45060 Federal Register / Vol. 62, No. 164 / Monday, August 25, 1997 / Proposed Rules

OFFICE OF PERSONNEL

MANAGEMENT

5 CFR Part 178

RIN 3206–H89

Procedures for Settling Claims

AGENCY: Office of Personnel

Management.

ACTION: Proposed rule.

SUMMARY: The Office of Personnel

Management is proposing rules of

procedure for the settlement of claims

submitted to OPM for Federal civilian

employees’ compensation and leave, for

proceeds of canceled checks for

veterans’ benefits payable to deceased

beneficiaries, and for the settlement of

deceased employees’ compensation.

Before June 30, 1996, these claims were

settled by the United States General

Accounting Office (GAO). However, on

that date, pursuant to the Legislative

Branch Appropriations Act of 1996, the

authority to settle these claims

transferred to the Director, Office of

Management and Budget, who delegated

this function to the Office of Personnel

Management.

DATES: Comments must be submitted on

or before October 24, 1997.

ADDRESSES: Comments may be mailed to

the Claims Adjudication Unit, Office of

the General Counsel, Room 7537, Office

of Personnel Management, 1900 E Street

NW., Washington, DC 20415.

FOR FURTHER INFORMATION CONTACT:

Paul Britner, Senior Attorney, 202–606–

2233.

SUPPLEMENTARY INFORMATION:

I. Background

Pursuant to the Legislative Branch

Appropriations Act of 1996, most of the

claims settlement functions performed

by the General Accounting Office (GAO)

were transferred to the Director, Office

of Management and Budget. See Sec.

211, Pub. L. 104–53, 109 Stat. 535.

Subsequently, the Acting Director

delegated these functions to various

components within the Executive

branch in a determination order dated

June 28, 1996. In summary, this order

delegated to the Office of Personnel

Management the authority to settle

claims against the United States

involving Federal employees’

compensation and leave, deceased

employees’ compensation, and proceeds

of canceled checks for veterans’ benefits

payable to deceased beneficiaries.

Subsequently, Congress codified these

changes through additional legislation.

See Pub. L. 104–316, 110 Stat. 3826. The

procedures in this proposed rule are

substantially similar to the procedures

formerly used by the GAO, which are

found at 4 CFR parts 31, 32 and 33.

Changes to these regulations are

discussed below.

II. Analysis of the Regulations

Subpart A—Administrative Claims—

Compensation and Leave, Deceased

employees’ Accounts and Proceeds of

Canceled Checks for Veterans’ Benefits

Payable to Deceased Beneficiaries

Section 178.101, Scope of Subpart

This section describes the types of

claims that may be submitted for

settlement to OPM, which are claims for

federal civilian compensation and leave

and proceeds of canceled checks for

veterans’ benefits payable to deceased

beneficiaries. Claims subject to a

negotiated grievance procedure are

excluded from this part.

Section 178.102, Procedures for

Submitting Claims

This section requires claimants to

submit their claims directly to OPM,

except that at an agency’s discretion, the

agency may forward the claim on behalf

of a claimant. The information that must

be included in a claim and an agency

report, when requested by OPM, is

described. This section also advises

claimants where their claims should be

sent, depending on the nature of the

claim. As a general rule, claims arising

from the Fair Labor Standards Act

(FLSA) are to be sent to the designated

OPM Oversight Division that has

jurisdiction for the location of the claim.

All other claims are to be sent to OPM

in Washington, DC. to the address set

forth in the regulations.

Sections 178.103–178.106

These sections do not make any

substantive changes to the comparable

GAO procedures.

Section 178.107, Finality of Claims

Settlements

Under GAO’s regulations, a

dissatisfied claimant could appeal an

adverse settlement to the Comptroller

General and, if sustained, the claimant

could request reconsideration of that

decision. Unlike the settlement process

at GAO, there will be no further review

within OPM. At GAO, the initial claims

settlement letter was prepared by an

adjudicator and was reviewed by an

attorney only if the claimant requested

an appeal. At OPM, all settlement

letters, except those involving FLSA

claims, are reviewed by an attorney

before they are issued. Therefore, nonFLSA claims settled by OPM will get

substantially the same level of review as

claims settled by GAO. Claimants also

are advised of their right to bring an

action in an appropriate United States

court.

