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B-205126 1 (1983-02-28)

handle is hein.gao/gaobadkxe0001 and id is 1 raw text is: / . THE COMPTROLLER GENERAL DECISION - OF THE UNITED STATES WASHINGTON. D.C. 20548 ~4rrI0 FILE: B-205126 DATE: February 28, 1983 MATTER OF: Panama Canal Commission - Applicability of Fair Labor Standards Act to Firefighters DIGEST: Panama Canal Commission requests a decision as to whether firefighters employed prior to October 1, 1979, are entitled to overtime pay under the Fair Labor Standards Act (FLSA). The Panama Canal Treaty and section 1231 of the Panama Canal Act state that prior employees transferred to the Commission shall have terms and conditions of employment which are generally no less favorable than prior terms and conditions. We hold that this clause requires continuation of FLSA overtime pay to Commission firefighters employed prior to October 1, 1979, since otherwise they would suffer a signi- ficant, protracted reduction in pay which would operate as a virtual nullification of the grandfather clause for them. Mr. D. P. McAuliffe, Administrator, Panama Canal Commission has requested an interpretation of our decision B-205126, June 17, 1982, in which we held that the overtime pay limitation in 5 U.S.C. S 5542(a)(2) applied to employees of the Commission since they were no longer covered by the Fair Labor Standards Act (FLSA). He points out that our decision primarily involved certain admeasurers employed by the Commission and he requests that we clarify whether the decision applies to FLSA pay for firefighters employed prior to October 1, 1979, in view of the grandfather clause in section 1231 of the Panama Canal Act of 1979. For the reasons that follow, we hold that firefighters employed in the Canal Zone prior to October 1, 1979, con- tinue to be entitled to FLSA overtime pay by virtue of section 1231. 4,')3 7 t

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