To be filed with FPM Supplement 532-1


AR 690-532-1


Federal Wage System


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SUBCHAPTER S3. Organizational and Functional Responsibilities

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S3-2. Agency Level S3-3. Local Level


SUBCHAPTER S4. Wage Schedules

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S4-3. Special Schedules and Rates


SUBCHAPTER S5. Prevailing Rate Determination

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S5-2. Time Schedule for Wage Surveys


S5-7. Regular Schedule Full-Scale Surveys in Areas Not Having Local Wage-Survey Committees

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S5-13. Increased Minimum Rates

S5-14. Special Rates or Rate Ranges

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SUBCHAPTER S8. Pay Administration

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S8-3. Application of Pay Rates to Wage Employees

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S8-7. Environmental Differentials Paid for Exposure to Various Degrees of Hazards, Physical Hardships, and Working Conditions of an Unusually Severe Nature

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APPENDIX J. Schedule of Environmental Differentials Paid for Exposure to Various Degrees of Hazards, Physical Hard-ship, and Working Conditions of an Unusual Nature

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APPENDIX V. Listing of Agency Special Wage Schedules and Rates Documented Under the Federal Wage System


Subchapter S3, Organizational and Functional Responsibilities

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a. Agencies. (1) Department of Defense Directive 5120.39, 24 April 1980, designates the Assistant Secretary of Defense (Force Management and Personnel) to act for the Secretary of Defense as the Department of Defense Wage Fixing Authority (DODWFA). The authority has been redelegated to the Deputy Assistant Secretary of Defense (Civilian Personnel Policy). The Department of Defense Wage Committee and the Technical Staff of the DODWFA have been constituted by DOD Directive 5120.39 to assist the Wage Fixing Authority in carrying out assigned duties under the Federal Wage System (FWS). Functions performed by the Technical Staff, DODWFA, include:

(a) Developing specifications and plans for each locality wage survey, including designation of the host activity.

(b) Designating chairpersons, and pro-viding project officers, data collection agents, or other representatives to Local Wage Survey Committees or Locality Wage Boards. (A Locality Wage Board is a local board which does not qualify as a Local Wage Survey Committee under the FPM.)

(c) Providing direction, guidance, or assistance to Local Wage Survey Committees and Locality Wage Boards.

(2) The Assistant Secretary of the Army, Manpower and Reserve Affairs (M&RA), is responsible for Army civilian personnel policies including those concerning the FWS. The Director of Civilian Personnel advises the Assistant Secretary, manages the FWS within Army, and represents the Army on the D0D Wage Committee and the Federal Prevailing Rate Advisory Committee. Designated members of the Employment and Classification Office (DAPE-CPE) serve as alternates to the DCP in carrying out DA responsibilities.

(3) MACOMs are responsible for assuring effective operation of the FWS at subordinate activities including wage survey host responsibilities.


a. Federal installations and activities.

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(3) When assigned locality wage survey host responsibility, commanders, through their designated representatives on the local wage survey committee (LWSC), will assure that the survey is conducted in accordance with procedures outlined in FPM Supplement 532-1 and the DODWFA survey guide. Management committee members will assure that proposals represent management's position on major issues such as the redefinition of a wage area. The civilian personnel officer (CPO) and/or commander should be consulted to determine the propriety of such significant recommendations. At no time should procedures which are clearly outlined in the regulations or guides be the subject of negotiations with other committee members.

b. Local wage-survey committees.

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(2) Functions and responsibilities

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(i) Notification to the public and to employees of new wage schedules is coordinated so that information is released simultaneously in the locality and in Washington, D.C. The LWSC is responsible for notifying all principal Federal activities in the area.



Subchapter S4. Wage Schedules

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d. Requesting special schedules or rates. (1) CPOs will monitor the effectiveness of the compensation plans for wage grade employees. Commanders may request a special schedule or rate if essential for the solution of recruitment and retention problems. Ordinarily, increased minimum rates should be requested before asking for special rates or rate ranges. Such requests must-

(a) Meet the criteria contained in FPM Supplement 532-1, paragraphs S5-13 or S5-14;

(b) Be coordinated with other principal Federal installations in the locality; and

(c) Be submitted through command channels to HQDA (DAPE-CPE), Washington, D.C, 20310-0300.