Subpart B—Settlement of Accounts for

Deceased Civilian Officers and

Employees

Section 178.201, Scope of Subpart

This subpart applies to claims for

money due to the accounts of deceased

civilian officers and employees of the

Federal Government and of the

government of the District of Columbia,

including wholly owned and mixedownership Government corporations.

Section 178.202, Definitions

Definitions used in subpart B are

provided in this section.

Section 178.203, Designation of

Beneficiary

This section combines §§ 33.4 and

33.5 of 4 CFR into one that describes an

employee’s right to designate a

beneficiary for money due, an agency’s

responsibility for employee notification,

and the specific form and procedures for

doing so. The procedures have been

shortened and streamlined but contain

no substantive changes from the GAO

procedures.

Section 178.204, Order of Payment

Precedence

This section was taken from

paragraph (d) of 4 CFR 33.6 and made

into a separate section outlining the

order of payment precedence.

Section 178.205, Procedures Upon

Death of Employee

This section outlines procedures that

should be followed upon the death of an

employee by the employee’s designated

beneficiaries or survivors for the

settlement of accounts of any money

due to the decedent. This section

combines 4 CFR 33.7 and 33.8 of the

GAO procedures and reorganizes the

information provided. The substance of

the section remains the same as in the

GAO sections.

Section 178.206, Return of Unnegotiated

Government Checks

This section contains no substantive

change to the GAO procedures.

Section 178.207, Claims Settlement

Jurisdiction

This section has been streamlined to

include only information about claims

settlements. The information regarding

order of payment precedence has been

placed in a separate section. This

section refers claimants to the

procedures in subpart A and the
Federal Register / Vol. 62, No. 164 / Monday, August 25, 1997 / Proposed Rules 45061

jurisdiction of the Claims Adjudication

Unit, Office of General Counsel, Office

of Personnel Management, for

settlement of any claims arising under

this subpart.

Section 178.208, Applicability of

General Procedures

This section refers readers to subpart

A of this part for application of general

claims procedures. This function was

previously covered under 4 CFR part 31.

Regulatory Flexibility Act

I certify that these regulations would

not have a significant economic impact

on a substantial number of small entities

because they would only apply to

Federal agencies and employees.

Executive Order 12866, Regulatory

Review

This rule has been reviewed by the

Office of Management and Budget in

accordance with Executive Order 12866.

Paperwork Reduction Act of 1995

Section 178.102, 178.103 and

178.205(b) contain information

collection requirements related to

procedures for submitting claims. These

regulations assist OPM in settling claims

by requiring that information be

gathered in an organized and efficient

manner. Section 178.102 sets out the

required contents of any claim

submitted; § 178.103 is an additional

requirement of proof if the claim is filed

by a representative of the claimant; and

§ 178.205(b) lists the information

necessary, should the claim involve a

minor or incompetent.

In accordance with the Paperwork

Reduction Act of 1995 (44 U.S.C.

3507(d)), OPM has submitted a copy of

these sections to the Office of

Management and Budget (OMB) for

review. Collection of Information:

Procedures for Submitting Claims for

Compensation and Leave, Deceased

Employees’ Accounts, and Proceeds of

Canceled Checks for Veterans’ Benefits

Payable to Deceased Beneficiaries.

The total estimated annual reporting

burden resulting from these collection

of information requirements is 130.5

hours.

(130 respondents × 1 hour {average time to prepare claim}) = 130.00 +

(1 representative × .25 {time for additional requirements}) = .25 +

(1 minor or incompetent × .25 {additional requirements}) = .25

annual reporting burden 130.50

Organizations and individuals

desiring to submit comments on these

information collection requirements

should direct them to the Office of

Information and Regulatory Affairs,

OMB, Room 10235, New Executive

Office Building, Washington, DC 20503;

Attention: Desk Officer for OPM.

OMB considers comments by the

public on this proposed collection of

information in:

• Evaluating whether the proposed

collection of information is necessary

for the proper performance of the

functions of the Department, including

whether the information will have a

practical use;

• Evaluating the accuracy of the

Department’s estimate of the burden of

the proposed collection of information,

including the validity of the

methodology and assumptions used;

• Enhancing the quality, usefulness,

and clarity of the information to be

collected: and

• Minimizing the burden of collection

of information on those who are to

respond, including through the use of

appropriate automated electronic,

mechanical or other technological

collection techniques or other forms of

information technology; e.g., permitting

electronic submission of responses.

