An Act to provide an equitable system for fixing and adjusting the rates of pay for prevailing rate employees of the Government, and for other purposes
PL 92-392 (H.R.9092), enacted 08/19/1972

564 
PUBLIC LAW 92-392-AUG. 19, 1972 
[86 
STAT. 
20 u s e 1071. 
Ante, p. 264. 
84 Stat. 169; 
Ante, 
p. 326. 
20 u s e 1232. 
Ante, p. 280. 
IV of the Higher Education Act of 1965, as in effect immediately prior 
to the enactment of such amendments, shall be effective during such 
period, except that (1) nothing in this joint resolution shall be dfeemed 
to affect the validity of any action taken or obligation undertaken 
under suoli part prior to the enactment of this joint resolution, and (2) 
section 438(b) of the Higher Education Act of 1965 shall continue 
to be in effect during such period. Section 431(b) of the General Edu-
cation Provisions Act and section 495 of the Higher Education Act of 
1965 shall not be applicable in the case of administrative action taken 
to effectuate this joint resolution. 
Approved August 19, 1972. 
Public Law 92-392 
August 19, 1972 
[H. R. 9092] 
Federal wage 
board employees. 
80 Stat. 471; 
81 Stat. 641. 
5 u s e 5341. 
AN ACT 
To provide an equitable system for fixing and adjusting the rates of pay for 
prevailing rate employees of the Government, and for other purposes. 
Be it enacted hy the Senate and House of Representatives 
of the 
United States of America in Congress assembled, That (a) subchapter 
IV of chapter 53 of title 5, United States Code, is amended to read as 
follows: 
"SUBCHAPTER IV—PREVAILING RATE SYSTEMS 
*
*
§ 5341. Policy 
"It is the policy of Congress that rates of pay of prevailing rate 
employees be fixed and adjusted from time to time as nearly as is 
consistent with the public interest in accordance with prevailing rates 
and be based on principles that— 
"(1) there will be equal pay for substantially equal work for 
all prevailing rate employees who are working under similar con-
ditions of employment in all agencies within the same local wage 
area; 
" (2) there will be relative differences in pay within a local wage 
area when there are substantial or recognizable differences in 
\,,^ duties, responsibilities, and qualification requirements among 
positions; 
"(3) the level of rates of pay will be maintained in line with 
prevailing levels for comparable work within a local wage area; 
, 
and 
" (4) the level of rates of pay will be maintained so as to attract 
and retain qualified prevailing rate employees. 
"§5342. Definitions; application 
" (a) For the purpose of this subchapter— 
" (1) 'agency'^means an Executive agency; but does not include— 
" (A) a Government controlled corporation; 
,.,,. 
"(B) the Tennessee Valley Authority; 
. - • * 
"(C) the Alaska Railroad; 
"(D) the Virgin Islands Corporation; 
5 u s e 2105. 
86 STAT. ] 
PUBLIC LAW 92-392-AUG. 19, 1972 
56-5 
"fE) the Atomic Energy Commission; 
" fF) the Central Intelligence Agency; 
"(G) the Panama Canal Company; 
"(H) the National Security Agency, Department of 
Defense; or 
"(I) the Bureau of Engraving and Printing, except for 
the purposes of section 5349 of this title; 
Post, p. 572. 
"(2) 'prevailing rate employee'means— 
"(A) an individual employed in or under an agency in 
a recognized trade or craft, or other skilled mechanical craft, 
or in an unskilled, semiskilled, or skilled manual labor occu- 
• "„, 
/ , 
pation, and any other individual, including a foreman and a 
.s-1 
, -. > " 
supervisor, in a position having trade, craft, or laboring 
experience and knowledge as the paramount requirement; 
"(B) an employee of a nonappropriated fund instrumen-
tality described by section 2105(c) of this title who is 1°^^^^^:,^°^' 
employed in a recognized trade or craft, or other skilled 
mechanical craft, or in an unskilled, semiskilled, or skilled 
c' 
manual labor occupation, and any other individual, including 
a foreman and a supervisor, in a position having trade, craft, 
or laboring experience and knowledge as the paramount 
requirement; and 
"(C) an employee of the Veterans' Canteen Service, 
Veterans' Administration, excepted from chapter 51 of this 
title by section 5102(c) (14) of this title who is employed in 
f°,^*^*;,'*^,^-
a recognized trade or craft, or other skilled mechanical craft, 
"
^ """ ' "' 
or in an unskilled, semiskilled, or skilled manual labor occu-
pation, and any other individual^ including a foreman and 
a supervisor, in a position having trade, craft, or labor 
experience and knowledge as the paramount requirement; 
and 
"(3) 'position' means the work, consisting of duties and 
responsibilities, assignable to a prevailing rate employee. 
