[PUBLIC LAW 873 ---81ST CONGRESS] [CHAPTER 1123--2D SESSION] [H. R. 7824]AN ACT
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[PUBLIC LAW 873-81ST CONGRESS1
[CHAPTER 1123=2n SESSION]
[H. R. 7824]
AN ACT
To provide for the administration of performance-rating plans for certain officers
and employees of the Federal Government, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled, That this Act may
be cited as the "Performance Rating Act of 1950".
"
department"
s SEC. 2. (a) For the purposes of this Act, the term
includes (1) the executive departments; (2) the independent estab-
lishments and agencies in the executive branch, including corpora-
tions wholly owned by the United States; (3) the Administrative
Office of the United States Courts; (4) the Library of Congress; (5)
the Botanic Garden; (6) the Government Printing Office; (7) the
General Accounting Office; and (8) the municipal government of
the District of Columbia.
(b) This Act shall not apply to-.
1) the Tennessee Valley Authority;
2) the field service of the Post Office Department;
3) physicians, dentists, nurses, and other employees in the
Department of Medicine and Surgery in the Veterans' Admin-
istration whose compensation is fixed under Public Law 293,
Seventy-ninth Congress, approved January 3, 1946;
(4) the Foreign Service of the United States under the Depart-
ment of State;
(5 Production credit corporations;
(6) Federal intermediate credit banks;
7) Federal ].and banks;
8) Banks for cooperatives;
9) officers and employees of the municipal government of the
District of Columbia whose compensation is not fixed by the
Classification Act of 1949 (Public Law 429, Eighty-first Congress,
approved October 28, 1949) ;
(10) the Atomic Energy Commission;
(11) employees outside the continental limits of the United
States who are paid in accordance with local native prevailing
wage rates for the area in which employed.
SEC. 3. For the purpose of recognizing the merits of officers and
employees, and their contributions to efl ciency and economy in the
Federal service, each department shall establish and use one or more
performance-rating plans for evaluating the work performance of
such officers and employees.
SEC. 4. No officer or employee of any department shall be given a
performance rating, regardless of the name given to such rating, and,
no such rating shall b3 used as a basis for any action; except under a,
performance-rating plan approved by the Civil Service Commission
as conforming with the requirements of this Act.
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SEC. 5. Performance-rating plans required by this Act shall be as
simple as possible, and each such plan shall provide-
(1) that proper performance requirements be made known to
all officers and employees ;
(2) that performance be fairly appraised in relation to such
requirements ;
(3) for the use of appraisals to improve the effectiveness of
employee performance;
4 for strengthening supervisor-employee relationships; and
5 that each officer and employee be kept currently advisee:
of his performance and promptly notified of his performance
rating.
SEC. 6. Each performance-rating plan shall provide for ratings
representing at least (1) satisfactory performance, corresponding to
an efficiency rating of "good" under the Veterans' Preference Act of
1944, as amended, and under laws superseded by this Act; (2) unsatis-
factory performance, which shall serve as a basis for removal from
the position in which such unsatisfactory performance was rendered;
and (3) outstanding performance, which shall be accorded only when
all aspects of performance not only exceed normal requirements but
are outstanding and deserve special commendation. No officer or
employee shall be rated unsatisfactory without a ninety-day prior
warning and a reasonable opportunity to demonstrate satisfactory
performance.
SEc. 7. (a) Upon the request of any officer or employee of a depart-
ment, such department shall provide one impartial review of the
performance rating of such officer or employee.
(b) There shall be established in each department one or more
boards of review of equal jurisdiction for the purpose of considering
and passing upon the merits of performance ratings under rating
plans established under this Act. Each board of review shall ba
composed of three members. One member shall be designated by the
head of the department. One member shall be designated by the
officers and employees of the department in such manner as may be
provided by the Civil Service Commission. One member, who shall
serve as chairman, shall be designated by the Civil Service Commission.
Alternate members shall be designated in the same manner as their
respective principal members.
