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B-189000 1 (1978-06-16)

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                 r /ft lt~~ \ THE  COMPTROLLER GSNERAL
DECISION                      o r'.,/.a*. . or THE UNITEL STATES
                              WASHINGTON. Uc.  20t140
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                    DATE:   June 16, 1973
James K. Sauley  - De facto employee


1.  Civil Service Comission  (CSC) directed cancel-
    lation or employee's improper appointment.
    Since employee served in good faith, he is de
    facto employee and may retain salary earned.
    A  a de facto employee, he ic not entitled to
    lump-sum payment or to retain credit for
    unused leave attributable to period of de
    facto employment.  Denial of service credit
    for that period and denial of' refund of health
    ani life insurance premiums was within
    juriediction of CSC.

2.  Retirement contributions previously deducted
    from compensrtion paid to a de facto employee
    may be relfunaud to him, less any necessary
    social security contributions since reasonable
    value of a de fact'z employe. services
    includes amounts deducted for retirement,
    38 Comp. Gen. 175 (1958) should ro longer be
    followed.


     M*. John D. R. Cole, Director of the Bureau of Personnel
Management Evaluation, United States Civil Service Commission,
requekted our decision concerning the propriety of certain actions
taken by the  Commission incident to the cancellation of the im-
proper appoinrment of Mr. James K. Saufley to a position in the
civil service.

     The record indicates that Mr. Saufley was appointed by the
U.S. Geological Survey to a position in Fcston, Virginia, on
October 21, 1974.  Ninety days later he was reassigned to a
position in Metairie, Louisiana.  Pursuant to civil service regu-
lations, the Commission investigated tha appointment to assess
compliance with competitive principles.  Although findnr' that
Mr. Saufley acted in good faiUi, the Commission determinl d that
the Geological Survey had improperly appointed him from a
Washington, D.C. register in order to circunivent established
certification procedures.  Because of the improper procedurt, the
Commilsion directed that Mr. Saufley's appointment be cancelled.

     rhe Geological Survey subsequently asked the Commission's
opinion regarding Mr. Saufley's entitlement to retain the salary


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