setting forth the reasons such payment is in the interest of justice.

  4. When it is determined that such payment is warranted, IRS shall pay attorney fees in an amount determined to be reasonable. When an authority determines that such payment is not warranted, no such payment shall be required.

  5. When a determination that an employee has been affected by an unjustified or unwarranted personnel action based on a finding of discrimination prohibited under 5 U.S.C. 2302(b)(1) the payment of attorney fees shall be in accordance with the standards prescribed under the Civil Rights Act of 1964, as amended (42 U.S.C. 2000e-5(k)).

  6. The payment of attorney fees is limited to the services of members of the Bar and for the services of legal professionals assisting members of the Bar. No payment is for the services of any employee of the Federal Government, except as provided in 18 U.S.C. 205, relating to the activities of officers and employees in matters affecting the Government.

  7. The determination concerning the payment of attorney fees as in the interest of justice and the amount of any such payment is subject to review or appeal only if provided for by statute or regulation.

6.500.1.11.13  (07-01-2003)
Prohibition Against Setting Aside Proper Promotions

  1. Nothing in 5 U.S.C. 5596 or 5 CFR part 550 subpart H shall be construed to authorize the setting aside of an otherwise proper promotion by a selecting official from a group of properly ranked and certified candidates.

6.500.1.11.14  (07-01-2003)
Adjustment of Work Schedules for Religious Observances

  1. The policy with regard adjustment of work schedules for religious observances applies to each IRS employee.

6.500.1.11.14.1  (07-01-2003)
Compensatory Time Off for Religious Observances

  1. This guidance is intended to be read and implement with the provisions at 5 U.S.C. 5550a and 5 CFR part 550 subpart J. Under these provisions, an IRS employee whose personal religious beliefs require the abstention from work during certain periods may elect to perform work at another time to offset the hours used to meet those religious requirements.

  2. To the extent that work schedule changes do not interfere with the Service's efficient accomplishment of its mission, each employee shall be afforded the opportunity to earn compensatory overtime and shall be granted compensatory time off for religious observances when the employee's religious beliefs require abstention from work.

  3. For the purpose stated in (2), above, the employee may work such overtime before or after being granted compensatory time off.

    1. Advanced compensatory time off should be repaid by the appropriate amount of compensatory overtime work within a reasonable amount of time (generally no more than 120 days); and

    2. When advanced compensatory time off is granted, the employee and supervisor will schedule the hours during which the advance will be repaid. Those hours will then be treated as part of the employee's regularly scheduled workweek.

    3. Compensatory time off for religious observance shall be credited to an employee on an hour for hour basis or authorized fractions thereof, although such time may be earned and used in minimum increments of 15 minutes.

    4. Appropriate records will be kept of compensatory overtime earned and used.

  4. The pay provisions for overtime work in 5 CFR part 550 subpart A and section 7 of the Fair Labor Standards Act, as amended, do not apply to compensatory overtime work performed by an employee for this purpose.

6.500.1.11.15  (07-01-2003)
Collection by Offset from Indebted Government Employees

  1. Employee indebtedness when collected by offset will follow the law and regulations at 5 U.S.C. 5514 and 5 CFR part 550 subpart K, respectively.

6.500.1.11.16  (07-01-2003)
Lump-Sum Payment for Accumulated and Accrued Annual Leave

  1. Lump-sum payments for accumulated and accrued annual leave will be calculated, processed, paid, refunded, and re-credited, as appropriate under the provisions of 5 U.S.C. 5553, 6306, and 6311, and 5 CFR part 550 subpart L, respectively.

6.500.1.12  (07-01-2003)
General Provisions for the Fair Labor Standards Act

  1. The Fair Labor Standards Act of 1938 (FLSA) provides minimum standards for wages and overtime entitlements, defines procedures under which covered hours of work must be paid, and provisions related to child labor, equal pay, and home to work travel. Further, it exempts specific employees and groups of employees.

  2. Except as provided at 5 CFR 551.102, the FLSA is regulated and administered by the Office of Personnel Management as it applies to Federal employees.

  3. All IRS employees who are not specifically exempt from the provisions of the FLSA are considered covered by it.

  4. The definitions at 5 CFR 551.104 apply with regard to pay under the FLSA.

6.500.1.12.1  (07-01-2003)
Exempt and Exclusions

  1. The status of an employee with regard coverage under the FLSA is based on the work performed by employee described in his or her official position description as it reflects factors addressed at 5 CFR 551subpart B. Determination of this status is part of the classification process.