"(b) (1) Except as provided by paragraphs (2) and (3) of this sub-
section, this subchapter applies to all prevailing rate employees and 
positions in or under an agency. 
"(2) This subchapter does not apply to employees and positions 
described by section 5102(c) of this title other than by— 
"(A) 
paragraph (7) of that section to the extent that such 
paragraph (7) applies to employees and positions other than 
employees and positions of the Bureau of Engraving and 
Printing; and 
"(B) paragraph (14) of that section. 
" (3) This subchapter, except section 5348, does not apply to officers 
and members of crews of vessels excepted from chapter 51 of this title 
by section 5102(c) (8) of this title. 
"(c) Each prevailing rate employee employed within any of the requlremen't!^ 
several States or the District of Columbia shall be a United States 
5 u s e 5101. 
Post, p. 572. 
566 
PUBLIC LAW 92-392-AUG. 19, 1972 
[86 STAT. 
citizen or a bona fide resident of one of the several States or the Dis-
trict of Columbia unless the Secretary of Labor certifies that no United 
States citizen or bona fide resident of one of the several States or the 
District of Columbia is available to fill the particular position. 
"§5343. Prevailing rate determinations; wage schedules; night 
differentials 
''(a) The pay of prevailing rate employees shall be fixed and 
adjusted from time to time as nearly as is consistent with the public 
interest in accordance with prevailing rates. Subject to section 213(f) 
8o^s ^^^s'a?^"*' 
^^ ^^^^^ ^^' ^^^ rates may not be less than the appropriate rates pro-
8o*stat. 838. 
vided by section 206(a) (1) of title 29. To carry out this subsection— 
'
•
* (1) the Civil Service Commission shall define, as appropriate— 
"(A) with respect to prevailing rate employees other than 
prevailing rate employees under paragraphs (B) and (C) 
Ante, p. 564. 
^f sectlou 5342(a) (2) of this title, the boundaries of— 
"(i) individual local wage areas for prevailing rate 
employees having regular wage schedules and rates; and 
"(ii) wage areas for prevailing rate employees having 
special wage schedules and rates; 
"(B) with respect to prevailing rate employees under para-
graphs (B) and (C) of section 5342(a) (2) of this title, the 
boundaries of—• 
"(i) individual local wage areas for prevailing rate 
employees under such paragraphs having regular wage 
schedules and rates (but such boundaries shall not extend 
beyond the immediate locality in which the particular 
prevailing rate employees are employed); and 
"(ii) wage areas for prevailing rate employees under 
such paragraphs having special wage schedules and rates; 
" (2) the Civil Service Commission shall (lesignate a lead agency 
for each wage area; 
"(3) subject to paragraph (5) of this subsection, and subsec-
tions (c)(l)-(3) and (d) of this section, a lead agency shall con-
duct wage surveys, analyze wage survey data, and develop and 
establish appropriate wage schedules and rates for prevailing rate 
employees; 
" (4) the head of each agency having prevailing rate employees 
in a wage area shall apply, to the prevailing rate employees of 
that agency in that area, the wage schedules and rates established 
by the lead agency, or by the Civil Service Commission, as appro-
priate, for prevailing rate employees in that area; and 
"(5) the Civil Service Commission shall establish wage sched-
' •'-.*^^"^ 
^QQ and rates for prevailing rate employees who are United 
States citizens employed in any area which is outside the several 
States, the District of Columbia, the Commonwealth of Puerto 
,,;:; J:,.,,; , 
Rico, the Canal Zone, the territories and possessions of the United 
States, and the Trust Territory of the Pacific Islands. 
86 STAT. ] 
PUBLIC LAW 92.392-AUG. 19, 1972 
567 
"(b) The Civil Service Commission shall schedule full-scale wage 
surveys every 2 years and shall schedule interim surveys to be con-
ducted between each 2 consecutive full-scale wage surveys. The Com-
mission may schedule more frequent surveys when conditions so 
suggest. 
"(c) The Civil Service Commission, by regulation, shall prescribe 
Regulations, 
practices and procedures for conducting wage surveys, analyzing wage 
survey data, developing and establishing wage schedules and rates, 
and administering the prevailing rate system. The regulations shall 
provide— 
"(1) that, subject to subsection (d) of this section, wages sur-
veyed be those paid by private employers in the wage area for 
similar work performed by regular full-time employees, except 
that, for prevailing rate employees under paragraphs (B) and 
(C) of section 5342(a) (2) of this title, the wages surveyed ^hall 
^"'e- P- 564. 
