Federal Employees: OPM Data Do Not Identify if Temporary Employees Work for Extended Periods
Published: 2002-03-01T00:00:00

Fast Facts:

Highlights:
section_title: What GAO Found
paragraphs: In the early 1990s, concerns arose that federal agencies were retaining employees in an ongoing series of temporary appointments without benefits or tenure. For fiscal years 1991 through 2000, 10 agencies accounted for 90 percent of all temporary limited employees hired governmentwide. During this period, the number of temporary limited employees hired governmentwide declined by 47 percent--from 282,135 in fiscal year 1991 to 150,395 in fiscal year 2000. Most temporary limited employees were full-time hires in white-collar jobs who received some benefits, including annual pay adjustments and premium pay. A survey done at the 10 agencies indicated that seasonal work was the primary reason for using such employees, followed by peak workloads. The office automation clerical and assistance series was the most often reported occupational series for fiscal year 2000. Recent studies suggest that federal agencies and private sector firms use temporary employees for similar reasons--often staffing flexibility. Because temporary limited employees were serving for years under temporary appointments without the benefits afforded other long-term employees, the Office of Personnel Management (OPM) revised its regulations in 1994 to ensure that temporary employees were "used to meet truly short-term needs." The revised regulations created a two-year limit for individual temporary appointments in both the competitive and excepted service. OPM officials said that the Office of Merit Systems Oversight and Effectiveness, when assessing agencies' compliance with personnel laws and regulations, routinely included some individual temporary appointments in its periodic oversight reviews, but generally did not look at the work history of temporary limited employees in those appointments. OPM data show that many temporary limited employees hired in fiscal year 2000 had worked for the federal government for at least five years.

section_title: Letter
paragraphs: This report responds to your request for information on federal civilian  temporary employees.  Temporary employees provide federal agencies  with flexibility in handling temporary increases in workload and short-term  projects, such as working at military bases that will soon close.  Temporary  employees also fill recurring summer and seasonal positions, including  jobs in national parks and forests.
Temporary employees generally assist agencies in fulfilling short-term  needs. However, in the early 1990s, there were concerns that agencies were  retaining employees in an ongoing series of temporary appointments for  long periods (8 to 10 years) without benefits or tenure, making  nonpermanent employment quasipermanent for many. In fact, in 1993 a  temporary employee who had worked in an ongoing series of temporary  appointments for 8 years died after suffering a fatal heart attack and his  survivors were not entitled to a pension or government-subsidized health  or life insurance benefits.  In 1994, the Office of Personnel Management  (OPM) revised its regulations governing the use of temporary appointments  to ensure that temporary employees were used by agencies to meet truly  short-term needs and were not serving for years without many of the  benefits afforded other long-term employees.
In the competitive service, temporary employees are referred to as  temporary limited employees.  Generally, the appointments of these  employees cannot exceed 1 year but can be extended for an additional year  (for a total of 24 months).  Temporary employees also serve in executive  branch positions that have been excepted from the competitive hiring  requirements by law, regulation, or administrative determination for 1 year  with the possibility of an extension for another year.  For this report, we  use the phrase temporary limited employees to refer to appointments of  temporary employees for both the competitive and excepted services.
As agreed, our objectives were to (1) identify the federal agencies that are  the predominant users of temporary limited employees and the number and  job characteristics of such employees (including work schedules,  occupations, grade levels, and benefits); (2) discuss the primary reasons  agencies give for using temporary limited employees; and (3) compare the  federal government’s use of temporary limited employees with that of the  private sector.  In addition, we agreed to identify steps OPM has taken to  ensure the appropriate use of temporary limited employees and to  determine whether long-term use of temporary limited employees still  exists.
To address our objectives, we analyzed temporary limited employee data  from OPM’s Central Personal Data File (CPDF) over a 10-year period— fiscal years 1991 through 2000; sent a questionnaire to the 10 agencies that  were the predominant users of temporary limited employees (see app. I);  reviewed studies on temporary employment, including studies by OPM, the  Merit Systems Protection Board (MSPB), and the Congressional Research  Service (CRS); and interviewed agency officials.  We requested comments  on a draft of this report from the director of OPM.  Appendix II contains  more information about our objectives, scope, and methodology.
subsections: section_title: Background
paragraphs: Temporary limited appointments are appropriate for meeting a range of  staffing requirements when an agency expects there will be no permanent  need for an employee.  Temporary employees can work on a full-time, part- time, seasonal, or intermittent basis.  Federal employers are prohibited  from using temporary employees to avoid the costs of employee benefits or  ceilings on permanent employment levels.  Federal employers also cannot  use temporary employment as a “tryout” or trial period prior to permanent  employment.  In addition, federal employers cannot circumvent the  competitive examining process by appointing an individual on a temporary  basis when that individual is not among the list of qualified applicants  certified for permanent appointment.  Finally, under OPM regulations,  federal employers generally cannot use a temporary appointment to refill  positions that were previously filled with such an appointment for an  aggregate of 24 months over the preceding 3 years.
OPM states that although agencies have the basic authority to make  temporary limited appointments, agencies must document the reason for  each such appointment in an employee’s official personnel folder.   Agencies can use the appointing authority to: (1) fill a short-term position  that is not expected to last longer than 1 year; (2) meet an employment  need that is scheduled to be terminated within 24 months for such reasons  as abolition, reorganization, contracting of the function, anticipated  reduction in funding, or completion of a specific project or peak workload;  or (3) fill positions temporarily when the positions are expected to be  needed for the eventual placement of permanent employees who would  otherwise be displaced from other parts of the organization.
