(b) An employee who is promoted or transferred to a position in a higher grade is entitled to basic pay at the lowest rate of the higher grade which exceeds his existing rate of basic pay by not less than two step-increases of the grade from which he is promoted or transferred. If, in the case of an employee so promoted or transferred who is receiving basic pay at a rate in excess of the maximum rate of his grade, there is no rate in the higher grade which is at least two step-increases above his existing rate of basic pay, he is entitled to— (1) the maximum rate of the higher grade; or

(2) his existing rate of basic pay, if that rate is the higher.

If an employee so promoted or transferred is receiving basic pay at a rate saved to him under subchapter VI of this chapter on reduction in grade, he is entitled to—

(A) basic pay at a rate two steps above the rate which he would be receiving if subchapter VI of this chapter were not applicable to him; or

(B) his existing rate of basic pay, if that rate is the higher. (c) An employee in the legislative branch who is paid by the Secretary of the Senate or the Clerk of the House of Representatives, and who has completed two or more years of service as such an employee, and a Member of the Senate or House of Representatives who has completed two or more years of service as such a Member, may, on appointment to a position to which this subchapter applies, have his initial rate of pay fixed

(1) at the minimum rate of the appropriate grade; or

(2) at a step, or for an employee appointed to a position covered by the merit pay system established under section 5402 of this title, any dollar amount, of the appropriate grade that does not exceed the highest previous rate of pay received by him during that service in the legislative branch.

(d) The rate of pay established for a teaching position as defined by section 901 of title 20 held by an individual who becomes subject to subsection (a) of this section is deemed increased by 20 percent to determine the yearly rate of pay of the position.

(e) An employee of a county committee established pursuant to section 590h (b) of title 16 may upon appointment to a position under the Department of Agriculture, subject to this subchapter, have his initial rate of basic pay fixed at the minimum rate of the appropriate grade, or at any step of such grade that does not exceed the highest previous rate of basic pay received by him during service with such county committee.

(f) In the case of an employee covered by the merit pay system established under section 5402 of this title, all references in this section to "two steps" or "two step-increases" shall be deemed to mean 6 percent. (Pub. L. 89-554, Sept. 6, 1966, 80 Stat. 468, amended Pub. L. 90-103, § 105, Oct. 11, 1967, 81 Stat. 257; Pub. L. 90-367, § 1, June 29, 1968, 82 Stat. 277; Pub. L. 90-623, § 1 (6), (24), Oct. 22, 1968, 82 Stat. 1312, 1314; Pub. L. 95-454, Oct. 13, 1978, 92 Stat. 1184, 1221, 1222, and 1224; Pub. L. 96-54, Aug. 14, 1979, 93 Stat. 383.)

§ 5335. Periodic step-increases

(a) An employee paid on an annual basis, and occupying a permanent position within the scope of the General Schedule, who has not

reached the maximum rate of pay for the grade in which his position is placed, shall be advanced in pay successively to the next higher rate within the grade at the beginning of the next pay period following the completion of

ог

(1) each 52 calendar weeks of service in pay rates 1, 2, and 3; (2) each 104 calendar weeks of service in pay rates 4, 5, and 6;

(3) each 156 calendar weeks of service in pay rates 7, 8, and 9; subject to the following conditions:

(A) the employee did not receive an equivalent increase in pay from any cause during that period; and

(B) the work of the employee, except an administrative law judge appointed under section 3105 of this title, is of an acceptable level of competence as determined by the head of the agency.

(b) Under regulations prescribed by the Office of Personnel Management, the benefit of successive step-increases shall be preserved for employees whose continuous service is interrupted in the public interest by service with the armed forces or by service in essential nonGovernment civilian employment during a period of war or national emergency.

(c) When a determination is made under subsection (a) of this section that the work of an employee is not of an acceptable level of competence, the employee is entitled to prompt written notice of that determination and an opportunity for reconsideration of the determination within his agency under uniform procedures prescribed by the Office of Personnel Management. If the determination is affirmed on reconsideration, the employee is entitled to appeal to the Merit Systems Protection Board. If the reconsideration or appeal results in a reversal of the earlier determination, the new determination supersedes the earlier determination and is deemed to have been made as of the date of the earlier determination. The authority of the Office to prescribe procedures and the entitlement of the employee to appeal to the Board do not apply to a determination of acceptable level of competence made by the Librarian of Congress.

(d) An increase in pay granted by statute is not an equivalent increase in pay within the meaning of subsection (a) of this section. (e) This section does not apply to the pay of an individual covered by the merit pay system established under section 5402 of this title, or, appointed by the President, by and with the advice and consent of the Senate. (Pub. L. 89-554, Sept. 6, 1966, 80 Stat. 469, amended Pub. L. 90-83, § 1(20), Sept. 11, 1967, 81 Stat. 199; Pub. L. 95-251, Mar. 27, 1978, 92 Stat. 183; Pub. L. 95-454, Oct. 13, 1978, 92 Stat. 1184, 1224, and 1225; Pub. L. 96–54, Aug. 14, 1979, 93 Stat. 383.)

§ 5336. Additional step-increases

(a) Within the limit of available appropriations and under regulations prescribed by the Office of Personnel Management, the head of each agency may grant additional step-increases in recognition of high quality performance above that ordinarily found in the type of position concerned. However, an employee is eligible under this section for only one additional step-increase within any 52-week period.

