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OPM.gov / Policy / Pay & Leave / Pay Administration
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Superior Qualifications and Special Needs Pay-Setting Authority

Superior Qualifications and Special Needs Pay-Setting Authority

Description

An agency must set the rate of basic pay of a newly appointed General Schedule (GS) employee at the step 1 rate of their GS grade unless the agency uses the superior qualifications and special needs pay-setting authority.

An agency may use this authority to set the rate of basic pay of a newly-appointed employee at a rate above the step 1 of their grade (not to exceed step 10) because of—

  1. the candidate's superior qualifications; or
  2. the agency's special need for the candidate’s services.

An agency must approve each determination to use this authority before the employee enters on duty in their position. The determination to set pay above step 1 cannot be made retroactively. An agency may not use superior qualifications and special needs pay-setting authority to increase pay of current GS employees to address pay disparities.

An agency does not need to rely on the candidate to ask for their pay to be set above step 1 to use this authority.

Use of this pay-setting flexibility is subject to agency policy. Please contact the employing agency for information about its policy.

Covered Positions

Agencies may use the superior qualifications and special needs pay-setting authority to set the rate of basic pay for a newly-appointed employee to any GS position, including permanent and temporary GS positions in the competitive or excepted service, at any grade level.

Newly-Appointed Employees

Agencies may use the superior qualifications and special needs pay-setting authority to set the rate of basic pay for an employee upon—

  1. first appointment as a civilian employee of the federal government.
  2. reappointment to a GS position after a break in service of 90-days or more. See 5 CFR 531.212(a)(3) for exceptions to the 90-day break in service requirement.

Superior Qualifications Determination

An agency may determine that a candidate has superior qualifications based on—

  • the level, type or quality of the candidate's skills and competencies demonstrated or obtained through experience or education (or both);
  • the quality of the candidate's accomplishments compared to others in the field; or
  • other factors that support that the superior qualifications determination.

The candidate's skills, competencies, experience, education, and accomplishments must be relevant to the requirements of the position to be filled. These qualities must be significantly higher than that needed to be minimally qualified for the position or be of a more specialized quality compared to other candidates.

Special Needs Determination

An agency may determine that a candidate fills a special agency need if the type, the level, type or quality of the candidate's skills and competencies or other qualities and experiences possessed by the candidate are relevant to the requirements of the position and are essential to accomplishing an important agency mission, goal, or program, activity.

A candidate also may meet the special needs criteria by meeting agency workforce needs, as documented in the agency's strategic human capital plan.

Pay Rate Determination

After an agency has made a superior qualifications or special needs determination for a candidate, the must determine the candidate's step rate.

An agency—

  • May not consider a candidate's non-federal salary (existing salary or prior salary or a salary from a competing job offer) and should not request a candidate's non-federal salary information.
  • Must consider the step at which pay has been set for other employees who have similar qualification(based on the level, type, or quality of the candidate's skills or competencies or other qualities and experiences) and who have been newly appointed to positions that are similar to the candidate's position (based on the position's occupational series, grade level, organization, geographic location, or other relevant factors), if applicable.
  • Must consider one or more of the following additional factors under 5 CFR 531.212(c), as applicable (Note: Utilizing as many factors under 5 CFR 531.212(c) that are applicable to the situation will strengthen the justification for the rate at which the employee's pay is set):
  1. The level, type, or quality of the candidate’s skills or competencies.
  2. Significant disparities between federal and non-federal salaries for the skills and competencies required in the position. Potential sources of salary survey data include Bureau of Labor Statistics Occupational Employment Wage Statistics, professional organizations, state and local governments, job postings, and data that is available for purchase. It is best to consider data from more than one source and to find sources relevant to occupation, level of the position, and geographic location for a stronger justification, if possible.
  3. Existing labor market conditions and employment trends, including the availability and quality of candidates for the same or similar positions.
  4. The success of recent efforts to recruit candidates for the same or similar positions.
  5. Recent turnover in the same or similar positions.
  6. The importance or criticality of the position and the effect on the agency if it is not filled or if there is a delay in filling it.
  7. The desirability of the geographic location, duties, or work environment associated with the position.
  8. Agency workforce needs, as documented in the agency’s strategic human capital plan.
  9. Other relevant factors.

* In January 2024, OPM issued final regulations that revise the factors that an agency considers when setting pay under the superior qualifications and special needs pay-setting authority to include prohibiting the use of a candidate's non-federal salary history or a salary from a competing job offer. Agencies must be in full compliance with the regulations by October 1, 2024.

Required Documentation

An agency must establish documentation and recordkeeping procedures sufficient to allow reconstruction of the action taken in each case before using the superior qualifications and special needs pay-setting authority. Documentation for each approved use of this authority must include a written description of the—

  1. superior qualifications of the candidate or special agency need for the candidate’s services that justifies a rate above step 1;
  2. the factors and supporting documentation under 5 CFR 531.212(c) that were used to justify the rate at which the employee’s pay is set; and
  3. reason(s) for authorizing a rate above step 1 instead of or in addition to a recruitment incentive under 5 CFR part 575, subpart A.

Agency Policies

An agency must establish a policy before using the superior qualifications and special needs pay-setting authority which should include—

  • The agency officials with the authority to review and approve the written documentation to set pay above step 1. An agency approving official must be at least one level higher than the employee's supervisor unless there is no official at a higher level in the agency.
  • The factors the agency will consider in determining that a candidate has superior qualifications or is filling a special agency need.
  • The factors the agency will consider in justifying a candidate's pay rate above step 1, which may include acceptable sources of relevant non-federal salary, labor market, recruitment and turnover, and other data information that could be used to justify a higher pay rate.
  • Guidelines for making the required comparison to the step rate approved for other employees who have similar qualifications as the candidate in positions similar to the candidate's position.
  • Internal guidelines and evaluation procedures for compliance with the law, OPM regulations, and agency policies including the documentation and recordkeeping procedures described in the Required Documentation section.
  • Any additional processes or procedures for using this authority, including the use of any forms or memoranda.
  • How the agency will educate hiring managers on the use of this authority.

Compensation Discrimination

  • The Equal Pay Act (EPA) and Title VII of the Civil Rights Act of 1964 make it illegal to discriminate based on sex in pay and benefits. Title VII, the Age Discrimination in Employment Act, and Americans with Disabilities Act also prohibit compensation discrimination based on race, color, religion, sex, national origin, age, or disability. For more information, please see Equal Employment Opportunity Commission guidance. Agencies may need to consider EPA document retention requirements when using the superior qualifications and special needs pay setting authority. Agencies with employees subject to the EPA must keep records in accordance with Department of Labor regulations at 29 CFR part 516 (records to be kept by employers under the Fair Labor Standards Act (FLSA)). See 29 CFR 1620.32 and 29 CFR part 516. Agency records management policies may require longer periods for record retention.

References

  • 5 U.S.C. 5333
  • 5 CFR 531.212
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