OMB is required to make a decision

concerning the collection of information

contained in these proposed regulations

between 30 and 60 days after

publication of this document in the

Federal Register. Therefore, a comment

to OMB is best assured of having its

effect if OMB receives it within 30 days

of publication. This does not affect the

deadline for the public to comment to

OPM on the proposed regulations.

List of Subjects in 5 CFR Part 178

Administrative practice and

procedure, Claims, Compensation,

Government employees.

U.S. Office of Personnel Management.

James B. King,

Director.

Accordingly, OPM is proposing to

amend 5 CFR by adding part 178 as

follows:

PART 178—PROCEDURES FOR

SETTLING CLAIMS

Subpart A—Administrative Claims—

Compensation and Leave, Deceased

Employees’ Accounts and Proceeds of

Canceled Checks for Veterans’ Benefits

Payable to Deceased Beneficiaries

Sec.

178.101 Scope of subpart.

178.102 Procedures for submitting claims.

178.103 Claim filed by a claimant’s

representative.

178.104 Statutory limitations on claims.

178.105 Basis of claim settlements.

178.106 Form of claim settlements.

178.107 Finality of claims settlements.

Subpart B—Settlement of Accounts for

Deceased Civilian Officers and Employees

Sec.

178.201 Scope of subpart.

178.202 Definitions.

178.203 Designation of beneficiary.

178.204 Order of payment precedence.

178.205 Procedures upon death of

employee.

178.206 Return of unnegotiated

Government checks.

178.207 Claims settlement jurisdiction.

178.208 Applicability of general

procedures.

Subpart A—Administrative Claims—

Compensation and Leave, Deceased

Employees’ Accounts and Proceeds of

Canceled Checks for Veterans’ Benefits

Payable to Deceased Beneficiaries

Authority: 31 U.S.C. 3702; 5 U.S.C. 5583;

38 U.S.C. 5122; Pub. L. 104–53, sec. 211,

Nov. 19, 1995; E.O. 12107.

§ 178.101 Scope of subpart.

(a) Claims covered. This subpart

prescribes general procedures

applicable to claims against the United

States that may be settled by the

Director of the Office of Personnel

Management pursuant to 31 U.S.C.

3702, 5 U.S.C. 5583 and 38 U.S.C. 5122.

In general, these claims involve Federal

employees’ compensation and leave and

claims for proceeds of canceled checks

for veterans’ benefits payable to

deceased beneficiaries.

(b) Claims not covered. This subpart

does not apply to claims that are under

the exclusive jurisdiction of

administrative agencies pursuant to

specific statutory authority or claims

concerning matters that are subject to

negotiated grievance procedures under

collective bargaining agreements

entered into pursuant to 5 U.S.C.

7121(a). Also, these procedures do not

apply to claims under the Fair Labor

Standards Act (FLSA). Procedures for

FLSA claims are set out in part 551 of

this chapter.
45062 Federal Register / Vol. 62, No. 164 / Monday, August 25, 1997 / Proposed Rules

§ 178.102 Procedures for submitting

claims.

(a) Content of claims. Except as

provided in paragraph (b) of this

section, a claim shall be submitted by

the claimant in writing and must be

signed by the claimant or by the

claimant’s representative. While no

specific form is required, the request

should describe the basis for the claim

and state the amount sought. The claim

should also include:

(1) The name, address, telephone

number and facsimile machine number,

if available, of the claimant;

(2) The name, address, telephone

number and facsimile machine number,

if available, of the agency employee who

denied the claim;

(3) A copy of the denial of the claim;

and,

(4) Any other information which the

claimant believes OPM should consider.

(b) Agency submissions of claims. At

the discretion of the agency, the agency

may forward the claim to OPM on the

claimant’s behalf. The claimant is

responsible for ensuring that OPM

receives all the information requested in

paragraph (a) of this section.

(c) Administrative report. At OPM’s

discretion, OPM may request the agency

to provide an administrative report.

