Title 38Veterans' BenefitsRelease 119-73

§704 Waiver of pay limitation for certain employees

Title 38 › Part PART I— - GENERAL PROVISIONS › Chapter CHAPTER 7— - EMPLOYEES › Subchapter SUBCHAPTER I— - GENERAL EMPLOYEE MATTERS › § 704

Last updated Apr 6, 2026|Official source

Summary

The Secretary may waive annual premium pay limits or total pay caps for Veterans Health Administration employees when their official duty station is closed or their office, facility, activity, or organization is realigned. The Secretary may also waive those pay limits for Department employees whose main job is giving expanded care to veterans exposed to open burn pits (the term “open burn pit” has the meaning in section 201(c) of the Dignified Burial and Other Veterans’ Benefits Improvement Act of 2012 (Public Law 112–260; 38 U.S.C. 527 note)). The Secretary must coordinate with the Office of Personnel Management. Each quarter the Secretary uses a waiver, the Secretary must send a report to the Senate and House Veterans’ Affairs Committees and to the Office of Personnel Management. The report must say where the waivers were used (which Department component and, if relevant, which medical center), how many employees used the waivers broken down by component and medical center, and the average amount each payment went over the waived pay limit, also broken down by component and medical center. “Employee” means any employee no matter how they were hired. This authority ends on September 30, 2027.

Full Legal Text

Title 38, §704

Veterans' Benefits — Source: USLM XML via OLRC

(a)Notwithstanding any other provision of law, the Secretary may waive any annual premium or aggregate limitation on pay for an employee of the Veterans Health Administration for the calendar year during which—
(1)the official duty station of the employee is closed; or
(2)the office, facility, activity, or organization of the employee is realigned.
(b)(1)Notwithstanding any other provision of law, the Secretary may waive any annual premium or aggregate limitation on pay for an employee of the Department whose primary duties include providing expanded care for veterans exposed to open burn pits.
(2)In this subsection, the term “open burn pit” has the meaning given that term in section 201(c) of the Dignified Burial and Other Veterans’ Benefits Improvement Act of 2012 (Public Law 112–260; 38 U.S.C. 527 note).
(c)In implementing this section, the Secretary shall coordinate with the Director of the Office of Personnel Management.
(d)(1)For each quarter that the Secretary waives a limitation under this section, the Secretary shall submit to the Committee on Veterans’ Affairs of the Senate, the Committee on Veterans’ Affairs of the House of Representatives, and the Office of Personnel Management a report on the waiver or waivers.
(2)Each report submitted under paragraph (1) with respect to a waiver or waivers shall include the following:
(A)Where the waiver or waivers were used, including in which component of the Department and, as the case may be, which medical center of the Department.
(B)For how many employees the waiver or waivers were used, disaggregated by component of the Department and, if applicable, medical center of the Department.
(C)The average amount by which each payment exceeded the pay limitation that was waived, disaggregated by component of the Department and, if applicable, medical center of the Department.
(e)In this section, the term “employee” means any employee regardless of the authority under which the employee was hired.
(f)This section shall terminate on September 30, 2027.

Legislative History

Notes & Related Subsidiaries

Editorial Notes

Prior Provisions

A prior section 704 was renumbered section 1904 of this title.

Reference

Citations & Metadata

Citation

38 U.S.C. § 704

Title 38Veterans' Benefits

Last Updated

Apr 6, 2026

Release point: 119-73