Committee on Ways and Means, Trade Subcommittee, 7-17-01, Statement for the Record

U.S. Office of Personnel Management
Washington, DC 20415-0001
August 8, 2001

The Honorable Philip M. Crane
Chairman, Committee on Ways and Means
Subcommittee on Trade
233 Cannon House Office Building
Washington, DC 20515-1308

Dear Representative Crane:

Thank you for your letter requesting information on the pay and benefits of Customs inspectors. Our responses to your questions are as follows:

(1) Do Custom inspectors meet the legal requirements to be classified as law enforcement? Why or why not?

Sections 8331(20) and 8401(17) of title 5, United States Code, define the term “law enforcement officer” for the purpose of retirement under the Civil Service Retirement System. Under these sections, the term “law enforcement officer” is defined as “an employee, the duties of whose position are primarily the investigation, apprehension, or detention of individuals suspected or convicted of offenses against the criminal laws of the United States.”

Over the years, the Office of Personnel Management (and its predecessor agency, the Civil Service Commission) has consistently found that the duties of Customs Inspectors do not meet the definition of “law enforcement officer.” OPM has found that the duties of Customs Inspectors are primarily the inspection of merchandise and cargo rather than the investigation or apprehension of individuals suspected or convicted of offenses against the criminal laws of the United States.

(2) Compare total pay and benefits for Custom inspectors with base Federal employee and law enforcement pay and benefits.

On May 11, 2001, the Congressional Research Service (CRS) prepared a memorandum titled, “Comparison of Compensation Received by Law Enforcement Officers and Customs Officers.” We have enclosed a copy of this memorandum for your consideration.

(3) Identify instances in which Customs inspectors receive more or less than law enforcement and base Federal employee pay and benefits. Use CRS report as an attachment, if appropriate.

A June 3, 1998, CRS memorandum entitled, “Overtime and Premium Pay for U.S. Customs Service Officers Compared with Immigration and Naturalization Service Officers,” includes a “Summary Comparison of Overtime and Premium Pay.” (See enclosed copy.) The table summary lists the major provisions governing overtime and premium pay for customs officers, immigration officers, and Federal employees covered by the Federal Employees Pay Act. The table shows different provisions for basic overtime, callback, night, Sunday, and holiday pay for each of the groups of employees. The provisions are not easy to compare because the terms are defined differently and the minimum time periods counted towards overtime pay vary. Nonetheless, it is clear that the pay system for customs officers is more generous than the pay systems for most other Federal employees.

For example, Customs officers receive a rate equal to two times their hourly rate of basic pay for overtime work not regularly scheduled. Most other Federal employees receive a rate equal to one and one-half times their hourly rate of basic pay. In addition, the Customs pay system authorizes “callback” compensation equal to two times the hourly rate of basic pay when employees are called back to work for unscheduled overtime. Customs officers also receive compensation for commuting time at three times their hourly rate of basic pay.

For regularly scheduled night work, Customs officers receive 1.15 or 1.2 times their hourly rate of basic pay, depending on the shift worked. Immigration officers and other Federal workers receive 1.1 times their hourly rate of basic pay. For regularly scheduled work on a Sunday, most Federal workers receive 1.25 times their basic hourly pay rate, while Customs officers receive 1.5 times their basic hourly pay rate.

(4) Are there any Federal, State, or local pay models that compare with Customs pay and benefits? Identify them and show comparison.

Our research on Federal law enforcement pay systems has indicated that there is no other pay system that is directly comparable to the pay system of Customs officers.

(5) Does OPM have any data to compare Customs inspectors pay and benefits with private sector?

We do not have this information.

(6) For comparable work, do Customs inspectors get more or less than private sector counterparts, comparing total pay and benefits?

We do not have this information.

(7) Specifically, does OPM have data on overtime; nighttime, holiday, callback, and Sunday pay situations from the private sector?

OPM does not have specific data on premium pay in the private sector. However, information available from recent non-governmental sources indicate that only a minority of private sector employers provide time and one-half overtime pay to employees who are exempt from the Fair Labor Standards Act (FLSA). For example, a 1999 Watson Wyatt Data Services “Exhibit Book of Overtime Policies for Exempt Employees” shows that 17 private sector firms out of 104 surveyed provided time and one-half overtime pay. Five firms provided double time pay, but a majority—54 firms—provided straight time pay.

In addition, a 1996 compensation survey report of the Human Resource Association of the National Capital Area shows that 85 percent of the surveyed employers in the national capital area do not pay any overtime pay to their FLSA-exempt staff. Of those that do pay overtime, the overtime payments typically are made at the employees base rate of pay--not time and one-half.

Thank you for the opportunity to respond to your questions about the pay and benefits of Customs inspectors.

Sincerely,

Donald J. Winstead
Acting Associate Director
for Workforce Compensation
and Performance

[The attachments are being retained in the Committee files:]