United States Department of Agriculture

Marketing and Regulatory Programs

Agricultural Marketing Service

Animal and Plant Health Inspection Service

Grain Inspection, Packers and Stockyards Administration

Directive MRP 4550.2 3/18/02

PREMIUM PAY

1. PURPOSE

This Directive establishes the Marketing and Regulatory Programs (MRP) policy on 

premium pay for all employees, except those performing overtime work under the 

Import/Export Act, Title 7, United States Code (U.S.C.), 2260.

2. REPLACEMENT HIGHLIGHTS

This Directive replaces the following Agency-specific directives and instructions:

a. AMS Directive 350.1, Premium Pay, dated 4/3/95.

b. AMS Handbook 301, AMS Premium Pay User’s Guide, dated April 1995.

c. APHIS Directive 402.2, Premium Pay, dated 3/27/86.

d. APHIS Directive 402.4, Travel Time as “Hours of Work” under the Fair Labor 

Standards Act (FLSA), dated 4/25/80.

e. APHIS Directive 402.5, Training as “Hours of Work” under the Fair Labor 

Standards Act (FLSA), dated 9/25/81.

f. GIPSA, FGIS Directive 4550.2, Premium Pay, dated 7/21/93.

3. AUTHORITIES

a. Title 5, U.S.C., Chapter 55.

b. Title 5, Code of Federal Regulations, Parts 550, 551, and 532.

c. Department Personnel Manual Chapter 550, Subchapter 1, Premium Pay.

Distribution: AMS, APHIS, GIPSA Originating Office: HRD-HRPB

Issuance Change 2

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Issuance Change 2

11/19/12

4. POLICY

It is MRP policy that employees be paid premium pay in accordance with regulatory and 

policy entitlements and that:

a. The authority to order and approve overtime pay may be delegated to the lowest 

level of supervision with the authority to approve time and attendance sheets.

b. Employees whose rate of basic pay exceeds the GS-10, step 10, and are exempt 

from FLSA, may be ordered to take compensatory time in lieu of overtime pay for 

irregular or occasional overtime work.

c. Employees whose rate of basic pay is GS-10, step 10 or less, and those covered by 

FLSA who want compensatory time in lieu of overtime pay, must request it. They 

may not be ordered to take it.

d. Employees receiving overtime pay under the Import/Export Act (7 U.S.C. 2260) 

will not earn compensatory time.

e. Employees may not transfer compensatory time to or from other agencies 

(including USDA agencies and within MRP, e.g., Internal Revenue Service to 

USDA, or AMS to GIPSA).

f. Compensatory time is earned and used in 15 minute increments. Compensatory 

time must be used within 26 pay periods after the pay period it was earned or be 

paid out. Use or lose annual leave must be used before compensatory time.

AMS: Compensatory time must be used before annual leave, except in cases 

of use or lose leave.

5. OPERATING GUIDELINES

Additional information on premium pay may be found in the Human Resources Desk 

Guide (HRDG), Subchapter 4550, Premium Pay. This Directive and HRDG Subchapter 

4550, are available on the MRP Human Resources home page at 

http://www.aphis.usda.gov/mrpbs/hr/index.shtml

the employee library at www.aphis.usda.gov/library

and the AMS Issuances page at http:/www.ams.usda.gov/amsissuances

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6. INQUIRIES

General inquiries on procedural matters should be directed to the servicing personnel 

office. Requests for policy interpretations for complex issues should be referred to the 

Pay, Leave and Tours of Duty Specialist, Human Resources Policy Branch, MRP Human 

Resources Division.

/s/

Joanne Munno

Acting Deputy Administrator

MRP Business Services

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