Defense overtime pay cap waived again

Certain Defense Department employees will have their premium pay cap waived through 2012, according to an agency memo.

Eligible civilian Defense employees can receive basic and premium pay up to $230,700 for the year. The current premium pay cap, which the government also waived in 2011, is $179,900. Employees working overseas in support of military or emergency operations in areas covered by U.S. Central Command as well as those formerly of CENTCOM now under U.S. Africa Command are eligible for the waiver.

The amount of basic pay and premium pay cannot exceed $230,700, which is the vice president’s salary in 2012.

Premium pay typically includes additional compensation for overtime, night, Sunday or holiday work. The 2009 National Defense Authorization Act first authorized the waiver of the cap and Congress has continued to extend it.

One difference from previous years is civilian employees assigned to Iraq are no longer considered to be supporting a military operation, as forces withdrew in December 2011. “Instead, beginning in 2012, such employees are deemed to meet the eligibility standards for the increased premium pay cap based on their performance of work in direct support of or directly related to the response to a national emergency declared by the president; Continuation of the National Emergency With Respect to the Stabilization of Iraq, signed May 17, 2011,” the memo said.

Any additional pay employees receive as a result of the higher cap cannot be used to calculate retirement benefits or for lump-sum payments for accumulated and accrued annual leave.