(c) In addition to the performance-rating appeal provided in
subsection (a), any officer or employee with a current performance
rating of less than satisfactory, upon written appeal to the chairman
of the appropriate board of review established under subsection (b),
shall be entitled, as a matter of right, to a hearing and decision on the
merits of the appealed rating. If an officer or employee with a cur-
rent performance rating of satisfactory has not requested and obtained
a review of such rating as provided in subsection (a), such officer or
employee, upon written appeal to the chairman of the appropriate
board of review established under subsection (b), shall be entitled,
as a matter of right, to a hearing and decision on the merits of the
appealed rating.
(d) At such hearing the appellant, or his designated representative,
and representatives of the department shall be afforded an opportunity
to submit pertinent information orally or in writing, and to hear or
JOW
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examine, and reply to, information submitted by others. After such
hearing, the board of review shall confirm the appealed rating or make
such change as it deems to be proper.
Snc. 8. (a) The Civil Service Commission is authorized to issue
such regulations as may be necessary for the administration of this Act.
(b) The Commission shall inspect the administration of perform-
ance-rating plans by each department to determine compliance with
the requirements of this Act and regulations issued thereunder.
(c) Whenever the Commission shall determine that a performance-
rating plan does not meet the requirements of this Act and the regula-
tions issued thereunder, the Commission may, after notice to the
department, giving the reasons, revoke its approval of such plan.
(d) After such revocation, such performance-rating plan and any
current ratings thereunder shall become inoperative, and the depart-
ment shall thereupon use a performance-rating plan prescribed by
the Commission.
SEC. 9. (a) Section 701 of the Classification Act of 1949 (Public
Law 429, Eighty-first Congress, approved October 28, 1949) is hereby
amended to read as follows :
"SEC. 701. Each officer or employee compensated on a per annum
basis, and occupying a permanent position within the scope of the
compensation schedules fixed by this Act, who has not attained the
maximum scheduled rate of compensation for the grade in which his
position is placed, shall be advanced in compensation successively to
the next higher rate within the grade at the beginning of the next pay
period following the completion of (1) each fifty-two calendar weeks
of service if his position is in a grade in which the step-increases are
less than $200, or (2) each seventy-eight calendar weeks of service
if his position is in a grade in which the step-increases are $200 or
more, subject to the following conditions:
"(A) That no equivalent increase in compensation from any
cause was received during such period, except increase made pur-
suant to section 702 or 1002;
"(B) That he has a current performance rating of 'Satisfac-
to17, ' or better ; and
C) That the benefit of successive step-increases shall be pre-
served, under regulations issued by the Commission for officers
-e . and employees whose continuous service is interrupted in the
public interest by service with the armed forces or by service in
essential non-Government civilian employment during a period
of war or national emergency."
(b) Section 702 (a) of such Act is amended by striking out "section
701 (a) 'land inserting in lieu thereof "section 701".
SEC. 10. Section 703 (b) (2) of title VII of the Classification Act
of 1949 (Public Law 429, Eighty-first Congress, approved October 28,
1949) is hereby amended to read :
"(2) No officer or employee shall receive a longevity step-increase
unless his current performance rating is `satisfactory' or better."
Snc. 11. The following Acts or parts of Acts are hereby repealed :
(1) Section 4 of the Act of August 23, 1912 (37 Stat. 413) ;
(2) The Act of July 31, 1946 (60 Stat. 751; 5 U. S. C. 669a)
(3) Title IX of the Classification Act of 1949 (Public Law 429,
Eighty-first Congress).
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[Pus. LAW 873.] 4
SEC. 12. This Act shall take effect ninety days after the date of its
enactment.
Sic. 13. There are hereby authorized to be appropriated such sums'
as may be necessary to carry out the provisions of this Act.
SEC. 14. All laws or parts of laws inconsistent herewith are hereby
repealed to the extent of such inconsistency.
Approved September 30, 1950.
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