Various changes in regulation have been made over the years restricting the  length of service of temporary limited employees.  Beginning in 1938,  temporary employees generally could not continue past 30 days unless  OPM’s predecessor, the Civil Service Commission, approved the extension.   In 1960, the time a temporary appointment could remain in effect was  extended, so that appointments could be made for as long as 1 year.  In  1984, OPM increased the length of time an appointment could remain in  effect, so that agencies could extend a temporary employee’s service for a  total of 4 years from the date of initial appointment without OPM’s  approval.  In response to this change in policy, MSPB reported in 1987 that  although the expanded authority was a positive addition to the  management tools available to federal managers, such flexibility could lead  to poor management practices that result in continuing staffing needs being  met with temporary employees because they were easier to hire  administratively.
Beginning in 1991, several hearings were held before subcommittees of the  House Committee on Post Office and Civil Service to receive complaints of  temporary employees.  The hearings confirmed that federal agencies were  retaining employees in an ongoing series of temporary appointments for  long periods (8 to 10 years) without benefits or tenure.  In a tragic example,  a National Park Service employee, James A. Hudson, who had worked in an  ongoing series of temporary limited appointments for 8 years, died on July  5, 1993, after suffering a fatal heart attack after working three shifts over a  2-day period during the July 4 weekend.  Mr. Hudson, who was a decorated  Vietnam War veteran, was a full-time temporary worker whose survivors  were not entitled to a pension or government-subsidized health or life  insurance benefits.  In response to his death, the Congress, as part of the  Department of the Interior and Related Agencies Appropriations Act of  1994, gave Mr. Hudson’s widow a lump-sum payment of $38,400, the  amount his family would have received as life insurance benefits had he  been a permanent federal employee.
In 1994, responding to these hearings and information from other sources,  OPM revised its regulations governing agencies’ use of temporary  appointments by reducing the time limit from a maximum of 4 years to 2  years and made the requirements uniform for temporary appointments in  both the competitive and excepted services.  For an extension beyond 2  years, agency officials must request and obtain approval from OPM.
section_title: Ten Agencies Were Predominant Users of Temporary Limited Employees
paragraphs: In fiscal year 2000, 10 agencies—the departments of Agriculture,  Commerce, Defense, HHS, the Interior, Justice, State, the Treasury, and VA  and FEMA—were the predominant users of temporary limited employees.   These agencies also employed 84 percent of all federal employees in that  year. Figure 1 shows the percentage of temporary limited employees hired  in fiscal year 2000 by the 10 agencies and all other agencies.
Over the 10-year period, these 10 agencies accounted for slightly over 90  percent of all temporary limited employees hired governmentwide.  Table 1  shows the number and percentage of temporary limited hires that the 10  agencies used each year.
The number of temporary limited employees hired governmentwide  declined by about 47 percent from fiscal year 1991 to fiscal year 2000.  By  comparison, CPDF data show that for permanent federal employees, the  decline was about 19 percent over the same 10 years.  Except for small  year-to-year increases in fiscal years 1995, 1997, and 1998, the hiring of  temporary limited employees declined annually over these 10 years.
section_title: Temporary Limited Employees Were Mainly Full-Time
paragraphs: Over the 10-year period, the majority of temporary limited employees were  full-time hires in white-collar occupations.  These employees received  some benefits, including annual pay adjustments, overtime pay, and  premium pay.
subsections: section_title: Work Schedule
paragraphs: Temporary limited employees can work a full-time, part-time, seasonal, or  intermittent work schedule.  From fiscal years 1991 through 2000, the  majority of temporary limited employees were full-time hires.  Figure 2  contains data on temporary limited employees hired governmentwide for  fiscal years 1991 through 2000 by work schedule.
section_title: Occupations and Grade Levels
paragraphs: Over the 10-year period, the majority of temporary limited employees hired  were in white-collar occupations. White-collar occupations include  professional, administrative, technical, and clerical occupations.  The  remaining occupations were blue collar, comprising the trades, crafts, and  manual labor. Blue-collar occupations include foreman and supervisory  positions entailing trade, craft, or laboring experience and knowledge as  the paramount requirement. For fiscal year 2000, about 65 percent of  temporary limited employees belonged to 10 occupational series: (1) the  miscellaneous clerk and assistant series; (2) fabric and leather, instrument,  machine tool, metalwork, audio visual/television/video, etc. series; (3)  miscellaneous administrative and program series; (4) forestry technician  series; (5) office automation clerical and assistant series; (6) general  education and training series; (7) biological science and technician series;  (8) educational and vocational training series; (9) education and training  technician series; and (10) park ranger series.  Figure 3 shows the  percentage of temporary limited employees hired governmentwide by  occupation category for the 10-year period.
Most of the white-collar occupations were in the general schedule (GS) pay  plan, which consists of 15 grades of annual rates of basic pay.  Table 2  shows the numbers of white-collar GS temporary limited employees hired  governmentwide by grade level.
section_title: Benefits
paragraphs: Temporary limited employees receive some rights and benefits but are not  entitled to many of the rights and benefits available to permanent federal  employees.  Temporary limited employees, like permanent employees,  receive full salary based on the grade and step of the position they occupy,  annual pay adjustments, and overtime and premium pay.  They also  generally earn annual and sick leave if they work a full-time or part-time  schedule.  Part-time employees earn annual and sick leave on a prorated  basis.  Seasonal employees can work full time or part time.  Because  intermittent employees have no fixed work schedule, they do not earn  annual and sick leave.  Temporary limited employees are not eligible for  military leave or family and medical leave.
Retirement and life insurance benefits are not provided to temporary  limited employees.  These employees cannot participate in the Thrift  Savings Plan.  To be eligible for health insurance benefits, they must  complete 1 year of current continuous employment, excluding any break in  service of 5 days or less.  Once eligible, they must pay the entire cost of the  insurance premium. The government does not contribute toward the cost  of health insurance for temporary limited employees as it does for  permanent federal employees.