This report should include:

(1) The agency’s factual findings;

(2) The agency’s conclusions of law

with relevant citations;

(3) The agency’s recommendation for

disposition of the claim;

(4) A complete copy of any regulation,

instruction, memorandum, or policy

relied upon by the agency in making its

determination;

(5) A statement that the claimant is or

is not a member of a collective

bargaining unit, and if so, a statement

that the claim is or is not covered by a

negotiated grievance procedure that

specifically excludes the claim from

coverage; and

(6) Any other information that the

agency believes OPM should consider.

(d) Canceled checks for veterans’

benefits.. Claims for the proceeds of

canceled checks for veterans’ benefits

payable to deceased beneficiaries must

be accompanied by evidence that the

claimant is the duly appointed

representative of the decedent’s estate

and that the estate will not escheat.

(e) Where to submit claims. (1) All

claims under this section should be sent

to the Claims Adjudication Unit, Room

7535, Office of the General Counsel,

Office of Personnel Management, 1900 E

Street NW., Washington, DC 20415.

Telephone inquiries regarding these

claims may be made to (202) 606–2233.

(2) FLSA claims should be sent to the

appropriate OPM Oversight Division as

provided in part 551 of this chapter.

§ 178.103 Claim filed by a claimant’s

representative.

A claim filed by a claimant’s

representative must be supported by a

duly executed power of attorney or

other documentary evidence of the

representative’s right to act for the

claimant.

§ 178.104 Statutory limitations on claims.

(a) Statutory limitations relating to

claims generally. Except as provided in

paragraphs (b) and (c) of this section or

as otherwise provided by law, all claims

against the United States Government

are subject to the 6-year statute of

limitations contained in 31 U.S.C.

3702(b). To satisfy the statutory

limitation, a claim must be received by

the Office of Personnel Management, or

by the department or agency out of

whose activities the claim arose, within

6 years from the date the claim accrued.

The claimant is responsible for proving

that the claim was filed within the

applicable statute of limitations.

(b) Claims under the Fair Labor

Standards Act (FLSA). Claims arising

under the FLSA, 29 U.S.C. 207, et seq.,

must be received by the Office of

Personnel Management, or by the

department or agency out of whose

activity the claim arose, within the time

limitations specified in the FLSA.

(c) Other statutory limitations.

Statutes of limitation other than that

identified in paragraph (a) of this

section may apply to certain claims.

Claimants are responsible for informing

themselves regarding other possible

statutory limitations.

§ 178.105 Basis of claim settlements.

The burden is upon the claimant to

establish the timeliness of the claim, the

liability of the United States, and the

claimant’s right to payment. The

settlement of claims is based upon the

written record only, which will include

the submissions by the claimant and the

agency. OPM will accept the facts

asserted by the agency, absent clear and

convincing evidence to the contrary.

§ 178.106 Form of claim settlements.

OPM will send a settlement to the

claimant advising whether the claim

may be allowed in whole or in part. If

OPM requested an agency report or if

the agency forwarded the claim on

behalf of the claimant, OPM also will

send the agency a copy of the

settlement.

§ 178.107 Finality of claim settlements.

(a) The OPM settlement is final; no

further administrative review is

available within OPM.

(b) Nothing is this subpart limits the

right of a claimant to bring an action in

an appropriate United States court.

Subpart B—Settlement of Accounts for

Deceased Civilian Officers and Employees

Authority: 5 U.S.C. 5581, 5582, 5583

§ 178.201 Scope of subpart.

(a) Accounts covered. This subpart

prescribes forms and procedures for the

prompt settlement of accounts of

deceased civilian officers and

employees of the Federal Government

and of the government of the District of

Columbia (including wholly owned and

mixed-ownership Government

corporations), as stated in 5 U.S.C. 5581,

5582, 5583.

(b) Accounts not covered. This

subpart does not apply to accounts of

deceased officers and employees of the

Federal land banks, Federal

intermediate credit banks, or regional

banks for cooperatives (see 5 U.S.C.

5581(1)). Also, these procedures do not

apply to payment of unpaid balance of

salary or other sums due deceased

Senators or Members of the House of

Representatives or their officers or

employees (see 2 U.S.C. 36a, 38a).

§ 178.202 Definitions.

(a) The term deceased employees as

used in this part includes former

civilian officers and employees who die

subsequent to separation from the

employing agency.

(b) The term money due means the

pay, salary, or allowances due on

account of the services of the decedent

for the Federal Government or the

government of the District of Columbia.

