III.

Later Acts

From time to time Congress has enacted legislation designed to improve the original Civil Service Act. The Lloyd-La Follette Act, passed in 1912, guarantees civil service employees the right of membership in labor unions, provides that agencies give grounds for dismissal to discharged employees, and grants discharged employees the right to answer charges against them. The Civil Service Retirement Act, passed in 1920 and amended several times since then, provides annuities for employees who retire and benefits to survivors of deceased employees. The Classification Act, passed in 1923 and subsequently amended, provides a plan for classification of positions according to the principle of equal pay for equal work. The Hatch Act, passed in 1939, prohibits active participation by civil service personnel in political campaigns. The Veterans’ Preference Act, passed by Congress in 1944, authorizes the addition of 5 points to the scores of war veterans who compete in civil service examinations and 10 points to those of disabled veterans or their wives and those of widows and certain mothers of veterans. The Federal Salary Reform Act of 1962 established the policy that federal salaries shall be comparable with those in private industry.

The passage of the Civil Service Reform Act in 1978 introduced major reforms in an effort to make the civil service system more flexible. The Civil Service Commission was replaced by the Office of Personnel Management (see Personnel Management, Office of). Under the act, top-level employees are grouped into a Senior Executive Service. Pay raises, formerly based on length of service only, are now tied to performance for senior- and middle-level employees.

Civil service employees enjoy a variety of employment benefits, including a contributory retirement system; an incentive-awards program that includes cash bonuses for useful suggestions; low-cost group life and health insurance plans; and paid vacations and sick leave. Federal agencies have systematic promotion plans and career-development and training programs.

As of 2002, approximately 2.7 million civilians were employed by the federal government. An even larger number of civilian workers were employed by private firms performing tasks under contract with the federal government. The growing use of contract employees has eroded the reach and importance of federal civil service rules because private contractors are not covered by most forms of civil service law.

In the United States, civil service rules have also played an important role at the state level. In 1883, the year Congress passed the Civil Service Act, the New York State legislature adopted a similar bill, placing administrative employees of the state under the merit system. This rule was extended by statute to the incorporated cities of the state in the following year. In 1884 the Massachusetts State legislature enacted civil service legislation that applied to state and municipal employees.

Merit systems covering most or all state services are in effect in many states. Beginning in 1940 the U.S. government required the establishment of state merit systems for employees in state departments receiving federal grants for salaries. Consequently, all 50 states have merit systems in such programs as employment services, unemployment insurance, public welfare assistance, and public health.