**PAY ADMINISTRATION**

**1. REASON FOR ISSUE:** To revise Department of Veterans Affairs (VA)
procedures on firefighter pay to reflect final Office of Personnel
Management regulations.

**2. SUMMARY OF CONTENTS/MAJOR CHANGES:** This handbook contains
mandatory VA procedures on pay administration. The pages in this
issuance replace part VIII, chapter 2 of VA Handbook 5007 in its
entirety and deletes appendix A of part VIII. This change will be
incorporated into the electronic version of VA Handbook 5007 that is
maintained on the [Office of Human Resources Management Web
site](http://vaww.va.gov/ohrm). Significant changes include:

a\. Revises guaranteed pay provision for firefighters who attend
training.

b\. Revises procedures for substituting irregular hours worked for leave
without pay.

c\. Clarifies ineligibility for paid holiday time off.

**3. RESPONSIBLE OFFICE:** The Compensation and Classification Service
(055), Office of the Deputy Assistant Secretary for Human Resources
Management and Labor Relations.

**4. RELATED DIRECTIVES:** VA Directive 5007, "Pay Administration."

**5. RESCISSIONS:** Appendix A of Part VIII.

**CERTIFIED BY: BY DIRECTION OF THE SECRETARY**

**OF VETERANS AFFAIRS**

/s/Robert N. McFarland /s/Tim S. McClain

Assistant Secretary for Acting Assistant Secretary for

Information and Technology Human Resources and Administration

ELECTRONIC DISTRIBUTION ONLY

**CONTENTS - CONTINUED**

**PARAGRAPH PAGE**

[**CHAPTER 13.**](#partVIIIch13) **FEDERAL WAGE SYSTEM PURCHASE AND HIRE
WAGE RATES**

1\. [GENERAL](#partVIIIch13para1) VIII-41

2\. [RESPONSIBILITIES](#partVIIIch13para2) VIII-41

3\. [SETTING PURCHASE AND HIRE RATES OF PAY](#partVIIIch13para3) VIII-41

4\. [EFFECTIVE DATE OF RATE CHANGES](#partVIIIch13para4) VIII-43

5\. [PREMIUM PAY](#partVIIIch13para5) VIII-44

6\. [REFERENCES](#partVIIIch13para6) VIII-44

7\. [DEFINITIONS](#partVIIIch13para7) VIII-45

**[CHAPTER 14.](#partVIIIch14) HOSTILE FIRE PAY**

1\. [GENERAL](#partVIIIch14para1) VIII-47

2\. [ELIGIBILITY](#partVIIIch14para2) VIII-47

3\. [PAY ADMINISTRATION](#partVIIIch14para3) VIII-47

4\. [RESPONSIBILITIES](#partVIIIch14para4) VIII-48

5\. [REFERENCES](#partVIIIch14para5) VIII-48

6\. [DEFINITIONS](#partVIIIch14para6) VIII-48

**APPENDICES**

VIII-A. \[RESCINDED\] VIII-A-1

VIII-B. [SAMPLE PAY COMPUTATIONS FOR FIREFIGHTERS](#AppVIIIB) VIII-B-1

VIII-C. [GUIDELINES (Selected Comptroller General\'s
decisions)](#AppVIIIC)

[DUAL COMPENSATION](#AppVIIIC) VIII-C-1

VIII-D. [GUIDELINES (Selected Comptroller General\'s
decisions)](#AppVIIID)

[BACKPAY](#AppVIIID) VIII-D-1

VIII-E. [Pay Administration for Experts and Consultants -- TITLE
5](#AppVIIIE) VIII-E-1

VIII-F. [REQUESTS TO USE THE BAYLOR PLAN](#AppVIIIF) VIII-F-1

VIII-G. [PAY FOR NON-U.S. CITIZEN POSITIONS IN FOREIGN AREAS](#AppVIIIG)
VIII-G-1

**CHAPTER 2. FIREFIGHTER PAY**

**1. GENERAL**

a\. The provisions on firefighter pay in this chapter apply to VHA
organizational elements in the Department of Veterans Affairs (VA) and
\[were\] effective October 11, 1998. (see subpart M of part 550, title 5
Code of Federal Regulations and section 628 of the Treasury and General
Government Appropriations Act, 1999, incorporated in section 101(h) of
Public Law 105-277.)