(2) As a minimum, requests will include the-

(a) Number of employees and positions affected by occupation and grade;

(b) Number of losses to the private sector during the preceding 12 months attributable to low pay;

(c) Average length of recruitment time to fill vacant positions; and

(d) The private sector locality rates for comparable jobs. Requests will also include recommended rates and other pertinent cost data associated with the inability to fill positions, such as payment of overtime and training costs.

e. Discontinuing special schedules. When authorized increased minimum rates or special schedules are no longer needed, commanders will promptly request their cancellation. Such circumstances may include situations where these jobs are no longer used or sufficient qualified individuals are available.



Subchapter S5. Prevailing Rate Determination

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b. Annual survey schedule. Annual schedules will be met by host installations. Peak work loads or severe inconvenience will not be considered an adequate basis for exemption from the schedule.

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d. Local survey organization.

(1) No employee will be excluded from or added to data collection teams by reason of affiliation with a union. The only criteria will be personal qualifications and work experience necessary for the assignment.

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a. Requirements for authorization. Conditions contained in paragraph S4--3 of this regulation will be observed in submitting requests for increased minimum rates.

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a. Conditions supporting a proposal. Conditions contained in paragraph S4-3 of this regulation will be observed in submitting re-quests for special rates.




Subchapter S8. Pay Administration

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a. Rates payable. The guidance contained in AR 690-990-2, Book 531, subchapter S2, paragraph S2-1, is applicable to this subchapter.

d. Promotion. For purposes of computing pay in a promotion situation, DOD is considered a single agency.

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e. Computation of highest previous rate.

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(7) If the highest previous rate was earned in an overseas teaching position subject to Public Law 86--91 (Defense Department Overseas Teachers Pay and Personnel Practices Act) on a school-year basis, the rate earned will be increased by 20 percent to determine the equivalent annual rate.

(8) No consideration may be given to a rate received while serving-

(a) As construction or purchase hire personnel.

(b) As a Christmas temporary substitute in the Postal Service (31 Comp Gen.


(c) In a position which the employee subsequently was found to have been disqualified to hold. See 28 Comp Gen. 514 and 32 Comp. Gen. 465.

(d) As an employee of one of the non-appropriated fund activities specifically identified in 5 USC 2105(c).

(e) As an employee of a Federal land bank, Federal intermediate credit bank, or bank for cooperatives on and after 1 January 1960o See 39 Comp. Gen. 445.

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c. Payment for environmental differential. The provisions of this subchapter and appendix J apply to employees paid from regular Federal Wage System schedules and U.S. citizen employees paid from special schedules except power rate, marine, Davis-Bacon rates, and employees of the Panama Area.

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g. Determining local situations when environmental differentials are payable.

(1) (a) The CPO is responsible for administration of environmental differentials. The CPO or his/her designated representative will review all requests for environmental differential pay to determine the applicability of categories in appendix J to specific local situations. The findings and recommendations of occupational health and safety authorities will be used in making such determinations. The CPO will ensure that supervisors and employees are informed of the provisions of environmental differential pay. Categories and specific work situations meeting the criteria of a category will be documented locally and information disseminated to concerned employees by posting on bulletin boards or other appropriate methods. The CPO will also assure coordination with other management elements, such as the Comptroller, to include spot check of pay records, audit of work situations, and other appropriate action.

(b) Supervisors will ensure that environmental pay is authorized only when exposure warranting it is necessary and actually takes place. Assignments for which additional pay is authorized will be distributed equitably among qualified employees in accordance with work load requirements and skills of available employees.

(2) In evaluating local situations to determine whether payment is warranted for what appear to be potential job-related safety. or health hazards or environmental conditions, the local safety and occupational health officials will evaluate the condition to: define the potential health hazard or environmental condition, detail the required controls, and evaluate the adequacy of in-place controls. Non-DOD facilities or specialists will not be utilized. If this evaluation concludes that ad-equate controls are provided to protect the worker, the situation does not constitute an unusually severe exposure and environmental pay will not be authorized.

(a) When a local situation is deter-mined to be covered by a defined category, it will be documented to include: a brief description of the specified situation, recommendations of safety and occupational health officials, the date of the determination, and the name of the person who approved the differential.

(b) When an environmental differential pay situation has been identified locally as warranting guidance from higher authority, the situation will be fully documented and forwarded through channels to HQDA (PECC-FSO), Alexandria, VA 22332-0300. In no case will Army activities refer such issues directly to the Office of Personnel Management.

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(4) Army guidance on collective bargaining.