be those paid by private employers to full-time employees in a 
representative number of retail, wholesale, service, and recrea-
tional establishments similar to those in which such prevailing rate 
employees are employed; 
"(2) for participation at all levels by representatives of orga-
nizations accorded recognition as the representatives of prevail-
ing rate employees in every phase of providing an equitable system 
for fixing and adjusting the rates of pay for prevailing rate 
employees, including the planning of the surveys, the drafting of 
specifications, the selection of data collectors, the collection and 
the analysis of the data, and the submission of recommendations 
to the head of the lead agency for wage schedules and rates and 
for special wage schedules and rates where appropriate; 
"(3) for requirements for the accomplishment of wage surveys 
and for the development of wage schedules and rates for pre- 
' 
vailing rate employees, including, but not limited to— 
"(A) nonsupervisory and supervisory prevailing rate 
employees paid under regular wage schedules and rates; 
"(B) nonsupervisory and supervisory prevailing rate 
employees paid under special wage schedules and rates; and 
"(C) nonsupervisory and supervisory prevailing 
rate 
employees described under paragraphs (B) and (C) of sec-
tion 5342 (a)(2) of this title; 
"(4) for proper differentials, as determined by the Commis-
sion, for duty involving unusually severe working conditions or 
• '• 
' " 
unusually severe hazards; 
"(5) rules governing the administration of pay for individual 
employees on appointment, transfer, promotion, demotion, and 
other similar changes in employment status; and 
"(6) for a continuing program of maintenance and improve-
ment designed to keep the prevailing rate system fully abreast 
of changing conditions, practices, and techniques both in and out 
of the Government of the United States. 
"(d) (1) A lead agency, in making a wage survey, shall determine 
whether there exists in the local wage area a number of comparable 
positions in private industry sufficient to establish wage schedules 
and rates for the principal types of positions for which the survey is 
82-081 O - 73 - 39 
568 
PUBLIC LAW 92-392-AUG. 19, 1972 
[86 STAT. 
step increases. 
Automatic 
advancement. 
Benefits, pres-
ervation. 
Shift differ-
entials. 
made. The determination shall be in writing and shall take into con-
sideration all relevant evidence, including evidence subniitted by-
employee organizations recognized as representative of prevailing rate 
employees in that area. 
"(2) When a lead agency determines that there is a number of com-
parable positions in private industry insufficient to establish the wage 
schedules and rates, such agency shall establish those schedules and 
rates on the basis of— 
"(A) local private industry rates; and 
"(B) rates paid for comparable positions in private industry in 
the nearest wage area that such agency determines is most similar 
in the nature of its population, employment, manpower, and indus-
try to the local wage area for which the wage survey is being 
made. 
"(e) (1) Each grade of a regular wage schedule for nonsupervisor 
prevailing rate employees shall have 5 steps with— 
" (A) the first step at 96 percent of the prevailing rate; 
"(B) the second step at 100 percent of the prevailing rate; 
"(C) the third step at 104 percent of the prevailing rate; 
"(D) the fourth step at 108 percent of the prevailing rate; and 
"(E) the fifth step at 112 percent of the prevailing rate. 
"(2) A prevailing rate employee under a regular wage schedule 
who has a work performance rating of satisfactory or better, as deter-
mined by the head of the agency, shall advance automatically to the 
next higher step within the grade at the beginning of the first appli-
cable pay period following his completion of— 
" (A) 26 calendar weeks of service in step 1; 
"(B) 78 calendar weeks of service in step 2; and 
"(C) 104 calendar weeks of service in each of steps 3 and 4. 
"(3) Under regulations prescribed by the Civil Service Commis-
sion, the benefits of successive step increases shall be preserved for 
prevailing rate employees under a regular wage schedule whose con-
tinuous service is interrupted in the public interest by service with 
the armed forces or by service in essential non-Government civilian 
employment during a period of war or national emergency. 
" C4) Supervisory wage schedules and special wage schedules author-
ized under subsection (c) (3) of this section may have single or multi-
ple rates or steps according to prevailing practices in the industry on 
which the schedule is based. 
"(f) A prevailing rate employee is entitled to pay at his scheduled 
rate plus a night differential— 
" (1) amounting to 7i/^ percent of that scheduled rate for regu-
larly scheduled nonovertime work a majority of the hours of 
which occur between 3 p.m. and midnight; and 
"(2) amounting to 10 percent of that scheduled rate for regu-
larly scheduled nonovertime work a majority of the hours of 
which occur between 11 p.m. and 8 a.m. 
A night differential under this subsection is a part of basic pay. 
"§ 5344. Effective date of wage increase; retroactive pay 
" (a) Each increase in rates of basic pay granted, pursuant to a wage 
survey, to prevailing rate employees is effex?tive not later than the first 
day of the first pay period which begins on or after the 45th day. 