b\. The key features of firefighter pay are as follows:

\(1\) Under the pay system covered by this chapter, covered
firefighters, i.e., those with regular workweeks \[averaging\] 53 hours
or more, \[are not eligible to\] receive standby duty pay or certain
other forms of premium pay, including night, Sunday, holiday, and
hazardous duty. Covered firefighters are eligible only for overtime
premium pay; they will be paid on an hourly basis for all hours worked.
The firefighter overtime standard is 53 hours per week. \[A firefighter
is not entitled to receive paid holiday time off when not working on a
holiday, but may be allowed to use annual or sick leave, as appropriate,
or may be granted excused absence.\]

\(2\) Firefighters with normal 24-hour shifts will have their hourly
rate calculated by taking the annual rate for the employee and dividing
it by 2,756 (53 hours times 52 weeks). There are special computation
procedures for covered firefighters whose regular workweek includes a
basic 40-hour tour. \[See paragraph 2a for the divisor for firefighters
whose uncommon tours include a basic 40-hour workweek.\]

\(3\) \[F\]irefighters who are non-exempt from the Fair Labor Standards
Act (FLSA) will receive overtime pay at time-and-one-half. Exempt
firefighters' overtime rate will be capped at the overtime rate of
GS-10, step 1 (2,087 divisor), but in no case will it be lower than
their regular hourly rate (2,756 divisor).

\(4\) Basic pay received for a covered firefighter's regular tour is
creditable for retirement and certain other purposes. The straight-time
portion of overtime pay \[is\] included in retirement coverage,
resulting in higher annuities.

\(5\) Firefighters covered by this chapter must be converted to uncommon
tours of duty for leave purposes.

\(6\) Firefighters with regular tours of duty averaging 60 hours or less
per week (but at least 53 hours) \[received\] a special 2-step pay
adjustment \[upon conversion to this pay system\] effective October 11,
1998. Refer to PAID Bulletin 98-17 for special WGI eligibility coding
for firefighters in steps 8 and above prior to October 11, 1998.

\[ \]

\[c.\] Covered firefighters who attend agency-sanctioned training at
which attendance would otherwise reduce the hours worked will continue
to receive basic and overtime pay for their regular tour of duty. This
provision does not apply to individuals who voluntarily participate in
training during non- duty hours, leave hours, or periods of excused
absence. \[It also does not apply if the firefighter is entitled to a
greater amount of pay based on actual work hours during the week in
which training occurs.\]

\[d.\] All periods of paid absence will be counted as hours of work in
determining whether the

53-hour overtime standard has been met.

**2. TOURS INCLUDING BASIC 40-HOUR WORKWEEK**

a\. Firefighters whose regular tours of duty include a basic 40-hour
workweek (as opposed to firefighters whose regular tours generally
consist of 24-hour shifts) will have pay for their basic workweeks
computed using the 2,087 divisor. All hours in excess of their basic
40-hour workweek will be computed using the 2,756 divisor. Firefighters
who are working compressed work schedules for the basic 40-hour portion
of their tours will have pay for their basic workweeks computed on a
biweekly basis using the 2,087 divisor for all hours within their basic
80-hour workweek.

b\. All hours worked outside their basic 80-hour workweek will be
computed using the 2,756 divisor with overtime being determined on a
weekly basis as follows:

\(1\) **Non-Overtime Hours.** Hours in excess of the basic 80-hour
workweek, up to 53 hours in a week, will be paid at the straight-time
rate using the 2,756 divisor.

\(2\) **Overtime Hours.** Hours in excess of 53 hours in a week will be
paid at the applicable overtime rate using the 2,756 divisor. The
applicable overtime rate will be determined in accordance with paragraph
3 below.

