The hearings confirmed that federal agencies were  retaining employees in an ongoing series of temporary appointments for  long periods (8 to 10 years) without benefits or tenure. Over the 10-year period, these 10 agencies accounted for slightly over 90  percent of all temporary limited employees hired governmentwide. The number of temporary limited employees hired governmentwide  declined by about 47 percent from fiscal year 1991 to fiscal year 2000. These employees received  some benefits, including annual pay adjustments, overtime pay, and  premium pay. From fiscal years 1991 through 2000, the  majority of temporary limited employees were full-time hires. Agency  officials’ responses indicate that 37 percent of the temporary limited  employees hired in fiscal year 2000 in their agencies were for seasonal  work. The most often reported occupational series  for fiscal year 2000 was the office automation clerical and assistance series. OPM stated  that its intention in revising the regulations was to ensure that temporary  limited employees were used to meet truly short-term needs and were not  serving for years under a series of temporary appointments without many  of the benefits afforded other long-term employees. An OPM official said that OMSOE routinely includes some individual  temporary appointments in its periodic oversight reviews but generally  does not look at the work history of temporary limited employees serving  in those appointments. In 1994, OPM revised its regulations governing temporary limited  employees, generally creating a 2-year limit for each temporary  appointment. Our objectives were to (1) identify the  federal agencies that are the predominant users of temporary limited  employees and the job characteristics of such employees (including work  schedules, occupations, grade levels, and benefits); (2) discuss the primary  reasons agencies give for using temporary limited employees; and  (3) compare the federal government’s use of temporary limited employees  with that of the private sector.
What GAO Found

In the early 1990s, concerns arose that federal agencies were retaining employees in an ongoing series of temporary appointments without benefits or tenure. For fiscal years 1991 through 2000, 10 agencies accounted for 90 percent of all temporary limited employees hired governmentwide. During this period, the number of temporary limited employees hired governmentwide declined by 47 percent--from 282,135 in fiscal year 1991 to 150,395 in fiscal year 2000. Most temporary limited employees were full-time hires in white-collar jobs who received some benefits, including annual pay adjustments and premium pay. A survey done at the 10 agencies indicated that seasonal work was the primary reason for using such employees, followed by peak workloads. The office automation clerical and assistance series was the most often reported occupational series for fiscal year 2000. Recent studies suggest that federal agencies and private sector firms use temporary employees for similar reasons--often staffing flexibility. Because temporary limited employees were serving for years under temporary appointments without the benefits afforded other long-term employees, the Office of Personnel Management (OPM) revised its regulations in 1994 to ensure that temporary employees were "used to meet truly short-term needs." The revised regulations created a two-year limit for individual temporary appointments in both the competitive and excepted service. OPM officials said that the Office of Merit Systems Oversight and Effectiveness, when assessing agencies' compliance with personnel laws and regulations, routinely included some individual temporary appointments in its periodic oversight reviews, but generally did not look at the work history of temporary limited employees in those appointments. OPM data show that many temporary limited employees hired in fiscal year 2000 had worked for the federal government for at least five years.