Adjustments of Certain Rates of Pay
Signed: December 31, 2020
Published: January 6, 2021
Document Number: 2021-00040
📋Summary
**Summary of Executive Order 13970: Adjustments of Certain Rates of Pay** This executive order updates the pay rates for various federal employees and officials, including those in the General Schedule, Senior Executive Service, and uniformed services. It affects federal workers, including administrative law judges, members of the military, and high-ranking government officials such as the Vice President and judges. Key changes include the establishment of new pay schedules that will take effect starting January 1, 2021, and the implementation of locality-based pay adjustments to ensure salaries are competitive based on geographic location. Additionally, this order supersedes a previous executive order related to pay adjustments.
💼Business Impact
The Executive Order 13970, which adjusts certain rates of pay for federal employees, primarily impacts industries reliant on government contracts, particularly defense, healthcare, and public services. Businesses in these sectors may face compliance requirements related to wage adjustments for employees who are federal contractors or who work alongside federal personnel. Immediate actions for business owners include reviewing contracts for wage clauses, ensuring alignment with the new pay rates, and preparing for potential increases in labor costs that could affect pricing strategies. Additionally, companies should consider the implications of these adjustments on employee morale and retention, particularly if they compete for talent with federal positions.
Full Text
Executive Order 13970 of December 31, 2020
Adjustments of Certain Rates of Pay
By the authority vested in me as President by the Constitution and the laws of the United States of America, it is hereby ordered as follows:
Section 1 . Statutory Pay Systems. The rates of basic pay or salaries of the statutory pay systems (as defined in 5 U.S.C. 5302(1)), as adjusted under 5 U.S.C. 5303, are set forth on the schedules attached hereto and made a part hereof:
(a) The General Schedule (5 U.S.C. 5332(a)) at Schedule 1;
(b) The Foreign Service Schedule (22 U.S.C. 3963) at Schedule 2; and
(c) The schedules for the Veterans Health Administration of the Department of Veterans Affairs (38 U.S.C. 7306, 7404; section 301(a) of Public Law 102-40) at Schedule 3.
Sec. 2 . Senior Executive Service. The ranges of rates of basic pay for senior executives in the Senior Executive Service, as established pursuant to 5 U.S.C. 5382, are set forth on Schedule 4 attached hereto and made a part hereof.
Sec. 3 . Certain Executive, Legislative, and Judicial Salaries. The rates of basic pay or salaries for the following offices and positions are set forth on the schedules attached hereto and made a part hereof:
(a) The Executive Schedule (5 U.S.C. 5312-5318) at Schedule 5;
(b) The Vice President (3 U.S.C. 104) and the Congress (2 U.S.C. 4501) at Schedule 6; and
(c) Justices and judges (28 U.S.C. 5, 44(d), 135, 252, and 461(a)) at Schedule 7.
Sec. 4 . Uniformed Services. The rates of monthly basic pay (37 U.S.C. 203(a)) for members of the uniformed services, as adjusted under 37 U.S.C. 1009, and the rate of monthly cadet or midshipman pay (37 U.S.C. 203(c)) are set forth on Schedule 8 attached hereto and made a part hereof.
Sec. 5 . Locality-Based Comparability Payments.
(a) Pursuant to section 5304 of title 5, United States Code, and my authority to implement an alternative level of comparability payments under section 5304a of title 5, United States Code, locality-based comparability payments shall be paid in accordance with Schedule 9 attached hereto and made a part hereof.
(b) The Director of the Office of Personnel Management shall take such actions as may be necessary to implement these payments and to publish appropriate notice of such payments in the Federal Register.
Sec. 6 . Administrative Law Judges. Pursuant to section 5372 of title 5, United States Code, the rates of basic pay for administrative law judges are set forth on Schedule 10 attached hereto and made a part hereof.
Sec. 7 . Effective Dates. Schedule 8 is effective January 1, 2021. The other schedules contained herein are effective on the first day of the first applicable pay period beginning on or after January 1, 2021.
( printed page 422)Sec. 8 . Prior Order Superseded.Executive Order 13901 of December 26, 2019, is superseded as of the effective dates specified in section 7 of this order.
THE WHITE HOUSE,
December 31, 2020.