Temporary limited employees in the GS pay plan also do not receive within- grade pay increases.  However, some blue-collar temporary limited  employees are eligible for within-grade pay increases.  Temporary limited  employees cannot be converted to permanent positions, and the time  served in a temporary limited position is not creditable service for federal  retirement.
section_title: Agency Officials’ Responses Indicate Seasonal Work Was the Primary Reason for Using Temporary Limited Employees
paragraphs: According to the results of our survey of the 10 agencies that were the  predominant users of temporary limited employees, seasonal work was the  primary reason agency officials gave for using such employees.  Agency  officials’ responses indicate that 37 percent of the temporary limited  employees hired in fiscal year 2000 in their agencies were for seasonal  work. Those officials’ responses indicate that 20 percent of temporary  limited employees were hired in fiscal year 2000 because of peak workload.   Overall, 18 percent of the temporary limited employees hired in fiscal year  2000 were students, including students in associate, graduate, or  professional degree programs. Figure 4 shows the percentage of temporary  limited employees hired in fiscal year 2000 for each reason provided.
Figure 5 shows, by reason, the most prevalent occupations identified by  our survey of the 10 agencies that were the predominant users of  temporary limited employees.  The most often reported occupational series  for fiscal year 2000 was the office automation clerical and assistance series.
section_title: Studies Indicate Reasons Public and Private Sectors Use Temporary Employees Are Generally Similar
paragraphs: We reviewed reports and studies published over the past 15 years that  discussed aspects of temporary employment in the public and private  sectors.  Although studies indicate that some differences exist between the  federal government’s use of temporary limited employees and that of the  private sector, they also indicate that the reasons federal agencies and  private sector firms use temporary employees are generally similar.  The  primary use for both sectors concern scheduling flexibility for staffing so  that employers could use temporary employees in such instances as to fill  in for absent regular employees; to fill seasonal needs; and to provide  needed assistance at times of unexpected increases in business or to meet  fluctuations in workload. Differences between the sectors include reasons  that are acceptable uses of temporary employees in the private sector (e.g.,  to screen/recruit for filling permanent positions and to save on wage and  benefit costs) but not allowed under the regulations governing temporary  employees in the federal government.  Other differences include reasons  that are associated with aspects of federal hiring, such as temporarily  employing candidates awaiting final security clearances and using  temporary help in continuing positions that could not be filled permanently  due to budget cuts.
In June 1997, an employer study was published based on a survey designed  to be representative of employment in private sector establishments with  five or more employees in the United States.  This study directly  addressed why private sector employers used temporary employees and  divided the reasons into two categories.  The first category consisted of  reasons concerning staffing levels, including  filling vacancies until regular employees are hired;  filling in for absent regular employees who are sick, on vacation, or on   filling seasonal needs;  providing needed assistance during peak-time hours of the day or week;  providing needed assistance at times of unexpected increases in   staffing special projects; and  providing needed assistance during hours not covered by full-time  shifts.
The second category consisted of varied reasons, including  screening job candidates for regular jobs,  saving on wage and/or benefit costs,  providing needed assistance during company restructuring or merger,  filling positions with temporary workers for more than a year,  saving on training costs,  gaining special expertise possessed by this type of worker,  accommodating employees’ wishes for part-time hours, and   hiring part-time workers because of an inability to find qualified full- time workers.
No comparable study has been done recently for the federal sector.  However, in 1987, MSPB issued a report on temporary appointments in the  federal government in which MSPB included the responses of 21  departments and independent agencies that, among other things, included  a discussion of the reasons agencies cited for using temporary  appointments.  According to the MSPB report, most agencies expressed  their responses in general terms concerning  positions not expected to last more than 1 year,  seasonal positions,  part-time and intermittent positions that are not clearly of a continuing   continuing positions when temporarily vacated for periods of less than 1  year.
In addition, some agencies provided specific examples, including  hiring postgraduate students to work on research projects that will last   temporarily placing candidates in less sensitive positions while they  wait for final security clearances;  placing workers in continuing positions that could not be filled  permanently due to budget cuts;  filling shortage category and hard-to-fill positions, pending certification   preventing a loss of candidates to private industry in occupations like  computer specialist by having the ability to hire such candidates in 2 or  3 weeks with conversion to permanent employment at a later date.
According to the MSPB report, the last two reasons, in particular, indicated  possible merit system concerns.
Other studies that provide reasons agencies cited for using temporary  employees concern specific agencies or agency components.  These  reasons included using temporary employees  to meet fluctuations in workload,  to address uncertain funding, and  to screen candidates before hiring them permanently.
According to OPM, the last two reasons are not appropriate uses of  temporary limited employees in the federal government.
section_title: OPM Revised Its Regulations to Ensure the Appropriate Use of Temporary Limited Appointments, but Long-Term Use May Still Exist
paragraphs: As with its other regulations, OPM is responsible for ensuring that agencies  adhere to its regulations concerning temporary employees.  In 1994, OPM  revised its regulations governing temporary appointments.  OPM stated  that its intention in revising the regulations was to ensure that temporary  limited employees were used to meet truly short-term needs and were not  serving for years under a series of temporary appointments without many  of the benefits afforded other long-term employees.  The 10 agencies that  are the predominant users of temporary limited employees stated that they  have been ensuring the need for individual temporary appointments and  monitoring the time limits imposed on such appointments.  According to  OPM and agency officials, however, neither OPM nor any of the 10 agencies  have been monitoring the total years of continuous temporary employment  by these individuals.  CPDF data, the best available information, show that  of those temporary limited employees hired governmentwide in fiscal year  2000, about 16,000, or about 11 percent, had 5 or more years of federal  service.  However, limitations in the CPDF data prevent a determination of  the number of individuals who spend long periods of continuous federal  service in temporary limited positions without many of the benefits  afforded other long-term employees.
subsections: section_title: OMSOE Reviews Not Normally Designed to Assess Temporary Limited Appointments in Detail
paragraphs: In 1994, OPM revised its regulations governing the use of temporary limited  appointments to help ensure that such employees are used to meet truly  short-term needs.  Congressional hearings and information from other  sources prompted OPM to act because some temporary limited employees  were serving for years under a series of temporary limited appointments  without many of the benefits afforded other long-term employees.  For  example, a 1992 OPM study reported that many nonpermanent seasonal  employees in the land management agencies were “making a career” out of  temporary work. The revised regulations reduced the time limit for  individual temporary limited appointments from 4 to 2 continuous years of  temporary service in a position.