86 STAT.] 
PUBLIC LAW 92-392-AUG. 19, 1972 
569 
excluding Saturdays and Sundays, following the date the wage survey 
is ordered to be made. 
"(b) Ketroactive pay is payable by reason of an increase in rates of 
basic pay referred to in subsection (a) of this section only when— 
"(1) the individual is in the service of the Government of the 
United States, including service in the armed forces, or the gov-
ernment of the District of Columbia on the date of the issuance 
of the order granting the increase; or 
"(2) the individual retired or died during the period beginning 
on the effective date of the increase and ending on the date of issu-
ance of the order granting the increase, and only for services 
performed during that period. 
For the purpose of this subsection, service in the armed forces 
includes the period provided by statute for the mandatory restoration 
of the individual to a position in or under the Government of the 
United States or the government of the District of Columbia after 
he is relieved from training and service in the armed forces or dis-
charged from hospitalization following that training and service. 
'^§ 5345. Retained rate of pay on reduction in grade or reassign-
ment 
" (a) Under regulations prescribed by the Civil Service Commission, 
and subject to the limitation in subsection (b) of this section, a pre-
vailing rate employee— 
"(1) who is reduced in grade or reassigned to a wage schedule 
position having an established maximum scheduled rate of pay 
which is less than the employee's then existing scheduled rate of 
" (2) who holds a career or a career-conditional appointment in 
the competitive service, or an appointment of equivalent tenure 
in the excepted service; 
"(3) whose reduction in grade or reassignment is not (A) 
caused by a demotion for personal cause, (B) at his request, (C) 
effected in a reduction in force due to lack of funds or curtail-
ment of work, or (D) with respect to a temporary promotion, a 
condition of the temporary promotion to a higher grade; 
" (4) who, for 2 continuous years immediately before the reduc-
tion in grade or reassignment, served (A) in the same agency 
and (B) in a grade or grades higher than the grade to which 
demoted; and 
"(5) whose work performance during the 2-year period is 
satisfactory or better; 
is entitled to basic pay at the scheduled rate to which he was entitled 
immediately before the reduction in grade or reassignment (including 
each increase in scheduled rate of pay granted pursuant to a wage 
survey) for a period of 2 years from the effective date of the reduction 
in grade or reassignment, so long as he— 
" (A) continues in the same agency without a break in service of 
one workday or more; 
"(B) is not entitled to a higher scheduled rate of pay by opera-
tion of this subchapter; and 
"(C) is not demoted or reassigned (i) for personal cause, (ii) 
at his request, or (iii) in a reduction in force due to a lack of 
funds or curtailment of work. 
^'(b) The scheduled rate of pay to which a prevailing rate 
employee is entitled under subsection (a) of this section with respect to 
each reduction in grade or reassignment to which that subsection 
applies may not exceed the sum of— 
"(1) the minimum scheduled rate of the grade to which he 
is reduced or reassigned under each reduction in grade or reassign-
ment to which that subsection applies (including each increase 
570 
PUBLIC LAW 92.392-AUG. 19, 1972 
[86 STAT. 
in scheduled rate of pay granted pursuant to a wage survey); and 
"(2) the difference between his scheduled rate immediately 
before the first reduction in grade or reassignment to which that 
subsection applies (including each increase in scheduled rate of 
pay granted pursuant to a wage survey) and the minimum sched-
uled rate of that grade which is three grades lower than the grade 
from which he was reduced or reassigned under the first of the 
reductions in grade or reassignment (including each increase in 
the scheduled rate of pay granted pursuant to a wage survey). 
"(c) Under regulations prescribed by the Commission, a prevailing 
rate employee who is reduced in grade or reassigned to a wage sched-
ule position from another local wage area, or from another wage 
schedule, or from a position not subject to this subchapter, is entitled 
to a retained scheduled rate of pay. 
Regulations. 
«((j) ^hg Commissiou may prescribe regulations governing the 
retention of the scheduled rate of pay of an employee who together 
with his position is brought under this subchapter. If an employee so 
entitled to a retained rate under these regulations is later demoted to 
a position under this subchapter, his scheduled rate of pay is deter-
mined under subsections (a) and (b) of this section. For the purpose 
of those subsections, service in the position which was brought under 
this subchapter is deemed service under this subchapter. 
"§ 5346. Job grading system 
"(a) The Civil Service Commission, after consulting with the 
agencies and with employee organizations, shall establish and main-
tain a job grading system for positions to which this subchapter 
applies. In carrying out this subsection, the Commission shall— 
" (1) establish the basic occupational alinement and grade struc-
ture or structures for the job grading system; 
" (2) establish and define individual occupations and the bound-
aries of each occupation; 
" (3) establish job titles within occupations; 
"(4) develop and publish job gradmg standards; and 
"(5) provide a method to assure consistency in the applica-
tion of job standards. 
