Legislation Introduced to Cap Federal Employee Bonuses

By on April 12, 2013 in Current Events, Pay & Benefits with 266 Comments

Rep. Mark Meadows (R-NC) has introduced legislation that would prohibit federal employee bonuses for the rest of Fiscal Year (FY) 2013 and cap bonuses at a maximum of 5% of salary through the end of FY 2015.

Known as the Common Sense in Compensation Act of 2013, the legislation is not intended to stifle merit-based pay and would give federal agencies the option to give out individual bonuses on a situational basis if justified in writing.

“Over the past two months, federal official after federal official has talked about the need to furlough employees due to sequestration,” Meadows said. “Yet, the government has been handing out millions of dollars in bonuses to federal employees. Forcing regular, often blue-collar federal workers to face furloughs while senior employees cash in is unacceptable. That is why I introduced the Common Sense in Compensation Act today.

“In FY 2010, 75% of Senior Executive Service employees received bonuses at an average of $13,081 per person. The Federal Aviation Administration has been threatening 90-minute waits for airline passengers, but they handed out bonuses at or above $40,000 to 86 employees in FY 2011. The federal government has no business handing out millions in bonuses to senior-level staff while beginning to furlough other employees. These bonuses exemplify Washington’s spending problem, and we need sound legislation to restore common sense in federal employee compensation.”

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Ian Smith is one of the co-founders of FedSmith.com. He enjoys writing about current topics that affect the federal workforce. Ian also has a background in web development and does the technical work for the FedSmith.com web site and its sibling sites.

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