NCI-FREDERICK POLICY AND PROCEDURE Policy No.

311 Original Issuance Date September 26, 1982 Revision # 2 August 2009 WAGE AND SALARY ADMINISTRATION

A.

PURPOSE AND BACKGROUND

It is the policy of NCI-Frederick to compensate its employees on the basis of their assigned duties and job performance in accordance with the Exempt Salary Structures or Service Contract Act (SCA) Area Wage Determinations. B. SCOPE

The policy applies to all Contractor employees who work at NCI-Frederick and NCI-Frederick off-site facilities. C. DEFINITIONS

Service Contract Act (SCA): Also known as the McNamara-O'Hara Service Contract Act, requires contractors and subcontractors performing services on prime contracts to pay service employees in various classes no less than the wage rates and fringe benefits found prevailing in the locality. The Department of Labor (DOL) issues wage determinations on a contract-by-contract basis in response to specific requests from contracting agencies. These determinations are incorporated into the contract. Area Wage Determinations (AWD): The determination of minimum wage and fringe benefit rates issued by the DOL and incorporated into NCI-Frederick contracts. Exempt Employee: An employee whose position is exempt from the Fair Labor Standards Act (FLSA). Fair Labor Standards Act (FLSA): The FLSA establishes minimum wage, overtime pay, recordkeeping, and youth employment standards affecting employees in the private sector and in federal, state, and local governments. Certain positions are exempt from the FLSA on the basis of executive, administrative or professional job duties. D. PROCEDURES

An approved Contractor Wage and Salary Plan must be maintained by each contractor human resources representative. Modifications to any salary grade require notification to the NCI Contracting Officer. Each Wage and Salary Plan will contain uniquely numbered and titled job specifications. Each job specification has a written job description detailing the position's basic functions, essential and other duties, and the general education, experience, knowledge, and abilities required to satisfactorily perform the job. A job specification does not include all assigned duties in detail and is thus only descriptive, not restrictive. All SCA-covered job specifications have been matched to job descriptions reported in the DOL Directory of Occupations. Exempt job specifications are benchmarked to market data contained in wellrecognized regional and national surveys conducted and validated by reputable third party organizations. The procedure for review of position classifications is described below: SCA Position Review An employee or his/her supervisor may request a review of the SCA job classification to which the employee is assigned:

Policy and Procedure # 311 Policy and Procedure Manual August 2009 Page 2 of 2

1. An employee must complete the Job Analysis Questionnaire (JAQ). The JAQ is available from the contractor human resources representative. This document will list all of the duties performed beyond those listed in the applicable NCI-Frederick job specification. The completed JAQ will be submitted to the contractor human resources representative. 2. The JAQ is evaluated by the human resources representative. As part of this evaluation, the human resources representative will confirm the employee's duties with the employee's immediate supervisor. If necessary, the human resources representative may perform a desk audit and/or contact the Wage and Hour Division, DOL, for guidance in making a determination. The human resources representative will make a determination based on this evaluation process. 3. The contractor human resources representative will notify the employee and his/her supervisor of the decision regarding the request for reclassification. If the employee is dissatisfied with the decision, he/she may appeal directly to the Wage and Hour Division, DOL. Exempt Position Review A supervisor, or an exempt employee, with concurrence from his/her supervisor, may request a review of his/her assigned job specifications as follows: 1. The employee will complete a Job Analysis Questionnaire (JAQ). The JAQ is available from the contractor human resources representative. This document will list all of the duties performed beyond those listed in the applicable NCI-Frederick job specification. The completed JAQ will be submitted to the contractor human resources representative. 2. The JAQ is evaluated by the human resources representative. As part of this evaluation, the human resources representative will confirm the employee's duties with the employee's immediate supervisor. If necessary, the human resources representative may perform a desk audit. The human resources representative will review available market data and determine the appropriate job specification based on this evaluation process. 3. The contractor human resources representative will notify the employee and his/her supervisor of the decision. E. RESPONSIBILITIES

Each contractor is responsible for administering this policy within the NCI-Frederick Wage and Salary Plan and SCA. Each contractor is individually responsible for establishing the procedures whereby the performance and wage/salary of each of their employees is reviewed at least annually. F. REFERENCES

Policy and Procedure 328: Fringe Benefit Compliance under the Service Contract Act