"(b) The Commission, from time to time, shall review such num-
bers of positions in each agency as will enable the Commission to 
determine whether the agency is placing positions in occupations and 
grades in conformance with or consistently with published job stand-
ards. When the Commission finds that a position is not placed in its 
proper occupation and grade in conformance with published stand-
ards or that a position for which there is no published standard is 
not placed in the occupation and grade consistently with published 
standards, it shall, after consultation with appropriate officials of 
the agency concerned, place the position in its appropriate occupation 
and grade and shall certify this action to the agency. The agency shall 
act in accordance with the certificate, and the certificate is binding 
on all administrative, certifying, payroll, disbursing, and accounting 
officials. 
"(c) On application, made in accordance with regulations pre-
scribed by the Commission, by a prevailing rate employee for the 
review of the action of an employing agency in placing his position 
in an occupation and grade for pay purposes, the Commission shall— 
"(1) ascertain currently the facts as to the duties, responsibili-
ties, and qualification requirements of the position; 
" (2) decide whether the position has been placed in the proper 
occupation and grade; and 
"(3) approve, disapprove, or modify, in accordance with its 
decision, the action of the employing agency in placing the posi-
tion in an occupation and grade. 
Review. 
86 STAT. ] 
PUBLIC LAW 92-392-AUG. 19, 1972 
571 
The Commission shall certify to the agency concerned its action under 
paragraph (3) of this subsection. The agency shall act in accordance 
with the certificate, and the certificate is binding on all administrative, 
certifying, payroll, disbursing, and accounting officials. 
"§ 5347. Federal Prevailing Rate Advisory Committee 
" (a) There is established a Federal Prevailing Kate Advisorv Com- 
Establishment; 
m i t t e e c o m p o s e d of— 
membership. 
"(1) the Chairman, who shall not hold any other office or posi-
tion in the Government of the United States or the government 
of the District of Columbia, and who shall be appointed by the 
Chairman of the Civil Service Commission for a 4-year term; 
"(2) one member from the Office of the Secretary of Defense, 
designated by the Secretary of Defense; 
"(3) two members from the military departments, designated 
by the Chairman of the Civil Service Commission; 
"(4) one member, designated by the Chairman of the Civil 
Service Commission from time to time from an agency (other 
than the Department of Defense, a military department, and the 
Civil Service Commission); 
"(5) an employee of the Civil Service Commission, designated 
by the Chairman of the Civil Service Commission; and 
"(6) five members, designated by the Chairman of the Civil 
Service Commission, from among the employee organizations 
representing, under exclusive recognition of the Government of 
the United States, the largest numbers of prevailing rate 
employees. 
" (b) In designating members from among employee organizations 
under subsection (a) (6) of this section, the Chairman of the Civil 
Service Commission shall designate, as nearly as practicable, a num-
ber of members from a particular employee organization in the same 
proportion to the total number of employee representatives appointed 
to the Committee under subsection (a) (6) of this section as the num-
ber of prevailing rate employees represented by such organization is 
to the total number of prevailing rate employees. However, there shall 
not be more than two members from any one employee organization 
nor more than four members from a single council, federation, alliance, 
' 
' 
association, or affiliation of employee organizations. 
"(c) Every 2 years the Chairman of the Civil Service Commission 
shall review employee organization representation to determine ade-
quate or proportional representation under the guidelines of subsection 
(b) of this section. 
"(d) The members from the employee organizations serve at the 
pleasure of the Chairman of the Civil Service Commission. 
"(e) The Committee shall study the prevailing rate system and 
Duties. 
other matters pertinent to the establishment of prevailing rates under 
this subchapter and, from time to time, advise the Civil Service 
Commission thereon. Conclusions and recommendations of the Com-
mittee shall be formulated by majority vote. The Chairman of the 
Committee may vote only to break a tie vote of the Committee. The p^^g?j°gj^j*° 
Committee shall make an annual report to the Commission and the muta'i T^con-"^' 
President for transmittal to Congress, including recommendations g^ess. 
and other matters considered appropriate. Any member of the Com-
mittee may include in the annual report recommendations and other 
matters he considers appropriate. 
"(f) The Committee shall meet at the call of the Chairman. How- 
Meetings. 
ever, a special meeting shall be called by the Chairman if 5 members 
make a written request to the Chairnian to call a special meeting 
to consider matters within the purview of the Committee. 
"(g) Members of the Committee described in paragraphs (2)-(5) 
compensation. 
of subsection (a) of this section serve without additional pay. The 
572 
PUBLIC LAW 92-392-AUG. 19, 1972 
[86 STAT. 
5 u s e 5332 
note. 