OPM’s revised regulations governing temporary appointments also  generally limit agencies from refilling any position or its successor (i.e., a  position that replaces and absorbs the original position) with a temporary  appointment if that position had been filled by a temporary appointment in  either the competitive or excepted service for a total of 2 years during the  preceding 3 years.  Positions involving seasonal work (i.e., work that  involves annual recurring periods of less than 6 months) or intermittent  work (i.e., work that involves sporadic or irregular intervals) are  exceptions to such limits and restrictions.  Under its regulations governing  temporary limited appointments in the competitive service, OPM requires  the supervisor of each position filled by temporary limited appointment to  certify that the employment need is truly temporary and that the proposed  appointment meets the regulatory time limits.  The regulations do not  require such certification for excepted service temporary limited  appointments.
We contacted the 10 agencies that we identified as the predominant users  of temporary limited employees to identify steps that they were taking to  ensure the appropriate use of such employees. Officials from the 10  agencies generally stated that they monitor the time limits on individual  temporary limited appointments to ensure that such appointments adhere  to the regulatory time limits and that they rely on the supervisors of such  employees to ensure that the employment needs are truly temporary.
According to an OPM official, holding agencies accountable for compliance  with OPM’s temporary limited employment regulations is necessary for  sound human resources administration. The official stated that OPM  monitors agencies’ compliance with temporary limited employment during  the evaluation visits conducted by OMSOE, which assesses agencies’  effectiveness in ensuring compliance with personnel laws and regulations.   According to OMSOE, each of the departmental agencies and independent  agencies with larger numbers of employees is subject to review every 4  years, and each of the smaller independent agencies is reviewed every 5  years.
An OPM official said that OMSOE routinely includes some individual  temporary appointments in its periodic oversight reviews but generally  does not look at the work history of temporary limited employees serving  in those appointments.  The officials said that unless OMSOE knew in  advance or saw a problem based on prior audit reports or other sources, it  would not focus on temporary limited employees.  Because of the typically  limited nature of its reviews of temporary limited appointments, OMSOE’s  reviews of agencies are unlikely to uncover instances of long-term  temporary limited employment.  In reviewing authorities used by an  agency, OMSOE follows a standard audit procedure of selecting a  judgmental sample of appointments for review.  OMSOE uses a “problem  oriented” sampling to select appointments.  That means that if OMSOE  officials have identified problems with a specific type of appointment  through such sources as employee complaints and periodic employee  attitude surveys, the audit team will include some of those appointments in  the sample of appointments it reviews.  If temporary limited appointments  were suspected of being a problem area, the review might involve more  work in this area.  For example, because of an indication of possible  inappropriate use of the appointing authority for temporary limited  employees at the Department of the Interior, OMSOE did an assessment of  seasonal employment at the National Park Service.  In 1998, after  completing its review, OMSOE reported that a number of parks in the  Department of the Interior’s National Park Service with seasons lasting  longer than 6 months were improperly filling seasonal positions with  temporary limited appointments.  However, according to an OMSOE  official, OMSOE normally looked at the appropriateness of individual  appointments and other aspects of compliance with OPM regulations.
section_title: Regulations Include Provisions That Could Result in Long-Term Use of Temporary Limited Employees
paragraphs: There are several ways that temporary limited employees can work for  more than the 2-year limit on individual temporary appointments. In its  regulations, OPM recognizes circumstances when agencies may require the  service of temporary limited employees beyond the allowed 2 years.  To  extend a temporary limited appointment in the same position beyond the  maximum of 2 years, agency officials must request and obtain approval  from OPM.  According to OPM, in fiscal year 1998, it approved 110 requests  covering 332 employees; in fiscal year 1999, 165 requests covering 426  employees; and in fiscal year 2000, 180 requests covering 418 employees.
Moreover, temporary limited employees can serve for continuous years  under different temporary appointments or in the same appointment  without an extension from OPM.  If it involves a break in service of 3 days  or less, an agency can reappoint or convert a temporary limited employee  from one temporary appointment to another temporary appointment many  times over a period of years and not conflict with OPM’s regulations.  In  addition, after 3 days have elapsed after a temporary appointment ends, an  agency can rehire the employee using a new temporary limited  appointment as long as it does not involve the same basic duties, the same  major subdivision of the agency, and the same local commuting area as the  original appointment.  However, the CPDF does not contain the necessary  information to identify whether new temporary appointments were  formerly temporary limited employees.
As shown in table 3, CPDF data show that from fiscal years 1991 through  2000, between 30 and 46 percent of the temporary limited employees hired  annually governmentwide were conversions within an agency.
According to an OPM official, there is no limit on the number of times that  an agency can convert a temporary limited employee to another temporary  limited appointment within the same agency as long as two conditions are  met.  First, conversions to competitive temporary appointments must be  accomplished using a competitive selection method or must be based on  noncompetitive eligibility.  Second, the regulatory provisions limiting  appointments to successor positions must be met.