  2. Effect of performing temporary work or duties on FLSA exempt status:

    1. This guidance and the provisions at 5 CFR 551.208 apply only when an employee must temporarily perform work or duties that are not consistent with the primary or grade-controlling duty of the employee's official position description.

    2. This guidance does not apply when an employee is detailed to a position identical to his or her current position or to a position of the same grade, series, duties and FLSA exemption status as the employee's position.

  3. Effect on non-exempt employees:

    1. A non-exempt employee who performs work described at (2), above, remains non-exempt for the entire period of the detail unless the employee's temporary work or duties are exempt, and performed consistently on an on-going basis over a period of at least 30 calendar days and

    2. When the provisions at (3)a, above, have been met, the non-exempt employee becomes exempt for the entire period of the work or duties. IRS must recalculate the employees' total pay retroactive to the beginning of the period because the employee is not entitled to FLSA overtime but may be owed title 5 overtime pay.

  4. Effect on exempt employees:

    1. An exempt employee who performs work described at (2), above, remains exempt for the entire period of the detail unless the employee's temporary work or duties are non-exempt , and performed consistently on an on-going basis over a period of at least 30 calendar days, and the employee's position is at least at the GS-7 grade level.

    2. When all three of the provisions at (4)a, above, have been met, the exempt employee becomes non-exempt for the entire period of the work or duties. IRS must recalculate the employees' total pay retroactive to the beginning of the period because the employee is not entitled to title 5 overtime pay but may be owed overtime pay under the FLSA.

6.500.1.12.2  (07-01-2003)
Hours of Work

  1. Basic principles. All time spent by a non-exempt employee performing an activity for the benefit of the IRS and under its control or direction is "hours of work." The criteria for making such determinations are found at 5 CFR part 551 subpart D.

  2. Regular working hours. Under the FLSA. there is no requirement for a regularly scheduled administrative workweek. However, work schedules are required to determine other entitlements provided under title 5, United States Code. Therefore, for interpreting the FLSA, "regular working hours " means the days and hours of an employee's regularly scheduled administrative workweek established under 5 CFR part 610.

  3. Time spent traveling. As provided by 5 CFR 551.422, travel away from the official duty station requires travel more than 40 miles from the permanent station or office and also more than 40 miles from the employee's home, using the most common route.

  4. For a non-exempt employee, time spent traveling is considered hours of work if:

    1. The employee travels during regular working hours;

    2. The employee is required to drive a vehicle or perform other work while traveling;

    3. The employee travels as a passenger on a 1-day trip (round trip) away from the permanent duty station, to the extent that such travel causes the employee's day to exceed his or her regular working hours plus normal "home to work travel," as described at b., below.

    4. The employee travels on an overnight assignment away form the official duty station during hours on a non-workday that correspond to the employee's regular working hours.

  5. Home to work travel:

    1. The time involved in traveling from home to work before the beginning of the regular workday and returning at the end of the workday is "home to work travel" and is not hours of work and, therefore, not compensable.

    2. When an employee travels from home to a temporary duty station away from the official duty station on a 1-day trip, the time spent in normal home to work travel is deducted as indicated in a., above.

  6. When an employee is offered a mode of transportation but chooses to use an alternate mode, or travels at a different time than that selected by the agency, the employee will be credited with the lesser of:

    1. The actual travel time resulting in hours of work under this subsection; or

    2. The estimated travel time that would have been considered hours of work had the employee used the mode of transportation offered by the agency, or traveled at the time selected by the agency.

  7. To the extent that an employee's ordered travel results in hours of work under this subsection, the employee will be compensated by straight time pay or overtime pay, as appropriate.

  8. A non-exempt employee may not earn credit hours solely for traveling when no work is performed.

  9. Time spent in other activities. Training, adjusting grievances and performing representational functions, receiving medical attention; charitable activities; and on standby duty or in an on-call status; is considered hours of work under the circumstances described at 5 CFR 551.423 through 551.426 and 551.431, respectively.

6.500.1.12.3  (07-01-2003)
Overtime Pay Provisions

  1. Overtime under the FLSA will be calculated and paid as provided by 5 CFR part 551 subpart E.


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