(a) Decisions on application of environmental differential categories to local situations is a bona fide subject for negotiations between union and management. Disputes over the application of these provisions should be dealt with in the negotiation of agreements, not in the administration of agree-meats. Instead of being the subject of grievance and arbitration proceedings, such disputes would then be appropriate for mediation with the assistance of the Federal Mediation and Conciliation service. If the dispute is not resolved in mediation, either party may then request assistance of the Federal Service Impasses Panel.

(b) Broad statements such as: "Environmental differential will be paid to all employees in the unit who qualify in accordance with the provisions of FPM Supplement 532-1 or any other governing regulation" should not be included in negotiated agreements. Inclusion of such a statement in negotiated agreements leaves the case-by-case determinations as to who qualifies for environmental differential up to an outside third party, i.e., an arbitrator at the terminal step of the grievance procedure.

(c) The approach in negotiation in keeping with the responsibility delegated to local management is to identify specific jobs in specific locations for which a differential is payable. Effort at the installation level will be directed toward negotiating application of the criteria provided in appendix J of FPM Supplement 532-1 to specific local jobs and work settings. For example:


Job Identification


Nature of Duties


Explosives Operator

Building X High

Hazard Area

Machines explosive compounds in manufacture of munitions

Under Part II, Appendix J, Explosives & Incendiary Material

Heating Equipment

Steam Plant #2

Repair of steam plant lines and auxiliary equipment requiring work in wet, muddy, limited space, crawl spaces.

Under Part I, Appendix J, Dirty Work


(d) Since application of local situation to categories of environmental differential is negotiable, management must give recognized unions notice and an opportunity to bargain regarding discontinuance of environmental differential being paid to bargaining unit employees. Agencies have an affirmative obligation to take action to eliminate or partially eliminate conditions warranting payment of environmental differential. Consequently, they need not bargain on whether or not to take such actions. They must, however, bargain on request on the impact and implementation of such actions, and on the question of whether specific conditions have in fact been eliminated or practically eliminated. If the union agrees that the hazard is eliminated or practically eliminated, or fails to respond, the environmental differential pay may be discontinued at the expiration of the notice period. If the union requests bargaining, differential pay may not be discontinued until the collective bargaining process has been completed.

(e) As an alternative to the rule regarding the duty to bargain on discontinuance, it may be possible to negotiate into the collective bargaining agreement between the parties a waiver of the union's right to bar-gain on discontinuance. Such waiver would allow the activity to immediately discontinue payment of environmental differential, subject to resolution through the negotiated grievance procedure of any dispute over whether the hazard has actually been eliminated or practically eliminated.

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1. Control of hazards, physical hardships, and working conditions of an unusually severe nature.

(1) In consonance with the objectives of the Environmental Differential Pay Plan, the overwhelming number of potentially hazardous job exposures can and must be adequately controlled. Through operation of the Army safety and occupational health programs, safety and health hazards can be adequately controlled and pose little significant hazard if controls are provided and properly used. Where the job-related hazard or environmental condition is practically eliminated by provision of personal protective clothing and devices and/ or workplace protective measures, standard operating procedures, or devices, environ-mental differential is not warranted and should not be paid. Where effective measures are provided but are not utilized because of inconvenience to the employee, no basis exists for payment.

(2) When payment for a job-related hazard or environmental condition is question-able, CPO will request a survey and/or determination by installation safety and occupational health authorities. The opinions of those authorities on whether the conditions can be or are controlled to the extent that personal hazard to the individual employee is practically eliminated will be a major consideration.

(3) Most adverse working conditions can be avoided by providing adequate protection to remove health hazards. Such protection may not be economically feasible, may require considerable time for engineering construction, or may create other adverse environmental conditions. In such cases local safety or occupational health authorities will determine the practicality of additional environmental or hazard controls. The findings will serve as a key consideration for determining the requirement for additional payment pending provision of such control.

(4) Where environmental differential is currently being paid and safety and/or occupational health authority findings have not been obtained, such authorities will be promptly consulted. Results will be documented and CPO will determine whether to continue or discontinue payment.


Appendix V

Listing of Agency Special Wage Schedules and Rates Documented Under the Federal Wage System

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c. Background. During the initial development of FPM Supplement 532-1, following enactment of PL 92-392, certain agency unique pay practices and wage schedules were set aside for in-depth review at a later date. In the interim, the agency pay practices documented in this appendix are continued. Upon completion of review and approval by the Office of Personnel Management (OPM) of proper pay treatment, the category is deleted. Categories for which special schedules are authorized by OPM are then listed in subchapter S11.