Finally, agencies can also exceed the general time limits of some temporary  limited employees.  Under OPM regulations, an agency can appoint and  extend an employee in a seasonal or intermittent temporary limited  position without regard to the 2-year general time limit as long as the time  the employee worked annually was less than 6 months, or 1,040 hours.  It is  also permissible for different subunits of an agency to hire the same person  for more than one seasonal appointment lasting for up to 6 months.  Thus, a  seasonal temporary limited employee could work full time for two subunits  in an agency under two different 6-month temporary limited appointments  in the same year.  CPDF data show that from fiscal years 1991 through 2000,  between 25 and 36 percent of temporary limited employees hired had a  seasonal or intermittent work schedule.
These scenarios could, as OPM reported in 1992, result in nonpermanent  employment—which is intended for short-term staffing needs—becoming  quasipermanent.  In that report, OPM focused on seasonal temporary  employment at land management agencies and stated that many  nonpermanent employees were making a career out of temporary work in  these agencies.  OPM reported that thousands of park rangers on  temporary seasonal appointments work the summer season in one park  and the winter season in another, working virtually full time on temporary  appointments.  An OPM official said that OPM’s oversight policy is to look  at each park as a separate employer.  This would permit such situations to  continue today.
In addition, OPM reported that more than 20 percent of the temporary  workforce at land management agencies had held 10 or more temporary  appointments or extensions to existing appointments.  According to a  September 1994 MSPB report, retaining temporary employees for extended  periods (8 or 10 years or more) through the use of temporary appointments  is directly contrary to the explicit intent of the temporary employment  authority and denies employees involved many of the benefits available to  other long-term employees.
We analyzed CPDF data to estimate the extent to which individuals may be  spending long periods in federal service as temporary limited employees  without many of the benefits afforded other long-term employees.  Our  analysis showed that of the temporary limited employees hired in fiscal  year 2000, 78 percent had federal service of 2 years or less.  However, CPDF  data also showed about 16,000, or about 11 percent, had 5 or more years of  federal service.  Table 4 shows a breakdown by type of temporary limited  employee.
The information in table 4, however, is imprecise because of limitations in  the data available in the CPDF, specifically in service computation dates.  A  service computation date allows OPM and agencies to track an employee’s  creditable years of federal service (civilian and military) toward retirement  and other benefits.  For each federal employee, this date is adjusted with  every transfer, separation, or reinstatement experience over the course of  the employee’s career.  The purpose of having a service computation date is  so that at any point in time there is a reasonably accurate measure of an  employee’s length of service.  The service computation date includes  permanent federal employment as well as temporary service without  regard to when such service was performed.  For example, a current  temporary limited employee’s service computation date indicating 10 years  of service could include years of prior military service, permanent federal  civilian service, and temporary limited employment over an extended  period with substantial gaps between appointments.  Although CPDF data  are the best available information and show that some temporary limited  employees had been working for long periods in federal service, it is not  possible to determine how many temporary limited employees actually  worked for continuous extended periods in temporary limited  appointments.
Most of the 16,232 temporary limited employees hired in fiscal year 2000  who had 5 or more years in federal service were hired under seasonal  appointments.  As mentioned earlier, as long as employees hired under  seasonal appointments work less than 1,040 hours per appointment, OPM’s  regulations allow agencies to hire and extend such employees for years.   Because agencies reported to us that they were monitoring only individual  appointments, they would not necessarily know whether seasonal or other  temporary limited employees might have been working for 5 or more years.   They also might not know whether employees serving in seasonal  appointments could have been hired for more than one seasonal  appointment in any given year.  As was the case with the park ranger  example cited earlier, such employees could be working on two separate 6- month seasonal appointments—virtually full time on temporary  appointments—without an agency or OPM being aware of it and without  many of the benefits afforded other long-term employees.
According to officials from OPM and the 10 agencies that we identified as  the predominant users of temporary limited employees, neither OPM nor  the agencies monitor the total length of service for temporary limited  employees.  According to OPM officials, identifying the total length of  continuous service of temporary limited employees would require doing a  “longitudinal,” or historical study tracing the service of individual  employees back in time.
section_title: Conclusions
paragraphs: From fiscal years 1991 through 2000, the majority of temporary limited  employees were full-time hires in white-collar occupations, eligible to  receive annual pay adjustments, overtime, and premium pay and generally  earning annual and sick leave.  These employees did not receive retirement  and life insurance benefits but could buy health insurance after they  worked for more than 1 continuous year if they were willing to pay the full  cost of the insurance.
In 1994, OPM revised its regulations governing temporary limited  employees, generally creating a 2-year limit for each temporary  appointment.  OPM stated that its intention in revising the regulations was  to help ensure that temporary limited employees would be used to meet  truly short-term needs and not serve for years without many of the benefits  afforded other long-term employees.  However, the regulations do not  preclude agencies from hiring temporary limited employees to work in a  series of extensions, reappointments, and appointments.  Thus, there  seems to be an inconsistency between OPM’s stated intent and what is  permissible under the provisions of its regulations.  The regulations allow  agencies to continue a pattern of repetitive temporary appointments that  result in long-term temporary limited employees not receiving many of the  benefits available to other long-term employees.
CPDF data on the total years of service of temporary limited employees  show that of such employees hired governmentwide in fiscal year 2000,  about 16,000, or 11 percent, had 5 or more years of federal service.   However, the limitations of these data combined with the fact that neither  OPM nor agencies monitor the total years of temporary employment by  temporary limited employees raise a concern that temporary limited  employees could be serving for many years under a series of appointments.   In addition, OMSOE reviews of agencies are unlikely to uncover incidents  of long-term temporary limited employment because they typically look  only at individual appointments but not the work history of temporary  limited employees serving in those appointments.
