HRDG 4531 - Highest Previous Rate - Section C

For pay setting examples, see:

Fact Sheet: Pay Action Examples Other than Promotions and Grade and Pay Retention

and contact your SPO for additional guidance.

A demotion for cause is a reduction in grade based on the conduct or unacceptable performance of an employee. An employee demoted for cause has pay set at step 1 of the grade. This rate will be used to determine any future entitlement to HPR.

Example: A GS-9, step 5 ($32,125) is demoted to GS-7, because of unacceptable performance. Pay is set at GS-7, step 1 ($23,171). GS-9, step 5, cannot be used as the employee’s HPR in future pay-setting actions.

When an employee voluntarily accepts a reassignment from a special salary rate position to a lower-paid non-special rate position, the special salary rate may be used as the basis for HPR when:

• The employee is reassigned to a position within USDA,
• The special rate of pay is the employee’s current rate of pay, and
• Management determines that the need for the services of the employee and his/her contribution to the program will be greater in the position to which being reassigned.

For information on when an employee is involuntarily reassigned from a special rate position to a non-special rate position, or when special salary rates are reduced or terminated, see your agency guidance on grade and pay retention or contact your SPO.

The Directors, ABS, Riverdale-Washington Business Site and Minneapolis Business Site have the authority to approve requests to use a special salary rate as HPR. This authority may be redelegated one supervisory level lower.