(b) Compensation prescribed by the Governor under this section. may not exceed, in any case, by more than 25 percent, the compensation paid for the same or similar services to persons employed by the Government in the continental United States. The definition of "continental United States" contained in section 141 of this title applies to that term as used in this subsection.

(c) This section does not affect the application to employees of the Canal Zone Government of the provisions of section 23 of the Independent Offices Appropriation Act, 1935 (48 Stat. 522; 5 U.S.C., sec. 673c). § 102.

Exemption of teachers with respect to dual offices and double salaries

Section 2 of the Legislative, Executive, and Judicial Appropriation Act, approved July 31, 1894, as amended (28 Stat. 205; 5 U.S.C., sec. 62), and section 6 of the Legislative, Executive, and Judicial Appropriation Act, approved May 10, 1916, as amended (39 Stat. 120; 5 U.S.C., sec. 58), do not apply to teachers in the public schools of the Canal Zone who are also employed in night schools or in vacation schools or programs.

§ 103. Deduction from compensation of amounts due for sup plies or services

Amounts due from officers and employees, whether to the Canal Zone Government, Panama Canal Company, or contractor, for transportation, board, supplies or any other service, may be deducted from the compensation otherwise payable to them, and may be paid to the authorized parties or credited to the appropriation out of which the transportation, board, supplies, or other service was originally paid.

Subchapter II-Panama Canal Company Employees

§ 121. Appointment and compensation; duties; delegation of powers; bonds

(a) Except as provided by section 64 of this title, the Panama Canal Company may:

(1) appoint, fix the compensation of, and define the authority and duties of, officers, agents, attorneys, and employees necessary for the conduct of the business of the Company;

(2) require such of the persons appointed, whom it designates, to be bonded, and fix the penalties and pay the premiums of the bonds; and

(3) delegate to the persons appointed such of its powers as it deems necessary.

(b) Officers and employees of the United States, may, if appointed under this section, serve as officers or employees of the Company.

§ 122. Deduction from compensation of amounts due for supplies or services.

Section 103 of this title applies to the Panama Canal Company and to its officers and employees.

§ 123. Hours of work for telegraph operators and train dispatchers

(a) Except as provided by subsection (b) of this section, the Panama Canal Company may not require or permit any employee of the Company who, by the use of the telegraph or telephone, dispatches, reports, transmits, receives, or delivers orders pertaining to or affecting train movements, to be or remain on duty for a longer period than:

(1) nine hours in a twenty-four-hour period in a tower, office, place or station continuously operated night and day; or (2) thirteen hours in a tower, office, place or station operated only during the daytime.

(b) In case of emergency, the Panama Canal Company may permit the employees referred to in subsection (a) of this section to be and remain on duty for four additional hours in a twenty-four-hour period for not more than three days in a week.

Subchapter III-Wage and Employment Practices

§ 141. Definitions

As used in this subchapter:

"continental United States" means the several States of the United States of America existing on July 25, 1958, and the District of Columbia;

"department" means a department, agency, or independent establishment in the executive branch of the Government of the United States (including a corporation wholly owned or controlled by the United States) which conducts operations in the Canal Zone;

"employee" means an individual holding a position; and

"position" means those duties and responsibilities of a civilian nature under the jurisdiction of a department:

(1) which are performed in the Canal Zone; or

(2) with respect to which the exclusion of individuals from the Classification Act of 1949, as amended (5 U.S.C., ch. 21), is provided for by section 202 (21) (B) of that Act, as amended (5 U.S.C., sec. 1082 (21) (B)).

§ 142. General rules governing wage and employment practices (a) The head of each department shall conduct the wage and employment practices in the Canal Zone of his department in accordance with the:

(1) principles established in item 1 of the Memorandum of Understandings set forth in section 1(b) of Public Law 85-550 (July 25, 1958, 72 Stat. 405);

(2) provisions of this subchapter;

(3) regulations promulgated by, or under the authority of, the President of the United States in accordance with this subchapter; and

(4) provisions of applicable law.