Chairman is entitled to a rate of pay equal to the maximum rate 
currently paid, from time to time, under the General Schedule. Mem-
bers who represent employee organizations are not entitled to pay 
from the Government of the United States for services rendered to 
the Committee, 
pro/esiloiar*^ 
"(^^) '^^^ Civil Service Commission shall provide such clerical and 
personnel. 
professioual persouuel as the Chairman of the Committee considers 
appropriate and necessary to carry out its functions under this sub-
chapter. Such personnel shall be responsible to the Chairman of the 
Committee. 
"§5348. Crews of vessels 
"(a) Except as provided by subsections (b) and (c) of this section, 
the pay of officers and members of crews of vessels excepted from chap-
so Stat. 443. 
ter 51 of this title by section 5102(c) (8) of this title shall be fixed and 
adjusted from time to time as nearly as is consistent with the public 
interest in accordance with prevailing rates and practices in the mari-
time industry. 
"(b) Vessel employees of the Panama Canal Company may be paid 
in accordance with the wage practices of the maritime industry. 
"(c) Vessel employees in an area where inadequate maritime indus-
try practice exists and vessel employees of the Corps of Engineers 
shall have their pay fixed and adjusted under the provisions of this 
subchapter other than this section, as appropriate. 
"§ 5349. Prevailing rate employees; legislative, judicial, Bureau 
of Engraving and Printing, and government of the 
District of Columbia 
"(a) The pay of employees, described under section 5102(c) (7) of 
this title, in the Admmistrative Office of the United States Courts, 
the Library of Congress, the Botanic Garden, the Government Print-
ing Office, the Office of the Architect of the Capitol, the Bureau of 
Engraving and Printing, and the government of the District of 
Columbia, shall be fixed and adjusted from time to time as nearly as is 
consistent with the public interest in accordance with prevailing rates 
and in accordance with such provisions of this subchapter, including 
Ante, p. 568, 
^Y\Q provisions of section 5344, relating to retroactive pay, and section 
5345, relating to retention of pay, as the pay-fixing authority of each 
8o'stat?83V^' 
^^^^^ agency may determine. Subject to section 213(f) of title 29, 
the rates may not be less than the appropriate rates provided for by 
80 Stat. 838. 
sectiou 206(a)(1) of title 29. If the pay-fixing authority concerned 
determines that the provisions of section 5345 of this title should apply 
to any employee under his jurisdiction, then the employee concerned 
shall be deemed to have satisfied the requirements of paragraph (2) of 
• 3 • 
section 5345(a) of this title if the tenure of his appointment is sub-
stantially equivalent to the tenure of any appointment referred to in 
such paragraph. 
"(b) Subsection (a) of this section does not modify or otherwise 
80 Stat. 444. 
affect section 5102(d) of this title, section 305 of title 44, and section 
82 Stat. 1240, 
^ nn 
i! i"i1 
01 5
5 
84 Stat. 693. 
180 of title 31.". 
58 Stat. 648. 
(b) The aualysis of subchapter IV of chapter 53 of title 5, United 
% . States Code, is amended to read as follows: 
"SUBCHAPTER IV—PREVAILING RATE SYSTEMS 
"5341. Policy. 
. ^riio,'^ 
".5342. Definitions; application. 
"5843. Prevailing rate determinations; wage schedules; night differentials. 
'•5344. Effective date of wage increase; retroactive pay. 
"5345. Retained rate of pay on reduction in grade or reassignment. 
"5346. Job grading system. 
80 Stat. 409. 
Ante, 
p. 564. 
Post, p. 574. 
80 Stat. 523; 
86 STAT. ] 
PUBLIC LAW 92-392-AUG. 19, 1972 
573 
"5347. Federal Prevailing Rate Advisory Committee. 
"i5348. Crews of vessels. 
. 
;. 
"5349. Prevailing rate employees; legislative, judicial, Bureau of Engraving and 
Printing, and government of the District of Columbia.". 
SEC. 2. Section 2105 (c) (1) of title 5, United States Code, is amended 
by inserting "(other than subchapter IV of chapter 53 and sections 
5550 and 7154 of this title)" immediately following "laws". 
^^ ^_ ^^ 
SEC. 3. Section 5337 of title 5, United States Code, is amended— 
8i"statr 2
0
8
^
! 
(1) by striking out the words "to which this section applies" 
^o stat. 47o. 
wherever they appear in subsection (b) and inserting "to which 
that subsection applies" in place thereof; and 
(2) by adding at the end thereof: 
"(c) Under regulations prescribed by the Civil Service Commission 
consistent with the provisions of subsections (a) and (b) of this sec-
tion, an employee who is reduced to a grade of the General Schedule ^^^^^^ ^^^^ 
from a position to which this subchapter does not apply is entitled to 
a retained scheduled rate of pay.". 
