What is “Title 5” and what does it mean to be covered by it or exempt from it?
“Title 5” refers to Title 5 of the United States Code, the section of law dealing with federal employment in general.

Certain agencies—or parts of agencies, or classes of employee within an agency--have been exempted fully or partially from its requirements either for various reasons, including by being designated a “demonstration project” to test alternative personnel practices.

Title 5 exemption can allow for separate policies in areas including job classification, incentive programs, performance evaluation, awards and promotions; many also use pay banding, which replaces grade and step salary structures with more flexibility in setting and increasing pay. However, government-wide rules typically continue to apply in areas such as veterans preference, discipline, appeal rights, anti-discrimination policies, and general benefits policies.

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