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Summary:
More than 41,000 white-collar federal civilian employees, including U.S. Postal Service
employees, are stationed in the following ?nonforeign? areas outside the contiguous United
States: Alaska, Hawaii, Guam, the Commonwealth of Northern Mariana Islands (CNMI), Puerto
Rico, and the U.S. Virgin Islands (USVI). These employees receive nonforeign cost-of-living
allowances (COLAs) in addition to their regular pay. Nonforeign COLAs, which are authorized
by 5 U.S.C. § 5941 and Executive Order 10000 (as amended), were first enacted in 1948 to aid
federal white-collar job recruitment in nonforeign areas outside the contiguous United States or in
the Alaska territory where ?living costs [are] substantially higher than in the District of
Columbia.? Nonforeign COLAs have faced legal challenges because they create differences in
pay between employees who receive a nonforeign COLA and employees within the contiguous
United States who, instead, receive locality-based comparability pay.
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