SEC. 4. Section 5541(2) (xi) of title 5, United States Code, is 
so stat. 485. 
amended to read as follows: 
" (xi) an employee whose pay is fixed and adjusted from time to 
time in accordance with prevailing rates under subchapter IV 
of chapter 53 of this title, or by a wage board or similar adminis-
trative authority serving the same purpose, except as provided 
by section 5544 of this title;". 
SEC. 5. The first sentence of section 5544(a) of title 5, United States siesta!?MK^' 
Code, is amended to read as follows: "An employee whose pay is fixed 
and adjusted from time to time in accordance with prevailing rates 
under section 5343 or 5349 of this title, or by a wage board or similar c/"'®' ^^' ^^^' 
administrative authority serving the same purpose, is entitled to over-
time pay for overtime work in excess of 8 hours a day or 40 hours a 
week.". 
SEC. 6. Subsection (a) (1) of section 6101 of title 5, United States 
Code, is amended to read as follows: 
®
^ ^*°*' ^°^* 
"(a) (1) For the purpose of this subsection, 'employee' includes an 
"Employee." 
employee of the government of the District of Columbia and an 
employee whose pay is fixed and adjusted from time to time under 
section 5343 or 5349 of this title, or by a wage board or similar admin-
istrative authority serving the same purpose, but does not include an 
employee or individual excluded from the definition of employee in 
section 5541(2) of this title, except as specifically provided under 
this paragraph.". 
SEC. 7. (a) Section 6102 of title 5, United States Code, is repealed. 
f^l\ll\ 
515. 
(b) The analysis of chapter 61 of title 5, United States Code, is 
amended by striking out— 
"6102. Eight-hour day; 40-hour workweek ; wage-board employees.". 
SEC. 8. Section 7154(b) of title 5, United States Code, is amended 
8° ^tat. 523. 
by striking out "subchapter I I I of chapter 53" and inserting "sub-
chapters I I I and IV of chapter 53" in place thereof. 
SEC. 9. (a) (1) Except as provided by this subsection, an employee's 
initial rate of pay on conversion to a wage schedule established pur-
suant to the amendments made by this Act shall be determined under 
conversion rules prescribed by the Civil Service Commission. Service 
by an employee in a grade of a wage schedule performed before the 
effective date of the conversion of the employee to a wage schedule 
established pursuant to the amendments made by this Act shall be 
counted toward not to exceed one step increase under the time in step 
provisions of section 5343(e)(2) of title 5, United States Code, as 
amended by the first section of this Act. 
574 
PUBLIC LAW 92-392-AUG. 19, 1972 
[86 STAT. 
(2) In the case of any employee described in section 2105(c), 
tosi^'IU' 
5102(c) (T), (8), or (14) of title 5, United States Code, who is in 
° * 
• 
the service as such an employee immediately before the effective date, 
with respect to him, of the amendments made by this Act, such amend-
ments shall not be construed to decrease his rate of basic pay in effect 
immediately before the date on which such amendments become effec-
tive with respect to him. In addition, if an employee is receiving 
retained pay by virtue of law or agency policy immediately before the 
date on which the first wage schedule applicable to him under this Act 
is effective, he shall continue to retain that pay in accordance with the 
specific instructions under which the retained pay was granted until 
he leaves his position or until he becomes entitled to a higher rate, 
(b) The amendments made by this Act shall not be construed to— 
(1) abrogate, modify, or otherwise affect in any way the pro-
visions of any contract in effect on the date of enactment of this 
Act pertaining to the wages, the terms and conditions of 
employment, and other employment benefits, or any of the fore-
going matters, for Government prevailing rate employees and 
resulting from negotiations between Government agencies and 
organizations of Government employees; 
(2) nullify, curtail, or otherwise impair in any way the right 
of any party to such contract to enter into negotiations after the 
date of enactment of this Act for the renewal, extension, modi-
fication, or improvement of the provisions of such contract or for 
the replacement of such contract with a new contract; or 
(3) nullify, change, or otherwise affect in any way after such 
date of enactment any agreement, arrangement, or understanding 
in effect on such date with respect to the various items of subject 
matter of the negotiations on which any such contract in effect 
on such date is based or prevent the inclusion of such items of 
subject matter in connection with the renegotiation of any such 
contract, or the replacement of such contract with a new contract, 
after such date. 