(b) To the extent he deems appropriate, the President may :

(1) exclude any employee or position from this subchapter or from any provision of this subchapter; and

(2) extend to any employee, whether or not the employee is a citizen of the United States, the same rights and privileges as are provided by applicable laws and regulations for citizens of the United States employed in the competitive civil service of the Government of the United States.

§ 143. Employment standards

The head of each department shall establish written standards for the:

(1) determination of the qualifications and fitness of employees and of individuals under consideration for appointment to positions; and

(2) selection of individuals for appointment, promotion, or transfer to positions.

The standards shall conform with this subchapter, the regulations referred to in section 155 (a) of this title, and the Canal Zone Merit System referred to by section 149 of this title.

§ 144. Compensation

(a) The head of each department, in accordance with this subchapter, shall establish, and from time to time may revise, the rates of basic compensation for positions and employees under his jurisdiction.

(b) The rates of basic compensation may be established and revised in relation to the rates of compensation for the same or similar work performed in the continental United States or in such areas outside the continental United States as may be designated in the regulations referred to in section 155 (a) of this title.

(c) The head of each department may grant increases in rates of basic compensation in amounts not to exceed the amounts of the increases granted, from time to time, by Act of Congress in corresponding rates of compensation in the appropriate schedule or scale of pay. The head of the department concerned may make the increases effective as of such date as he designates but not earlier than the effective date of the corresponding increases provided by the Act of Congress. (d) A rate of basic compensation established under this section may not exceed by more than 25 percent, when increased by the amounts of the allowance and the differential authorized by section 146 of this title, the rate of basic compensation for the same or similar work performed in the continental United States by employees of the Government of the United States.

§ 145. Uniform application of standards and rates

The established employment standards and rates of basic compensation established pursuant to sections 143 and 144 of this title shall be applied uniformly, irrespective of whether the employee or individual concerned is a citizen of the United States or a citizen of the Republic of Panama.

§ 146. Additional allowance and differential

In addition to established basic compensation, there shall be paid to each employee who is a citizen of the United States such amounts as the head of the department concerned determines to be payable, as follows:

(1) an allowance for taxes which operate to reduce his disposable income in comparison with the disposable incomes of those employees who are not citizens of the United States; and

(2) an overseas (tropical) differential not in excess of an amount equal to 25 percent of the aggregate amount of the rate of basic compensation so established and the amount of the allowance provided in accordance with paragraph (1) of this section.

§ 147. Security positions

Notwithstanding any other provision of this subchapter but subject to the regulations referred to in section 155 (a) of this title, the head of each department may designate any position under his jurisdiction as a position which for security reasons shall be filled by a citizen of the United States; including but not limited to, positions (a) involving security of property; (b) involving access to defense information not releasable to foreign nationals; or (c) requiring the use of United States citizens to insure continuity and capability of operation and administration of activities in the Canal Zone by the United States Government.

§ 148. Benefits based on compensation

For the purpose of determining:

(1) amounts of insurance under the Federal Employees' Group Life Insurance Act of 1954, as amended (5 U.S.C., sec. 2091 et seq.);

(2) amounts of compensation for death or disability under the Federal Employees' Compensation Act, as amended (5 U.S.C., sec. 751 et seq.);

(3) amounts of overtime pay or other premium compensation; (4) benefits under the Civil Service Retirement Act, as amended (5 U.S.C., sec. 2251 et seq.);

(5) annual leave benefits; and

(6) other benefits related to basic compensation—

the basic compensation of each employee who is a citizen of the United States shall include the rate of basic compensation established for his position, and the amount of the allowance and the differential deterinined, in the manner respectively provided by sections 144 and 146 of this title.