The CPDF data available to OPM and agencies for determining the time  federal employees spend in federal service include all federal service, both  temporary and permanent federal employment, without regard to the total  length of time over which such service was performed. Neither OPM nor  agencies collect the necessary information that would identify whether, in  fact, temporary limited employees were working continuously for years.   There is no way to tell from the CPDF whether employees might be serving  in temporary limited appointments for continuous extended periods or  how many may be receiving benefits, for example, as a result of retiring  from prior federal service.  Identifying the total length of continuous  service of temporary limited employees would require doing a  “longitudinal,” or historical study tracing the service of individual  employees back in time.
section_title: Recommendations
paragraphs: We recommend that the director of OPM direct OMSOE to conduct a study  to identify the number of temporary limited employees who have been  working for continuous extended periods in temporary limited  appointments and the reasons and conditions that permitted such cases to  occur.  The director should use the results of this study to modify the  regulations governing temporary limited employees to address any  problem areas found.  In addition, the director should require OMSOE to  include a sample of temporary limited employees and their work histories  as part of its periodic oversight reviews of agencies.
section_title: Agency Comments
paragraphs: We sent a draft report to OPM in which we proposed that the director of  OPM clarify regulations on temporary limited employees so that they  address the amount of time such employees may serve in a series of  temporary appointments and better track compliance with the revised  regulations.  We discussed this draft with OPM officials, who did not  believe that enough information was available to determine the nature of  any problems related to temporary limited employees working for  extended periods and how to revise the regulations.  Therefore, we revised  the draft report to recommend that the director of OPM direct the agency  to conduct a study to identify the number of temporary limited employees  who have been working for continuous extended periods in temporary  limited appointments and the reasons and conditions that permitted such  cases to occur.  We also recommended that the director require OMSOE to  include a sample of temporary limited employees and their work histories  as part of its periodic oversight reviews of agencies.  In a letter dated  February 19, 2002, (see app. III) the director of OPM provided comments  on the revised draft of this report.  OPM agreed with both of these  recommendations and said that they would be implemented.
Our other recommendation was that the director should use the results of  the recommended study to modify the regulations governing temporary  limited employees to address any problem areas found.  OPM did not  specify precisely what it would do in response to this recommendation but  said that any problems identified would be addressed through  recommended or required corrective actions.
As agreed with your offices, unless you publicly announce the contents of  this report earlier, we plan no further distribution until 30 days from the  date of this letter.  At that time, we will send copies of this report to the  chairman and ranking member, Senate Committee on Governmental  Affairs; the chairman and ranking member, House Committee on  Government Reform; and the director of the Office of Personnel  Management.  We will also send copies of this report to the heads of the 10  agencies that participated in our survey and other interested parties.  We  will also make copies available to others on request.
Please contact me on (202) 512-6806 if you or your staff have questions.   Key contributors to this report are listed in appendix IV.
section_title: Agency Questionnaire on Temporary Limited Employees
paragraphs: The General Accounting Office has been asked by Senators Barbara Mikulski and Paul Sarbanes to obtain information on the federal government’s use of temporary employees.  Specifically, the requestors are interested in the use of temporary limited employees, as defined in the Code of Federal Regulations (5 C.F.R. 316.401), excluding those with provisional appointments (5 C.F.R. 316.403).  Federal agencies may also hire temporary limited employees under agency-specific hiring authority.  Temporary limited employees are used to fill short-term needs (that is, the initial appointment may not exceed 1 year and generally may be extended up to a maximum of 1 additional year), although temporary limited appointments that involve intermittent and seasonal work may exceed the 2-year limit.  We are sending this questionnaire to 10 federal agencies whose selected components are the major users of temporary limited employees. The information that we are requesting is not available from either the Office of Personnel Management (OPM) or its Central Personnel Data File (CPDF).
Please provide this questionnaire to the agency component indicated below on this page and have the component complete the questionnaire.  Then, return the completed questionnaires for all of the components in a single group to us, along with any additional requested information, within 15 working days of receipt to the address listed below.  You may fax your response to us on (202) 512-4516, to the attention of Kiki Theodoropoulos, and follow up with copies of any additional information by mail or courier.
The return address is: U.S. General Accounting Office Attention:  Kiki Theodoropoulos 441 G Street, N.W., Room 2908 Washington, D.C.  20548 If you have any questions, please contact Kiki Theodoropoulos on (202) 512-4579 or at theodoropoulosv@gao.gov or Molly Gleeson on (202) 512-4940 or at gleesonm@gao.gov.
Thank you for your cooperation.
Please provide the following information: Name of person completing questionnaire: __________________________________ Title of person completing questionnaire: __________________________________ Telephone number:  (_____)_____________ Fax number:  (_____)_____________ E-mail address: ____________________________ According to OPM’s Central Personnel Data File (CPDF), _____________ hired _________ temporary limited employees, as defined in 5 C.F.R. 316.401, during fiscal year 2000.  Not included are temporary limited employees with provisional appointments under 5 C.F.R. 316.403.  For each of the reasons listed below, please provide: the approximate number of temporary limited employees who were hired by your agency component during fiscal year 2000 for each of the reasons listed below and the six most prevalent (in terms of number hired) occupations of temporary limited employees hired for each reason. (Enter occupational series code and title.
Enter a maximum of six occupations.)