(b) A step-increase under this section is in addition to those under section 5335 of this title and is not an equivalent increase in pay within the meaning of section 5335 (a) of this title.

(c) This section does not apply to the pay of an individual covered by the merit pay system established under section 5402 of this title, or. appointed by the President, by and with the advice and consent of the Senate. (Pub. L. 89-554, Sept. 6, 1966, 80 Stat. 469; amended, Pub. L. 95-454, Oct. 13, 1978, 92 Stat. 1184 and 1224.)

§ 5337. Repealed. Pub. L. 95-454, Oct. 13, 1978, 92 Stat. 1221

§ 5338. Regulations

The Office of Personnel Management may prescribe regulations necessary for the administration of this subchapter. (Pub. L. 89-554. Sept. 6, 1966, 80 Stat. 469; amended Pub. L. 95-454, Oct. 13, 1978, 92 Stat. 1224.)

SUBCHAPTER IV-PREVAILING RATE SYSTEMS

5341. Policy

It is the policy of Congress that rates of pay of prevailing rate mployees be fixed and adjusted from time to time as nearly as is nsistent with the public interest in accordance with prevailing rates d be based on principles that

(1) there will be equal pay for substantially equal work for all prevailing rate employees who are working under similar conditions of employment in all agencies within the same local wage

area;

(2) there will be relative differences in pay within a local wage area when there are substantial or recognizable differences in duties, responsibilities, and qualification requirements among positions;

(3) the level of rates of pay will be maintained in line with prevailing levels for comparable work within a local wage area; and

(4) the level of rates of pay will be maintained so as to attract and retain qualified prevailing rate employees.

Pub. L. 89-554, Sept. 6, 1966, 80 Stat. 471, amended Pub. L. 90-83, 1 (97), Sept. 11, 1967, 81 Stat. 220; Pub. L. 90-560, § 4, Oct. 12, 1968, 2 Stat. 997; Pub. L. 92–392, § 1, Aug. 19, 1972, 82 Stat. 564.)

5342. Definitions; application

(a) For the purpose of this subchapter

(1) "agency" means an Executive agency; but does not include

(A) a Government controlled corporation;
(B) the Tennessee Valley Authority;

(C) the Alaska Railroad;

(D) the Virgin Islands Corporation;
(E) the Atomic Energy Commission;
(F) the Central Intelligence Agency;
(G) the Panama Canal Commission;

(H) the National Security Agency, Department of Defense:

(I) the Bureau of Engraving and Printing, except for the purposes of section 5349 of this title; or

(J) the General Accounting Office; (2) "prevailing rate employee" means

(A) an individual employed in or under an agency in a recognized trade or craft, or other skilled mechanical craft, or in an unskilled, semiskilled, or skilled manual labor occupation, and any other individual, including a foreman and a supervisor, in a position having trade, craft, or laboring experience and knowledge as the paramount requirement;

(B) an employee of a nonappropriated fund instrumentality described by section 2105 (c) of this title who is employed in a recognized trade or craft, or other skilled mechanical craft, or in an unskilled. semiskilled, or skilled manual labor occupation, and any other individual, including a foreman and a supervisor, in a position having trade, craft, or laboring experience and knowledge as the paramount requirement; and

(C) an employee of the Veterans' Canteen Service, Veterans' Administration, excepted from chapter 51 of this title by section 5102 (c) (14) of this title who is employed in a recognized trade or craft, or other skilled mechanical craft, or in an unskilled, semiskilled, or skilled manual labor occupation, and any other individual, including a foreman and a supervisor, in a position having trade, craft, or labor experience and knowledge as the paramount requirement; and (3) "position" means the work, consisting of duties and responsibilities, assignable to a prevailing rate employee.

(b) (1) Except as provided by paragraphs (2) and (3) of this subsection, this subchapter applies to all prevailing rate employees and positions in or under an agency.

(2) This subchapter does not apply to employees and positions described by section 5102 (c) of this title other than by

(A) paragraph (7) of that section to the extent that such paragraph (7) applies to employees and positions other than employees and positions of the Bureau of Engraving and Printing; and

(B) paragraph (14) of that section.

(3) This subchapter, except section 5348, does not apply to officers and members of crews of vessels excepted from chapter 51 of this title by section 5102(c) (8) of this title.

(c) Each prevailing rate employee employed within any of the several States or the District of Columbia shall be a United States citizen or a bona fide resident of one of the several States or the District of Columbia unless the Secretary of Labor certifies that no United States citizen or bona fide resident of one of the several States or the District of Columbia is available to fill the particular position. (Pub. L. 89-554, Sept. 6, 1966, 89 Stat. 471, amended Pub. L. 92–392, § 1, Aug. 19, 1972, 86 Stat. 564; Pub. L. 96-70, Sept. 27, 1979, 93 Stat. 498; Pub. L. 96-191, Feb. 15, 1980, 94 Stat. 33.)

§ 5343. Prevailing rate determinations; wage schedules; night differentials

(a) The pay of prevailing rate employees shall be fixed and adjusted from time to time as nearly as is consistent with the public interest in accordance with prevailing rates. Subject to section 213(f) of title 29, the rates may not be less than the appropriate rates provided by section 206 (a) (1) of title 29. To carry out this subsection

(1) the Office of Personnel Management shall define, as appropriate

(A) with respect to prevailing rate employees other than prevailing rate employees under paragraphs (B) and (C) of section 5342 (a) (2) of this title, the boundaries of