It includes, but is not limited to:

(1) All per diem instead of

subsistence, mileage, and amounts due

in reimbursement of travel expenses,

including incidental and miscellaneous

expenses which are incurred in

connection with the travel and for

which reimbursement is due;

(2) All allowances upon change of

official station;

(3) All quarters and cost-of-living

allowances and overtime or premium

pay;

(4) Amounts due for payment of cash

awards for employees’ suggestions;

(5) Amounts due as refund of salary

deductions for United States Savings

bonds;

(6) Payment for all accumulated and

current accrued annual or vacation

leave equal to the pay the decedent

would have received had he or she lived
Federal Register / Vol. 62, No. 164 / Monday, August 25, 1997 / Proposed Rules 45063

and remained in the service until the

expiration of the period of such annual

or vacation leave;

(7) The amounts of all checks drawn

in payment of such compensation

which were not delivered by the

Government to the officer or employee

during his or her lifetime or of any

unnegotiated checks returned to the

Government because of the death of the

officer or employee; and

(8) Retroactive pay under 5 U.S.C.

5344(b)(2).

§ 178.203 Designation of beneficiary.

(a) Agency notification. The

employing agency shall notify each

employee of his or her right to designate

a beneficiary or beneficiaries to receive

money due, and of the disposition of

money due if a beneficiary is not

designated. An employee may change or

revoke a designation at any time under

regulations promulgated by the Director

of the Office of Personnel Management

or his or her designee.

(b) Designation Form. Standard Form

1152, Designation of Beneficiary,

Unpaid Compensation of Deceased

Civilian Employee, is prescribed for use

by employees in designating a

beneficiary and in changing or revoking

a previous designation; each agency will

furnish the employee a Standard Form

1152 upon request. In the absence of the

prescribed form, however, any

designation, change, or cancellation of

beneficiary witnessed and filed in

accordance with the general

requirements of this part will be

acceptable.

(c) Who may be designated. An

employee may designate any person or

person as beneficiary. The term persons

or persons as used in this part includes

a legal entity or the estate of the

deceased employee.

(d) Executing and filing a designation

of beneficiary form. The Standard Form

1152 must be executed in duplicate by

the employee and filed with the

employing agency where the proper

officer will sign it and insert the date of

receipt in the space provided on each

part, file the original, and return the

duplicate to the employee. When a

designation of beneficiary is changed or

revoked, the employing agency should

return the earlier designation to the

employee, keeping a copy of only the

current designation on file.

(e) Effective period of a designation. A

properly executed and filed designation

of beneficiary will be effective as long

as employment by the same agency

continues. If an employee resigns and is

reemployed, or is transferred to another

agency, the employee must execute

another designation of beneficiary form

in accordance with paragraph (d) of this

section. A new designation of

beneficiary is not required, however,

when an employee’s agency or site,

function, records, equipment, and

personnel are absorbed by another

agency.

§ 178.204 Order of payment precedence.

To facilitate the settlement of the

accounts of the deceased employees,

money due an employee at the time of

the employee’s death shall be paid to

the person or persons surviving at the

date of death, in the following order of

precedence, and the payment bars

recovery by another person of amounts

so paid:

(a) First, to the beneficiary or

beneficiaries designated by the

employee in a writing received in the

employing agency prior to the

employee’s death;

(b) Second, if there is no designated

beneficiary, to the surviving spouse of

the employee;

(c) Third, if none of the above, to the

child or children of the employee and

descendants of deceased children by

representation;

(d) Fourth, if none of the above, to the

parents of the deceased employee or the

survivor of them;

(e) Fifth, if none of the above, to the

duly appointed legal representative of

the estate of the deceased employee; and

(f) Sixth, if none of the above, to the

person or persons entitled under the

laws of the domicile of the employee at

the time of his or her death.

§ 178.205 Procedures upon death of

employee.

(a) Claim form. As soon as practicable

after the death of an employee, the

agency in which the employee was last

employed will request, in the order of

precedence outlined in § 178.204, the

appropriate person or persons to

execute Standard Form 1153, Claim for

Unpaid Compensation of Deceased

Civilian Employee.