According to the CPDF,  ______________ hired the following numbers of temporary limited employees, as defined in 5 C.F.R. 316.401, for fiscal years 1995 through 2000. Temporary limited employees with provisional appointments under 5 C.F.R. 316.403 were excluded.
subsections: section_title: Please explain the reason(s) for any increases, decreases, fluctuations, or static situations in the above data.
paragraphs: In addition to the temporary hires identified in question 1, did your agency hire under authorities other than 5 C.F.R. 316.401 temporary employees whose initial appointment may not exceed 1 year and generally may be extended up to a maximum of 1 additional year (excluding provisional appointments under 5 C.F.R. 316.403)?  These other authorities could include excepted service and agency specific authorities.  (Check one.) 1. ❒  Yes  ➜  Continue with questions 4 through 6. 2. ❒  No  ➜   Questionnaire is now complete.
Please provide the following information for the temporary employees hired in fiscal year 2000 under authorities other than 5 C.F.R. 316.401: the approximate number of temporary employees who were hired by your agency during fiscal year 2000 for each of the reasons listed below and the six most prevalent (in terms of number hired) occupations of temporary limited employees hired for each reason. (Enter occupational series code and title.
Enter a maximum of six occupations.)
Please provide the following information for the temporary employees hired in fiscal year 2000 under authorities other than 5 C.F.R. 316.401: the nature of action code the legal authority code the title of the legal authority the number of employees hired under this legal authority, and the benefits (if any) that are available to these employees.
Benefits available (Check all that apply. If none, check “Other” and specify “none”.) ❒ Retirement          ❒ Health Insurance ❒ Life insurance     ❒ Other - specify below: _____________________________________ ❒ Retirement          ❒ Health Insurance ❒ Life insurance     ❒ Other - specify below: _____________________________________ ❒ Retirement          ❒ Health Insurance ❒ Life insurance     ❒ Other - specify below: _____________________________________ ❒ Retirement          ❒ Health Insurance ❒ Life insurance     ❒ Other - specify below: _____________________________________ ❒ Retirement          ❒ Health Insurance ❒ Life insurance     ❒ Other - specify below: _____________________________________ ❒ Retirement          ❒ Health Insurance ❒ Life insurance     ❒ Other - specify below: _____________________________________ ❒ Retirement          ❒ Health Insurance ❒ Life insurance     ❒ Other - specify below: _____________________________________ ❒ Retirement          ❒ Health Insurance ❒ Life insurance     ❒ Other - specify below: _____________________________________ In addition to the authorities in question 5, does your agency have additional agency-specific regulations, instructions, or guidance for hiring and providing benefits for such temporary employees? 1. ❒  Yes  ➜   Please return a copy of the instructions or guidance with the completed Thank you very much for your assistance.
section_title: Objectives, Scope, and Methodology
paragraphs: Senators Barbara A. Mikulski and Paul S. Sarbanes asked us to gather  information on federal civilian temporary employees, specifically  temporary limited employees.  Our objectives were to (1) identify the  federal agencies that are the predominant users of temporary limited  employees and the job characteristics of such employees (including work  schedules, occupations, grade levels, and benefits); (2) discuss the primary  reasons agencies give for using temporary limited employees; and  (3) compare the federal government’s use of temporary limited employees  with that of the private sector.  In addition, we agreed to identify steps OPM  has taken to ensure the appropriate use of temporary limited employees  and whether long-term use of temporary limited employees still exists.
To identify the federal agencies that are the predominant users of  temporary limited employees and the job characteristics of such  employees, OPM initially provided us with summary data listing temporary  limited employment by agency on a quarterly basis from March 1999  through March 2000.  On the basis of OPM’s list, we identified agencies as  predominant users of temporary limited employees if they had 1,000 or  more temporary limited employees on-board as of March 30, 2000.  Ten  agencies met our criterion for being predominant users: the departments of  Agriculture, Commerce, Defense, HHS, the Interior, Justice, State, the  Treasury, and VA and FEMA.  These 10 agencies accounted for 94 percent  of the executive branch’s temporary limited workforce on-board as of  March 30, 2000, according to data provided by an OPM official.
We then reviewed temporary limited employment data contained in OPM’s  CPDF, a database that contains personnel data for most of the executive  branch agencies, including all of the cabinet departments, independent  agencies, commissions, and councils.  To analyze CPDF data, we used an  approach that an OPM official said would extract data from the CPDF on  temporary limited employees.  During our analysis, we found that OPM’s  approach extracted data on other types of temporary employees (who can  be appointed for more than 1 year and are entitled to the same benefits as  permanent employees) as well as temporary limited employees.  The OPM  official later confirmed that OPM’s approach captured other types of  temporary employees.
Because OPM’s approach captured more than just temporary limited  employee data, we had to use another approach and criteria to select data  from the CPDF on competitive service temporary limited employees and  excepted service employees who meet the temporary limited criteria.  As  there is no code in the CPDF to identify which current federal employees  are temporary limited employees, we reviewed temporary limited  appointments and conversions, which are identifiable.  For the competitive  service, we reviewed the nature of action codes (NOAC) and legal  authorities for temporary limited appointments defined in OPM’s Guide to  Processing Personnel Actions and were able to clearly identify the  applicable NOACs and legal authorities for these employees.  We checked  these codes and authorities in our later discussions with OPM and agency  officials and agencies’ responses to our questionnaires.  For the excepted  service employees who met the temporary limited criteria, we identified  the most likely NOACs and legal authorities from information we obtained  from (1) our contacts with OPM and agency officials and (2) agency  responses to our questionnaire in which we asked the agencies to provide  us with NOACs and legal authorities for excepted service temporary  limited employees for fiscal year 2000.  We did not verify the reliability of  the nature of action and legal authority data in the CPDF used to identify  temporary limited employees.
For the excepted service, we used NOACs and legal authorities reported to  us in the questionnaires except where they appeared to be in error.  This  occurred in a very few instances.  We also reviewed OPM’s Guide to  Processing Personnel Actions to identify any additional NOACs or legal  authorities to include.  We identified no other NOACs.  We included only  those legal authorities with not-to-exceed (NTE) dates, and we excluded  those legal authorities where we could not determine if they were for  permanent or temporary appointments and the authorities were not listed  in the questionnaire responses.
