ALCGPSC 048/22 - GUIDANCE FOR UNITS IMPACTED BY THE $15 PER HOUR MINIMUM PAY RATE FOR NON-APPROPRIATED FUND (NAF) EMPLOYEES AT MORALE, WELL-BEING, RECREATION (MWR) ACTIVITIES AND CHILD DEVELOPMENT CENTERS (CDC)

ALCGPSC 048/22

SUBJ: GUIDANCE FOR UNITS IMPACTED BY THE $15 PER HOUR MINIMUM PAY RATE FOR NON-APPROPIATED FUND (NAF) EMPLOYEES AT MORALE, WELL-BEING, RECREATION (MWR) ACTIVITIES AND CHILD DEVELOPMENT CENTERS (CDC)

A. Coast Guard Nonappropriated Fund Personnel Manual, COMDTINST M12271.1C
B. Coast Guard Nonappropriated Fund Instrumentalities (NAFI) Manual, COMDTINST M7010.5C
C. Coast Guard Morale, Well-Being, and Recreation Manual, COMDTINST M1710.13 (series)
D. Child Development Services Manual, COMDTINST M1754.15

1. On January 22, 2021, the President issued an Executive Order on Protecting the Federal Workforce (EO 14003). In response to the Presidential directive in EO 14003, OPM issued a memorandum for heads of Executive departments and agencies that provides implementing guidance for adjusting pay rates for federal employees stationed in the United States (including its territories and possessions) to at least $15 per hour. These wage increases apply to NAF employees and will impact MWR Category B and C activities as their salaries are paid from revenues generated from business activities.

2. This increase in salary is great for employees and gives the Coast Guard an advantage in finding the best qualified candidates for jobs within our Non-appropriated Fund Instrumentalities. However, several units will be significantly impacted by this new wage scale and must adjust business practices to account for this additional expense. The Community Services Command (CSC) and CDC Program (CG-111) are working closely with DOL and FORCECOM to assist units impacted by this recent change. Per Ref (A), CSC Human Resources staff has already contacted affected units and made the initial adjustments to pay for every impacted employee. In addition, the CSC is exploring the possibility of appropriated fund support for impacted units in conjunction with the other military services.

3. CSC/CG-111/DOL/FORCECOM Action: CSC/CG-111 will work with DOL/FORCECOM to provide funding to offset the increased salary expenses for the $15 per hour mandate. The amount of support will only be available for a portion of the difference in salary for affected employees. NOTE: This is a one-year plan for support and will only be provided in FY22. The following units have been identified as being impacted and will be the only units supported in FY22, pending the availability of funds:

MWR Air Station Barbers Point
MWR Air Station Atlantic City (Townsend)
MWR Aviation Training Center
MWR Base Boston
MWR Base Detachment Borinquen
MWR Base Cape Cod
MWR Base Elizabeth City
MWR Base Honolulu
MWR Base Ketchikan
MWR Base Kodiak
MWR Base Portsmouth
MWR Base San Juan
MWR CG Academy
MWR CG Yard
MWR Training Center Cape May
MWR Training Center Yorktown
CDC CG Academy
CDC Alameda
CDC Borinquen
CDC Cape Cod
CDC Cape May
CDC Kodiak
CDC San Juan

4. Unit action: Units with MWR activities and CDCs activities are required to modify business operations to adapt to challenges from the cost increase in accordance with REFs (B) through (D). Each unit is required to make program adjustments per the following guidance:

a. For FY22, immediately adjust (increase) service fees or reduce operating costs to mitigate 50% of the cost increase to impacted programs that results from the increased labor cost. The anticipated funding support discussed in paragraph 3 above will offset 50% of the salary differences for impacted employees.

b. For FY23, programs should plan to meet 100% of the salary expenses and be fully sustainable. No funding support will be provided.

c. MWR and CDC programs that are hit the hardest and are unable to adjust to the increased salary costs by FY23, should submit their request for additional funding support through their chain of command to CSC for consideration by 30 April 2022. In these isolated cases, the unit should provide a plan to achieve sustainable operations by FY24. CSC will review and provide response on funding availability for the unit plan by 15 May 2022.

5. Units will be required to respond to data calls for funding support and this support will be provided based on need. Commands should send requests for support for NAF salary and benefits to CSC via their chain of command. For approved requests, CSC will execute transfers of NAF to eligible units. Send requests to Mr. Stephen Bishop at stephen.j.bishop2@uscg.mil.

6. CSC MWR Program POC is Matt Perciak; 757-842-4903 or matt.f.perciak@uscg,mil. CG-1112 Child Development Services Program POC is Renee L Podolec; 202 475-5160 or renee.l.podelec@uscg.mil. CSC Human Resources POC is Virginia Cameron; 757-842-4906 or virginia.cameron@cgexchange.org.

7. Released: RDML S.N. Gilreath, Commander, Personnel Service Center. The Service Center for our most important resource – Our People.

8. Internet release authorized.