U.S. Code » Title 5 » Part PART III— EMPLOYEES › Subpart Subpart C— Employee Performance › Chapter CHAPTER 45— INCENTIVE AWARDS › Subchapter SUBCHAPTER I— AWARDS FOR SUPERIOR ACCOMPLISHMENTS

5 U.S.C. § 4503

Agency awards

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The head of an agency may pay a cash award to, and incur necessary expense for the honorary recognition of, an employee who—(1) by his suggestion, invention, superior accomplishment, or other personal effort contributes to the efficiency, economy, or other improvement of Government operations or achieves a significant reduction in paperwork; or(2) performs a special act or service in the public interest in connection with or related to his official employment.(Pub. L. 89–554, Sept. 6, 1966, 80 Stat. 443; Pub. L. 95–454, title V, § 502(a), Oct. 13, 1978, 92 Stat. 1183.)

Historical and Revision Notes

Derivation

U.S. Code

Revised Statutes and

Statutes at Large

 

5 U.S.C. 2123(a).

Sept. 1, 1954, ch. 1208, § 304(a), 68 Stat. 1113.

The word “employee” is substituted for “civilian officers and employees of the Government” in view of the definition of “employee” in section 4501.

Standard changes are made to conform with the definitions applicable and the style of this title as outlined in the preface to the report.

Editorial NotesAmendments

1978—Par. (1). Pub. L. 95–454 inserted “or achieves a significant reduction in paperwork”.

Statutory Notes and Related SubsidiariesEffective Date of 1978 Amendment

Pub. L. 95–454, title V, § 504(a), Oct. 13, 1978, 92 Stat. 1184, provided that amendment by Pub. L. 95–454 was effective on first day of first applicable pay period which began on or after Oct. 1, 1981, except it could take effect with respect to any category or categories of positions before such day to extent prescribed by Director of Office of Personnel Management.

Notes of Decisions
Cited in 18 cases (2 in the last 5 years), 1977–2026 · leading case: Mark Kroll v. United States of Am. & United States Postal Serv., 58 F.3d 1087 (6th Cir. 1995).
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Mark Kroll v. United States of Am. & United States Postal Serv., 58 F.3d 1087 (6th Cir. 1995). · cites it 5× “§ 4503 does not authorize the USPS’s ESP, and therefore it is not an appropriate basis on which to determine that Kroll’s claims with regard to the ESP, whether contractual or tortious in nature, exist independently of his employment relationship with the USPS.”
Hayes v. United States, 20 Cl. Ct. 150 (Ct. Cl. 1990). · cites it 5× “Despite the Fifth Circuit’s conclusion that the USPS Employee Suggestion Program is authorized by 5 U.S.C. § 4503 , Hayes, 859 F.2d at 356 , that statute is not applicable to the USPS.”
Contreras v. United States, 64 Fed. Cl. 583 (Fed. Cl. 2005). “Presumably, work evaluations and promotions are enhanced by such activity- To draw an analogy, FLEPRA is much closer to the civil service incentive award program, 5 U.S.C. § 4503 (“section 4503”), than it is to the informant award statutes in the Tyson line of cases.”
Anderson v. United States, 73 Fed. Cl. 199 (Fed. Cl. 2006). · cites it 4× “That program is authorized by 5 U.S.C. § 4503 , which provides: The head of an agency may pay a cash award to, and incur necessary expenses for the honorary recognition of, an employee who— (1) by his suggestion, invention, superior accomplishment, or other personal effort…”
Cooley v. United States, 76 Fed. Cl. 549 (Fed. Cl. 2007). · cites it 2× “5 U.S.C. § 4503 . The amount of incentive awards is capped by statute.”
Rosano v. United States, 9 Cl. Ct. 137 (Ct. Cl. 1985). “The governing statute provides that the head of any agency “may pay a cash award to * * * an employee who (1) by his suggestion * * * contributes to the efficiency, economy or other improvement of Government operations * * 5 U.”
Grismac Corp. v. United States, 214 Ct. Cl. 39 (Ct. Cl. 1977). “That it knew how to do so when it wished is evident from 5 U.S.C. § 4503 , which authorizes payment of cash awards for the honorary recognition of an employee [of the Government] who (1) by his suggestion [emphasis supplied], invention, superior accomplishment, or other personal…”
Griffin v. United States, 215 Ct. Cl. 710 (Ct. Cl. 1978). “It was also pointed out that under 5 U.S.C. § 4503 , suggestions by defendant’s employees fared the same as designs.”
James Hayes, Jr. v. United States Postal Serv. & the United States of Am., 859 F.2d 354 (5th Cir. 1988). “Compare 5 U.S.C. § 4503 with 10 U.S.C. § 1124 . Thus, under Griffin , such a contract if it arises is not part of an “employment contract.”
McGee v. United States, 5 Cl. Ct. 480 (Ct. Cl. 1984). “The statute involved, 5 U.S.C. § 4503 , provides that the head of an agency “may” pay a cash award for employee suggestions.”
Rickard v. United States, 11 Cl. Ct. 874 (Ct. Cl. 1987). “The defendant points to the civil service incentive award program contained in 5 U.S.C. § 4503 (1982) which provided that “the head of an agency may pay a cash award to * * * an employee who * * * by his suggestion, invention, superior accomplishment, or other personal effort…”
Nat'l Treasury Employees Union v. Fed. Labor Relations Auth., 793 F.2d 371 (D.C. Cir. 1986). · cites it 2× “In April 1981, IRS proposed to implement on a trial basis, in its Philadelphia Service Center, a new incentive pay program for data entry operators, as authorized by 5 U.S.C. § 4503 (1), which provides that an agency may reward an employee who “by his suggestion, invention,…”
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