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Federal employees' pay is governed by the comparability principle. This is a concept designed to insure employees and the Nation's other taxpayers that pay is equitable and comparable with pay in the private sector. There are problems with the comparability system, and reform is needed. The roles of the parties involved in the system and the problems that proposed legislation will not correct were discussed. Some of those involved in determining comparability for white-collar employees have been concerned about the President's extensive use of his authority to propose alternative plans. Because of this intervention, it was felt that the program has not been permitted to function as Congress intended. By law, the President may propose an alternative plan when the adjustment is not warranted because of a national emergency or because of economic conditions affecting the general welfare. In addition, the law required that comparability be based on levels of work, yet Presidential adjustments have often been uniform for all grades, resulting in overpayment for some levels and underpayment for others. According to various agency and employee organization officials, the blue-collar pay process was easier to understand and has resulted in fewer disagreements. This has been attributed to a more localized approach, joint participation by both labor and management at all levels, the lack of political pressure, and the fact that this system was not affected by pay caps. Several legislative changes to the blue-collar system have been proposed, leading to disputes between agency and union officials. The proposed legislation would increase the President's authority to adjust the comparability amounts and make it more difficult for Congress to override his decision.
Determining Federal Compensation: Changes Needed To Make the Processes More Equitable and Credible
Compensation fairness is a universal preoccupation in today’s workplace, from whispers around the water cooler to kabuki in the C-suite. Gender discrimination takes center stage in discussions of internal pay equity, but many other protected characteristics may be invoked as grounds for alleging discrimination: age, race, disability, physical appearance, and more. This broad range of vulnerability to discrimination charges is often neglected in corporate assessments of how well compensation systems comply with the law and satisfy employee norms of fairness. Blind spots in general equity constitute a serious threat to organizational performance and risk management. In Compensating Your Employees Fairly, a respected practitioner and consultant lays out in practical terms everything you need to know to protect your company along the full spectrum of internal pay equity issues, including all the technical methods you need to optimize compliance and minimize risk. Compensating Your Employees Fairly is a timely survey and comprehensive handbook for compensation specialists, HR professionals, EEO compliance officers, and in-house counsel. It provides all the information you need to ensure that compensation systems are equitable, auditable, internally consistent, and externally compliant with equal employment opportunity laws and regulations. The author presents technical information—both legal and statistical—in common-sense terms. Her non-technical breakdown of complex statistical concepts distills just as much as practitioners need to know in order to effectively deploy and interpret the standard applications of statistical analysis to internal pay equity. The focus throughout the book is on real-world application, current examples, and up-to-the-minute information on recent and pending wrinkles in the evolving legal landscape. Readers of Compensating Your Employees Fairly will learn: Why internal equity in compensation matters How to detect intentional and non-intentional discrimination in compensation The basics of statistical inference and multiple regression analysis The essentials of data availability, measurability, and collection The criteria for assessing compensation systems for internal equity How to investigate potential problems and react to formal complaints and actions How to avoid litigation and put in place ongoing measures for proactive self-auditing
In FY2006, the Federal Employees¿ Compensation Act (FECA) program paid over $1.8 billion in wage loss compensation to federal employees who were unable to work after being injured on the job. This report examined: (1) how effectively the Dept. of Labor¿s Office of Workers¿ Compensation Programs (OWCP) manages the risk of improper FECA compensation payments; (2) what vulnerabilities to improper payments, if any, exist in OWCP¿s procedures for making FECA wage loss payments; and (3) how well OWCP ensures the recovery of identified FECA overpayments. Includes recommendations. Charts and tables.