Agency Bypasses Hiring Laws

September 22, 1997

THE DAILY FED

Agency Bypasses Hiring Laws

The National Credit Union Administration hired several dozen employees in violation of merit principles and veterans' preference, an Office of Personnel Management investigation found.

According to The Washington Post, the NCUA improperly used a hiring authority that lets agencies quickly hire students with excellent academic records. NCUA also made up false duty locations to create the appearance of competition for certain jobs, OPM's report said.

Janice Lachance, OPM's acting director, suspended NCUA's hiring authority and referred the matter to the Office of Special Counsel.

NCUA officials admitted to the Post that they made mistakes, but said they skirted rules to create a more diverse workforce. In addition, nearly 25 percent of NCUA employees are veterans.

Lachance said other agencies are creating a more diverse workforce without breaking the rules.

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