Comparability of Wages

Management staff and financial officers will benefit from reading this section to ensure that employees are compensated according to salary scales that are based on training and experience. The Head Start Act indicates that Early Head Start and Head Start staff shall not receive compensation at a rate which is in excess of the average rate of compensation paid in the area where the program is carried out.

This section (Sec. 653.) under the Head Start Act provides for The Secretary to take action as may be necessary to assure that persons employed in carrying out programs financed under this subchapter shall not receive compensation at a rate which is in excess of the average rate of compensation paid in the area where the program is carried out. Management staff and financial officers will benefit from reading this section to ensure that employees are compensated according to salary scales that are based on training and experience.

Sec. 653. [42 U.S.C. 9848]

Sec. 653. [42 U.S.C. 9848] (a) Comparability of Wages- The Secretary shall take such action as may be necessary to assure that persons employed in carrying out programs financed under this subchapter shall not receive compensation at a rate which is (1) in excess of the average rate of compensation paid in the area where the program is carried out to a substantial number of persons providing substantially comparable services, or in excess of the average rate of compensation paid to a substantial number of the persons providing substantially comparable services in the area of the person's immediately preceding employment, whichever is higher; or (2) less than the minimum wage rate prescribed in section 6(a)(1) of the Fair Labor Standards Act of 1938. The Secretary shall encourage Head Start agencies to provide compensation according to salary scales that are based on training and experience.

(b) Limitation-

(1) IN GENERAL- Notwithstanding any other provision of law, no Federal funds may be used to pay any part of the compensation of an individual employed by a Head Start agency, if such compensation, including non-Federal funds, exceeds an amount equal to the rate payable for level II of the Executive Schedule under section 5313 of title 5, United States Code.

(2) COMPENSATION- In this subsection, the term "compensation" —

(A) includes salary, bonuses, periodic payments, severance pay, the value of any vacation time, the value of a compensatory or paid leave benefit not excluded by subparagraph (B), and the fair market value of any employee perquisite or benefit not excluded by subparagraph (B); and

(B) excludes any Head Start agency expenditure for a health, medical, life insurance, disability, retirement, or any other employee welfare or pension benefit.

Topic:Fiscal Management

Keywords:Salaries and wagesCompensationFederal funds

Resource Type: Article

National Centers: Program Management and Fiscal Operations

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