(b) Claims involving minors or

incompetents. If a guardian or

committee has been appointed for a

minor or incompetent appearing

entitled to unpaid compensation, the

claim should be supported by a

certificate of the court showing the

appointment and qualification of the

claimant in such capacity. If no

guardian or committee has been or will

be appointed, the initial claim should be

supported by a statement showing:

(1) Claimant’s relationship to the

minor or incompetent, if any;

(2) The name and address of the

person having care and custody of the

minor or incompetent;

(3) That any moneys received will be

applied to the use and benefit of the

minor or incompetent; and

(4) That the appointment of a

guardian or committee is not

contemplated.

§ 178.206 Return of unnegotiated

Government checks.

All unnegotiated United States

Government checks drawn to the order

of a decedent representing money due

as defined in § 178.202, and in the

possession of the claimant, should be

returned to the employing agency

concerned. Claimants should be

instructed to return any other United

States Government checks drawn to the

order of a decedent, such as veterans

benefits, social security benefits, or

Federal tax refunds, to the agency from

which the checks were received, with a

request for further instructions from that

agency.

§ 178.207 Claims settlement jurisdiction.

(a) District of Columbia and

Government corporations. Claims for

unpaid compensation due deceased

employees of the government of the

District of Columbia shall be paid by the

District of Columbia, and those of

Government corporations or mixed

ownership Government corporations

may be paid by the corporations.

(b) Office of Personnel Management.

Each agency shall pay undisputed

claims for the compensation due a

deceased employee. Except as provided

in paragraph (a) of this section, disputed

claims for money due deceased

employees of the Federal Government

will be submitted to the Claims

Adjudication Unit, Office of General

Counsel, in accordance with § 178.102.

For example:

(1) When doubt exists as to the

amount or validity of the claim;

(2) When doubt exists as to the

person(s) properly entitled to payment;

or

(3) When the claim involves

uncurrent checks. Uncurrent checks are

unnegotiated and/or undelivered checks

for money due the decedent which have

not been paid by the end of the fiscal

year after the fiscal year in which the

checks were issued. The checks, if

available, should accompany the claims.

(c) Payment of claim. Claims for

money due will be paid by the

appropriate agency only after settlement

by the Claims Adjudication Unit occurs.
45064 Federal Register / Vol. 62, No. 164 / Monday, August 25, 1997 / Proposed Rules

§ 178.208 Applicability of general

procedures.

When not in conflict with this

subpart, the provisions of subpart A of

this part relating to procedures

applicable to claims generally are also

applicable to the settlement of account

of deceased civilian officers and

employees.

[FR Doc. 97–22389 Filed 8–22–97; 8:45 am]

BILLING CODE 6325–01–M

OFFICE OF PERSONNEL

MANAGEMENT

5 CFR Part 551

RIN 3206–AG70

Pay Administration Under the Fair

Labor Standards Act

AGENCY: Office of Personnel

Management.

ACTION: Proposed rule.

SUMMARY: The U.S. Office of Personnel

Management (OPM) is publishing a

proposed rule to amend regulations on

the Fair Labor Standards Act (referred to

as ‘‘the Act’’ or ‘‘FLSA’’). The purpose

of the majority of the revisions is to

make text clearer, standardize terms,

change to the active voice, reorganize

material for added clarity, insert or

revise headings to accurately reflect

content, reduce internal crossreferencing, correct typographical,

punctuation, and grammatical errors,

and use ‘‘plain English.’’ The proposed

rule includes guidance published in the

sunsetted Federal Personnel Manual

(FPM), adds certain work in the

computer software field to the

professional exemption criteria, adds an

exemption for certain pilots, adds the

statutory exclusion of customs officers,

and includes regulations on child labor

and claims and compliance.

DATES: Written comments will be

considered if received on or before

October 24, 1997. Please organize and

identify comments by section and

paragraph designation.

ADDRESSES: All comments concerning

these proposed regulations should be

addressed to Jeffrey D. Miller, Director,

Classification Appeals and FLSA

Programs, Office of Personnel

Management, 1900 E Street NW., Room

7679, Washington, DC 20415.

FOR FURTHER INFORMATION CONTACT:

Jeffrey D. Miller, Director, Classification

Appeals and FLSA Programs, by

telephone on 202–606–2990; by fax on

202–606–2663; or by e-mail at

ADOMSOE@opm.gov.