**3. OVERTIME PREMIUM PAY**

a\. Firefighters covered by the terms of this chapter will receive
overtime pay only after 53 hours of work in a week. All hours in a duty
status will be considered as hours of work for purposes of computing
overtime pay.

b\. Firefighters whose hourly rate (using the 2,756 divisor) is less
than the minimum hourly rate for \[GS\]-10 (using the 2,087 divisor)
*and* all firefighters who are covered by (i.e., non-exempt from) the
\[FLSA\], regardless of pay rate, will receive overtime pay at the rate
of one-and-one-half their firefighter rate of basic pay (2,756 divisor).
This pay will be considered to be appropriate compensation under section
7(k) of the FLSA.

c\. FLSA-exempt firefighters whose hourly rate (using the 2,756 divisor)
is greater than the minimum hourly rate for GS-10 (using the 2,087
divisor) will be paid for all overtime hours at a rate which is the
greater of:

\(1\) One-and-one-half times the minimum hourly rate of basic pay for
GS-10 (using the 2,087 divisor); or

\(2\) The applicable firefighter hourly rate of basic pay (using the
2,756 divisor).

**4. LEAVE WITHOUT PAY (LWOP), LUMP SUM ANNUAL LEAVE PAYMENTS AND
UNCOMMON TOURS OF DUTY**

a\. **Substitution of Irregular Hours**. Firefighters who take LWOP
during an administrative workweek will have any irregular hours worked
(i.e., hours outside the regular tour of duty for that workweek)
substituted for those LWOP hours. Firefighters whose regular tour of
duty includes a basic 40-hour workweek who take LWOP will have any
irregular hours worked in the administrative workweek substituted first
for the basic 40-hour workweek LWOP hours, \[which are paid at an hourly
rate based on the 2087 divisor. All other substituted hours are paid at
an hourly rate based on the 2756 divisor, using the applicable overtime
rate for overtime hours. The annual rate used to compute any such hourly
rate is the annual rate in effect at the time the hour was actually
worked.\]

b\. **Lump Sum Annual Leave Payments**. Firefighters who earn and use
leave under uncommon tours of duty will receive regular overtime hours
in lump sum annual leave payments. NOTE: *See*

*part IV, chapter 3, paragraph 2d for additional guidance.*

c\. **Uncommon Tours of Duty**. All VHA firefighters under the scope of
this chapter shall be placed on uncommon tours of duty for purposes of
leave accrual and usage. This will include all firefighters with regular
tours of duty of at least 53 hours per week, such as 56-, 60-, and
72-hours. NOTE: *See VA Handbook 5011, Hours of Duty and Leave, for
regulations on leave accrual and charges for absences.*

**5**. **SCHEDULING**

a\. All fire chiefs will be placed on duty that include a basic 40-hour
workweek. When desired, fire chiefs may work a 56-hour regular tour,
providing that this schedule includes the basic 40-hour workweek.

b\. Firefighters whose normal tours of duty are 56, 60 or 72 hours and
generally consist of 24-hour shifts will continue to have a requirement
for a minimum of 25 and a maximum of 39 hours of actual work each week

**6. PAY ADMINISTRATION**

a\. **Effective Date.** The pay provisions contained in subpart M of
part 550, 5 CFR, became effective in VA on October 11, 1998.

b\. **Cancellation of Standby Duty Premium Pay.** Effective October 11,
1998, firefighters covered by this handbook are no longer eligible for
standby duty premium pay.

c\. **Special Pay Adjustment of Two Steps.** Effective October 11, 1998,
all firefighters with regular tours of duty averaging 60 hours or less
per week (and that do not include a basic 40-hour workweek) received an
increase in basic pay equal to two within-grade increases (WGIs) for the
grade applicable to the firefighter. Such 2-step pay adjustments were
not considered equivalent increases in pay for purposes of waiting
periods for within-grade increases.

**7**. **RESPONSIBILITIES**

a\. The Office of Human Resources Management is responsible for
providing advice and guidance to management officials regarding pay
matters contained in this chapter.

b\. The Office of Financial Management is responsible for providing
technical advice and guidance to management officials regarding the
procedures for implementing and paying firefighters under the terms of
this chapter.

c\. VHA management officials at VHA facilities employing firefighters
with regular weekly tours of duty of at least 53 hours are responsible
for ensuring that fire personnel are scheduled and paid in accordance
with the provisions of this chapter.