§ 149. Canal Zone Merit System

(a) Subject to this subchapter, the President or his designee may, from time to time, amend or modify the provisions of the Canal Zone Merit System of selection for appointment, reappointment, reinstatement, re-employment, and retention, with respect to positions, employees, and individuals under consideration for appointment to positions, established by regulations under authority of the President. (b) The Canal Zone Merit System, irrespective of whether the employees or individuals concerned are citizens of the United States or citizens of the Republic of Panama, shall:

(1) be based solely on the merit of the employee or individual and upon his qualifications and fitness to hold the position concerned; and

(2) apply uniformly within and among all departments to positions, employees, and individuals concerned.

(c) The Canal Zone Merit System shall:

(1) conform generally to policies, principles, and standards established by or in accordance with the Civil Service Act of January 16, 1883, as amended and supplemented; and

(2) include provision for appropriate interchange of citizens of the United States employed by the Government of the United States between the merit system and the competitive civil service of the Government of the United States.

§ 150. Salary protection upon conversion of compensation base Whenever the rate of basic compensation of an employee heretofore or hereafter established in relation to rates of compensation for the same or similar work in the continental United States is converted under authority of section 144 of this title to a rate of basic compensation established in relation to rates in areas other than the continental United States in the manner provided by section 144 (b) of this title, he shall, pending transfer to a position for which the rate of basic compensation is established in relation to rates of compensation in the continental United States in the manner provided by section 144 (b) of this title, and as long as he remains in the same position or in a position of equal or higher grade, continue to receive a rate of basic compensation not less than that to which he was entitled immediately prior to the conversion.

§ 151. Review and adjustment of classifications, grades, and pay level; by department

An employee may request at any time that the department in which he is employed:

(1) review the classification of his position or the grade or pay level for his position, or both: and

(2) revise or adjust such classification, grade, and pay level, or any of them, as the case may be.

The request for review and revision or adjustment shall be submitted and adjudicated in accordance with the regularly established appeals procedure of the department.

§ 152. Same; Board of Appeals; duties

There shall be, in conformity with this subchapter, and as pre scribed by regulations promulgated by the President or his designee, a Canal Zone Board of Appeals. The regulations shall provide for, in accordance with this subchapter, the number of members of the Board, and their appointment, compensation, and terms of office, the selection of a Chairman of the Board, and the appointment and compensation of the Board's employees, and for other relevant and appropriate matters.

The Board shall review and determine the appeals of employees in accordance with section 153 of this title, and its decisions shall conform with the provisions of this subchapter..

§ 153. Same; appeals to Board; procedure; finality of decisions (a) An employee may appeal to the Canal Zone Board of Appeals from an adverse determination made under section 151 of this title. The appeal shall be made in writing within a reasonable time, as prescribed in regulations promulgated by, or under the authority of, the President, after the date of the transmittal by the department to the employee of written notice of the adverse determination.

(b) The Board may authorize, in connection with an appeal pursuant to subsection (a) of this section, a personal appearance before the Board by the employee, or by his representative designated for the

purpose.

(c) After investigation and consideration of the evidence submitted, the Board shall:

(1) prepare a written decision on the appeal;

(2) transmit its decision to the department concerned; and (3) transmit copies of the decision to the employee concerned or to his designated representative.

(d) The decision of the Board on any question or other matter relating to an appeal is final and conclusive. The department concerned shall take action in accordance with the decision of the Board.

§ 154. Participation in training programs

Training programs established by a department shall be applied uniformly to each employee irrespective of whether he is a citizen of the United States or the Republic of Panama. Employees who are citizens of the Republic of Panama shall be afforded opportunity to participate in training programs on the same basis as that upon which opportunity to participate therein is afforded to employees who are citizens of the United States.

155. Administration by President; regulations; delegation of

authority

(a) The President shall coordinate the policies and activities of the respective departments under this subchapter, and may promul gate regulations necessary and appropriate to carry out the provisions and accomplish the purposes of this subchapter.

(b) The President may delegate any authority vested in him by this subchapter, and may provide for the redelegation of any such authority.