Homeland Security: Final Regulations on Classification, Pay, and Performance Management Compared with Current Law

Publication Date: February 2005

Publisher: Library of Congress. Congressional Research Service

Author(s):

Research Area: Government

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Abstract:

The Secretary of the Department of Homeland Security (DHS) and the Director of the Office of Personnel Management were authorized to prescribe joint regulations for a new human resources management system for DHS employees with the enactment of P.L. 107-296, the Homeland Security Act of 2002. The final regulations were published in the Federal Register on February 1, 2005.

This report compares the final regulations with current law under Title 5 of the United States Code and relevant regulations under Title 5 of the Code of Federal Regulations. Specifically, Subparts A (General Provisions), B (Classification), C (Pay and Pay Administration), and D (Performance Management) of the final regulations are examined. (The regulations also affect labor-management relations (Subpart E) and adverse actions (Subpart F) and appeals (Subpart G), but these areas are outside the purview of this report.)

With regard to classification, pay, and performance management, the regulations prescribe the following. The classification system will organize the department's jobs into clusters by major occupational groups. Within each occupational cluster, open pay bands with no steps will be established. Each pay band typically will have four levels -- entry/developmental, full performance, senior expert, and supervisory. Employees will progress through a pay band based on performance or enhanced skill level. The pay system will provide an annual pay adjustment, supplemented by a locality pay rate or a special pay rate in appropriate circumstances, to employees who meet or exceed performance expectations. In addition, employees in a Full Performance or higher pay band may receive a performance-based pay increase, based primarily on accomplishing work assignments and achieving results. Employees will not lose pay upon their transition to the pay system. The performance management system ties employee performance appraisal to the DHS mission and to specific performance standards based on job assignments. Quotas or forced distributions will not be imposed on the performance ratings.

A Homeland Security Compensation Committee, chaired by the DHS Undersecretary for Management, will provide options and/or recommendations to the Secretary on various strategic compensation matters, including the annual adjustment of rate ranges and locality and special pay rate supplements for the department's employees. The committee will have 14 members, four of whom will represent labor organizations granted national consultation rights.