Pay & Benefits Watch Pay & Benefits WatchPay & Benefits Watch
Key developments in the world of federal employee benefits: health, pay, and much more.

Agencies, Congress Work to Ensure Government Isn’t Overpaying Employees

ARCHIVES
mj007/Shutterstock.com

The next paycheck for some federal contractors will be a lot a smaller. Or at least the portion paid by Uncle Sam.

The Defense Department, General Services Administration and NASA issued an interim rule on Tuesday to lower the maximum reimbursable pay for federal contractors by nearly half. The rule goes into effect immediately.

Congress passed the new cap as part of the 2013 Bipartisan Budget Act, enacted late last year to set the spending levels for fiscal years 2014 and 2015. The law reduced the cap from $952,308 to $487,000, a 49 percent decrease. All new contracts signed, or costs incurred on old contracts, on or after Tuesday will only reimburse private employees at the new rate. Contracted companies can pay their employees more, but must do so on their own dime.

The reduction is coupled with a recently finalized rule that expanded the cap to all contract employees working with Defense, GSA and NASA, rather than just the five highest paid executives. That rule drew the ire of the federal contracting community -- in part because it was retroactive to 2012. The new reduction also angered contractors.

The cap spiked to its recent $952,308 figure at the beginning of 2013. It had previously been $763,029. Some lawmakers have advocated setting the reimbursable cap rate at the president’s salary of $400,000, while others have supported the vice president’s salary of $230,700 as a more appropriate benchmark.

Federal contractors have called the new cap “arbitrary,” saying it would hurt smaller companies that cannot afford to pay their employees more than what they receive from the government.

Border Pay

While agencies have been finalizing plans to ensure the contractor workforce is not overpaid, lawmakers have been busy making sure the same is true for civilian federal employees.

The Senate Homeland Security and Governmental Affairs Committee on Wednesday passed the Border Patrol Agent Pay Reform Act, which reforms the overtime system for Border Patrol officers. The bill would save $70 million annually by eliminating “administratively uncontrollable overtime,” which was designed to keep agents hot in pursuit of criminals on the clock.

Reports have surfaced that employees were exploiting the system, however, and even the union representing the Border Patrol workforce had conceded the system was “bloated.” The legislation aims to provide more predictability to agents’ work schedules and paychecks.

“Establishing a new pay schedule will get more agents on the borders and make our nation more secure while actually saving taxpayers money,” said Sen. Jon Tester, the bill’s sponsor. “It’s a win across the board.”

Eric Katz joined Government Executive in the summer of 2012 after graduating from The George Washington University, where he studied journalism and political science. He has written for his college newspaper and an online political news website and worked in a public affairs office for the Navy’s Military Sealift Command. Most recently, he worked for Financial Times, where he reported on national politics.

FROM OUR SPONSORS
JOIN THE DISCUSSION
Close [ x ] More from GovExec
 
 

Thank you for subscribing to newsletters from GovExec.com.
We think these reports might interest you:

  • Going Agile:Revolutionizing Federal Digital Services Delivery

    Here’s one indication that times have changed: Harriet Tubman is going to be the next face of the twenty dollar bill. Another sign of change? The way in which the federal government arrived at that decision.

    Download
  • Cyber Risk Report: Cybercrime Trends from 2016

    In our first half 2016 cyber trends report, SurfWatch Labs threat intelligence analysts noted one key theme – the interconnected nature of cybercrime – and the second half of the year saw organizations continuing to struggle with that reality. The number of potential cyber threats, the pool of already compromised information, and the ease of finding increasingly sophisticated cybercriminal tools continued to snowball throughout the year.

    Download
  • Featured Content from RSA Conference: Dissed by NIST

    Learn more about the latest draft of the U.S. National Institute of Standards and Technology guidance document on authentication and lifecycle management.

    Download
  • GBC Issue Brief: The Future of 9-1-1

    A Look Into the Next Generation of Emergency Services

    Download
  • GBC Survey Report: Securing the Perimeters

    A candid survey on cybersecurity in state and local governments

    Download
  • The New IP: Moving Government Agencies Toward the Network of The Future

    Federal IT managers are looking to modernize legacy network infrastructures that are taxed by growing demands from mobile devices, video, vast amounts of data, and more. This issue brief discusses the federal government network landscape, as well as market, financial force drivers for network modernization.

    Download
  • eBook: State & Local Cybersecurity

    CenturyLink is committed to helping state and local governments meet their cybersecurity challenges. Towards that end, CenturyLink commissioned a study from the Government Business Council that looked at the perceptions, attitudes and experiences of state and local leaders around the cybersecurity issue. The results were surprising in a number of ways. Learn more about their findings and the ways in which state and local governments can combat cybersecurity threats with this eBook.

    Download

When you download a report, your information may be shared with the underwriters of that document.