SUPPLEMENTARY INFORMATION: On

January 10, 1995, OPM published a

proposed rule (60 FR 2549) to amend

regulations on the Fair Labor Standards

Act by adding a subpart F—Complaints

and Compliance. That subpart F

provided for FLSA complaint

adjudication by the agency involved

rather than by OPM. Comments were

received from four Federal agencies,

four labor organizations, and one

employee organization. OPM

reconsidered its proposal and withdrew

the proposed subpart F (62 FR 9995,

March 5, 1997).

The purpose of the majority of these

revisions is to make text clearer,

standardize terms, change to the active

voice, reorganize material for added

clarity, insert or revise headings to

accurately reflect content, reduce

internal cross-referencing, correct

typographical, punctuation, and

grammatical errors, and use ‘‘plain

English.’’ The proposed rule includes

guidance published in the sunsetted

Federal Personnel Manual, adds certain

work in the computer software field to

the professional exemption criteria,

adds an exemption for certain pilots,

adds the statutory exclusion of customs

officers, and adds two new subparts,

subpart F—Child Labor and subpart G—

FLSA Claims and Compliance. The

changes are discussed section by section

below. When the reason for a revision

is one or more of the ones described in

this paragraph, we do not repeat the

reason when we describe the change.

1. Nomenclature Changes

References to the Office of Personnel

Management are changed to ‘‘OPM’; the

word ‘‘shall’’ is changed to ‘‘will’’ or

‘‘must,’’ as appropriate; the phrase

‘‘shall be’’ is changed to ‘‘is’’; the phrase

‘‘employee in a position properly

classified’’ is substituted for ‘‘employee

classified’’; and ‘‘primary duty test’’ is

substituted for ‘‘primary duty criterion.’’

2. Miscellaneous Changes

The following changes are made

throughout: quotation marks are

removed, and paragraph headings are

added.

3. New Sections

Two new sections are added to

subpart B—Exemptions and the subpart

is retitled ‘‘Exemptions and

Exclusions.’’ One new section (551.204)

describes the exemption of Federal

Wage System employees. The other new

section (551.211) describes the statutory

exclusion of customs officers of the

United States Customs Service. Customs

officers whose exclusive entitlement to

overtime pay is governed by section 5 of

the Act of Feb. 13, 1911, as amended

(sections 261 and 267 of title 19, United

States Code), are excluded from the

hours of work and overtime pay

provisions of the FLSA. As used in

section 5, the term ‘‘customs officer’’

means a customs inspector, a

supervisory customs inspector, a canine

enforcement officer, or a supervisory

canine enforcement officer.

4. New Subparts

Two new subparts are added. The first

(subpart F) addresses child labor and

the second (subpart G) addresses

complaints and compliance.

5. Subpart A

Subpart A is restructured. Section

551.102—Definitions is redesignated

§ 551.104 with the same title. Section

551.104—Administrative authority is

redesignated § 551.102 and retitled

‘‘Authority and administration’’.

6. Section 551.101—General.

The second sentence of paragraph (a)

is revised by deleting all that follows the

word ‘‘Act’’. Revised paragraph (a) is

moved to redesignated § 551.102—

Authority and administration.

Paragraph (b) is redesignated

paragraph (a). In the first sentence, the

phrase ‘‘Fair Labor Standards Act of

1938, as amended (referred to as ‘‘the

Act’’ or ‘‘FLSA’’)’’ replaces the word

‘‘Act’’.

Paragraph (c) is redesignated

paragraph (b).

7. Redesignated § 551.102—Authority

and Administration

Paragraph (a) is moved to this section

from published § 551.101 and

paragraphs (b), (c), and (d) are added.

Paragraph (a), moved here from

published § 551.101, describes OPM’s

authority. The sole sentence of

published § 551.104—Administrative

authority is added to paragraph (a) and

is revised by deleting all the text

following the word ‘‘except’’ and

substituting ‘‘as specified in paragraphs

(b), (c), and (d) of this section.’’

Paragraph (b) states that the Equal

Employment Opportunity Commission

administers the equal pay provisions of

the Act.

Paragraph (c) lists the United States

Government entities for which the

Department of Labor administers the

Act. Those are the Library of Congress,

the United States Postal Service, the

Postal Rate Commission, and the

Tennessee Valley Authority.

Paragraph (d) lists the United States

Government entities for which the

Office of Compliance administers the

Act. The Congressional Accountability