President Obama in February called for a 0.5 percent pay increase for federal employees to be effective in January 2013. Congress was expected to either approve or block the raise, which was included in the president's proposed budget for fiscal year 2013. But as of now, federal workers are still wondering whether the two-year pay freeze that began in January 2011 will be extended for another year.

What happened? Obama just before the Sept. 30 close of fiscal year 2012 signed a six-month continuing resolution that did not include the proposed across-the-board pay increase for General Schedule employees or preclude it from being implemented after the CR expires at the end of March. Obama in an Aug. 29 letter to congressional leaders said he still was calling for the 0.5 percent pay raise in calendar year 2013, but not for the period covered by the CR.

Before the CR expires, the president and Congress will need to determine whether or not to include the proposed pay raise in legislation needed to fund federal agencies for the rest of FY 2013. However, if they are unable to agree on such legislation, there is also the possibility of another CR, which would increase the chances of agencies being funded at levels that likely would preclude the pay raise.

There is also the question of whether any pay increase would be effective at the end of March or retroactive to the beginning of calendar year 2013. Federal employee unions are pushing for a retroactive pay increase, but regardless of the results of the national election Nov. 6, the appetite in Congress and the administration for such an increase likely will be lacking.

The two-year pay freeze did not apply to step increases or promotions, meaning that some federal employees' income has increased during the period. But federal workers across the country, along with potential job applicants for federal positions, will be looking to Capitol Hill next year for additional clarity on the matter of the missing compensation.

In other public sector news:

• The House approved by unanimous consent legislation (S. 743) that would strengthen federal employee whistleblower protections, but the House-passed bill did not include provisions that would have provided federal workers with the right to jury trials. The Senate is expected to pass the revised legislation in November, and President Obama is expected to sign the measure.

• President Obama signed legislation (S. 300) requiring federal agencies to put new controls on government charge cards, along with another bill (S. 3625) to delay until Dec. 8 the effective date of online financial disclosure requirements under the STOCK Act that would affect more than 28,000 upper-level federal employees. 

• Chicago teachers ratified a three-year contract, ending a strike that sent 26,000 teachers to picket lines while 350,000 students stayed home for seven school days. 

• The Labor Department's Office of Inspector General said in a report that DOL's Office of Labor-Management Standards could strengthen its audits of labor unions' compliance with the Labor-Management Reporting and Disclosure Act by instituting better procedures for targeting, evaluating, and following up on investigations.