**8.** \[**PROTECTED RATES.** Effective October 11, 1998, a protected
annual rate of basic pay was established for 24-hour shift firefighters
that would have otherwise experienced a pay reduction. Entitlement to a
protected rate terminated when the employee's actual rate of basic pay
equaled or exceeded the protected rate, or when the individual moved to
a position not covered by this chapter.\]

**9. PAY COMPUTATION.** Refer to appendix VIII-B for guidance on
computing pay \[ \].

**10. REFERENCES**

a\. Section 628 of the Treasury and General Government Appropriations
Act, 1999, incorporated in section 101(h) of Public Law 105-277, the
Omnibus Consolidated and Emergency Supplemental Appropriations Act,
1999, October 21, 1998.

b\. Subpart M of part 550, 5 CFR.

.

c\. PAID Bulletin 98-17, October 22, 1998.

**11. DEFINITIONS**

a\. \[**Annualized Regular Rate of Pay.** The gross salary a firefighter
would earn over a 52-week period for working the regular tour of duty\].

b\. \[**Basic 40-Hour Workweek.** A block of time in a firefighter's
regular tour of duty that consists of 40 hours of actual work during an
administrative workweek (or 80 hours of actual work over a biweekly pay
period for individual on compressed work schedules), excluding sleep and
eating time, provided the tour does not consist primarily of 24-hour
shifts\].

c\. \[**Firefighter.** For purposes of this chapter, firefighter refers
to individuals in positions classified in the GS-081 series (Fire
Protection and Prevention) and who have regular tours of duty averaging
at least 53 hours per week\].

d\. **Overtime Hours.** Hours of work in excess of 53 hours in a week.

e\. \[**Regular Tour of Duty.** A firefighter's official work schedule
established by management on a regular and recurring basis as in effect
throughout the year (or on a temporary basis in cases where a temporary
change in schedules results in a reduction in regular work hours or a
change in the pay computations under paragraph 1), provided that the
individual works at least 53 hours per week, on average. It includes
only those overtime hours that are deemed to be part of the
firefighter's fixed recurring work schedule. Firefighters whose regular
tour of duty consists of a 56-, 60- or 72-hour average week will be
placed on Uncommon Tours of Duty\].

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[]{#AppVIIIB .anchor}

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**APPENDIX B. SAMPLE PAY COMPUTATIONS FOR FIREFIGHTERS**

**NOTE:** *Round to 2 decimal places at each step of the computations.*

1\. Fair Labor Standards Act (FLSA)-covered firefighter working a
48-64-56 rotation, for an average

56-hour tour of duty.

Current Rate: \[\$33,731\], GS-6/5, with \[10.90%\] locality
comparability payment \[(LCP)\]

Employee receives \[ \] pay as shown:

\[\$33,731÷ 2,756 = \$12.239\], rounded to \[\$12.24\] hourly rate.
Overtime rate = \[\$18.36 (12.24 x 1.5)\]

Week 1 -- 48 hours: Receives 48 hours of straight-time pay. \[\$12.24 x
48 = \$587.52\]. Additional hours paid at straight-time, until overtime
standard of 53 met; hours over 53 in week paid at overtime rate.

Week 2 -- 64 hours: Receives 53 hours of straight-time and 11 hours of
overtime pay. \[(\$12.24 x 53) + (\$18.36 x 11) = \$850.68\]. Additional
hours paid at overtime rate.

Week 3 -- 56 hours: Receives 53 hours of straight-time and 3 hours of
overtime pay. \[\$12.24 x 53) + (\$18.36 x 3) = \$703.80\]. Additional
hours paid at overtime rate.

\[ \]

2\. FLSA-covered firefighter working a 78-32-82-48 rotation, for an
average 60-hour tour of duty.

Current Rate: \[\$34,714, GS-5/10, with 10.90%\] LCP

Employee receives \[ \] pay as shown:

\[\$34,714 ÷ 2,756 = \$12.595\], rounded to \[12.60\] hourly rate.
Overtime rate = \[\$18.90 (\$12.60 x 1.5)\]

Week 1 -- 78 hours: Receives 53 hours of straight-time and 25 hours of
overtime. \[(\$12.60 x 53) + (\$18.90 x 25) = \$1,140.30\]. Additional
hours paid at overtime rate.