SEC. 10. (a) Subchapter V of chapter 55 of title 5, United States 
rus?*55^5o^' 
Code, relating to premium pay, is amended by adding at the end there-
of the following new section: 
"§ 5550. Pay for Sunday and overtime work; employees of non-
appropriated fund instrumentalities 
"A 'prevailing rate employee' described in paragraph (B) of sec-
Ante, p. 564. 
tion 5342(a) (2) of this title— 
"(1) if his regular work schedule includes an 8-hour period 
of service, a part of which is on Sunday, is entitled to additional 
pay at the rate of 25 percent of his hourly rate of basic pay for 
each hour of work performed during that 8-hour period of 
service; 
" (2) is entitled to overtime pay for overtime work in excess of 
8 hours a day or 40 hours a week, computed in accordance with 
80 Stat. 486; 
paragraph (1), (2), or (3), as applicable, of section 5544(a) of 
this title. 
However, any such employee who regularly is required to remain at or 
within the confines of his post of duty in excess of 8 hours a day in a 
standby or on-call status is entitled to overtime pay only for hours of 
duty, exclusive of eating and sleeping time, in excess of 40 a week.". 
(b) The table of sections of subchapter V of chapter 55 of title 5, 
United States Code, is amended by adding at the end thereof— 
"5550. Pay for Sunday and overtime work; employees of nonappropriated fund 
instrumentalities.". 
86 STAT.] 
PUBLIC LAW 9 2 - 3 9 2 - A U G . 19, 1972 
575 
80 Stat. 593. 
SEC. 11. Paragraph (2) of section 8704(d) of title 5, United States 
Code, is amended to read as follows: 
"(2) a change in rate of pay under section 5344 or 5349 of this 
title is deemed effective as of the date of issuance of the order 
^"'®' PP- ses, 
granting the increase or the effective date of the increase, which- ^^^' 
ever is later, except, that in the case of an employee who dies or 
retires during the period beginning on the effective date of the 
increase and ending on the date of the issuance of the, order grant-
ing the increase, a change in rate of pay under either of such sec-
tions shall be deemed as having been in effect for such employee 
during that period.". 
SEC. 12. (a) Section 5548(a) of title 5, LTnited States Code, is 
so stat. 488; 
amended by striking out "sections 5544 and" and inserting in lieu ^^ ^*^*' ^°^' 
thereof "section". 
(b) Section 5548(b) of title 5, United States Code, is amended by 
striking out "section 5545(d)" and inserting in lieu thereof "sections 
5545(d) and 5550". 
SEC. 13. (a) All laws or parts of laws inconsistent with this Act are 
hereby repealed to the extent of such inconsistency. 
(b) Subsection (a) of this section does not repeal or otherwise 
affect section 5102(d) of title 5, United States Code, section 305 of 
so stat. 444. 
title 44 of such Code, or the provisions contained in section 180 of ^^ s*°*- ^^40; 
title 31, United States Code. 
ss stat. 648. 
SEC. 14. (a) The last sentence of section 4(a) of the Act of Janu-
ary 8, 1971 (84 Stat. 1952; Public Law 91-656) is amended to read as 
^"^«' P- i^e. 
follows: "Such rates, limitations, and allowances adjusted by the 
President pro tempore shall become effective on the first day of the 
month in which any adjustment becomes effective under such section 
5305 or section 3(c) of this Act.". 
84 stat. i946. 
(b) Paragraph (1) of section 5(a) of the Act of January 8, 1971 JJ^'^ 
"os 
(84 Stat. 1952; Public Law 91-656) is amended to read as follows: 
" (1) effective on the first day of the month in which such pay 
adjustment by the President is made effective as described above, 
shall adjust—". 
SEC. 15. (a) The provisions of this Act are effective on the first day 
Effective dates. 
of the first applicable pay period which begins on or after the ninetieth 
day after the date of enactment of this Act, except that, in the case of 
those employees referred to in section 5342(a)(2) (B) and (C) of 
title 5, United States Code (as amended by the first section of this 
Act), such provisions are effective on the first day of the first applica- 
^"^®' P- S64. 
ble pay period which begins on or after the one hundred and eightieth 
day after such date of enactment or on such earlier date (not earlier 
than the ninetieth day after such date of enactment) as the Civil 
Service Commission may prescribe. Notwithstanding the provisions 
of this subsection, section 5343(e) (1) (D) and (E) and (e) (2) (C), as 
enacted by the first section of this Act, shall not be effective until the 
^"'^' P- see. 
first day of the first pay period commencing after (1) the date on 
which the President ceases to exercise his authority under the Eco-
nomic Stabilization Act of 1970 to stabilize wages and salaries, or (2) 
ss stau 743^ 
April 30,1973, whichever occurs 
first. 
note. 
(b) A wage survey conducted by an agency before the effective 
date (with respect to employees covered by that wage survey) of this 
Act, for a wage schedule which becomes effective after that effective 
date, is deemed to meet the requirement in this Act for a survey by a 
lead agency. 
Approved August 19, 1972.