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 Washington, D.C., Northern Virginia and Western Maryland

 Schedule: Wage Schedules--Electronic Equipment Maker, Installer and Repairer, and Radio Maintenance Employees, Washington, D.C.

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Army activities authorized use: Limited to U.S. Army Information Systems Command activities listed on the wage schedule and are subject to the provisions of HQDA (DAPE-CP) letter.

Schedule: Wage Schedule--Television System Employees, Washington, D.C. Area.

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Army activities authorized use: Limited to the U.S. Army Information Systems Command Audio-Visual Center at the Pentagon and Walter Reed Army Medical Center, and subject to the provisions of HQDA (DAPE-CP) letter.

Washington, D.C. and Western Maryland

Schedule: Teletype and Crypro Communications Installing and Repairing Schedule:

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Army activities authorized use: Limited to the U.S. Army Information Systems Command activities listed on the wage schedule and subject to the provisions of HQDA (DAPE-CP) letter.

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1. Construction Schedules

a. Army policy on use. The construction category includes the positions of employees in the building trades occupations who are hired temporarily for the purpose of accomplishing a specific work project for the maintenance, repair, alteration, or new construction of property and who will be separated upon completion of the project. Positions of employees not in a building trade occupation who are hired on a temporary, duration-of-the-job basis to work on the same project with employees in a building trade occupation, are also included. This category may include only those positions which would fall in the wage grade pay method category. Personnel who are part of the permanent work force of the installation or activity who may be assigned to a construction project will be paid from the regular wage schedule.

b. Army policy on job analysis and evaluation. The preparation of job descriptions for construction jobs is optional with the activity. Where jobs are not readily identifiable by title alone, the preparation of descriptions will facilitate a more accurate comparison with jobs in the locality.


2. Purchase Hire Schedules

a. Army policy on use. Positions in the purchase-hire category are those necessary for the performance of emergency, nonrecurrent, or short-term activities involving the performance of work similar to that carried on by the activity but which cannot be carried on by the regular work force. Purchase-hire employment is limited to 90 calendar days except that appropriate headquarters may authorize successive 30-day extensions whenever circumstances exist which warrant such extensions. Purchase-hire employment will not be used for an increase in normal work load of a character other than indicated below nor for situations covered by construction schedules. This category may include only those positions which, if they were of a permanent nature, would be under the wage grade pay system. Following are examples of situations warranting the use of purchase-hire employment:

(1) Emergency movement of perishable foods to prevent spoilage.

(2) Emergency movement of material and equipment to prevent damage because of exposure to weather or other deleterious conditions.

(3) Nonrecurrent activities, protective in nature, necessitated by fire, flood, or similar emergency circumstances, not including nor-mal flood-control projects or activities.

(4) Intermittent operations at installations in an inactive or standby status. Ex-ample: Work involved in the unloading of supplies which occurs when the appropriate authority determines that a special shipment will be made from the stock of an inactive installation.

(5) Intermittent operations necessitated by national security requirements.

b. Army pay policy: For the purpose of establishment of pay rates, a determination will be made as to the grade which would be as-signed to the purchase-hire job under the FWS. However, the preparation of a formal job description is optional with the activity and the grade assigned will not appear on the Standard Form 50-B prepared in connection with any appointment to the job. When conditions warrant establishment of rates above the FWS wage schedule, a single rate will be established for each occupation, subject to the following:

(1) Rates in excess of the maximum step of the appropriate grade on the regular wage schedule, but not in excess of the prevailing rate for construction jobs of comparable skill level, may be adopted for purchase-hire jobs of one month or less duration.

(2) Tentative rates may be set in accordance with (1) above for jobs of longer duration, but such rates will be subject to nonretroactive adjustment by the DODWFA. Employees must be informed in writing of this fact. Requests for approval for such rates should be submitted promptly through channels to HQDA (DAPE-CPE), Washington, D.C., 20310-0300. The request should contain information on the circumstances necessitating utilization of purchase-hire personnel, approximate period of time for which employment will be required, number of personnel involved, duty statement for each job, and justification of the rates adopted.

(3) The authority to set wages does not extend to the establishment of rates for over-time, holiday, or night work. Unless specific authority for other rates is requested and received, payments for such work will be made in accordance with the practice followed for employees paid from the regular wage schedule.

(4) Employees who are part of the regular work force of an activity and who are assigned to a purchase-hire project will be paid in accordance with the regular wage schedules and not at rates established under this paragraph.