Week 2 -- 32 hours: Receives 32 hours of straight-time pay. \[\$12.60 x
32 = \$403.20\]. Additional hours paid at straight-time rate, until
overtime standard of 53 is met; hours over 53 in week paid at overtime
rate.

Week 3 -- 82 hours: Receives 53 hours of straight-time and 29 hours of
overtime. \[(\$12.60 x 53) + (\$18.90 x 29) = \$1,215.90\]. Additional
hours paid at overtime rate.

Week 4 -- 48 hours: Receives 48 hours of straight-time pay. \[\$12.60 x
48 = \$604.80\]. Additional hours paid at straight-time rate, until
overtime standard of 53 is met; hours over 53 in week paid at overtime
rate.

3\. FLSA-exempt firefighter working a straight 56-hour tour of duty that
includes a 40-hour basic workweek.

Current Rate: \[\$47,520\], GS-10/3, with \[10.90%\] LCP

\[\$47,520 ÷ 2,087 = \$22.769\], rounded to \[\$22.77\] (first-40-hour
hourly rate)

\[\$47,520 ÷ 2,756 = \$17.242\], rounded to \[\$17.24\] (41-to-53-hour
rate)

\[\$17.24 x 1.5 = \$25.86\] overtime rate for hours over 53 \[ \]

Each Week: 40 hours of straight-time at 2,087 divisor; 13 hours of
straight-time at 2,756 divisor; and 3 hours of overtime at 2,756
divisor. \[(\$22.77 x 40) + (\$17.24 x 13) + (\$25.86 x 3) =
\$1212.50\].

Additional hours paid at overtime rate.

4\. FLSA-covered firefighter working a straight 72-hour tour of duty.

Current Rate: \[\$41,890\], GS-7/9, with \[10.90%\] LCP

\[\$41,890 ÷ 2,756 = \$15.199\], rounded to \[\$15.20\] hourly rate.
Overtime rate = \[22.80 (\$15.20 x 1.5)\]

Each Week: Receives 53 hours of straight-time and 19 hours of overtime.
\[(\$15.20 x 53) + (\$22.80 x

19)= \$1238.80\]. Additional hours paid at overtime rate.

5\. FLSA-covered firefighters working a 55-48-65-48-65-55 rotation, for
an average 60-hour tour of duty.

Current Rate: \[\$38,694\], GS-6/10, with \[10.90%\] LCP

Employee \[ \] receives pay as shown:

\[\$38,694 ÷ 2,756 = \$14.039\], rounded to \[\$14.04\] hourly rate.
Overtime rate = \[21.06 (\$14.04 x 1.5)\]

Week 1 -- 55 hours: Receives 53 hours of straight-time and 2 hours of
overtime. \[(\$14.04 x 53) + (\$21.06 x 2) = \$786.24\]. Additional
hours paid at overtime rate.

Week 2 -- 48 hours: Receives 48 hours of straight-time pay. \[\$14.04 x
48 = \$673.92\]. Additional hours paid at straight-time rate, until
overtime standard of 53 is met; hours over 53 in week paid at overtime
rate.

Week 3 -- 65 hours: Receives 53 hours of straight-time and 12 hours of
overtime. \[(\$14.04 x 53) + (\$21.06 x 12)\] = \$996.84. Additional
hours paid at overtime rate.

Week 4 -- 48 hours: Receives 48 hours of straight-time pay. \[\$14.04 x
48 = \$673.92\]. Additional hours paid at straight time rate, until
overtime standard of 53 is met; hours over 53 in week paid at overtime
rate.

Week 5 -- 65 hours: Receives 53 hours of straight-time and 12 hours of
overtime. \[(\$14.04 x 53) +

(\$21.06 x 12) = \$996.84\]. Additional hours paid at overtime rate.

Week 6 -- 55 hours: Receives 53 hours of straight-time and 2 hours of
overtime. \[(\$14.04 x 53) +

(\$21.06 x 2) = \$786.24\]. Additional hours paid at overtime
rate.[]{#AppVIIIC .anchor}