We analyzed the temporary limited employment data contained in the  CPDF from fiscal year 1991 through 2000, and included those employees  hired throughout the year.  We defined hires to include appointments (i.e.,  when the person is not already an employee of an agency) and conversions  (i.e., appointments when a person is employed by an agency in a different  position or under a different hiring authority).  We did not analyze  employees on-board as of a specific date (e.g., September 30) because such  employees may work for short periods of time, and the end of the fiscal  year would only capture a moment in time, according to agency human  resources officials we interviewed.
To identify the job characteristics of temporary limited employees  governmentwide, we reviewed data available in the CPDF on work  schedules and grade levels for fiscal years 1991 through 2000 and  occupations for fiscal year 2000.  To identify the benefits available to these  employees, we interviewed OPM officials and reviewed studies from OPM  and MSPB and applicable laws and regulations.
To identify the primary reasons agencies give for using temporary limited  employees, we designed and pretested with 2 agencies a questionnaire that  we later sent to the 10 agencies that we identified as being the predominant  users of such employees based on data provided by an OPM official.  (See  app. I for a copy of the questionnaire.)  In designing the questionnaire, we  discussed the questionnaire contents with OPM officials and reviewed  reports and studies on temporary employees in the federal government.
For 7 of the 10 agencies, we asked their five components that were the  largest users of temporary limited employees to respond to the  questionnaire.  For the remaining three agencies, including the four  components of Defense, the questionnaire responses covered the entire  agency.  Table 5 lists the 41 agencies and components to which we sent the  questionnaire.  During the pretests, agency human resource officials told us  that they could not provide the information we were requesting on an  agencywide basis.  We identified the components that were the largest  users of temporary limited employees based on information provided by  OPM officials and CPDF data as of September 30, 1999.  We received  completed questionnaires from all 41 agencies and components.
The information in this review applies only to those agencies and agency  components to which we sent questionnaires.  For three agencies, the  departments of Defense and State and FEMA, the information applies to  the entire agency.  For seven agencies, their five components comprised 73  to 98 percent of total temporary limited employees hired in fiscal year 2000.   We used this information to represent the 10 agencies surveyed, but the  information cannot be projected to these 7 agencies or governmentwide.   We did not report on the reasons for increases, decreases, or fluctuations in  temporary limited employees hired from fiscal years 1995 through 2000  because the reasons were so varied that an analysis would not be  meaningful.  Only one agency and one agency component reported having  additional agency-specific instructions for their excepted service  temporary limited employees.  We did not verify the accuracy of the data  provided by the agencies.
To compare the federal government’s use of temporary limited employees  with that of the private sector, we conducted a literature search to identify  studies on federal and private sector uses of temporary employees. To  ensure that we identified all relevant studies, we also contacted OPM,  MSPB, and CRS officials, because their agencies had previously conducted  studies concerning temporary limited employees.  We analyzed the reasons  cited in the studies as to why employers use temporary employees and  compared similarities and differences for both sectors.
To identify steps OPM has taken to ensure the appropriate use of  temporary limited employees, we analyzed CPDF data, reviewed OPM and  MSPB studies on temporary employment, interviewed OPM officials, and  reviewed current and prior OPM regulations and guidance on temporary  employees.  We also asked the 10 agencies that we identified as being  predominant users of temporary limited employees about the steps they  were taking to ensure the appropriate use of such employees.  For 8 of the  10 agencies, we asked the component that was the largest user of  temporary limited employees in fiscal year 2000 to respond to our inquiries.   The eight agencies’ components were the Forest Service, Bureau of  Census, Defense components other than the military services, National  Institutes of Health, National Park Service, Executive Office for U.S.  Attorneys, Internal Revenue Service, and Veterans Health Administration.   The two agencies were the Department of State and FEMA.  All responded  to our inquiries.
To identify whether long-term use of temporary limited employees still  exists, we first had to determine how many employees appointed to  temporary limited positions had more than 2 years of prior creditable  service; to do so, we used the service computation dates in the CPDF.  We  subtracted military service from the total creditable service.  Because  creditable civilian service includes all prior civilian federal service,  including any permanent federal employment, and because there may be  gaps between federal service, creditable service as reflected in the service  computation date for temporary limited employees cannot be used by itself  to identify continuous years of service under a series of appointments.
We did our work in Washington, D.C., from October 2000 through February  2002, in accordance with generally accepted government auditing  standards.
section_title: Comments From the Office of Personnel Management
section_title: GAO Contact and Staff Acknowledgments
subsections: section_title: GAO Contact
section_title: Acknowledgments
paragraphs: In addition to the individual named above, Richard W. Caradine, Ronald J.  Cormier, Thomas G. Dowdal, V. Bruce Goddard, Robert J. Heitzman, Stuart  M. Kaufman, Michael J. O’Donnell, Molly K. Gleeson, Rebecca Shea, Kiki  Theodoropoulos, and Gregory H. Wilmoth, made key contributions to this  report.
section_title: GAO’s Mission
paragraphs: The General Accounting Office, the investigative arm of Congress, exists to  support Congress in meeting its constitutional responsibilities and to help improve  the performance and accountability of the federal government for the American  people. GAO examines the use of public funds; evaluates federal programs and  policies; and provides analyses, recommendations, and other assistance to help  Congress make informed oversight, policy, and funding decisions. GAO’s  commitment to good government is reflected in its core values of accountability,  integrity, and reliability.
section_title: Obtaining Copies of GAO Reports and Testimony
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subsections: section_title: Order by Mail or Phone
section_title: Visit GAO’s Document Distribution Center
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section_title: Public Affairs